Analysis Of Renewable Energy Sector In Australia Marketing Essay

abbreviation Of Renewable strength Sector In Australia food marketing EssayIntroductionIn this century, the weewee usage of menages is change magnitude in a rapid rate. This implies that calorifacient pee supply usage would increase directly as well. Electric and gas peeing dope ar the common heating dust, and renewable competency is not comm moreover used. Due to the high take of usage of galvanising and gas water fastball, unwanted gas emission increases rapidly and killing the earth. Therefore, people atomic number 18 encouraged to be more environmental fri polish offly to save the earth by reducing gas emission. To re array electric and gas water skunk, solar water heating systems and heat pumps are encouraged to be used, as they are using the renewable energies that are available in Australia to generate electricity without causing any harm to the environment. remove down 1. Industry Analysis of Renewable efficiency Sector in Australia.This section includes t he macroenvironment and microenvironment of Australias renewable elan vital devices.MacroenvironmentMicroenvironment fraternitySupplierDistributorsCompetitorsCustomersPolitical/Legal purlieu economicSocialTechnologicalThe Marketing EnvironmentMacroenvironment john be very heavy(p) and corporation be grouped with the PESTLE model (political, economic, socio-cultural, technological, legal and environment). West, D, Ford, J Ibrahim, E 2010Legal concord to Kent, A Mercer, D 2006, a political organization, Australias mandatory renewable goose egg target (MRET) has been established since April 2001 in order to encourage the additional generation of electricity from renewable sources, reduce emissions of greenhouse gases and ensure that renewable competency sources are ecologically sustainable (Renewable vitality (Electricity)Act2001, s3).The legislation (the Renewable Energy (Electricity) Act 2000) stakes a legal liability on most unanimoussale purchasers of electricity and la rge users to contribute proportionally towards the annual targets that increase to 9,500 GWh in 2010 and remain at that level until the measure expires in 2020. If they fail to meet required targets of renewable energy purchase, they face a penalty. Penalty could be avoided by purchasing renewable energy certificate done the market.PoliticalPolitical issues much(prenominal) as the changes of political party or decisions could bring influence to an pains.According to Reuters, the parliament had passed the amendments to the nations renewable energy target scheme, splitting it into by small-scale and large-scale. The large-scale Renewable Energy Target go away benefit renewable energy companies that have stockpiled cheap certificates. lowly Renewable Energy Scheme (SRES) has been introduced to help household and small businesses with installation of eligible renewable energy systems, much(prenominal) as solar water heater (Department of Climate Change and Energy Efficiency 2010). The Solar Homes and Communities Plan helped Australian homes and communities reduce their energy use and bills and better the environment. It successfully installed more than 100,000 systems as of the end ofApril 2010 andhelped to increased accredited solar panel installers over the last year to more than 1,900.Technological FactorsReport from Ferguson, M, 2010 In order to support Australias response to humour change, the Australian Government announced it go out provide $652.5 million as Renewable Energy Future Fund (REFF) to provide additional support for the increase and deployment of large and small scale renewable energy projects.There are also further investment decisions of $110.5 million for existing renewable energy programs such as $92 million for Australian Centre for Renewable Energy funding for solar projects under the Renewable Energy Demonstration Program to manikin a 23MW1solar boost to coal-fired turbines in western Queensland and build a 40MW concentrated sola r thermal demonstration plant in atomic number 16 Australia, by using Australias own Big Dish technology and $18.45 million for Australian Solar Institute as fund for research into advanced solar energy technologies.Moreover, Australia has one of the best renewable energy resource bases in the world such as solar, hustle, geothermal, sugar cogeneration and ocean technology. Australia has been the industry submiter in a number of solar technologies such as Photovoltaics(PV), solar thermal technologies and solar concentrator systems. Australia also provides support for International Renewable Energy and Energy Efficiency Initiatives.Economic FactorsEnergy Matters 2009 shows that Australias renewable power generation provides around 8% of electricity consumed in Australia, gas provides 14%, oil 1% and coal 77%.In capacity harm, 8,229 MW of renewable power generation (254 projects) were in place at 31 December 2005 that was 16% of list installed capacity in Australia. According to a 2005 survey underinterpreted by the Business Council for sustainable Energy (BCSE), the renewable energy industry in Australia supports the direct employment of nearly 6,000 people.Moreover, according to the Climate Institute, 26,000 problem opportunities would be available from the $31 billion worth of renewable energy investments planned for Australia. This includes almost 2,500 new permanent positions, over 15,000 construction jobs and more than 8,600 corroborative jobs in supporting sectors.Barton, ACT 2004 mentioned that Australian Government had spent or so $50 billion on energy each year, while energy exports elucidate more than $24 billion a year. The sector involves massive, long-lived capital items such as electricity plants, transmission airwaves, coal, oil and gas production facilities, pipelines, refineries, wind farms as well as a multitude of smaller facilities such as wholesale and retail distribution sites.Following West, D, Ford, J Ibrahim, E 2010, Porters quintuplet forces model used to illustrate the microenvironmentCompetitive Rivalry There are several successful firms in renewable energy industry.