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Task 20 - Branding of Energy Efficiency

Synopsis | Introduction | Work Plan | Task Information Plan | Participation | How to join | Publications

Synopsis

The Task is expected to build on the achievement of Task VII. While Task VII has taken the initial step towards development of a framework for market transformation, it is necessary to evolve a comprehensive framework, which could be used by the government and industry to develop the market for energy efficient products. Specifically, need for research in the following areas was felt to be immediate:


1. Capability of Energy Efficiency suppliers in the market
2. Knowledge and attitude of private households in developing electricity markets
3. Best practices in definition of suppliers of energy efficiency products and services
4. Potential for energy efficiency products and services in other energy consuming
sectors such as agriculture, industrial and commercial, etc.
5. Potential for programmatic approach towards energy efficiency
6. Barriers to branding of energy efficiency.

Analysis of these issues is likely to throw light on the rather poor state of energy efficiency branding, which holds significant promise of transforming the market, which has not yet been penetrated by the traditional approach of sales and marketing. This could also lead to explosion of market which has not yet been visualized by the conventional products and services. While ‘Branding’ may not be the only answer to the problem of energy efficiency, it certainly is a key to development of the energy efficiency market.

Introduction

The Proposed Task is expected to develop significant understanding of barriers associated with branding of energy efficiency, and strategies to overcome those barriers. The task has been proposed with belief that it should be possible to reverse the fortunes of the energy efficiency products and services, if successful branding is achieved. Branding of energy efficiency products and services would increase their visibility and credibility. The proposed task will explore the avenues available to national governments to promote branding of energy efficiency.

However, to be successful at branding, it would be necessary to work on three levels, viz. products/services and suppliers, consumers and finally, at the strategic or policy level. At product/service level, one will have to be deal with several problem areas such as lack of accurate definition of product/service, strong relationship with maturity of electricity market, lack of awareness, lack of appeal, etc. At consumer level, it may be necessary to understand the consumer behaviour across markets as well as societal strata, by employing advanced marketing/branding theories such as cognitive information processing, emotion driven choice, etc. While working on consumer related issues, though the results of Task VII in this regard will be very useful, significant understanding regarding consumers in large markets in developing economies need to be developed. Finally, it would be necessary to develop policies/ strategies taking into consideration supplier as well as consumer analysis.

The Primary Objective of this Task would be to ‘Develop cogent and comprehensive framework for promotion of branding of energy efficiency in electricity markets at different level of maturity’.

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Work Plan

The work plan for this task will consist of following five tasks.

Sub-task I: Energy Efficiency Offerings Analysis
Sub-task II: Energy Efficiency Consumer Analysis
Sub-task III: Assessment of relationship between EE product pricing and maturity of electricity market
Sub-task IV: Review of branding strategies in similar areas
Sub-task V: Identification of Best Practices in Branding of EE

In the subsequent paragraphs, the activities proposed under each of the above mentioned sub-tasks have been provided.

Sub-task I: Energy Efficiency Offerings Analysis

In order to ensure comprehensive analysis, we have proposed a comprehensive Energy Efficiency Branding framework. This framework demonstrates that apart from products and services, two more potential avenues for branding, with a strong relationship, also exist. These two avenues are programs and companies. Strong relationship exists between these four aspects for any successful branding concept. It would be necessary to explore the nature of these relationships while identifying best practices for developing branding strategies. The assessment will form the basis for sub-task IV in which suitable institutional structures for successful branding would be identified.

As a part of this sub-task, a survey of energy efficiency products and services in all countries participating in this Task would be undertaken by the Operating Agent with the help of country experts.

  1. Identify product categories offering EE attributes
  2. Assess technological maturity of the existing EE products
  3. Identify ‘Best Practices’ in definition of products and services
  4. Identify other aspects amenable to energy efficiency
  5. Identify services/ programs serving EE attributes
  6. Identify barriers experienced in successful branding effort
  7. Identify special needs of developing countries

This sub-task is expected to fill up a gap in understanding of important aspect of energy efficiency value chain i.e. EE products analysis. An attempt would be made to assess the technological maturity of the sample product categories.

