Download What`s New From Panasonic?

“Think Nationally, Act Locally”
National vs. Targeted/Regional
Promotions in the Development of
ENERGY STAR qualified products
Overview
• In the past few years, Governments, Utilities and NGO’s
have invested a great deal in the promotion of ENERGY
STAR qualified products. Questions remain though as to
the effectiveness of these activities in the development of
long term change in behaviour patterns
• Have consumers been influenced by tax breaks, price
incentives, grants and product giveaways to make
permanent changes in their habits, or have they merely
created temporary opportunistic change?
• Have national promotions or targeted/regional promotions
been more effective in developing the repetitive behaviour
necessary to create long term energy conservation
habits?
• It is my thesis that the real change is created at a grass
roots level, and that targeted/regional promotions are
more likely to create change than broad based national
programs
Outline
• Overview
• Requirements for Effective Promotions
• Requirements for National & Regional/Targeted
Promotions
• Advantages of Regional/Targeted Promotions
• Target Selection
• Product Selection
• Delivery Partner Selection
• Promotion Plan
• Publicity
• Conclusion
• Contact Information
Effective Promotions
• Effective promotions meet the following
criteria
– Well defined target groups
– Exact understanding of the needs of the target
group
– Clear goals and objectives
– Compelling call to action for the target group
– Development of repetitive behaviour change
through meeting the needs of the target group
– Measurable results
National Programs
• Broad based national programs require the
following steps
– Identify the product to be promoted
– Identify the promotion method
– Procure or arrange for product supply from the
manufacturer/distributor
– Arrange a delivery partner(s) with national scope
– Create and prepare promotional collateral
– Plan publicity (paid advertising/media awareness)
– Launch and execute program
Regional/Targeted Program
• Regional/Targeted Promotions require the following
steps
–
–
–
–
–
–
–
–
–
Identify the region or target user
Identify the needs of the region or target user group
Identify the product to be promoted
Arrange a delivery partner with scope & expertise in the region
or target user group
Develop a promotion plan in context of the user needs, and
delivery partner expertise
Procure or arrange for product supply from the
manufacturer/distributor
Create and prepare promotional collateral
Plan publicity (paid advertising/media awareness)
Launch and execute program
Advantages of Regional/
Targeted Promotions
• Regional/Targeted promotions better meet the
“Effective Promotions” criteria noted earlier
– They tend to be more likely by their nature to have well
defined target groups
– They are more likely to allow for innovative delivery
methods, focussed on needs of the target user
– They are generally more cost effective, allowing for better
use of budgets
– They are more easily constructed to provide measurable
results
– They are more likely to produce long term habit changes, as
the promotion has been developed to meet the specific
needs of the group or region
Target Selection
• When possible clearly defined target groups or
regions should be selected.
– One of the major reasons for the success of the BC Hydro
Powersmart program has been its ability to develop specific
regional and user targets for each of its phases
• Seek to create maximum impact with minimal contact
– Planning a promotion which effects small change in a broad
based group can be more expensive and difficult to execute
than a tighter target group which can effect large change
• For example targeting builders with incentives for the
installation of ENERGY STAR qualified appliances in new
homes, could have greater impact, prove easier to execute,
and be more cost effective than a broad based consumer
program
• Providing retailers an incentive to only stock LED Holiday lights
could force consumers to change their habits, without the cost
of reaching out to the broader group of users
Target Selection
• Look for target groups which are pre-disposed to
change or that you perceive would have a clear and
obvious benefit from change
– For example independent retailers would obtain a clearer
and more obvious benefit in changing lighting from
Incandescent and Halogen to ENERGY STAR qualified
compact fluorescents than apartment dwellers who may not
pay their own utility bills
• Understand the needs of the target group
– Focus group your proposed target to fully understand their
needs
Product Selection
• Product Selection should be driven off the needs of
the target group or region
– Creating a promotion for ENERGY STAR qualified forced air
gas furnaces in Montreal would not make sense, while it
could produce excellent results in Toronto
• Look for the low hanging fruit
– Consider products which will create long term change within
the target group or region, will have maximum uptake, and
create the greatest energy savings within that group
• Consider unique options
– We often tend to look at the same products such as lamps,
heating/cooling and refrigeration. Consider new and
neglected categories such as LCD monitors, home
ventilation and home entertainment
Product Selection
• Balance cost with quality
– The ENERGY STAR label does not necessarily equal product
quality. It means that the product samples submitted to the
testing lab met the ENERGY STAR specifications. It remains a
key responsibility of the promotion sponsor, and your product
supplier to ensure that the product is of a quality to provide the
target users with a satisfactory experience and build long term
change
– Quality product may cost more money, but if it drives a
satisfactory user experience, it will lead to long term change,
and the creation of centres of influence who will expand that
change
• Consider the impact of Brand Equity
– Programs which involve respected brands have higher take-up,
and create greater user satisfaction than cost driven programs
which neglect Branding as a key component. Again Brand
equity is a cost factor, so scale the promotion to be able to take
advantage of this key driver
Delivery Partner Selection
• Choose the Delivery Partner that can execute the
task in the context of your target group or region
– For example if you have a target that is rural, select a
partner that has a broad base of distribution points within
that rural area
• Be certain your Delivery Partner will execute
– Do your research beyond looking at financials. Talk to users
in your target group, and get their thoughts about the
delivery partner,s capabilities and reputation. Visit their
operation and customers. Remember, just as product
branding reflects on your Brand, so does the selection of a
delivery partner
Delivery Partner Selection
• Think outside the box
– We all look to retailers as our Delivery Partners, but consider
the options available. Bear in mind that the closer you get to
the end user, the greater the trust, and the greater the likely
participation.
