Market Outreach Plan for Effortless Energy --Oahu, Hawaii

2014.12.5

Bohua Li

Ruiyang Wang

Qingyu Li

Yuehai Yin

Content1.Executive Summary 1

1.1Background 1

1.2Analysis Method 1

1.3Goals to Understand 1

1.4Conclusions & Recommendations 2

2.Introduction 2

2.1Company Profile2

2.2Business Model 2

2.3Markets 3

2.4Market/Product Fit 3

2.5Solar Energy 4

2.6Problem Define 4

3.Market Analysis 5

3.1Overview of Hawaii’s energy consumption 5

3.2Why Oahu Island 7

3.3Key Findings 10

4.Targeting analysis 11

4.1Market Evaluation 11

4.2Consumer Analysis 20

5.Partners & Competitors 21

5.1Potential Partners & Core Technologies 21

5.2Conclusions 28

6.Promotion Channel 29

6.1Current Outreach plan 29

6.2Deep Digging 31

6.3Recommendation for promotion 35

7.Recommendations 37

8.Limitationsl 38

9.Appendix 39

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1. Executive Summary1.1 Background

Effortless Energy (EE) is a company who offers free, easy home upgrades at no cost to customers. After a visit from an “Energy Expert” from the company, it pays for and upgrades things like thermostats, refrigerators, lighting, and furnaces to make them more efficient. Then the company shares in the energy savings they create by charging customers per unit of energy saved at a rate lower than the cost of using energy. As a result, customers receive a more valuable, easier-to-control, more comfortable, quieter, healthier, and greener “Effortless Home” while saving money on their bills.

As a starter focused on cost-effective residential energy efficiency market, Effortless Energy is trying to spread out its business. The company hopes the research team could provide help for its outreach plan, especially help with cultivating Hawaii market which has great potential in energy saving. Due to the special geographic and demographic factors of Hawaii, the main task of this market outreach plan is to cultivate the solar energy market on Oahu Island, Hawaii.

1.2 Analysis Method

The main analysis method used by the research team is secondary research. Limited by the time budget constraints, secondary research is the best way for the research team to understand the Hawaii market. The sources for the secondary research includes but not limit to www.data.gov, http://www.census.gov/, and https://data.hawaii.gov/. The research team tried to control bias and errors in a receivable and reasonable level.

1.3 Goals to Understand

• What is EE’s market

• Who are the competitors and partners

• The demographic features of EE‘s potential users, include but not limit to the followings:

Gender: Knowing this can help determine the promotion strategies. Consumers with different genders will show different attitudes toward a certain advertisement. Male consumers tend to like advertisement with wild and rough emotion. Female consumers tend to be attracted by cute and interesting images.

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Income Level: Knowing this can help determine the certain social status of our consumers.

Age

Education Level

1.4 Conclusions & Recommendations

In this part, the research team will conclude some main points according to the results of secondary research and analysis. And we recommend EE to implement some marketing strategies to cultivate Hawaii market and gain the potential users

2. Introduction2.1 Company Profile

Effortless Energy is a new company who offers free, easy home upgrades at no cost to customers. The revenue comes from sharing in the energy savings they create by charging customers per unit of energy saved at a rate lower than the cost of using energy. Now Effortless Energy has an office located in downtown Chicago and business in Illinois, Michigan, and Colorado. After years’ preparation and a one-year operation, more than 150 homeowners are on the waitlist for upgrades and about 40 contractors nationwide have expressed interests in EE’s products. EE completed its pilot home installs in Chicago in June, then a dozen more homes across the near few states. As a starter focused on cost-effective residential energy efficiency market, Effortless Energy is trying to spread out its business. Oahu, Hawaii is one of the target areas where the company hopes the research team could provide help for its outreach plan.

2.2 Business Model

Effortless Energy stays capital-light by partnering with local contractors to serve homeowners in an easy, one-stop shop model. The certified local contractors purchase leads from Effortless Energy and pay fees to use its mobile, cloud-based SaaS to identify cost-effective home upgrades. The SaaS platform uniquely enables contractors to offer EE’s innovative Home Efficiency Services Agreement, or HESA, on-site at the end of the home walk-through. EE earns an original fee for each HESA deployed. These origination fees are paid by the Community Energy Efficiency Fund, which EE sponsors and raises high-yield capital for separately. Additionally, EE has several other revenue streams (such as opt-in demand response and bulk purchasing

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agreements on efficiency equipment) that it intends to pursue after scaling up the first three.