Sub-task II: Energy Efficiency Consumer Analysis

As a part of this sub-task, survey of consumers in all countries participating in the Task would be undertaken. Appropriate sampling techniques would be used to ensure an optimal sample for the survey. The survey will be carried out specifically for products and services identified in the sub-task I. This will help ensure that the survey is able to collect data on consumers’ attitude towards the products and services which suppliers are in a position to provide in the market. This sub-task will undertake the following activities.

  1. Identify attitudes and behaviour of the consumers towards various aspects of energy efficiency
  2. Establish preferences for range of products and services
  3. Identify socio-cultural issues in selection of products and services
  4. Understand the pre-requisites for successful branding
  5. Identify pre-requisites to ensure that ‘brand’ approach would focus more strongly on people as brand aware, self-conscious consumers.

Appropriate methodologies such as socio-cultural value maps, cognitive information processing, emotion driven choices, etc., would be employed during this sub-task. This sub-task will identify products and services most suitable for branding in that particular market from the consumers’ perspective.

Sub-task III: Assessment of relationship between EE product pricing and maturity of electricity market

It is an established fact that overall marketplace has significant impact on the success and failure of products and services. On many occasions products and services launched ‘ahead of time’ have experienced failures on account of under-developed market. One such prime example is ‘Iridium Satellite Phones’. Therefore, it is proposed to analyse marketplace for energy efficiency products. Given that prospects for energy efficiency products, services exists in several parts of the energy economy such as automobile, different types of industries, etc, it is proposed to limit the scope of this sub-task to electricity sectors. Applicability of the findings of this study to non-electricity energy segments may be tested at a later stage.

  1. Identify the relationship between the product offerings and maturity of the electricity market
  2. Develop statistical models for determination of relationship between electricity price and energy efficiency pricing

Sub-task IV: Review of branding strategies in similar areas

Currently, energy efficiency products and services are at nascent stage of development in many countries. Several products such as electricity, organic foods and services such as banking, insurance, etc would have passed through this phase during their development. It may be possible to learn from strategies employed by these products and services during early periods in their life cycles.

It is proposed to carry out research to identify the branding strategies deployed by similar products and services during early period of their life cycle. The challenge here would be to identify which products and services are ‘similar’ in nature to energy efficiency. The Co-operating Agent is expected to assist in identification of ‘similar’ products and services and carry out research necessary for this sub-task.

Sub-task V: Identification of ‘Best Practices in Branding EE’

In this sub-task, survey of successful efforts in branding of energy efficiency in the participating countries as well as other countries will be undertaken. One such successful branding effort is ‘Energy Star’ program in USA. Operating Agent (with the help of Cooperating Agent) will develop questionnaire for development of case studies.

This sub-task will also help develop best practices in branding of energy efficiency in four aspects i.e. products, services, programs and companies. Following activities would be undertaken as a part of this sub-task.

  1. Development of Case Studies for Successful branding efforts across the globe
  2. Synthesize information collected during sub-tasks I & II
  3. Understand business enablers for branding in each case
  4. Identify best practice in each of the four key aspects of Branding of EE
  5. Identify inter-linkages for different aspects of branding
  6. Identify role of institutional structures and government support in development of successful branding strategies
  7. Identify key lessons which may be adopted in development of successful branding strategies

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Task Information Plan

The database of information about various case studies identified in sub-task 1 will be the major output of the Task. This database, maintained on-line on a secure website could be accesses by only country Experts and the Operating Agent. Twelve months after the completion of the Task, the database will be made publicly available.

Apart from the database, the task will produce four major reports, one each at the end of each sub-task. It will be the responsibility of the Operating Agent to produce these reports. These Reports will be available to each of the participating country free of cost. Twelve months after the completion of the Task, the reports will be made publicly available.

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Participation

Task XX

India

 

Spain 

France 

USA 

Operating Agent

 

Participating Country

 

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How to join

Countries and organizations interested in participating in the ‘Branding of Energy Efficiency’ Task may register this interest by contacting:

Mr. Balawant Joshi
Director
ABPS Infrastructure Private Limited
703/704, The Avenue,
Opp The Leela, Intl Airport Road
Andheri (East), Mumbai – 400 069
India
Ph: +91 22 2825 0050
Fax: +91 22 2825 0051
Email: balawant.joshi@abpsinfra.com

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Publications

There are currently no publications available for this task

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