Business-to-Business Communications for Ecotricity - Case Study Example

Introduction The company chosen for analysis is known as Ecotricity. This is a renewable energy product and service provider that offers wind energy to consumers all over the United Kingdom. The company is well known for its ability to meet consumer needs through its flexible tariffs, competitive prices and friendly services. Given the magnitude of business within such a company, it is essential to study the exact role of marketing communications and to determine whether the company is actually utilizing the benefits that a good communications plan can offer them. Task 1: Company analysis Segmentation analysis The company under consideration has divided its client base based on their product preferences (it should be noted that ‘product’ in this case encompasses both services and products offered by Ecotricity). In other words, they use differentiated marketing in which dissimilar market segments have been identified and different services offered to each. However, certain segments take up more attention than others. For instance, the company has segmented according to price with some consumers getting more energy for a higher price and vice versa. (ERPS, 2008) There is segmentation by size in that some consumers may purchase renewable energy for their homes while others do it for their businesses. Also, there is segmentation by purchasing behaviour; here those consumers that opt for annual supply will be offered a different package compared to those who prefer switching from one energy supplier to another. As it can be seen from the latter examples, there are numerous ways in which this company can further improve its segmentation strategy so as to boost achievement of their objectives. There are still other segments in the renewable energy market that are yet to be exploited by Ecotricity. For instance, it needs to look at other segments in the conventional electricity sector such as segmentation by media platforms. Positioning Ecotricity usually pursues a marketing strategy that is more functional than symbolic or experiential. In other words, the company has positioned itself as a problem solver or a company that offers numerous benefits to its clientele. It has done very little to look at symbolic positioning in which it could promote its elf image. Alternatively, issues such as ego identification or affective fulfilment have not yet been fully exploited by this company. In other words, it needs to re-examine ways in which it could position itself as company that solicits great customer loyalty through its self image. All these issues have their implications on the company’s communication strategy if it chooses to implement them Aside from the latter positioning strategy, this company has also not pursued an experiential positioning strategy. This is largely because they offer energy services rather than products. It would therefore be difficult to cause cognitive or sensory stimulation. However, they can still be able to achieve this if they get creative. For example, they can demonstrate the benefits of their products or services in the lives of their clients; this will stimulate visual messages. (Braodbent, 2003) However, it should be noted that the company has been able to achieve some substantial things through its communication strategy. For example, it has been able to convey the idea that it is renewable energy provider. Upon visiting the company website, one finds that all its web pages are green in colour; a suitable choice that conveys what they do i.e. they offer green energy. The second aspect that this company emphasizes is with regarded to its service provision. The company has positioned itself as one of the most efficient and reliable renewable energy providers within the United Kingdom. This is seen through its tariffs, customer service, energy installation processes and other aspects of its business environment. (ERPS, 2008) In other words, this also implies that many people respect Ecotricity when it comes to energy provision. Although there are numerous providers in the market today, this company has specialized in wind energy as its product of choice. This is actually one of the aspects that has offered it a competitive advantage. It is therefore seen in the eyes of its consumers as being a huge contributor to the problem of high energy use or excessive carbon foot prints. This point is further emphasized by the fact that the company is among one of the pioneers of this product within the electricity supply market. Consequently, it enjoys first mover advantage. Aside from that, customers identify Ecotricity as a company with very fair switching costs. Upon examination of some of the latest trends within the market, one finds that its competitors have higher switching costs and more complicated procedures for changing from one tariff to the other. Brand name There is strength in the latter company’s brand name as it conveys the major goal of their business prospects i.e. to offer eco-friendly electricity summarised through the word Ecotricity. Such a name easily sticks in the minds of its target consumer base since they are likely to remember a company name that captures the very essence of the services they get from them. While the latter company has done a very good job in thinking of such a brand name, there are still a few other things that have not been captured in it. First of all, the brand name does not convey some of the ways in which their product can be used or it does not show hat makes the company’ services and products unique from their competitors. This also means that its brand name does not show some of