2.3 Markets

The McKinsey Energy Efficiency Cost Curve estimated that untapped, cost-effective residential energy efficiency measures constitute a $230B market in the US alone. The main revenue stream for EE, brokerage fees of ~10%, equates to a $23B total addressable market in the US. By 2018, EE has an expectation of deploying over $1B per year globally into HESAs, helping them drive well over $100M in annual revenue. Single family homeowners are the initial target because of less complicated decision-making process as opposed to multi-family or rental properties. To enter this market, EE target the “green but busy”, middle-class demographic in religions, ---starting with Chicago as the pilot market---with high energy prices (i.e., Hawaii) and/or high numbers of heating and/or cooling degree days (eg., the Midwest, Northeast, and South) since they are financeable, have large energy bills, and are attracted to the company’s value proposition.

2.4 Product/Market Fit

Effortless Energy in Hawaii will provide services/products for home upgrades as follows:

• LED lighting

• Energy Star refrigerators and air conditioners

• Nest thermostats

• Solar Thermal Systems (heat pumps, solar hot water arrays)

• Solar Electric Systems

• Energy Efficiency Windows

• Cool roof technology (Solar venting, insulation, thermal barrier)

According to Effortless Energy’s request, the solar market of Hawaii would be the main target for the company. This report would mainly focus on how to cultivate the solar market and promote the solar-relate services/products that EE could provide for.

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2.5 Solar Energy

Solar energy is radiant light and heat from the sun harnessed using a range of ever-evolving technologies such as solar heating, solar photovoltaics, solar thermal energy, solar architecture and artificial photosynthesis.

It is an important source of renewable energy and its technologies are broadly characterized as either passive solar or active solar depending on the way they capture and distribute solar energy or convert it into solar power. Active solar techniques include the use of photovoltaic systems, concentrated solar power and solar water heating to harness the energy. Passive solar techniques include orienting a building to the Sun, selecting materials with favorable thermal mass or light dispersing properties, and designing spaces that naturally circulate air.

2.6 Problem Define

According to the company’s market timeline, the research team had several discussions with EE and helped research the Hawaii market, especially the Oahu Island. The research team would provide a market research and a detail market plan for the outreach on this Island. Several problems have been defined as guidance for this research and the market plan.

• What is EE’s market

• Who are the competitors and partners

• The demographic features of EE‘s potential users

• What kinds of advanced technology can be utilized fitting in EE’s business model

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3. Market Analysis

This part would provide information about Hawaii’s energy consumption and detail information on Oahu Island. Both can be used to do the further analysis on consumers, competitors and partners.

3.1 Overview of Hawaii’s energy consumption

Hawaii is the only one state of the US which is located in the tropical area. It lacks of coal, petroleum and other traditional energy. The geographic characteristics determine that most of Hawaii’s energy needs to be imported. And Hawaii is the only state that depends so heavily on petroleum for its energy needs. Whereas less than 1% of electricity in the nation is generated using oil, in 2012 Hawaii relied on oil for 71% and on coal for 15% of its electricity generation.

Graph 1 The comparison of electricity production by source between Hawaii and Mainland U.S., 2012 (Source: http://energy.hawaii.gov/)

This situation caused the higher utility fees in Hawaii than other USA mainland areas. Hawaii’s electricity prices are three times higher than the U.S. average.

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Graph 2 Comparison of Average Electricity Price, $/kWh, between Hawaii and Mainland U.S. (Source: http://energy.hawaii.gov/)

In Hawaii, both electricity and gasoline prices follow the price of petroleum. The graph below shows the prices of Brent crude oil, gasoline, and electricity.

Graph 3 shows the prices of Brent crude oil, gasoline, and electricity in Hawaii. (Source: http://energy.hawaii.gov/)

The highly usage of traditional energy and higher utility fees not only concern the residents of Hawaii, but also the Hawaii government. According to the data provide by Hawaii government, in 2012, about 11% GDP of Hawaii has been spent on the energy cost. Hawaii has motivation to become one of the highest users of renewable energy, like solar, wind, and geothermal.

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Graph 4 Energy cost as a percent of GDP. (Source: data.Hawaii.gov)

Although Hawaii’s electricity production and costs are still heavily reliant on oil, energy efficiency and renewable energy have been increasing in all counties.

Graph 5 Renewable energy and energy efficiency portfolio standards. (Source: http://energy.hawaii.gov/)

In 2013, approximately 18% of Hawaii’s electricity was generated from renewable sources. Renewable electricity production is primarily from bioenergy, wind, and geothermal, with solar, especially distributed photovoltaics, increasing rapidly. In 2013, it has provided about 2% of the total electricity production. Hawaii was the first state in the United States to reach grid parity for photovoltaics. Its tropical location provides abundant sun energy.

3.2 Why Oahu Island

1) Population

Oahu, known as "The Gathering Place", is the third largest of the Hawaiian Islands; however, it is the most populous of the islands in the U.S. state of Hawaii. The island is home to about 953,199 people (approximately 72% of the resident population of the state).

