Marketing Findings & Implications

Phase 1 Findings and Implications

February 2, 2010

1

Contents

• Objectives and process

• Who are we targeting?

• What’s our brand promise?

• What are implications for marketing plan?

• Next steps

2

Project Objectives

• Awareness/Perception Objectives

– Build trust and favorability as a local community partner and fiscally responsible

green utility. Specifically…

• Increase customers’ awareness of AMP’s renewable energy story

• Increase customers’ awareness and understanding of AMP’s programs and benefits,

especially around energy efficiency

• Increase the perception that AMP has lower rates than surrounding utilities

• Other metrics would relate specifically to the brand positioning like community or

empowerment

• Performance Objective:

– Increase participation in AMP’s energy-efficiency programs among priority target

audiences from x% to y% of customer base

• Energy efficiency programs are highly related to AMP’s renewable energy story and

thus are mutually reinforcing

3

Fo

r dis

cu

ssio

n

Where we are in the process

4

Key deliverables and client involvement

Activities

Discovery

(11/19/09 – 1/25/10)

Planning

(1/25/10 – 2/26/10)

Execution

(3/1/10 – 5/26/10)

• Internal interviews

• Review current marketing materials and

proposed website redesign

• Review all available research on

residential and business customers

• Secondary research on other utilities

across the country known for renewable

energy

• 10 – 15 interviews with customers and

community members

• Findings and implications for

• target audience prioritization

• marketing strategies

• brand positioning/messaging

• Pre-Presentation of Phase 1: 1/5/09

• Final Presentation of Phase 1: w/of 1/25

Completion of Phase 1: (1/25/09)

• Using findings and agreements from Phase 1,

outline detailed marketing objectives and

measurable strategies and tactics

• Assign budget ranges for each

• Develop evaluation criteria for decision-making

• Completed marketing plan including expected

programs to be produced in 2010 along with

budgets for remaining phases

• Recommendations for metrics and evaluation

• Completion of Phase 2:(2/26/09)

• Design of agreed-upon materials

from Phase 2 (3/1-3/31/09)

• Preliminary design concepts to be

presented and agreed upon by AMP

(4/1-4/16/10)

• Design and copywriting of each

piece, whether offline or online

• Final design/copy for each agreed-

upon tactic will be delivered to AMP

in a usable format for printing or

online programming (5/26/10)

• Budgets TBD based on agreed-upon

deliverables from Phase 2

Purpose of the Discovery Phase

• AMP has requested identification and prioritization of target audiences

• To provide information that is focused and actionable, we have gathered

information that would provide critical input into:

– Target audience prioritization (who should we focus on?)

– Positioning and messaging (how should we talk to them?)

• Lack of quantifiable insights for business and influencer groups may

suggest the need for an online survey to benchmark and track key metrics

– More data was available for residential customers on awareness/perceptions of

AMP regarding renewable sources, importance of climate change, etc.

5

Contents

• Process and objectives




• Next steps

6

AMP has a wide range of customers

Small Business Home Owners

Large Business

Associations

Dir

ect

Cust

om

ers

Infl

uencers

• While it’s important to communicate with all customers, prioritization

enables us to focus limited resources on the segments where there will be

the most “bang for the buck”

Renters

Other

Government

Everyone Else

Secondary

Primary

Grass Root

Groups

Building

Management

• In this section, we have focused efforts on understanding each audience

with respect to the following five prioritization criteria:

Suggested prioritization criteria

8

Potential impact

to AMP

Impact on overall

awareness &

perceptions

Impact on overall

program

participation

Impact to

Community

Easy to reach

cost-effectively

How powerful is

this group in terms

of AMP revenue

and lobbying

power?

Will increased

communication to

this group move

the needle on

overall

awareness and

perceptions of

AMP?

Will increased

communication to

this group move

the needle on

overall customer

participation in

programs?

Will increased

communication to

this group move

the needle on

making a long-

term, positive

impact to the

community of

Alameda?

How easy and

cost-effective is it

to reach this

group?

Business – Who are they?