(taken from Australian Business Council for Sustainable Energy, 2006)Solahart Pty Ltd is the first manufacturer and a recognised leader in the field of solar water heating. It was the first product that carried the European Solar Keymark label. Solahart has been officially recognised by the Australian Government with Export Dedication and Enterprise Awards (Australian Business Council for Sustainable Energy, 2006).According to Warren, M 2007, Solahart heavily dominates about 70 per cent of total Australian solar hot water market share through its prima(p) brands Rheem, Solahart and Edwards. The next biggest player is household consumer supplier GWA International with its Dux and EcoSmart brands and followed by Rinnai/Beasley.SubstitutesA guide from choice online 2010, states electric and gas water heater as varys. Electric water heate r prevails because electric supply is on 24 hours with day-rate systems which only receive power during the day. There are also night-rate systems, receiving power only during the night, suitable for households with solar-powered systems to avoid paying high day-rate tariffs. Gas is also a substitute available throughout the day and it can replace heat losses in a short time.Buyer(Graph taken from Clean Energy Council 2009)(Graph taken from Clean Energy Council 2009)(Graph taken from Clean Energy Council 2009)The graphs above show that only 7.6% of Australian households are using solar water heating, with Northern Territories leading at 55%, followed by Western Australia at 21.8%. This data indicates solar usage at rural areas where access to gas and electricity supply can be limited. Therefore, they are compelled to use solar power rather than it being optional like their city counterparts such as Victoria (3%) and immature South Wales (5.7%).The majority of the nation is using el ectricity (46%) or gas (37%) to heat up their water. This is both costly and a waste of unrenewable resources such as coal, which is heavily used to generate electricity in Australia (World Nuclear draw, 2010). In line with the Australian Governments initiative to reduce carbon emissions, this shows promising potential for solar water heating seeing as solar power is a green and renewable source of power (Department of Climate Change and Energy Efficiency, 2010).Part 2. SegmentationCluster analysis is a group of multivariate techniques which main purpose is to classify objects in such a way that within-group differences are minify and between-group differences are maximized according to just about grouping variable. Cluster analysis is used in this segmentation part in order to define the clear and unmistakable consumer needs also to list in order of importance the attribute or needs of product for Solarharts heat pump to consumer.DemographicFamily Size of Australias kinsfolk(g raph taken from Australian Institute of Family Studies 2006)A research from Australian Institute of Family Studies shows the average household size of it and number of households between 1911 to 2006. The graph shown that the average household size is in decreasing rate, while the number of households is in the rising rate.(table taken from Australian Institute of Family Studies 2006)The statistics above show that the number of household size in 2006 is about 7,596,000 which is almost 2,000,000 more compare to 1991. The average household size is remain constant since1996 which is around 2.6 person per household.Impact of household size, demeanor and geographic to Usage Rate of Hot waterRefer to Harrington, L 2010, Hot water consumption is also impressed by a whole range of demographic factors. Household size is the main factor as it refers to age of household members. For instance, teenagers tend to have a longer shower time. On the other hand, the presence of kids in households also consume a high level of water due to the use of bathtubs and also more washing lashings compared to households without young children. However, household income could affect the level of use of water. Other factors that affect the hot water consumption include the behaviour of household members. For instance, the showering frequency and the fall rates and duration. The more frequent the household members shower and if the flow rate is set on the highest and also they are showering for a longer time, the level of water usage would be very high. In addition, the frequency use of dishwasher, the water levels settings and the preferred washing temperatures on the clothes washer will also affect the hot water consumption in household. On the other hand, the selection of hot water system could be influenced by some minor demographic and geographical factors such as households, which have access to gas, they would prefer to have gas heaters.The water levels settings and the preferre d washing temperatures on the clothes washer will also affect the hot water consumption in household. On the other hand, the selection of hot water system could be influenced by some minor demographic and geographical factors such as households, which have access to gas, they would prefer to have gas heaters.Furthermore, large household would need more hot water supply and therefore, large hot water systems would be preferred. Whereas, for those rental houses, they tend to focus on high operating rates and therefore, they would choose