2) Utility facility

Oahu is also the home for the biggest electric company, Hawaiian Electric Company (HECO), in the U.S. state of Hawaii. For more than 100 years, HECO has provided the

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energy that has fueled the islands' development from a Hawaiian kingdom to a modern state. Hawaiian Electric Company, and its subsidiaries, Maui Electric Company, and Hawaii Electric Light Company, serves 95% of the state’s 1.4 million residents on the islands of Oahu, Maui, Hawaii Island, Lanai and Molokai. HECO is mainly responsible for providing electricity for the Oahu Island.

3) Solar Penetration

According to the data of HECO which is the electricity company on Oahu Island, the number of PV installation is showing as the graph below.

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Graph 6. The cumulative installed PV—As of Sept 30, 2014 (Source: HECO)

By the end of September 2014, the number of PV systems installed on Oahu Island is 34289 with 261 MW PV capacity. 97% of the system and 66% of the capacity are used by residential.

The penetration of solar system installation on Oahu is not balanced. Geographic factor is the first reason. Graph 7 shows solar radiation on Oahu. We can easily find out that most of the beach areas have the highest solar radiation.

Graph 7 Radiation map for solar energy on Oahu Island (Source: Hawaii Statewide GIS Program)

Graph 8 shows another reason. According to the data provided by HECO, Many residential neighborhoods where single-family homes dominate, like Mililani, Ewa and Hawaii Kai, have high solar penetration level. Meanwhile, neighborhoods full of high-rises that are not very conducive to solar, like Waikiki and downtown Honolulu, have low solar penetration.

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Graph 8 the penetration of solar system on Oahu. (Source: HECO)

Although there is no exact number of solar water heaters on Oahu provided by the authorities. It can be concluded that the actual number is no far less than the number of PV systems. And according to the geographic and cultural reasons, they will have the same penetration and concentration level on the Oahu Island.

4) Potential Partners

On Oahu Island, there are tens of companies who can provide services or products related to solar energy. Effortless Energy can have chances to choose its contractors and partners among these companies. The full list of these companies is provided in Appendix 8.1.

3.3 Key Findings

1) Oahu Island is an ideal target for Effortless Energy to enter Hawaii energy-saving market.

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2) The first round of the roll-out of the outreach market plan should focus on the areas which dominate by low-rise houses and are solar practical. Based on graph 7 and graph 8, three areas are suggested. They are Ewa, Mililani, and Hawaii Kai. This is also fit for Effortless Energy’s marketing power.

3) Although many companies could provide solar energy services or related products, a further analysis should be done to narrow the choices and specify the real partners.

4 Consumer Analysis

4.1 Market Evaluation

Although Oahu Island is not such a big area for some large companies, for a starter like

Effortless Energy, only has few salespersons on this Island and limited marketing power,

the whole island is an oversized market with large numbers of residents and houses.

Narrowing the target area is necessary.

Basing on the findings in part 3, the research team suggests three places where have

high solar penetration and high radiation, Hawaii Kai, Mililani, and Ewa. And these

places are dominated by the low-rise houses. Google Map helps us certify this

information. Most people in these places are living in house and some of the houses

have already installed solar equipment. In this aspect, all the three places are suitable

for further evaluation.

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Graph 9 Ewa Street View (Source: Google Map)

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Graph 10 Kai Street View (Source: Google Map)

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Graph 11 Mililani Street View (Source: Google Map)

A further analysis was launched to understand the age of householders and move-in-

date of householders in these three places. The latter could provide information about

how long do the householders keep the current house. This can reflect their ability and

willingness to upgrade their houses.

Through survey of the three places zip code (Hawaii Kai 96825, Mililani 96789, Ewa

96706), we found most of the house owners are 25 to 54 years old in Mililani and Ewa.

However, comparing with the other two places, Hawaii Kai has the lowest number of

householders not only in the target age groups but also in total.

Table 1 Age of householders. (Source: U.S. Census Bureau, 2008-2012, American

Community Survey)

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By analyzing the move-in-date, the research team found that most of the householders

moved into their current houses during 2000 to 2009. But in Hawaii Kai, there are fewer

houses than Ewa and Mililani. So, the market in Hawaii Kai is smaller than Ewa and

Mililani.

Table 2 Move-in-date of householders (Source: U.S. Census Bureau, 2008-2012,

American Community Survey)

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Other five factors are taken into considerations to evaluate the target markets.