• There are 3,782 commercial accounts/11 industrial (2009 CAFR)

– They employ 23,507 individuals (not known how many of these are Alameda residents)

– Out of 7,335 business licenses registered most are small business: 76% of

Alameda businesses have less than 10 employees

– Account for 60%of Sales

– 10 largest customers make 20% of sales

– Just under 1 in 5 (18%) currently have an energy efficiency plan in place

• However, this may reflect the fact that the majority of businesses are small, likely

leasing their space, and therefore not as interested as building owners in having an

energy plan

9

Source: RKS; 2009 Business Customer Satisfaction Survey** Source: 2009 CAFR

Business customer impact to AMP is HIGH

• Business customers contribute the most revenue to AMP

– 67% of AMP’s total revenue comes from businesses

• Question: What % is from large vs small biz, and how does AMP define this?

• Businesses may be more sensitive to rate increases than residents

– The average increase considered “reasonable” for climate change solutions by

businesses was 8.7%; 30% said that no rate increase was reasonable

– 32% say that the prices are high, which is slightly lower than other areas yet not

an insignificant number

• Lobbying power is high, but typically through organizations we define as

“influencers”

– Large firms with big sales revenue tax base command more power

– Large businesses have a stronger voice/representation via trade associations

– Alameda Chamber of Commerce generally represents the interests of large

businesses in Sacramento

• I.E. Current customers like Federal agencies (built-in lobbying), building owners (have big lobbyists

like BOMA), research firms and Safeway.

10

Source: RKS; 2009 Business Customer Satisfaction Survey**

• Awareness of AMP’s Renewable Energy is unknown

– We recommend getting a benchmark of this measure and tracking over time

• On key image measures like trust, AMP scores slightly – but not significantly – lower

than other utilities

Potential impact among business customers to

improve awareness and perceptions is MEDIUM

11

-.4

-.2

-.2

-.3

-.5

Given that only 29% of

business customers

feel that AMP

communications is

relevant, it’s possible

that attitude/perception

shifts can be made

solely through more

effective

communication rather

than (or in conjunction

with) operational

enhancements

Source: RKS; 2009 Business

Customer Satisfaction Survey

Potential impact is HIGH among business customers to

improve program participation

• AMP business customers in general have low awareness and participation

in energy efficiency programs

– 46% are aware of EE programs and rebates

– 44% are aware that AMP offers free energy audits

– 66% have not participated in AMP programs

• Only 38% of business customers are satisfied with the energy-efficiency

actions taken at their organization, suggesting significant opportunity for

AMP to help

• Note that while this research does not break down business type, we can

assume that small business (as the vast majority of businesses in Alameda)

is the group where we can affect the greatest shift

12

Source: RKS 2009 Business Customer Satisfaction Survey

13

• Business is the economic engine for communities, and AMP can play a role

in attracting, keeping and growing businesses in Alameda

– Lower rates than PG&E plus energy savings assistance and incentives can also

play a role in attracting and keeping businesses

• AMP offers an Economic Development Incentive Discount (EDID) to attract businesses

to locate or expand in Alameda

“It’s important that AMP helps us be at the lowest rate possible based on our usage.

We’re providing jobs, we need to work together with the city utilities to help keep us

here and ensure we can continue to afford to stay.”

– Leverage AMP’s renewable energy to attract and keep new businesses for whom

this is an important part of their mission/values/brand

• Can include a range of businesses, including start-ups in the alternative energy space

as well as those seeking LEED-certified buildings (of which renewable energy is a

criteria)

– The ability to not deal with PG&E is also a plus in a business location decision

– “If someone was thinking of relocating here, AMP would be a selling point. Green power that’s

affordable and the service is good. They have their own utility, doesn’t resell so you don’t have

to deal with PG&E.”

Impact of business customers to the

community is HIGH

Large and small businesses are equally important to

AMP but will need to be reached different ways

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Potential Impact

to AMP (revenue

and lobbying

power)

Impact on overall

awareness and

perceptions

Impact on overall

program

participation

Impact to

community

Easy to reach

cost-effectively

Total

Large Business

High – Significant % of

revenue, ability to

lobby for lower rates

Low* – Very small

percentage of total

business customers

Low – Small number of

customers won’t move

the needle on overall

participation

High – Leverage

renewable power and

lower rates to attract &

keep large businesses

High: Small group,

dedicated account reps

for the top 10% of

business customers

Small Business

Medium – high % of

revenue, ability in

aggregate to lobby for

lower rates

High for biz:* The vast

majority of business

customers, this group

is where the gap needs

to close

High* – Support recent

launch of reAMP for

small businesses

High – Leverage

renewable power & low

rates to attract & keep

small business, esp.

start-ups in renewable

energy

Medium: smaller group

than residential, can

reach through business

association channels

* Data not available by business size; suggest new survey to benchmark this and other key measures like brand/positioning

IMPACT

LOW HIGH

Residential – Who are they?

