7MK003 Global Marketing-Strategy and Practice Assignment Sample
Marketing strategies and the ability of a company to implement practices that can enhance their business performance plays a vital role in assessing an organisation’s growth in the market. Effective marketing strategies also hold a crucial role in encouraging customer reach for small-scale companies.
The following report is based on Pure Planet, which is a renewable energy supplier in the UK. Hence, in the context of the selected organisation detailed company analysis will be provided along with its capabilities and competitor analysis.
The report will also identify three new international markets that will be suitable for Pure Planet to expand its business. Based on the potential of these three markets a final choice of a market would be identified that will be the best suite for Pure Planet. Even, SLEPT analysis will be conducted on the selected market to define the possibilities and opportunities. Furthermore, the market entry strategy that needs to be adopted by the company to enter that market would also be discussed.
Pure Planet is a renewable energy supplier in the markets of the UK. The company acquires 100% sustainable renewable energy from BP and supplies it to consumers in the UK.
The company also sells gas alongside electricity that it again acquires from British Petroleum, which has a 25% stake in the company. The company has been in operation since 2017 and is operated by three people forming its leadership and management (b.co.uk, 2021).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
At present, the company has more than 100,000 customers in the UK and has been listed among 50 other brands, which pose a challenge to the Big Six energy firms in terms of acquiring market share (reuters.com, 2019).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
The company has been effective in providing affordable energy solutions to the consumers of the UK as the organisation has been providing electricity and gas at a very competitive and low price. Moreover, the organisation that has the support of
British petroleum has been consistently lowering the prices of electricity and gas over the years, which has increased its competitiveness in the energy industry of the UK. The company was highlighted as one of the most affordable options in terms of electricity and gas after the company had cut the price of energy by 2.4% helping consumers to save up to £962 a year (reuters.com, 2019).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
Moreover, the company based on recent market reports have been seen that several consumers have changed their energy suppliers, and this has considerably increased the market share of Pure Planet (express.co.uk, 2021).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
|Pure Planet||● Backed by BP and considered as one of the most cost-effective green energy suppliers in the UK
● Currently serving around 100,000 customers in the UK (reuters.com, 2019)
|● Lack of necessary infrastructure for competing against the big six companies in the energy industry
● Lack of brand recognition, which is quite necessary to increase their presence in the markets of the UK in the energy industry (which.co.uk, 2021)
● Comparatively smaller workforce
|British Gas||● The largest energy company in the UK
● Known for providing the greenest energy in the country
● A workforce of 11,000 employees (simplyswitch.com, 2021)
|● Even though the company has an overall higher preference from consumers, the organisation only provides just above average value for money service.|
|EDF Energy||● Is responsible for generating 7% of the country’s electricity
● The consumer base of almost 5,000,000
● A workforce of 12,000 employees
● 71.2% of electricity generated from nuclear power plants (simplyswitch.com, 2021)
|● The company has been blamed for poor complaint handling capabilities|
|E.ON||● One of the largest investors in the energy industry
● Has a workforce of 70,000 total number of employees in the global context
● The consumer base of almost 9,000,000
● Provides for 10% of the entire electricity needs in the UK
|● Even Though the company provides renewable energy; however, they use 7.2 % of coal energy, which considerably increases their carbon footprint in the energy industry of the UK (simplyswitch.com, 2021)|
|Npower||● The consumer base of 7million
● A workforce of over 8,000 employees (simplyswitch.com, 2021)
|In terms of pricing and value for money, the company has failed to meet the expectations of the customers (simplyswitch.com, 2021).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample|
|Scottish Power||● Consumer base of 5,000,000 customers
● World leader in terms of wind energy and (simplyswitch.com, 2021)
|The services of the company are comparatively priced higher which reduces their value for money|
|SSE||● Provides energy to both England and Ireland
● Capacity to generate 3,200MW only through renewable energy sources (simplyswitch.com, 2021)
|The organisation even being a part of the big six energy companies in the UK has not been able to achieve a higher consumer base compared to the other companies|
Table 1: Competitor analysis
(Source: simplyswitch.com, 2021)
Since Pure Planet is a small company and it lacks infrastructure and financial capabilities, hence, it stops them to reach out to major countries sound the globe. Therefore, it would be wise for Pure Planet to expand its business in a neighbouring country within Europe.
In this respect, countries like Denmark, France and Germany have been identified as one of the most profitable markets in terms of supplying green energy as these countries have shown an inclination towards adopting green energy.
About 47% of energy is renewable in Denmark comes from wind energy and the country is willing to increase it to 80% by 2024 (reuters.com, 2020).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample Furthermore, the country has a small population and believes that the carbon footprint of the country needs to be reduced in the energy sector.
Therefore, the markets of Denmark in terms of supplying green energy can be one of the most potentially profitable options for Pure Planet. Additionally, the country also plans to increase their renewable energy consumption by 80% in the next few years, which is one of the potential opportunities for the organisation to enter the market of Denmark.