Factors RangeAverage household size >3.0Population/house number >3000Whether on Oahu island YesInternet Available YesAcceptable to new tech YesIncome Level High

Table 3 Evaluation factors

Average household size

Comparing the three regions household size and household composition, we can see in

Ewa and Mililani, more than half of households have 3-person or more and more than

half of the household have children. In Hawaii Kai, the percent of family size more than

3-person is less than 50%. From the consumer’s point of view, our target customers are

more willing to pay for providing children and elder a better living environment.

Combining the two graphs, Ewa and Mililani have better performance than Hawaii Kai.

More children and elder in customer’s family make them more willing to pay for our

services. So Ewa and Mililani are more suitable to Effortless Energy.

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Graph 12 Hawaii Kai household composition (Source: Nielson)

Graph 13 Mililani household composition (Source: Nielson)

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Graph 14 Ewa household composition (Source: Nielson)

Income Level

Comparing the three regions income level, we can see that Hawaii Kai has the highest

income level. Mililani has the second highest income level.

Graph 15 Hawaii Kai households by income (Source: Nielson)

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Graph 16 Mililani households by income (Source: Nielson)

Graph 17 Ewa households by income (Source: Nielson)

Because Hawaii Kai just has 8588 householders and more of them are old, even though

they are rich, the customers are not our targets. In Ewa, the number of household is less

than the number in Mililani and income level is lower than in Mililani. So, in conclusion,

Mililani is the most suitable place for Effortless Energy to operate following strategy.

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4.2 Customer Analysis

In the following part, we will focus on Mililani to analysis target customer. Basing on the

segmentation tool from neilsen, there are five kinds of people like trying new tech in

Mililani. But we only target on two parts of people in the list, Technovators and You& I

Tunes. Because these two part of people are 25-44 years old and own a house that is

real target customers for Effortless Energy.

Graph 18 Target customers (Source: Nielson)

Technovators You& I TunesLifestyle & Media TraitsWatch children's programmingBuys video games onlineUse phone or tablet to control TVBuy toys onlineWatch Nickelodeon

Lifestyle & Media TraitsWatch videos on tabletUse Internet to work at homeDownload cell phone wallpaperGo snowboardingRead Wired

Demographics Traits Demographics Traits

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Urbanicity: MixIncome: UpscaleTechnodoption Class: High-TechAge Ranges: Age 25-44

Urbanicity: Metro MixIncome: Upper MidTechnodoption Class: High-TechAge Ranges: Age 25-44Presence of Kids: HH w/o KidsHomeownership: HomeownersEmployment Levels: Professional

Table 4 Detail information about Technovators & You & I Tunes.

Basing on the lifestyle and demographic characteristic of the two kinds of people, we

can operate some special promotion activities that are attractive to these kinds of

people.

5 Competitors & Partners

5.1 Potential Partners and Core Technologies

Basing on Effortless Energy’s business model and our goal, we are looking for the

company that has the energy saving programs for Hawaii market. Meanwhile, we also

decide to choose companies which are using both energy audit technology and

advanced energy saving technology, such as solar panel and solar water heater

installation, in Hawaii Energy Market. So there are two types of companies that might

become Effortless Energy’s partners.

Current, there are four main kinds of solar technologies using in residential condition: Photovoltaic Systems, Solar Hot Water Systems, Solar Electricity and Passive Solar Heating and Daylighting. Solar panel, solar water heater and solar attic fans have already been used by many residents. In Hawaii, if a resident choose to set up solar energy system, 65% of the cost can be covered by Federal and State tax credits. The followings are the companies with special energy saving programs or both doing energy audit and energy saving.

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Hawaii Energy

Hawaii Energy is the ratepayer-funded conservation and efficiency program for Hawaii, Honolulu and Maui counties administered by Leidos Engineering, LLC (formerly known as SAIC) under contract with the Hawaii Public Utilities Commission. They assist ratepayers in saving money on electric bills and reduce our state’s dependence on imported oil.

Rebate programs

1) Hawaii Energy offers you rebate to get rid of your old appliances as well as on the purchase of energy-saving appliances that are ENERGY STAR® qualified. The ENERGY STAR® basic refrigerator offer provides you with a $50 rebate for purchasing a basic ENERGY STAR® refrigerator rather than opting for a lower cost non-ENERGY STAR® model.

2) Including window air conditioner, Clothes Washer, Ceiling fans, Heat Pump water Heater, residents can get rebates from Hawaii Energy.

3) Hawaii Energy offers you rebate on installation of solar attic fans and whole house fans.

Water Cooler Timers Technology

Hawaii Energy provides water cooler timer: insert the water cooler plug directly into the timer. You can then pre-program the timer to turn the water cooler on only during the times you need it. With this device, residents can use water cooler only when they need so that they can save budget on electric bills. On average, you can save about $123 on electricity costs a year and reduces your electricity usage by an estimated 60% (about 397 kWh) per year. (Savings and costs may vary. Savings is based on an approximate rate of $0.31/kWh for Oahu.)