15

• 34,217 residential accounts: Home owners 50%, 37% of Sales

• Single family home owners are densely located in two areas and can serve

as the ambassadors for a sustainable lifestyle to other community members

• Renters are dispersed across the community and will likely be harder to

reach (multi-tenant property owners will be addressed in separate section)

Single Family Homes Multi-Tenant Properties

Map Source: 2007 US Census Source: 2010 ASPW

16

Residents’ impact on AMP is LOW

• Residents outnumber businesses by 17 to 1, yet contribute only one-third of

AMP’s revenue

• Their large number makes them harder to reach, and the low revenue means a lower ROI on

marketing dollars

• Price sensitivity is low, yet there’s lack of awareness

of how AMP’s rates compare with other utilities

• 50% agreed that a 20% rate increase is “reasonable” for

renewable energy

• With only 38% accurately understanding AMP’s rate

advantage over other utilities, there is an opportunity for education

here to raise awareness

• Residents have minimal lobbying power individually, although do have a voice

through influencer organizations like HOA* and have easy access to city officials

Source: RKS 2009 Residential Customer Satisfaction Survey

Opportunity to improve awareness and perceptions

in this group is relatively HIGH

17

• Awareness of AMP’s Renewable Energy is Low

– We have a significant opportunity to move the needle on improving perceptions of AMP’s

renewable energy among residential customers.

• We also have an opportunity to improve perceptions that AMP works hard

to keep prices down (currently only 39% of respondents believe this)

“Most of our tenants do not know that AMP

provides renewable energy, and such a high

percentage.”


Opportunity to improve awareness and perceptions

in this group is relatively HIGH

• While customer satisfaction is high, trust in AMP is lower than other utilities

– 78% of residents are satisfied with AMP, which is high relative to other areas

– Yet only 57% say they trust AMP

• In addition to the spin-off of the cable service, trust can be enhanced through improved

communication on issues they care about

18


Opportunity to improve program participation is

HIGH, primarily among home owners

19

• Residents are receptive to messages about energy efficiency*

– 67% of Alameda residents are concerned about the environment and climate

change

– 51% are committed to saving energy at home

– “They want programs that help them save money on energy costs - but don’t know where to

find that information. They don’t go to the AMP website. Perhaps one central place to give it

to them that is easy, makes it easy to understand rebates, lets them know about energy

audits…” – INFL

• AMP’s energy efficiency programs (ie. audits, solar, etc.) are primarily

geared towards the 17,000 residential customers who are home owners

• We need a better understanding of residential program participation to

measure improvements here

– Studies suggest we might target 10% to 15% participation in energy audits**,

which reflects the national average participation rate

Sources: *RKS 2009 Residential Customer Satisfaction Survey, **2009 Energy Pulse Study, Shelton Group

Potential impact of residents on the community

is HIGH for home owners

• While “the community” is largely comprised of residents, it’s likely that only

50% of the population – the home owners – have a strong vested interest

• Investments made in home energy efficiency is likely to improve property

values and therefore tax revenues

– According to the Appraisal Institute, for every dollar saved in annual utility costs,

homeowners can expect to add $20 to their home's market value.

• (Caveat: this is old data from 1998 and still quoted as recently as this year. Newer

supporting research is available for the commercial market, not for homeowners)

• We can help boost pride in the Alameda community among residents who

care about environmental issues and will resonate with AMP’s story

20

Residential is a lower priority market overall vs.

businesses, yet homeowners merit attention

21

Potential Impact

to AMP (revenue

and lobbying

power)

Impact on overall

awareness and

perceptions

Impact on overall

program

participation

Impact to

community

Easy to reach

cost-effectively

Total

Home Owners

Low: Small % of revenue, low price sensitivity

High – very low

awareness of

renewable energy,

opportunity to boost

trust

High: Home owners much more likely than renters to embark on EE initiatives

High: Home owners

would likely have a

deeper interest and

pride in Alameda

community

Low: While we have dense concentration of home owners in two areas which could help, 17,000 is significantly larger audience than businesses

Renters

Low: Small % of revenue, low price sensitivity

High – very low

awareness of

renewable energy,

opportunity to boost

trust

Low: Home owners

much more likely than

renters to embark on

EE initiatives

Low: Home owners

would likely have a

deeper interest and

pride in Alameda

community

Low: 17,000 is significantly larger audience than businesses

* Data not available by business size; suggest new survey to benchmark this and other key measures like brand/positioning

IMPACT

LOW HIGH

Influencers – Who are they?

