The Marketing Plan- UK Sustainable Energy Limited
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Type of Academic Paper – Assignment
Academic Subject – Business
Word Count – 2736 words
Executive Summary
This report aims to present a market overview and marketing audit to provide market information to the UK Sustainable Energy Limited based on past performance, future trends, and market share of renewable energy companies in thUK’s’sthUK’s’s renewable energy sector. UK Sustainable Energy Limited will launch Renewable Jet Fuel to ensure a reliable base for future energy needs of the UK. To analyse market overview and internal and external analysis of thUK’s’sthUK’s’s renewable energy market, different models have been used, including SWOT, PESTLE, anPorter’s’sanPorter’s’s five forces competitiveness analysis. Based on SWOT and PESTLE analysis, it has been identified that the UK renewable energy market has investment opportunities and produces a new product to enhance market share and competitiveness in the business environment. To promote a newly offered product, UK-SE is suggested to use product giveaways promotional programme to promote the development and acquire high customer acquisition.
Introduction
In the UK, the renewable energy and sustainability industry is committed to reducing carbon dioxide emissions and carbon footprints by approximately 50% by 2020. In this regard, the UK’s renewable energy industry needs to increase its renewable energy sources’ usage progressively. According to Jacobson and Delucchi (2011), the UK has massive and valuable energy sources. However, the UK has still relied on oil, coal, and gas consumption to support businesses, supply energy to homes, and give power to transportation. For this purpose, UK Sustainable Energy Limited will launch a new product named Renewable Jet Fuel to make sure that they use most of the renewable sources to provide an assured and reliable base for the future energy needs of the UK. This report aims to assist the UK Sustainable Energy Limited covering 12 months marketing plan for the new product” “Renewable Jet Fu” l”. The following report is intended to present a market overview and marketing audit to analyse past performance, future trends, and market share of renewable energy companies in thUK’s’sthUK’s’s renewable energy sector. This will help the firm analyse the opportunities and threats existing in the market that are likely to influence the development of the new product.
In addition to this, the following report is also intended to present an internal and external analysis of the market to provide essential information to the firm regarding potential, influential factors, including political, economic, social, technological, legal, environmental, competitorsporter’s’scompetitorsporter’s’s five forces, SWOT, and marketing mix variables. To analyse the factors’ impact on product development, different models are approached, such as SWOT analysis, PESTLE analysis, marketing mix, anPorter’s’sanPorter’s’s five forces competitive analysis.
Corporate Objectives
According to a report conducted by Adib et al. (2016), UK Sustainable Energy Limited is determined to launch a new renewable energy production based on their following corporate objectives:
- To offer renewable energy solutions to commercial and industrial clients.
- To build long-lasting relationships using consistent reappraisal and proper energy performance mechanisms.
- To increase the energy proportion from using renewable sources that ultimately increase energy supplies assurance in the UK.
Market Overview
As stated by Twidell and Weir (2015), the renewable energy market in the UK is based on the generation of renewable heat, renewable electricity, and renewable energy use in the transport and energy sector, particularly in the aviation industry. According to a report conducted by the National Research Council (2010), the consumption of non-hydroelectric renewable power has increased by 14.1% during 2016. The renewable sources for generating electricity and fuel include conventional geothermal and hydroelectric, wind, solar, and biomass. Within the energy sector, technological advancements in aviation technology influenced the renewable energy market to produce renewable energy sources for the aviation industry to reduce carbon emissions. In 2018, an increase in the demand for renewable jet fuel influenced the renewable energy market to produce jet fuel in high quantities. It has been stated by Bale et al. (2012) that several leading renewable energy companies in the UK has acquired a considerable amount of market share in the renewable energy and sustainable market, including British Gas, First Utility, Npower, Utilita, E.ON, EDF, Co-operative Energy, etc. British Gas is the leading domestic electricity supplier through renewable sources with a market share ranging from 22% to 25%. On the other hand, Foxon, Hammond and Pearson (2010) stated that other leading energy supply from renewable sources has also acquired a considerable market share in the UK energy market as mentioned in the chart below:
Figure 1: Market Share of thUK’s’sthUK’s’s Leading Renewable Energy Suppliers in 2017
Within the energy sector, technological advancements in aviation technology influenced the renewable energy market to produce renewable energy sources for the aviation industry to reduce carbon emissions (Mathiesen, Lund, and Karlsson, 2011). In 2018, an increase in the demand for renewable jet fuel influenced the renewable energy market to produce jet fuel in high quantities.