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Graph 16 Water Cooler Timer

Hawaii Community Reinvestment Corporation (HCRC)

HCRC facilitates affordable housing, community development, community development facilities, and economic development statewide. It utilizes proceeds from an Energy Efficiency and Conservation Block Grant (“EECBG”) from the U.S. Department of Energy, available through appropriations under the American Recovery and Reinvestment Act of 2009 (“ARRA”)

Financing Program: GreenSun Hawaii (loans, authorized contractors)

1) The GreenSun Hawaii loan program offers a variety of options for homeowners to install energy efficiency and renewable energy improvements.

2) The GreenSun Hawaii Legacy Program enables participating leaders to offer eligible property owners loans with the most aggressive loan terms and interest rates than may otherwise be offered without program.

3) The GreenSun CAP Program increases access to capital and expands financing options for underserved property owners. By absorbing some of the risks, the GreenSun Capital Access Program’s credit enhancement encourages participating lenders to consider loans that may otherwise fall outside of conventional underwriting standard.

Honolulu’s Alternate Energy

Honolulu’s Alternate Energy is a tech-based company that provides solar panel installation, solar water heater installation, solar attic fans installation and some other commercial solar services.

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Main Technologies and Duties

1) Energy Efficient Cooling Systems

With highly efficient inverter technology, up to 40% more efficient than standard window units for cooling and our heating performance is far superior to traditional heat pumps. With Mitsubishi Electric, you can actively condition the rooms you live in; the other rooms simply turn off or setback. Zoning your home to how you live using Mitsubishi Electric allows you to save energy while maximizing your personal comfort.

2) 3-Digital Temperature Gauges in solar water heater

3-digital temperature gauge is a device to plug into water tank and control the pressure and temperature of the water in tank so that the solar water system can be started or shut down automatically when water pressure is low and also energy cost can be audited by meter in solar water heater.

Graph 17 3-Digital Gauge

3) 25-years warranty Solar Attic Fans

Alternate Energy can help to lower attic temperature which reduces the load on the HVAC System and also reduce temperature of attic.

4) Electrical Vehicle Charge

Clean Cord TechnologySelf-retracting, maintenance free, ultra light weight cord management system.Second-generation gravity operated mechanism improves user experience.

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Customizable Video and Branding OptionsColor LCD screen allows station owners to run their own video content.Customizable signage and branding.

Fully NetworkedCloud-based services to manage charging operations including access, pricing, power distribution, charging notifications and more.Option to make station location and real-time availability visible to drivers on the web, the ChargePoint app and in navigation units of top selling EVs.

User-Friendly InterfaceInteractive touch-button system performs in all weather conditions.Multi-language instructions available in English, French and Spanish.

More BenefitsReporting tools to monitor charging activity and track energy usage.Ability to initiate charging from a smart phone with our mobile app or with a ChargePoint card.24/7 customer support for drivers and business hour support for station owners.

Graph 18 Electric Vehicle Charging Stations in Hawaii(Source:https://portal.ehawaii.gov/residents/transportation-and-vehicles/ev-

charging-stations/)

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Mercury-solar

Mercury-solar is not only doing basic solar system installation, including solar water heater and solar cooling, but also doing residential waste heat recovery.

Waste Heat Recovery

A waste heat recovery unit is placed in proximity to the site where waste heat is known to be released, and it is designed to absorb this heat, passing the thermal energy through a heat exchanger to power a generator, which then produces additional electricity.

Graph 19 Basic cycle for Waste Heat Recovery

Two types of hot water heater

Batch collector (is essentially an insulated tank that absorbs thermal energy from the sun's rays as they beat down on your rooftop)

The flat-plate collector (runs water through a long line of copper tubes that lie parallel to one another. Evacuated tube collectors make use of a pair of tubes with a vacuum between them, which prevents heat loss while the water is stored until it is used.)

Solar Star

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Solar Star is a company which only focuses on selling solar attic fans. Solar Star is the expert in solar attic fans industry. They provide durable panel resists damage from hail, wind and foreign objects.

Solar Star provides different types of solar attic fans to meet different demands of residents. Basing on capacities, there are RF 1600, RF 1200 and IM 1200. Meanwhile, basing on different types of roof, Solar Star also provides Dormer, Whirly Bird and Powered Vent.

Graph 20 Basic structure of a Solar Attic Fan

Table 5: Potential Partners’ Information

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5.2 Conclusions

1. The companies with advanced technologies but high cost to install are not appropriate for us to work with, because Effortless Energy focuses on helping residents do finance for their saving energy. Before residents update their houses, they need to pay a large number of money for the installation service or the devices.