Associations

– Business Association

– Realtors Association

– Home Owners Association

– Green Associations

– Other Community Associations

– Chamber of Commerce

Building Management Associations

– Developer/Owner on site

– Absentee Owned

– Local Property Management Firms

– Regional Commercial, industrial Real

Estate Brokers

Government

– Utilities (Water, Electric, Waste)

– Department services (Fire, Police,

Economic Development, Community

Services)

– Public Works : School District

(Education/Library)

– City office

Grass Roots Organizations

– CASA

– Bike Alameda

22

23

INFLUENCERS - POWER IN NUMBERSWHO POWER PROGRAMS OTHER REACH

Associations

Business

Harbory Bay Realty N/A Network/Edu

Harbor Bay Owners Assoc 100 bizs' Network Home building 2800 email/news

GABA 100 members Network/Edu

West Alameda Business Dist 125 members Education/Network Newsletter/Online

Alameda County Industries (ACI) N/A Outreach Education 700 email alerts/News

Park Street Business 400 members

Network/Shared

ads

Façade grants

$100,000 Newsletter Online

Chamber of Commerce 525 Bizs Network/Resources local gov review

25K circ.

Newsletter/ads

Home

Garden Isle Homeowners Assoc NA NA NA NA

Willows Homeowners Assoc NA

Islandia Homeowners Assoc NA

California Apartment Owners Association 20,000 CA Lobby Efforts Education

Other/Grassroots Group

Community Action for Sustainable Alameda

(CASA) N/A action/volunteer blob/newsletter

Bike Alameda N/A action/volunteer comm services NA

Boys & Girls Club 3000 BOD/AB Extensive

Red Cross N/A

Government – Sister City of

Alameda DepartmentOther Utilities (Water/Waste/Electricity) N/A

City (Fire/Police) N/A Disaster/prevention

Unified School District N/A

Mayor's Office N/A Green Initiative Group Effort

College of Alameda N/A

Economic Development Dept

Influencers – Who are they? – cont’d

Wo

rk in

Pro

gre

ss

We are currently

gathering more detailed

information on

influencer reach (ie.

number of members)

and potential for

partnership

Influencer Impact on AMP is HIGH

• Direct revenue impact to AMP is unknown, but likely just a small percentage

of the business revenue base

– However, indirect revenue impact is high given the influence these organizations

have on their members

• Key influencer associations have significant lobbying power

– Rental Housing Association of Northern Alameda County (RHANAC) represents

over 20,000 rental property owners and is one of the fastest growing local

chapters of the California Apartment Association (CAA) - the largest statewide

organization representing Rental Housing Providers.

24

Potential impact is HIGH among influencers to

improve awareness and perceptions

– .

25

• Awareness of AMP’s Renewable Energy among Influencers is unknown

– However, we can partner with influencers to boost awareness among residential

and business customers

– “We have a newsletter and would like to promote AMP - but need content.”

– “We do a newsletter every first of the month – AMP provides input maybe a few

times a year. Big opportunity there.”

– Trust and overall perceptions are not tracked among influencer groups…

however:

– By partnering with them to reach other audiences, it’s likely that we will

positively impact these measures among both influencers themselves

as well as their constituencies

– Recommend benchmarking and tracking on these measures

Potential impact is HIGH among influencers to

improve program participation

– .

