Think Nationally, Act Locally

1
Think Nationally, Act Locally

• National vs. Targeted/Regional Promotions in the
  Development of ENERGY STAR qualified products

2
Overview

• In the past few years, Governments, Utilities and
  NGOs 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

3
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

4
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

5
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

6
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

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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

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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

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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

10
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

11
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

12
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

13
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

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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

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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.?

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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)

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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

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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

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Contact

• Kevin Smith
• National Business Development Manager
• Panasonic Canada Inc
• 5770 Ambler Drive
• Mississauga On
• L5T 2A4
• 905-238-2494
• e-mail ksmith_at_ca.panasonic.com