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Marketing Audit (Internal and External)
Marketing Mix
Unlike other renewable energy companies, UK Sustainable Energy Limited is pursuing a marketing mix approach to deliver their produced renewable products to the UK’s renewable energy market. The combination of the product price, feature, promotion, and place has made the production process and marketing approach feasible for the UK Sustainable Energy Limited to achieve considerable market share and competitiveness based on a product feature, price, place, and promotion as demonstrated below:
Product
UK-SE specialised in supplying inexpensive green electricity solutions through roof-mounted solar systems and ground-mounted solar parks. These products are channelled directly to high energy-using sectors and facilities with no capital cost to the customer based on demand. They are also determined to offer other bespoke sustainable energy products that entail, but are not limited to, geothermal and biomass. Regarding this, UK-SE needs to consider these attributes while introducing new energy sustainable energy products in the market.
Price
UK-SE has adopted low and cost-effective pricing strategy to deliver its products to the UK market and acquire a high market share compared to its competitors. Since UK-SE is determined to launch a new product in the market, this pricing strategy could be effective for the launch of Renewable Jet Fuel in the UK renewable and sustainable energy market.
Place
Channels through which ground and roof-mounted solar systems are sold include installers, suppliers, and developers. Developing a strong and effective supplier network is essential for increasing demand and directly focusing on selling and distribution.
Promotion
UK-SE has adopted several promotional techniques to promote their products, such as direct marketing and personal selling promotional approaches.
SWOT Analysis
Based on product attributes and features, the SWOT analysis of UK Sustainable Energy Limited is demonstrated in the figure below to analyse the internal analysis of the renewable firm.
Strengths
- Acquired a good position in the renewable energy market
- Focused on most promising technologies for converting renewable sources into renewable and sustainable energy products
- Excellence in providing renewable energy sources
- Technology and fuel security
Weaknesses
- Lack of knowledge transfer and cooperation between political enterprises and authorities
- The strained financial situation in the communities
- Low public acceptance of geothermal energy and thus no thermal power plant is available.
- No effective instrument to encounter a socio-economic split in affordability of renewable energy installation
Opportunities
- Biomass and gas provide a great opportunity to UK-SE for regional renewable energy production.
- The demand for low carbon-emission in transportation and aviation sector
Based on SWOT analysis, it could be said that through the launch of new renewable energy in the UK market UK-SE can effectively exploit opportunities provided by the UK renewable energy market and reduce the risk of threats and thus enhance the corporate image and competitiveness in the UK renewable energy market.
Threats
- Brexit
- Lack of collaboration among regions
- Climate change
PESTLE Analysis
To examine the external analysis of the UK’s renewable energy market, PESTLE analysis has been used to reveal the influence of macro-economic variables on the market performance of renewable, sustainable energy companies existing in the UK’s renewable energy market. Each factor of PESTLE analysis is illustrated below:
Political
In Cotula (2012), one of the major political factors that can impact renewable energy companies is political restrictions associated with the contracts and laws. Research and development and tourism policy can influence the UK renewable energy market positively. However, terrorism and political instability in the UK are a major political concerns for the security of energy supply to the local market. It is anticipated that the renewable energy sector is likely to acquire extensive political support from the government institutions of the UK as a substitute for heavy reliance on the importation of renewable energy. This will develop favourable opportunities and atmosphere for investment in the UK renewable energy sector.
Economic
It is stated by Boons et al. (2013) that the economic development or economic crisis can influence the market performance of the UK renewable energy sector. The annual increase in the UK’s GDP has been reported in 2017, which forecasts the development of more renewable energy products and increases the market performance and position of the UK energy renewable market worldwide.
Social
The success and effectiveness of renewable energy as an alternative and environmentally friendly energy source are always questioned by its sustainability and energy market scope. In this regard, a renewable energy firm needs to pursue corporate social responsibility to acquire success and competitiveness in the market. Panwar, Kaushik, and Kothari (2011) stated that social acceptance and appraisal of climate change could encourage people to consume renewable energy as an electricity or fuel source. This reveals that renewable energy products’ social impact is a major factor that needs to be considered while producing renewable energy products.
Technological
The appropriate technological skills and competencies are required to fulfil the increasing demand for renewable energy sources. Cronin et al. (2011) stated that technological advancement in the energy market influences firms to produce such a product that can meet the suppliers and consumers’ needs and demands. In this regard, renewable energy firms need to consider developing, retaining and managing their human capital for large renewable energy products. Advancement in biotechnology and energy technology can also influence the performance of the renewable energy market of the UK.
Legal
Legal factors that can influence the UK renewable energy sector’s market performance include regional laws, environmental safety rules and regulations, and taxation policy. Regarding this, UK-SE needs to consider these factors while introducing a new product on the market.
Environmental
Environmental factors such as climate change, resource management, and sustainable production of renewable energy are likely to influence renewable energy sector performance. For this purpose, UK-SE must be focused on environmental factors to launch a new product in the UK renewable energy sector.
The PESTLE analysis of the UK renewable energy market revealed that the external environment or factors are feasible for developing a new product offered by the UK-SE.