26

• Awareness and uptake of EE programs is unknown

– Again, we can leverage influencers to reach business and residential customers

more cost effectively

– Because of their small number, consider direct outreach programs to generate

program sign-up and case studies among influencers to generate referrals and

communications to the community

• There should be high interest in energy efficiency programs among building

owners and managers due to bottom-line impact, including

• Rental premiums of 3.5 percent on US office properties

• 6% increase in occupancy for “ENERGY STAR” buildings

• 16-17% premium on sales prices per square foot

Source: 2009 Maastricht University study, Doing Well by Doing Good

Potential impact of influencers on the

community is HIGH

• As influencers are the mobilizers of community, they play a critical role

• Partnering with influencers can aid AMP in reaching, educating and

motivating the Alameda community as a whole

• Partnering with building management and building owners could improve

multi-tenant property valuations, thereby increasing tax revenue for the city

27

Influencers have the greatest potential to

move the needle on key measures

28

Potential Impact

to AMP (revenue

and lobbying

power)

Impact on overall

awareness and

perceptions

Impact on overall

program

participation

Impact to

community

Easy to reach

cost-effectively

Total

Influencers

High: small % revenue, yet strong ability to lobby for lower rates

High: Can partner with influencers to cost-effectively reach other audiences

High: Can partner with influencers to cost-effectively reach other audiences, as well as improve EE of commercial buildings

High: Influencers are the mobilizers of community. Building owners/mgrs can influence property values thru EE

High: Limited number of influencers make them an easy, cost-effective group to reach

LOW HIGH

Recommended Prioritization

• After exploring all target audiences, we believe that a strong focus should

be placed on influencers in order to reach the other audiences as well as

recognize their power within the community

• Secondary emphasis should be placed on business customers, followed by

residents (primarily home owners)

Home Owners

Business

Influencers

Contents





• Next steps

30

A brand is a promise delivered

• Strong brands create a strong emotional, relevant connection with their

audiences in a way that’s both credible and differentiated

• Brand promise serves as a context or lens through which we develop

marketing programs… informs not only what we say but how we say it

Distinctive

(Differentiation)

Desirable

(Relevance)

Deliverable

(Credibility)

What do customers want from a power company?

• For business customers, the bar is very low on expectations – reliable

power at low rates

– ”They’re just a service provider. Keep my power on and reduce my costs. Let me know

you’re working on saving me money.”

• Business customers are also interested in communication on relevant

issues like energy savings and outages

– “Need to follow up on the cause (of the outage) and what they’ll do about it, even if it’s an act

of God.”

– “Energy audit and tips…we could utilize those services if they’re offered.”

• Influencers have additional hopes for how the local power company could

add value, including community involvement and education

– “Want them to be more active in the community…to help serve providers build the

community. Provide a safety net for kids – want to see all institutions that serve city get

behind that in a greater way.”

– “My energy provider? Number one deal besides making lights go on – is to educate people

about energy conservation.. ..Hammer away as hard as possible about new technologies,

Energy star appliances. Much better about rebates , home and biz energy audits.”

32

Relevance

What do customers want from a power

company? – cont’d

• In addition to reliable power at low rates, residential customers are also interested in education on energy conservation

– “I just want to know I’m getting the best rate possible, and that I can talk to a real

person if something goes wrong”

– “Homeowners want to go green and DIY. If there was somewhere they could go

to learn about Tips and tricks for homeowners to cut energy down by 50-60%

because it’s hard to find or figure out what to do”

• … as well as having a power company that makes a meaningful contribution

to the pride they feel in their community.

– “If AMP were recognized as green leader - would be wonderful - I already went to

the town square to watch them win some green award last year - that was

exciting. We are a very proud town”

33

Relevance

Do customers care about renewable energy?

• Among business customers, some are leaders in green building and

sustainable practices and are proud of being an example

– “We try to be green here at Abbott. I’m already energy efficient proactive here, already doing

a lot of stuff that’s considered to be green like different type of lighting… programs that I

started myself”

– “Renewable energy was important to the people who were involved in making sure we have

a LEED gold building. It helped us decide where to move…. It is a message we convey to

anyone who comes on a tour of the plant.”

• Yet most business customers have not created major initiatives in energy

efficiency

– 43% of business survey respondents have “given no thought” to EE, while only

18% have a plan in place… however, those with a plan in place may be a high

percentage of building owners vs. leasees.

– We have no data on importance of renewable energy as part of their EE and

sustainability actions, which may be an opportunity for further research

34

Relevance


Do customers care about renewable energy?