2. Effortless Energy can become mediator between potential partners and residents who want to update houses to save energy.

3. Hawaii residents are wise enough to figure out the right ways to save energy costs, which means that they my doubt the efficiency of Effortless Energy and how much Effortless Energy can save for them. As a result, Effortless Energy needs to choose a creditable partner as premise objective.

4. Some parts of the some companies’ activities could be treated as Effortless Energy’s competitive factors. For example, LED lights exchange program from Hawaii Energy.

5. Less absolute competitors with similar business model exist in Hawaii energy saving industry. It is possible to enter this new market as a leader. Appropriate targets and segments are the most important factors for Effortless Energy to start to enter Hawaii, meanwhile, choose a right area in Hawaii is also important. After these processes, we can contact potential partners to figure out whether they want to work together.

Recommendations

1. Basing on infrastructure and investment in Oahu Island, we choose potential partners which have business in Oahu Island. Meanwhile, we could recommend Effortless Energy to target the companies with close relationship with famous brand, including Home Depot, BestBuy and Target. In addition, we only can choose to work with them in some programs and avoid some special programs including LED lighting exchanging program and so on. So we suggest Effortless Energy should start business with Alternate Energy and some programs from Hawaii Energy. With the market expansion, Effortless Energy can look for the opportunity to work with Solar Star.

2. Effortless Energy should choose market expansion strategy after focusing on one special zip code in Oahu Island as business initiation in Hawaii. We suggest

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Effortless Energy start at solar water heater then expand to solar attic fans industry, the last step is to expand to solar vehicle charging market.

3. When more competitors with similar business model of Effortless Energy appear in Hawaii energy saving market, Effortless Energy should continue to change their main activities to meet with tough competition. For example, we can choose to start at solar panel installation and then expand our business to solar water heater and solar vehicle charging.

6 Promotion Channel

6.1 Current Outreach Plan

1. Partnering with like-minded organizations who have already established contacts with

homeowners

2. Participate in community clean-energy themed events and conferences

3. Public community outreach meetings

4. Targeted mailings to prospective applicants

5. Door to door outreach as needed

6. Working with local contractors who have already established a base in Hawaii

7. Local Media Outreach:

1) Mass print media

a. Honolulu Star‐Advertiser

i. Hawaii Renovation, an edition of Star-Advertiser

b. Pacific Business News

c. neighbor island newspapers and magazines

d. Hawaii Business Magazine

e. Honolulu Magazine

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f. Hawaii Home & Remodeling magazine

i. Effortless Energy could get a company profile

g. Green Hawaii magazine

2) Mass broadcast

a. KHON

b. KITV

c. Hawaii News Now

d. Hawaii Public Radio, FM & AM radio talk shows across the State

e. ‘Olelo and public access TV

3) Trade publications

a. Building Industry Hawaii, Building Management Hawaii

4) Community and professional organizations (via newsletters, emails,

presentations and/or collateral distribution)

5) Online media (e.g., local blogs, local community‐minded websites)

a. Civil Beat

b. ThinkTech Hawaii (video/audio internet broadcast)

6) Homeowner Insurance Companies

a. Perhaps these companies could mail out an EE flyer with their bill on EE’s

behalf. (Probably costly)

7) Social Media

a. Facebook; Pandora; Twitter; Pinterest; Instagram; LinkedIn {business to

business}; Google+; Yelp

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8) Google Adwords

Hawaii Energy Saving tips: Keywords: Green home; home energy saving tips; Hawaii

smart home; Hawaii home energy efficiency; +efficient +appliances; +energy +upgrade;

+hawaii +home +contractor; +home +energy +savings; cheap efficient light bulbs;

+smart +home +upgrades; “free efficient light bulbs” +home +energy savings program;

+LED +light bulbs; +how +to +make +home +energy +efficient; +green +home +hawaii;

+how +to +save +on +electric +bill +hawaii; +why +is +electricity +so +expensive +in

+Hawaii; +reduce +electric +bill; home energy efficiency; home energy savings;

Green home makeover: Keywords: green home; +green +home +financing; smart home

improvements; efficient water heater; new energy efficient appliances; +energy

+savings; +energy +efficient +home +plans; +home +energy +efficiency +program;

+home +energy +improvement; +home +energy +efficiency +tips; +making +your +home

+energy +efficient; +new +home +energy +efficiency; +efficient +appliances; +energy

+upgrade; +Hawaii +energy +efficiency +report; +how +can +I +make +my +home +more

+energy +efficient; +improving +home +energy +efficiency; +increase +home +energy

+efficiency; +improving +home +energy +efficiency; +how +to +make +your +house

+energy +friendly;

6.2 Deep Digging

After analysis, we think that the outreach plan is relatively complete and practical.