the product classes that they have in offer. Consequently, all these issues that are lacking need to be considered while the company is making its communication strategy. By including the latter elements, then they can go a long way towards strengthening their position in this highly competitive business arena. Communications strategy The latter company has a taken rather different approach to communication in that they think of it as that bond that holds different product types in the market together. In other words, their communications strategy aims at showing why this particular company stands out from the pack or why it is different from any other energy provider within the market. At this point, it is essential to note that there are some missing elements in such an approach. The company needs to realize that their communications allow them to dialogue and interact with the world. Consequently, their strategy needs to include a two-way aspect in which the company eventually interacts with its audience. In other words, a good communication strategy needs to reflect how the company designs, listens and delivers audience related needs and how they obtain feedback about the impact that their communications have made. (Brown, 2004) Ecotricity takes its communications seriously and this is why the company has not chosen to outsource this function. Instead, it has chosen to dedicate a committed team towards making their communications work. Also, the company usually allows its communications team to work with flexible budgets that are designed to meet their specific needs. Upon analyzing such an approach, one can see that this company sees communications as a means of achieving their core objectives and goals. There are certain elements that are required in order to make any communications strategy pass as an effective one. Ecotricity has tried to cover some of them and they include Identification of communication objectives Identification of audiences Identification of the message behind the communications Choice of communication channels All the latter issues are important parts of any good communication strategy because the capture the very essence of communications. However, there are still certain elements that have been omitted. For example, before carrying out any communications, the company needs to review its past communications and then analyse how their audience has been receiving or perceiving their entire company. This can go a long way towards providing the company with a direction which they must follow when setting their communications objectives. (Jetkins, 1999) Ecotricity also needs to improve its communication strategy by surveying all the communications baskets or products available to this respective company and then think of ways in which they can change its communications products so as to best capture their objectives. It is also essential to remember that there are a series of communications resources that are needed in order to make a company good at this process. They need to focus on how they can change their hardware and software in order to maximize their communications skills. The issue of timing cannot be forgotten in any communications strategy. Ecotricity needs to think of whether working with a staged communications strategy can be the most effective way of doing things or whether there are certain events that could necessitate instant communications. After identification of these events, then the company needs to plan how best to incorporate them in their communication outline. Aside from that, the company strategy ought to reflect how it can improve its brand. One way of achieving this is by working on the message content of their communications so as to ensure that their target audience is receiving the right thing. Lastly, feedback is an essential element in any communication strategy because it can go a long way towards maximising the outcomes of communication. For instance, this can provide a direction against which the company can change its tools, time, budget and influences in the long term. (Krishnamurthi & Papatla, 2004) Task 2: Communications plan Audit Ecotricity needs to have a direction that will guide them in subsequent processes by looking at their past communication strategies. Consequently, the communications plan will start by assessment and reviews of its performance in previous communication efforts. Here, there will be an examination of three things: The state of general communication at Ecotricity The manner in which Ecotricity has been communicating internally and externally in the past How intended audiences perceived Ecotricity Communication objectives There is one general communication objective that will govern communications in this company and it is ‘To make clients understand, through effective communications, that Ecotricity is a leading energy provider in the UK region’ There are two specific objectives that will be covered in this communication plan and the include; 1) To heighten the effect of communications tools on organisational clients by seeing a 10% increase in sales revenue 2) To ‘sell’ Ecotricity as a superior brand in the energy market All the latter objectives can be assessed for their effectiveness. The general objective embraces the fact that communication in Ecotricity is central to its success. Also, it depicts the fact that the company’s performance has been underexploited and that if it pursues effective communications, then it can improve such a situation. The specific objectives are designed in such a way that they capture some of the deficiencies in the current communication strategy within this company. Also, they are design to