• The influencers we spoke with felt that renewable energy is important

– When I hear “power” I think Conservation. I recently became a certified building operator and

did classes – it changed my perspective. I’m trying to give this info to other associations”

– “ I expect my power company to be ‘green’ and ‘clean’ but not have to be 100%”

• Among residential, “green” is both familiar and important

– Two thirds of Alameda residents are “very familiar” and “very concerned” about global

warming and climate change… higher scores than residents in other areas on this subject

• “We here in Alameda are very proud of our green library – we brag about it a lot”

• “We’re a small little town but many of us are working hard at it {being green} we have a

lot of committees”

35

Relevance


36

What’s credible about AMP?

• Local and accessible

– “Neighborhood power company”

– Reach a live person

– Minimal red tape

• Important part of Alameda community

– City Fund contributor

– Provide community education

– Historic part of community

– Support non-profit work

– Sponsor key city events

• Leader in renewable energy

– Long-time geothermal sourcing

– 80% renewable energy provider

– Exceeds regulatory requirements

– Diversity power sourcing portfolio

• Better alternative to PG&E

Credibility

“With AMP, you’re dealing with a hometown

provider. When I call with a question you feel

like they’re part of the community… you get to

talk to real people. One woman who helped us

get a rebate when we moved here still calls

every once in a while to check in.” – BIZ

“I know they already help the Red Cross and

the Fire/Police Fund – but also I see them at

Earth Day and we all enjoy the Xmas Lane too”

– INFL

“If someone were thinking about moving here…

AMP would be a selling point. Green power,

but It's affordable and the service is good. They

have their own utility, doesn’t resell so you

don’t have to deal with PGE”

– BIZ

What could we do better?

AMP could be more proactive in terms of communication with all audiences

• We can improve with business customers on reliability issues and rates…

– “I’ve had a few hiccups in reliability here that are unexplainable. There’s no communication;

they’ve been poor on that.” – BIZ

– “I did call them about the recent power outage, but I never heard a final resolution.” – BIZ

– “They’ve given estimates on rate increases but never followed up. Once they know, it would

be good if they’d give us a heads up. If it’s different than our estimate we can reforecast” –

BIZ

– “Rates increase will be about 10-15%... people will ask if they are running their business

efficiently. Not aware where rates compare – maybe they should provide this.” – INFL

• While residential customers aren’t giving credit where credit is due

– Only 31% say that AMP is one of the “top rated” on renewables, while 36% don’t

know or aren’t sure. Another third say that AMP is about average

– Only 26% are aware of the percentage of electricity provided by AMP that comes

from renewable or carbon-free sources

– “ I read both town papers every day but don’t much see much written about green efforts of

our power company.”

37

Credibility

Source: RKS 2009 Residential Customer Service Survey

What could we do better? – cont’d

• There’s room to improve credibility across all audiences on renewable

power and energy efficiency by simply getting the word out

– “It’s good to be green – and conserve. I know they (AMP) are using good stuff –

I’m not sure how much” – INFL

– “I didn’t even know they offered energy audits” - INFL

– “Homeowners do not know about programs that AMP offers - energy audits, incentives, and rebates, etc. There needs to be a concerted PR campaign.” –INFL/RESI

38

Credibility

How can we differentiate?

• While PG&E is not a direct competition, many customers (and potential

customers) could benefit from knowing the edge AMP has over PG&E in a

number of areas including:

• Average rates are 29% lower than PG&E/as is average Residential monthly bill

• More accessible – less red tape (Friendly)

• Provide Free Audits

• 80% Renewable energy vs. 15%

• Business customers had a lot to say about the advantages of AMP

– “AMP has been a lot easier to work with vs.. PG&E. They’re smaller, and have the best

people to work with… they’re resourceful and very responsive”

– “PG&E… I don’t want to knock them, they’re fairly reliable, but I had some issues. Their rep

would call me and say he’d do this and that, and he never followed through”

– “At PG&E we had a rep assigned to each account. But the guy assigned to us, you can’t

leave a voicemail message; it directs you to an 800#. He obviously doesn’t want to deal with

us. The 800# is an automated system that tries to route you to the right person; I got

someone that was for residential service who then tried to transfer me to the guy I tried

calling first”

Source: 2010 ASPW

39

* From website evaluation; see appendix for screen shots and commentary

Differentiation

How can we differentiate?