• If you were planning a farm based program for lighting,
consider a company calling on farms
• Similarly consider using home inspectors and Energuide
for Houses auditors to deliver programs
• Consider trade associations/buying groups as possible
delivery partners or coordinators of deliver partners
Promotion Plan
• The Promotion Plan needs to be innovative, effective
and centered around a call to action
• Typically ENERGY STAR promotions have involved
rebates, couponing, and product sampling
– While rebates prove effective (the higher the dollar value of
the offering, the greater the effectiveness), couponing and
sampling may be less effective in creating long-term change
• Be innovative
– Consider creation of integrated programs which enhance the
program. For example couple a rebate on an ENERGY
STAR qualified refrigerator with a Sweepstakes to “Win a
House Full of ENERGY STAR qualified appliances
– Consider Value added offerings such as a “Winter of Free
Natural Gas” with an ENERGY STAR qualified Gas Furnace
Promotion Plan
• Focus on being effective
– Handing out CFLs to consumers in a parking lot, may or may
not drive long term habit change
– Giving CFLs to a group that has shown itself pre-disposed to
long term change, such as consumers paying for an
Energuide for Houses audit, is likely to create long term
change
• Develop a compelling Call to Action
– Require the target group to “invest” in the promotion to
receive the reward. Programs that do not require an
investment of time, effort or money, may create initial uptake,
but are less likely to create long term change than those
which require an investment
– Be certain that the Call to Action is clear, and easy to
execute
– Ask the question “What would make you…….?
Promotion Plan
• Timing Timing Timing
– Be certain your timing meets the needs of the target group or
region, and think beyond the obvious. We all know that
running a program on ENERGY STAR qualified air
conditioning in December might be poor timing, but also
consider the hidden timing issues, such as positive and
negative income “bumps” caused at RRSP time (negative),
tax return season (hopefully positive), crop planting time
(negative) and harvest (positive)
Publicity
• Publicity needs to be tailored to the target, and is
most effective if it considers the Delivery Partner
– The more you consider the target, the less you spend, and
the more effective you are. If you need to reach hotel
operators, the various trade and trade association
publications serving that industry represent far better
avenues than broad based publicity and promotion
– Make use of Co-op advertising with your Delivery Partner.
Most effective Delivery Partners will be doing some form of
advertising, which can be shared to reach your target, saving
you money and adding value for your Delivery Partner
Conclusion
• Think Nationally but act Locally, both in the geographic and
demographic sense. While we manufacturers love the sales
that are generated by broad based National programs, as
corporate and individual citizens we need to consider how we
can create a more sustainable society, ahead of how we can
create profits.
• By focussing on targeted groups, we can more effectively spend
the dollars that are available for creating change, and ensure
that we develop and support long term behaviour modification
as opposed to short term opportunistic change
• Good promotions create awareness and change. Plan carefully,
target precisely, understand the needs of the target, execute in
an innovative fashion, and we can achieve our goals of creating
an “ENERGY STAR” society in Canada
Contact
Kevin Smith
National Business Development Manager
Panasonic Canada Inc
5770 Ambler Drive
Mississauga On
L5T 2A4
905-238-2494
e-mail [email protected]