The country Shown interest and has been willing to increase its renewable energy up to 23% by 2020 (ec.europa.eu, 2020).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample The consumption of renewable energy in the country has been consistently increasing over the past few years.
As a result, the potential for growth in the markets of France is also potentially profitable. Therefore, the organisation can carry out market analysis in order to identify the demand for renewable energy in the country before entering the markets. Moreover, France also has a considerably high population with established consumer purchasing power, which is one of the strengths that can be harnessed from the market and its consumers.
The country has been consistently increasing their Renewable energy production over the years. In 2016, the country had the capacity to produce 20% renewable energy, which has considerably increased to 46% in 2020 (cleanenergywire.org, 2020).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
The country has been excelling in terms of producing renewable energy. The expansion of the renewable energy industry in the country has also expanded quite rapidly in the past few years, which creates new opportunities for Pure Planet to enter the markets. The population of Germany is also quite aware of the benefits of renewable energy, which can prove to be another beneficial factor that would play a major role in the company’s success.
Based on the market analysis of three countries that includes France, Germany, and Denmark it has been seen that the affinity and the opportunities for growth in the markets of Denmark are comparatively higher than France and Germany.
This is because the government of Denmark has shown higher interest in increasing the amount of renewable energy generated in the country (Johansen, 2021).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample Therefore, the potential of growth in the markets of Denmark is considerably higher than that of France and Germany. Moreover, in terms of competitors present in the markets of Denmark the company would benefit as it has British Petroleum backing its market operations.
Since the markets of Denmark have been chosen as one of the most profitable and potential places where Pure Planet can gain consistent growth, external market analysis with the help of a SLEPT framework would shed more light upon the country’s external market environment.
In terms of the social environment, the population of Denmark is quite aware of the possibilities and opportunities generated through renewable energy.
Therefore, with the presence of such an aware consumer base, the company can easily expand their business in the markets of Denmark (Kooij et al. 2018).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample The organisation would also benefit considerably as the government would also support the company’s operations in terms of increasing the share of renewable energy in the country.
In terms of the legal environment, the organisation needs to make sure that the following the legal guidelines established for overseas companies operating in the market of Denmark. Furthermore, the company also needs to report their emissions and maintain admission guidelines.
Adding to that, the organisation also needs to consider and maintain the labour laws legal regulations of the country to avoid any legal problems while operating in the markets of Denmark (Pinson et al. 2017). http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
The GDP of Denmark has seen difficulties in the last few years. The GDP of Denmark suffered considerably due to the presence of the covid-19 pandemic in the country.
The GDP of the country was 2.3% in 2019 however in the year 2020 the growth of GDP was -4.5% (countryeconomy.com, 2021). http://7MK003 Global Marketing-Strategy and Practice Assignment SampleNonetheless, as markets have started recovering from the pandemic the country’s expected GDP in the year 2021 is expected to be 3.2%. This reflects that the country and its consumers would have sustainable purchasing power in the coming years.
In terms of the political environment, the organisation would receive a considerable amount of support from the government in terms of supplying renewable energy in the country.
Furthermore, the company would also be favoured, as the operations would consistently help in achieving the country’s goal to achieve 80% renewable energy sources. Therefore, a favourable political climate would help the company to gain stable growth and market entry in the country (Dong et al. 2019).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
In terms of the technological environment, there has been a lot of development that can help the company to maintain a robust and technologically advanced infrastructure in the markets of Denmark. About 38% of Danish businesses are aligned towards incorporation and adaptation of cloud computing, whereas, 29% of such business are solely dependent on social media (Investindk.com, 2021).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
Even the Danish government has induced to launch a Digital Growth Strategy by investing 134 million EUR on the digital initiative until 2025. Moreover, the company only uses mobile applications for connecting with consumers and providing their services, which can be improved by further technological adaptations (Unger et al. 2018).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
Technological advancements in terms of renewable energy have also been seen in terms of new methods that are being introduced in producing renewable and green energy. The company can make use of such technologies to further improve its position in the markets of Denmark.
Based on Ansoff Matrix it can be stated that the market entry strategy or the company needs to be a market development strategy (Chatzisideris et al. 2017).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample In order to do that the company needs to identify potential green energy suppliers in the country.
Since the UK and Denmark have geographical hindrances like the North Sea in between them, supplying electricity from England would not be a possible option. Even if the company were able to do so, the cost of maintenance and operations would increase which would not allow the company to provide electricity at a lower cost. However, gas can be supplied from the suppliers of the UK directly into Denmark.
Therefore, the identification of local suppliers in terms of renewable energy is quite necessary. Furthermore, it is also necessary for the company to identify consumers who have a higher demand for low-cost electricity that is also renewable. This would help the company to achieve its market development strategy quite successfully (Taniguchi, 2020).http://7MK003 Global Marketing-Strategy and Practice Assignment Sample
Based on the above market analysis, it can be stated that the opportunities for growth for Pure Planet in the markets of the UK and abroad are significantly higher. The company has been performing quite well in the last few years, which has helped them to gain positive feedback from consumers.