• Investment into the community is recognized by some

– “If PG&E and AMP were a choice that I had – I would still choose AMP for the money that

goes into fund that goes back to the community.” – RES

• … as well as the lower rates

– “I know that we are paying less than if we were with PG&E. AMP tells us that, and I know we

pay less. We got an incentive to move here”. – BIZ

• While PG&E is regarded as having good reliability overall, AMP is seen as a

better choice

– “If AMP were a car it would be a LEXUS (great service) vs. PG&E – Hyundai”

– INFL

– “Buick – nice big dependable car, doesn’t give you a thrill but doesn’t let you down”. – INFL

– AMP is a Honda or Toyota. Reliable, won’t let you down. PG&E is a GM car, like a Chevy.

Experience has been that… I don’t want to knock them, they’re fairly reliable, but I had some

issues.” - BIZ

40

Differentiation

Implications for positioning

• Anchor positioning on AMP’s competitive strength of being the local

neighborhood power company that has a vested interest in helping Alameda

grow

• Renewable energy and lower rates are proof points of how AMP powers

sustainable growth, not anchor points

• Instead of focusing on “what’s in it for me” benefits, highlight “what’s in it for

us”

– Enables broad messaging to be relevant to all target audiences, while allowing

ability to tailor messages to specific groups

– Leverages community strengths of AMP and point of difference from PG&E

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Implications for positioning, – cont’d

• Here is a suggested positioning framework that includes these implications

• The positioning is meant to guide future communications, not be the

communications themselves

– Some aspects will be communicated through imagery and tactics (like visibility and

sponsorship at city events, or the ability to reach a live friendly person)

– Flexible framework enables different aspects of the positioning to be “dialed up” or “dialed

down” depending on the specific audience or execution

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AMP is our neighborhood power company that empowers us – our community,

businesses and residents – to flourish

Flourish together as a community Flourish individually (resi or business)

A nationwide leader in renewable energy, AMP•helps attract new businesses to our community

•Helps us live greener and more sustainably

AMP invests in our community to make it stronger

AMP helps us save money and be more efficient•Lower rates than PG&E

•Audits and tips on energy savings

AMP’s reliable power and people gives us

confidence to grow

How we do business (personality): Friendly, accessible, practical, forward-thinking, reliable

Contents

• Objectives and process




• Next steps

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We envision four goals for the AMP

marketing plans and programs

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1FOCUSFocus resources on

priority audiences2 REACH

Create awareness

of strengths3 ENGAGE

Educate and motivate

participation

Dedicated reps (top)

Business e-newsletters

Scripts for CS reps and

billing statements

Mobile/Twitter alerts,

email for outage

Direct outreach

Community e-newsletters

Articles/sponsorships in

member newsletters

Billboards (guerilla)

Media coverage

Community events

Resi e-newsletter

Truck signage

EE microsite for business

Business case studies &

referral program

Influencer outreach to sign

up for programs

Influencer case studies &

referrals (“we saved $x”)

Co-marketing & programs

“Reducing Energy Bill”

microsite with tips

Sign-ups at community

events

4SAVEMoney and paper

Move communications online

Dial back on bill stuffers, direct to web through bill messages, CS rep scripts

Find existing EE tips and information from other sources and get permission to reprint

Exa

mp

le ta

ctic

s

Need to clarify goals and metrics, and decide

if benchmark survey is needed

• Before determining metrics, we need to collectively agree on priority

objectives. Proposed objectives include:

• Awareness/Perception Objectives (measured by online survey)

– Build trust and favorability as a local community partner and fiscally responsible

green utility. Specifically…

• Increase customers’ awareness of AMP’s renewable energy story

• Increase customers’ awareness and understanding of AMP’s programs and benefits,

especially around energy efficiency

• Increase the perception that AMP has lower rates than surrounding utilities

• Other metrics would relate specifically to the brand positioning like community or

empowerment

• Performance Objective (measured by AMP)

– Increase participation in AMP’s energy-efficiency programs among priority target

audiences from x% to y% of customer base

• Energy efficiency programs are highly related to AMP’s renewable energy story and

thus are mutually reinforcing

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Fo

r dis

cu

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Contents





• Next steps

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Next Steps

• Input into open questions

– Clarify marketing goals and targets

– Confirm specific programs to focus on

– Discuss whether to move forward with benchmarking awareness and perceptions

among influencer and business customers

• Ozone will then move into marketing planning stage

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Marketing Findings & Implications

Marketing

Transcript of Marketing Findings & Implications