However, details and concrete methods to execute the plan are still worth improving.

Therefore, we dig deeply those most cost-effective channels of outreach. Our emphasis

is on local clubs and organizations, free publicity, online media (bloggers), and referral.

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1. Join Local Clubs and Organizations

As a business in a community, it is important to be visible. Joining local clubs and

organizations will give the company opportunities to express and network. We first

considered the local Kiwanis Club and the local Rotary Club, but finally eliminated them

because they mainly focus on charity, while we are doing marketing after all. Local

Chamber of Commerce is a good choice. Such service clubs are always looking for

speakers for their meetings, and if Effortless Energy can be called on to speak, it will

really increase the visibility.

To achieve our goal, several requirements should be met when choosing organizations:

a. We should have a chance to be a speaker instead of always being a listener. In some

organizations, the opportunities for members to express are very limited. It violate our

original intention of joining an organization.

b. There are large amount of reaches in the organization, which means the amount of its

member should be large enough.

c. Organizations should have the same goals or demands with us so that there will be

larger possibility for us to spread our concepts, thus receiving more attentions and

awareness.

d. Organizations should have strong enough execution, such as abilities to hold excellent

activities. Only a strong and active organization can bring benefits.

2. Use Free Publicity

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Besides paid media including advertisement and Google Adwords, Effortless Energy

should also attempt to have earned media, such as mentions on Facebook and news on

websites or newspapers. Publicity builds awareness of the business and if using

correctly, publicity can also build credits within the community. Honolulu’s Alternate

Energy is a good example. It issues a scholarship for Hawaii students who submit

excellent essays on appointed topics (mostly about solar and energy in Hawaii). The

sponsorship helps building reputation of the company and increasing awareness of it.

Therefore, if the budget allows, this kind of measure can be taken.

Besides, since Effortless Energy has a brand-new business model and concept, and it

does bring environmental benefits for society and financial benefits for individuals, the

local newspaper will likely have interests to report it. Issue a survey or digging

newsworthy stories among clients will help increase exposure.

The elements considered when selecting publicities are similar to those of organizations.

3. Online Media – Bloggers

Blogs are an important part of directed media. If bloggers, especially those who write

articles on related fields, are willing to mention or post advertisements of Effortless

Energy, the benefits are considerable.

To optimize the effects, we should choose appropriate blogs very carefully, according to

four main facts:

a. Valuable demographic

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According to the target segments, we can screening through some characteristics: 1)

Followers should be native rather than tourist; 2) Page design should be Lifestyle; 3)

Focus on appropriate and not too specific topics, because a person who is too

concentrated to a hobby and visits blogs about it, such as surfing or fishing, unlikely has

spare time or money to upgrade his/her house.

b. Large enough covering

This is for more people will see the advertisements.

c. Media mentions

If the bloggers themselves are famous or interesting to traditional media such as TV or

newspaper, mentions about them on these media will equivalently add new free

channels for our exposures.

d. Appropriate frequency of updating

Once or twice a week is considered appropriate frequency of updating. If updating too

frequently, the post about Effortless Energy may be soon covered by new posts; but

conversely, the blog may be considered non-active, leading to fans churn.

4. Referral

After analyzing market and consumer of Hawaii, we think that Hawaii is different from

those modern, busy and big cities. The connection or relationship between people is

closer. Referral would be a good way to take use of this connection, and it is also an

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effective way that a lot of companies, including RevoluSun, Sunetric and Islandwide

Solar, are using.

6.3 Recommendations of Promotion

1. Free Publicity and Organizations

As mentioned above, providing a scholarship, issuing a survey, or digging newsworthy

stories among clients will be effective way to achieve free publicity. In addition, we find

some websites, including news websites and some organization websites.

1) Civil Beat: http://www.civilbeat.com/

2) Chamber of Commerce Hawaii: http://www.cochawaii.org/

3) The Nature Conservancy:

http://www.nature.org/ourinitiatives/regions/northamerica/unitedstates/hawaii/

index.htm?intc=nature.tnav.where.list

Though with different categories, these three websites meet the requirements we list

and will be useful for Effortless Energy.

2. Online Media—Bloggers

Our recommendation of local bloggers:

1) An Island Life: http://islandlife808.com

2) Hawaii Blog: http://www.hawaiiweblog.com/

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3) Bytemarks: http://bytemarks.org/

The first one is a Hawaii mommy blog and the other two are technology blogs.

Our recommendation of nationwide bloggers:

Environmental: 1) EcoGeek; 2) Inhabitat; 3) Treehugger; 4) Gristmill; 5) Green Options

Technology: 1) Mashable ; 2) GigaOM ; 3) ZDNet; 4) TechCrunch

Cost estimation:

Most of the blogs have not listed the advertisement charge except Inhabit, so we made

a cost estimation based on Inhabit. The normal advertisement display will cost 500-700

per month.