boost some of the faults that had been found in its positioning, segmentation and brand name approach. (Buskirk & Bwon, 2001) The first specific objective concerns a direct aspect of communication with regard to the use of communication tools. Additionally, this second objective also captures aspects of external communication and how this company can maximize on it. The effectiveness of this objective will be assessed through an analysis of sales revenue. The second specific objective is also linked to external communication and it is derived from an analysis of Ecotricity’s positioning strategy. In the analysis, it was found that the company has underexploited symbolic positioning in which it needs to boost the public’s understanding of its self image. The latter objective will be assessed by making consumer reviews about their perception on Ecotricity after the media campaign Key messages There are several messages to several audiences in this communications plan. Each message is divided into three phases i.e. description of an approach, the possibilities and policies that need to be adopted. The first specific objective covers the external clients. Consequently, the key message being conveyed concerns Ecotricity as a company, what it can do and how it can best serve the needs of the client. The third specific objective also gives direction on another key message in the communications plan; that Ecotricity is a superior brand. Here, customers will be told about all the professionalism within this company, its high quality of service and its dependability. Great emphasis will be given to the name of the brand as related to its product attributes, its service offerings, what makes Ecotricity’s offers unique and what would cause a customer to leave one company for another. This will best be done through public relations endeavours. The different tariffs that Ecotricity offers and how best to use their products will also be included. As it was seen earlier, these were all issues missing from the company’s brand image. Communications mix and media There will be a series of communication mixes chosen depending on the target audience. In the case of the messages to its external environment, television/ radio advertising will be used, web advertising, magazine and web advertising. (Fill, 2006) TASK 3: a brief on what the communications agency will work on 1st month: consumer research First of all, a background check needs to be done by the communication agency where it will look at where Ecotricity is in terms of communication both locally and regionally. This can best be conducted by doing consumer research. 2nd month: Objective clarification The major objectives governing the communications campaign are ‘to boost Ecotricity’s company image’ and ‘to use more communications tools with its target client base’(Roderick, 2002) 3rd Month: message clarification The messages that will be covered in the campaign are’ Ecotricity is a people centred organisation as it cares for members of the society.’ ‘Ecotricity will go through great lengths to meet its customers’ needs.’ ‘Ecotricity offers practical solutions to reducing one’s energy costs’ ‘Ecotricity is the new name in energy provision.’ ‘Ecotricity conserves the environment.’ ‘Ecotricity is the way to the future.’ 4th month: target audience identification The groups being targeted here include; Potential clients who have never used clean energy Renewable energy consumers who go to Ecotricity’s competitors Current clients who have not yet fully exploited all the services and products prevalent within this company 5th month: influences A list of all the important influences in the campaign needs to be considered; here, all the national, regional and international communities interested in their product offerings will be addressed. 6th month and 7th months: identification of an approach and activities to be pursued The major approach to be followed within the communications campaign is convincing consumers about the benefits of doing business with Ecotricity. Some of the activities that will be included are televisions and radio interviews, creation of advertisements, dissemination of print advertisements, creation of web advertisements, working on outdoor advertising, sales promotions and public relations activities. 8th and 9thj month: allocating money and mobilizing people This section will be one of the most crucial because it will determine exactly how successful the entire communication process will be. Here, different groups will be identified to implement the communication mixes. Additionally, an effective budget will be identified in order to ensure that there are efficient ways of carrying out this particular project. 9th, 10th, 11th month: Implementation of the communications platforms Here, all the work that will have been detailed in subsequent parts of the campaign will now be carried out from dispensing newspaper advertisements to doing public relations endeavours among others. 