The study has reflected a competitive market analysis, which shows that the organisation needs to grow further to become an established company in the energy sector of the UK. Foreign markets and the potential in those markets have also been analysed, which has helped in identifying
Denmark as the most profitable market in terms of expansion. Based on that external market analysis has been conducted on the macro-environmental factors of Denmark. Additionally, a market development strategy has also been suggested as a market entry strategy for Pure Planet in order to successfully establish their business in Denmark.
b.co.uk, 2021. About Pure Planet. Available at: https://www.b.co.uk/company-profile/?Pure-Planet-108403. [Accessed on 31 March 2021]
Chatzisideris, M.D., Laurent, A., Christoforidis, G.C. and Krebs, F.C., 2017. Cost-competitiveness of organic photovoltaics for electricity self-consumption at residential buildings: A comparative study of Denmark and Greece under real market conditions. Applied Energy, 208, pp.471-479.
cleanenergywire.org, 2020. Germany’s renewable power share climbs to 46 percent in 2020 – preliminary data. Available at: https://www.cleanenergywire.org/news/germanys-renewable-power-share-climbs-46-percent-2020-preliminary-data. [Accessed on 31 March 2021]
countryeconomy.com, 2021. Denmark Denmark GDP – Gross Domestic Product. Available at: https://countryeconomy.com/gdp/denmark. [Accessed on 31 March 2021]
Dong, S., Li, H., Wallin, F., Avelin, A., Zhang, Q. and Yu, Z., 2019. Volatility of electricity price in Denmark and Sweden. Energy Procedia, 158, pp.4331-4337.
ec.europa.eu, 2020. National renewable energy action plans 2020. Available at:https://ec.europa.eu/energy/topics/renewable-energy/national-renewable-energy-action-plans-2020_en?redir=1. [Accessed on 31 March 2021]
express.co.uk, 2021. Money saving tips: Family save £1,100 amid fears pensioners to be hit by price hikes. Available at: https://www.express.co.uk/finance/personalfinance/1417524/money-saving-tips-savings-energy-bills-price-hike. [Accessed on 31 March 2021]
Investindk.com, 2021. Denmark once again the most digital country in the EU. Available at: https://investindk.com/insights/denmark-once-again-the-most-digital-country-in-the-eu#:~:text=In%20addition%2C%20Denmark%20has%20experienced,and%20social%20media%20(29%20%25). [Accessed on 31 March 2021]
Johansen, K., 2021. Blowing in the wind: A brief history of wind energy and wind power technologies in Denmark. Energy Policy, p.112139.
Kooij, H.J., Oteman, M., Veenman, S., Sperling, K., Magnusson, D., Palm, J. and Hvelplund, F., 2018. Between grassroots and treetops: Community power and institutional dependence in the renewable energy sector in Denmark, Sweden and the Netherlands. Energy Research & Social Science, 37, pp.52-64.
Pinson, P., Mitridati, L., Ordoudis, C. and Østergaard, J., 2017. Towards fully renewable energy systems: Experience and trends in Denmark. CSEE journal of power and energy systems, 3(1), pp.26-35.
reuters.com, 2019. BP-backed UK energy supplier Pure Planet cuts prices 2.4 pct. Available at: https://www.reuters.com/article/britain-energy-prices/bp-backed-uk-energy-supplier-pure-planet-cuts-prices-2-4-pct-idUSL5N22K4TL. [Accessed on 31 March 2021]
reuters.com, 2020. Denmark sources record 47% of power from wind in 2019. Available at: https://www.reuters.com/article/us-climate-change-denmark-windpower-idUSKBN1Z10KE. [Accessed on 31 March 2021]
simplyswitch.com, 2021. The Big Six Energy Suppliers. Available at: https://www.simplyswitch.com/energy/guides/the-big-six-energy-suppliers/. [Accessed on 31 March 2021]
Taniguchi, S., 2020. Examining the causality structures of electricity interchange and variable renewable energy: a comparison between Japan and Denmark. Asia-Pacific Journal of Regional Science, 4(1), pp.159-191.
Unger, E.A., Ulfarsson, G.F., Gardarsson, S.M. and Matthiasson, T., 2018. The effect of wind energy production on cross-border electricity pricing: The case of western Denmark in the Nord Pool market. Economic Analysis and Policy, 58, pp.121-130.
which.co.uk, 2021. Pure Planet is a digital-only energy firm which claims it offers ‘greener, cheaper energy’. Find out if it’s the best gas and electricity firm for you. Available at: https://www.which.co.uk/reviews/energy-companies/article/energy-company-reviews/pure-planet-au1yA8F0nHpR. [Accessed on 31 March 2021]