3. Referral

Whoever refers a friend to join the Effortless Energy contracts will receive either cash

backs or lowering the charging rate of their contracts.

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7 Recommendation7.1 Target market

After an analysis of the geographic and demographic features of the potential market

areas, the research team suggests the Mililani (Zip code 96789) as the target area to

launch the market outreach plan.

7.2 Partner & Competitors

Basing on potential partners’ core technologies, the research team recommends

Effortless Energy to cooperate with some programs from Hawaii Energy and Alternate

Energy after the roll-out of the market outreach plan. In the future, Effortless Energy

could implement a market expanding strategy and look for new opportunities to

cooperate with Solar Star to enter solar attic fans industry. Meanwhile, the research

team also suggests EE to enter the vehicle charging industry

7.3 Promotion Strategy7.3.1 Off-line marketing

Keep work on the current outreach plan, like partnering with like-minded organizations

who have already established contacts with homeowners, participating in community

clean-energy themed events and conferences, organizing public community outreach

meetings and door to door outreach as needed. Besides these, according to the special

cultural environment on the Island, word-of-mouth marketing could lead to great effects

on the promotion strategy. For example, EE could invite people with great influence to

have some free trial of its services and products.

7.3.2 On-line marketing

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Focus on-line marketing on the suggested local and national-wide bloggers.

8 Limitation

Due to the time and budget limitation, we could not conduct a primary research aim to Hawaii market. Since Effortless Energy is a new player with a special business model, the information from secondary research is not as much as we expected. Additionally, there would be bias and errors due to the research and analysis process. The research team tried their best to maintain the bias and errors in an acceptable level.

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9 Appendix

9.1 Potential partners

Solar Energy Companies in Hawaii

21st Century Technologies http://www.greensolutionshawaii.com/

A-1 Ace Solar Services

Affordable Solar Contracting http://www.affordablesolar.com/

Aloha Plumbing & Solar Service

Alternate Energy http://www.alternateenergyhawaii.com/

American Electric http://www.american-electric.cc/

Bonterra Solar http://bonterrasolar.com/hawaii/

Brown's Plumbing & Solar

C&J Solar Solutions http://www.cnjsolarsolutions.com/

Dakmi Solar No Website

Distributed Energy Partners (DEP) http://www.dephawaii.com/

Energy One Plus, LLC http://www.energyoneplus.com/

Eco Resources LLC http://www.electricityforever.com/

Energy Industries http://www.energy-industries.com/

Giant Solar Website currently not available

Green Team Organization http://www.greenteamhi.org/

Green Power Projects LLC http://www.greenpowerprojects.com/

GREEN VISION LLC http://www.adonconstruction.com/

GSI Solar LTD No website

Haleakala Solar http://www.haleakalasolar.com/

Hawaii Solar info@hawaiisolarinc.com

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Hawaiian Energy hawaiianenergy.com

Hawaiian Island Solar http://www.hawaiianislandsolar.com/

HIEV http://www.hiev.us/

Hiwindpower http://www.hiwindpower.com/

Hoku Solar http://www.hokuscientific.com/

Honeywell Utility Solutions https://buildingsolutions.honeywell.com/Cultures/en-

Island Pacific Energy http://www.islandpacificenergy.com/

Island Solar Service http://www.islandsolarservice.com/

Kona Solar Service, LLC http://www.Konasolarservice.com

Lumen Solar http://lumensolar.wordpress.com/

Maui Koa Solar No website

Maui Pacific Solar http://www.mauisolar.com/

Maui Solar Project http://www.mauisolarproject.org/

Mercury Solar http://www.mercurysolarsystems.com/

Nohoana Solar Technologies http://www.nohoanast.com/

Photonworks http://www.photonworks.com/

Poncho's Solar www.ponchosservices.com

REC Solar http://www.recsolar.com/

Revolusun http://www.revolusun.com/

Rising Sun Solar http://www.risingsunsolar.com/

R&R Solar Supply http://www.randrsolar.com/

Save on Solar

Saving Oahu's Solar http://www.savingoahussolar.com/

Solar Engineering & Contracting http://www.solarengineeringhawaii.com/ US/

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Solar Services Hawaii http://solarserviceshawaii.com/

Sopogy http://www.sopogy.com/

Sun King http://sunkinghawaii.com/

Sun Energy Solutions http://www.sunenergyhi.com/

Stan's Electrical Service LLC http://www.stanselectricalservice.com/

Sunetric http://sunetric.com

SunHedge http://www.sunhedge.com/

The Plumbing Contractors & Solar Professionals http://www.gogreenhawaii.us/

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