to get other conventional systems with low purchase cost.Restricted choices are available for apartments as solar systems are impossible. However, households which are located in a hotter place would prefer solar water heating.Behaviour of Consumer making purchase decisionAccording to The ACRS Research Team 2010, different types of consumer have different behaviour. Firstly, the value consumers are those who spend their money wisely and smartly by focu sing on what they need instead of what they want. Therefore the product must be worth for its cost.Secondly, the take consumers are those who simply seek for convenience, speed and simplicity, as time is the most valuable thing to them. And the green consumers are those who are more concerned about environment. This type of consumers is environmental friendly consumers and they are willing to spend more to go green. They also gain some advantages such as traveling little to reach the product. Also there are also the bored consumers who are exposed and buried by various choices as the number of advertisements and promotions are increasing rapidly today. They tend to seek for a more unique products and services. And lastly, the digital consumers are those who are spend most of their time interacting through internet. The sources that could be prepare through internet improvise the way consumers approach retailers, and they are clear with what they are looking for.Part 3. TargetingU ndifferentiated targeting strategy would be used in Solar targeting progress. According to Solahart, consumers of the solar heater water market are mainly household users. A marketing mix (Leader, WG Kyritsis, N 1990) will be designed for the solar water heater product to target all household users in Australia, aiming to increase the market share and to fulfil the governments renewable energy policies to increase the substitution of households with renewable energy devices. The marketing-mix will be tailored to the behaviours and demographic of consumers such as usage rate, income, and consumer behaviour in product attributes. The place and promotion strategy will focus on drawing consumers to approach this renewable energy product and simultaneously increase consumer awareness to green issues.According to consumer behaviour in 2009, consumers tend to be more aware of value seeking for convenience, speed and simplicity, uniqueness and environmental friendly.The marketing mix strat egy will relate to the key components of marketing product, price, place and promotion. First is the product, encompassing packaging, labelling, product performance or service support. The solar heat pump has several advantages it is speedy and efficient with synergys large compressor that gives quicker recovery, providing hot water faster easy to use and installation as no solar panel is needed and is furnish with an electric booster to provide a continuous supply of hot water for the cooler climates valuable in saving electricity bill in the long-run and lastly environmental friendly as it converts heat from the air to deliver hot water, reducing electricity usage or fossil give notice energy use and the pollution and greenhouse gas emissions associated. This is in line with the efforts of State Governments across Australia in banning the use of electric hot water systems in new homes.Second, the place to distribute the solar heat pump will be through retail chain such as Harve y Norman and Dick Smith. This is known as one level distribution channel (Mantau, U, Merio, M, Sekot, W Welcker, B 2001), where the distribution activities will move from manufacturer to retailer past to consumer. For example, Harvey Norman (intermediary) with a positive retail image could help build consumer trust in a product. Besides that, Solahart (manufacturer) could force goods through channels by giving intermediaries incentives such as higher margin to boost the sales of product. This is known as Push Strategies (Gillespie, A 2001). Intermediaries will be in maneuver of product service and advertisement efforts. They may also help consumers with claims under the governments renewable scheme for the purchase of solar heat pump.To deal with Internet buyers, Harvey Normans online blood could help to promote the product online. Therefore users can easily obtain the specification and information of the solar heat pump and even purchase it on net.Furthermore, Solahart could pr omote their product through personal selling. The company itself can organize promotion fairs in shopping centres that are always full of potential consumers. This performance could involve salespersons interacting with consumers to bring their attention to environmental issues and supplying product information. Additionally, salespersons can better understand consumer needs and play up the benefits solar heat pumps can offer such as electricity bill-cut to persuade consumers to make the switch.Educating household users with environmental knowledge is important to increase the market share of the product. Solahart could advertise through media such as TV advertisements, newspapers and online websites such as Facebook, Yahoo, CNET Australia, eBay etc. to attract consumer awareness. This could also help portray a positive image for the company and build up brand reputation.4. PositioningPositioning refers to the placement of product in the perception of product, brand or company in t he mind of consumer. (West, D, Ford, J Ibrahim, E 2010)A new position statement Solahart needs to makeConvince consumers that they are a green power brand, pioneering in solar water heater industry and the product is extremely energy efficientand of highest quality.That Solaharts heat pump is environmental