Porter’s 5 Forces Competitive Analysis
In order analyse competitive analysis within the UK renewable energy sector, porter’s five forces model has been used for analysing the trend of rivalry and threats of new entrants in the UK renewable and sustainable energy market as mentioned in the figure below:
Based on figure 3, it has been identified that the threat of rivals in the UK renewable energy market is low as well as the threat of new entrants is also low that causing restrictions for the new entrants or firms to capture the market size easily in the UK renewable energy market. Moreover, suppliers’ bargaining power and buyers are also low as switching cost is extremely high and renewable products are less available to the consumers. This reveals that competition for the firms in the UK renewable energy market is low. The inauguration of the new product provides uniqueness and competitiveness to the UK-SE in the UK market of renewable and sustainable energy production.
Market Assumptions
Based on market overview and market audit analysis, it could be assumed that Brexit is likely to enhance the development of the renewable energy market as the UK would be released from its renewable-energy agreements under the ‘EU Renewable Energy Directive’ and also would be released from EU state aid restrictions, which could potentially provide the government higher levels of freedom and opportunity both in the phasing and designing of renewable-energy regimes.
Marketing Objectives
Following the impact of Brexit on the renewable energy sector of the UK, UK Sustainable Energy Limited is determined to achieve the following marketing objectives:
- To launch a new product in the UK renewable energy market for acquiring high brand awareness in the market.
- To increase sales profit by 30% within the twelve-month period.
- To increase market share by 27% in the UK renewable energy market.
Marketing Strategies
To launch a new product in the renewable energy market of the UK, UK-SE can use a marketing mix strategy that will help the firm to place new product effectively in the market as mentioned below:
Product
As the newly launched product has renewable energy or fuel production competencies for the aviation industry; hence, it will form a quality energy source for the aviation industry.
Price
To place an order in the market, UK-SE should use a low-pricing strategy and initially charge a low cost for the newly offered product.
Place
The newly launched product should be placed in solar energy shops near airports and suppliers and installers.
Promotion
The effective promotion of a product could be achieved through advertising and public relation promotional programmes. The firm can also use mail-order marketing to promote the product effectively.
Promotional Programme for Twelve Months
To promote Renewable Jet Fuel in the UK renewable energy market, Product giveaways promotional programme is recommended to the UK-SE that allows potential buyers to use a sample of the product. It will entice buyers for trying the new product in the market. According to Alexander and Sacket (2013), product giveaways is an effective promotional strategy or programme that makes new products introduced by the firm visible to the consumers and make a distinctive position in the consumers’ minds. This strategy is adopted by household and consumers’ good companies, which sponsors in-store promotions and give away samples of the product to attract consumers to facilitate their buying behaviour towards that product.
References
Adib, R., Murdock, H.E., Appavou, F., Brown, A., Epp, B., Leidreiter, A., Lins, C., Murdock, H.E., Musolino, E., Petrichenko, K. and Farrell, T.C., 2016. Renewables, 2016 Global Status Report. Global Status Report RENEWABLE ENERGY POLICY NETWORK FOR THE 21st CENTURY (REN21).
Bale, C.S., Foxon, T.J., Hannon, M.J. and Gale, W.F., 2012. Strategic energy planning within local authorities in the UK: A study of the city of Leeds. Energy Policy, 48, pp.242-251.
Boons, F., Montalvo, C., Quist, J. and Wagner, M., 2013. Sustainable innovation, business models and economic performance: an overview. Journal of Cleaner Production, 45, pp.1-8.
Cotula, L., 2012. The international political economy of the global land rush: A critical appraisal of trends, scale, geography and drivers. The journal of peasant studies, 39(3-4), pp.649-680.
Cronin, J.J., Smith, J.S., Gleim, M.R., Ramirez, E. and Martinez, J.D., 2011. Green marketing strategies: an examination of stakeholders and the opportunities they present. Journal of the Academy of Marketing Science, 39(1), pp.158-174.
Foxon, T.J., Hammond, G.P. and Pearson, P.J., 2010. Developing transition pathways for a low carbon electricity system in the UK. Technological Forecasting and Social Change, 77(8), pp.1203-1213.
Jacobson, M.Z. and Delucchi, M.A., 2011. Providing all global energy with wind, water, and solar power, Part I: Technologies, energy resources, quantities and areas of infrastructure, and materials. Energy Policy, 39(3), pp.1154-1169.
Mathiesen, B.V., Lund, H. and Karlsson, K., 2011. 100% Renewable energy systems, climate mitigation and economic growth. Applied Energy, 88(2), pp.488-501.
National Research Council, 2010. Electricity from renewable resources: Status, prospects, and impediments. National Academies Press.
Panwar, N.L., Kaushik, S.C. and Kothari, S., 2011. Role of renewable energy sources in environmental protection: a review. Renewable and Sustainable Energy Reviews, 15(3), pp.1513-1524.
Twidell, J. and Weir, T., 2015. Renewable energy resources. Routledge.
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