12th month: evaluation This section will be crucial because it will determine exactly how effective the communications strategy really is. Here another customer review will be carried out where consumers will be asked about what they know concerning the company. (Ogilivey, 2003) TASK 4: The agency’s ideas The agency’s ideas differ slightly from the short brief because they will consider almost all the issues that must be carried out when making a communications campaign. This section is designed in order to do marketing for Ecotricity. There will be a series of supporting activities that range from direct mail, print advertising, sales promotion, internet advertising and public relations. The company will employ some differentiated marketing so as to draw different target consumers and clients. A launch date will be in the month of January. This time is crucial because at this point, consumers are just starting their year and are making decisions concerning their energy expenditure. The budget for this communications campaign is two million pounds. The objectives for the communications agency will be to create awareness of Ecotricity in the UK region. The second objective is to increase the company’s market share through effective communications. The target audience for this communications campaign will be divided into various geographical segments. In other words, the entire UK region will be divided into 15 mile radii. Additionally, the target audience will be divided based on income levels. Some of the potential consumers are those ones who earn either middle or high incomes and they may either be city or non city dwellers. Two programs will be created to suit the different target markets. For instance, there will be different campaigns to reach the middle income consumers and another one to reach the affluent consumers. (Crimp & Wright, 2001) The main message being disseminated is ‘no more stress over your electricity bill’ this message will be designed to capture the attention of the audience by marketing the core purpose of Ecotricity which is to offer alternative fuel. Through this alternative, then all the challenges that people are currently undergoing with their conventional electricity bills will be elliminated. This message will be spread in different ways to the different segments. The first segment of the middle income consumers will be told about how affordable Ecotricity’s energy is. The second segment of the affluent consumers will be told about how convenient it is and how it conserves the environment. Print advertising will take up a substantial amount of the communications campaign with the main essence of using it being to generate interest in Ecotricity. This will be done by evening and daily presses. If a series of publications are issued over a period of twenty four days, then chances are that it could cost the company about two hundred and seventy thousand pounds. Outdoor advertising will be conducted by selecting four thousand items in the different geographical segments. Here sheets will be placed in bus stations and may cost the company about seven hundred thousand pounds. Outdoor advertising will play an important role in awareness raising. Internet adverting will encompass a series of approaches. First, the company will create banner advertisements that will be displayed in a series of common websites all over the internet. These advertisements will capture the essence of the company’s green energy and its relation to the commercial value. The banners will be created through cost per thousand impressions and may cost the company about sixty thousand pounds worth of their expenditure. The company’s website will be redesigned and also there will be other promotional ads that will bring the entire internet expenditure to one hundred and twenty thousand pounds. The campaign will also take advantage of public relations where approximately one hundred thousand pounds will be spent. Here the company will disseminate press releases, newsletters, use news personalities to campaign for them and also conduct a series of interviews on television and radio. (Braodbent, 2001) The company will do sales promotions by offering clients a sample of free energy for the first two weeks that they use it. Additionally, there will be shopping vouchers dispensed so as to ensure that every individual has been covered. Lastly, it will be necessary to use some miscellaneous materials that will include t-shirts, catalogues brochures and leaflets. Also, direct mailing will be done in order to get to the set audience. All these will cost the company three hundred thousand pounds. Consumer evaluation will be done to analyse the effectiveness of the campaign. (Braodbent, 2001)A survey of about two thousand people will be carried out in the chosen geographical areas. The survey’s results will then be compared to initial targets and an analysis done. The latter promotion will take up the remaining amount of the budget. Conclusion The report is an analysis of marketing communication campaigns prepared for Ecotricity – an energy provider. The marketing tool that takes centre stage in this campaign is print advertising supported by internet advertising. Other methods include public relations, sales promotion and outdoor advertising. If carried out thoroughly, then it is likely that the communications objectives that had been set out will be effectively achieved. Evaluation of these issues will be done in order to ensure that the campaign is successful. References Braodbent, S. (2003). Advertising case histories. London: MC Grawhill publishers Boardbetnr, S. (2001). Advertising budget. Winston: Holt Ronhart publishers Brown, C. (2004). Sales promotion. Minneapolis: Kogan Publishers Buskirk, B . & Bwon, H. (2001). Cases and readings in direct marketing. Lincolnshire: NTC publishers Fill, C. (2006). Marketing communications. London: Prentice Hall Jetkins, F. (1999). Advertising Today. Sidney: International Textbook Company Ogilivey, D. (2003). On Advertising. London: Pan Books Krishnamurthi, L. & Papatla., P. (2004). “Dynamic effects of promotions on brand choice.” Marketing research journal, 36: 222 Roderick, W. (2002). Advertising – how to do it. London: McGrawhill Crimp, M. & Wright, L. (2001). Marketing research processes. London: Prentice Hall ERPS (2008). The UK renewable energy sector. ERPS Report Read More