friendly, secure, durable, with long life-span and effectively provides hot water to household when needed with the most presumable price.Because Solahart is an Australian-owned environmental-friendly brand which is also world recognised as a leading water heating company to fulfil needs of hot water system for consumers with the lowest, most cost-efficient and effective way.Successful criteria for side must include the four Cs of positioning such as Clarity in terms of market targeting and differential advantages. The positioning statement above clearly states that Solahart is a pioneer and innovator brand, giving credit to their professionalism and reputation in the product l ine of solar water heaters (Haig, M 2007). Solaharts innovation could help households to cut both their utility bills and dependency on gas or electric based heater for hot water.There must be Consistency in conveying the message to consumers, including the positioning statement. Solahart is truly an innovator brand, being the first manufacture of solar water heating. It has also been recognized officially by the Australian Government with Export Dedication and Enterprise Awards. Consumer perception of Solaharts Credibility is also important. The companys 55-year experience in supplying thousands of households across 70 has helped build up its brand reputation, where consumers trust the brand in what they are doing.Solahart also has Competitiveness where the companys differential advantages surpass its competitors. Solahart provides extend warranties to their users and provide excellent after-service to their consumers to insure their buyer policy. To increase competitiveness, Sola hart could further develop their line to enhance performance or providing more functions and even enhancing appearance to lead to a new fashion of life style in the industry.High RecognitionLow RecognitionMore Market ShareLess Market Share* Solahart* Edwards* Rheem* Dux*EcoSmart*Rinnai* Quantum* SolcoPerceptual present of Brand Recognition and Market Share of Water Heater Market(West, D, Ford, J Ibrahim, E 2010) A perceptual map could be used by the company to assess its perceptual position in its consumers mind. The perceptual map above shows a variety of water heater brands to give the perception of that particular market segment. The perceptual axels are Brand Recognition Level and Market Share of the main competitors. There are triplet major groupings shown on the perceptual map. Solahart, Rheem and Edwards are companies in the high credit rating group, owning the major market shares in the solar water heater industry. The moderate recognition group are companies with modera te market shares such as Dux, EcoSmart, Rinnai. The last group is the low recognition group with minor market share companies such as Quantum and Solco.ConclusionIn conclusion, the industry analysis is to help the company to understand the macro and microenvironment of the renewable energy device market. It shows that there is a large potential of market share in renewable as the Australia Government is very concerned about reducing the gas emission by providing a rebate scheme to support household user to switch to renewable energy device as it is environmental friendly. Besides that, the segmentation, targeting and positioning strategy drive back the company to target the right market with right marketing mix strategy and to make sure the company is in appropriate perceptual positioning in consumer minds. As the consumer needs are met, the demand towards the renewable energy devices would increase. Therefore, the aim of the government that is encouraging the use of renewable ener gy instead of electric and gas will be achieved.ReferencingKent, A Mercer, D 2006, Australias mandatory renewable energy target (MRET) an assessment, Energy Policy, vol.34, no. 9, pg 1046-1062, Retrieved 18 deluxe 2010, ScienceDirectThe National Association of Forest Industries, What is the Mandatory Renewable Energy Target, Retrieved 26 August 2010, Department of Climate Change and Energy Efficiency 2010,Solar Homes and Communities Plan, Australian Government, Retrieved 26 August 2010, Reuters 2010, Analysis Australia energy law faces green certificate overhang, Reuters.com, retrieved 18 August 2010, http//www.reuters.com/article/idUSTRE66F3HX20100716Ferguson, M 2010, Australias Biggest Ever Renewable Energy Roll-out, Australian Government, Retrieved 18 August 2010, http//minister.ret.gov.au/TheHonMartinFergusonMP/Pages/budget_renewable.aspx.htmlEnergy Matters, 2009, 26,000 Renewable Energy Jobs For Australia, Enerygymatters.com, Retrieved 19 August 2010, Barton, ACT 2004, Securi ng Australias Energy Future, Commonwealth of Australia, Retrieved 19 August 2010, http//www.efa.com.au/Library/CthEnergyWhitePaper.pdfAustralian Business Council for Sustainable Energy, 2006 Australias Renewable Energy Use, Technologies and Services, Clean Energy Council Australia, Retrieved 19 August 2010, http//www.cleanenergycouncil.org.au/cec/resourcecentre/reports/Past-Reports/businchina/mainColumnParagraphs/0/text_files/file0/china2.pdfSolahart 2010, Company History, Solahart Company, Retrieved 19 August 2010, http//www.digal.pt/Digal_I/company.htmlEdwards Solar Hot Water 2010, About Us, Edwards Company, Retrieved 19 August 2010, http//www.edwards.com.au/default.asp?V_DOC_ID=828Rheem Australia Pty Ltd 2002, Company History, Rheem Australia, Retrieved 19 August 2010, http//www.rheem.com.au/history.aspSolco Ltd 2010, Solco integrated, Solco Limited, Retrieved 19 August 2010, Quantum 2010, Welcome to Quantum, Quantum Energy TechnologieRetrieved 19 August 2010, http//www.quantume nergy.com.au/home-1.aspxDux Manufacturing Pty. 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