Running head: BLACK & WHITE CONSULTING 1

Product Launch Plan Beverly Thompson Velez, John Majewski, Dache Mann, Angel Elliott, Pamela Pearson MKT/571 Marketing November 08, 2011 JohnnyK

BLACK & WHITE CONSULTING 2 Solar Solutions Product Launch There have been increasing concerns about energy consumption and its effect on the environment (Nikpour, Kandar, Ghomeshi, Moeinzadeh, & Ghasemi, 2011). The United States generates half of its electricity coal, the most greenhouse-gas-emitting major energy source. Coal historically has been abundant and cheap, but its price is rising with an increasing demand. Solar-generated electricity is becoming more cost competitive with coal-generated electricity. Once installed, solar-energy conversion systems do not emit greenhouse gases (Higgins, 2009). Solar energy will soon dominate coal as a primary energy source (Higgins, 2009). Black and White Consulting will be the company to make it a reality! Product Description Many people in society make decisions based on what others will think of him or and what type of status symbol he or she will portray, for example, going green. The definition of status implies a hierarchy of rewards, whereby higher status individuals have greater access to desirable things. Although status can be achieved through dominance or force, it also can be achieved through prestige, meaning that status will be gained through freely conferred deference (Henrich & Gil-White, 2001). Black & White consulting is selling more than just a green energy product; we are selling a lifestyle. By the very public act of installing high quality solar panels on ones roof, our customers will be establishing themselves as environmentalists of the highest order with the credentials to prove it. Solar panels are made of many individual components known as PV cells. Modern commercial PV cells typically produce between one and two Watts of power, and have a capacity factor of about fifteen percent. PV cells are connects into groups of 40 to form modules; groups of 10 modules are called arrays. A solar array can produce 800W of electricity.

BLACK & WHITE CONSULTING 3 Ten or 20 arrays can power a modern home (wisconsun.org, 2011). Because our company is always looking for new ways to improve upon technology, the research and development team is working on new technology to convert any window into a solar energy entity by affixing a PV cell strip to the windowpane, similar to the heating elements that are attached to rear car windows. This way every home or apartment complex can become solar energy efficient in a matter of a few hours. Product Positioning Black & White Consulting will differentiate itself from competitors by providing the highest quality solar panel installation firm in the industry, with an emphasis on high-touch customer service. Our in-home consultations by knowledgeable sales staff will set the tone.

Our installation crews will be highly trained, neat, and efficient. The companys continuous 24/7 support for the customer post-installation will definitely set us apart. Solar Solutions will be to green energy what Neiman Marcus is to retail. Eventually, we want our potential customers to ask for us by name because of our reputation for excellence. Targeting Solar markets are rapidly growing in the United States because of rising energy prices, strong consumer demand, and financial incentives from the federal government, states and utilities. More than 107,000 new solar heating, cooling, and solar electric installations were completed in 2009, an increase of 18% compared to the number of systems installed in 2008. In the continental 48 states, the annual installed capacity has more than quintupled since 2005 with residential installations dominating the market (Sherwood, 2009) Buildings account for 65% of electricity usage in the United States. Reducing the energy used by buildings has become a critical issue in energy conservation. The plan is that majority of

BLACK & WHITE CONSULTING 4 the windows on most buildings will be used to collect solar energy and convert it to electricity (Higgins, 2009). The solar industry has grown tremendously recently, reporting a combined global revenue of $37 billion in 2008 (www.solarpower2day.net/solar-panels). The United States energy analysts forecast the building integrated solar energy market will grow to $16 billion by 2017 (Pool, 2011). There are four key factors that will make solar generated electricity competitive with the cost of coal-produced electricity in the next year or two. They are the increasing innovations in the solar industry, the significant amount of money invested to bring scalability to solar-energy-system manufacturing, state requirements that alternative energy sources constitute a specific percentage of a utilitys total mix of energy sources, and tax incentives from the federal government to encourage consumer and business investment in solar and other alternative energy sources. With the new Obama administration, there is a potential fifth factor: a federally mandated percentage for alternative-fuel power generation by 2020. Market Needs B & Ws target market is upscale businesspeople and environmentalists. Customers at Solar Solutions expect good customer service. Good customer service includes the following eight key factors: get to know your customers, courtesy is key, customer retention program, eliminate mistakes, keep promises, emphasize value not price, be responsive, and follow-up with your customers. In addition to excellent customer service, our customers want an excellent product designed to fit his or her needs. The number one need for solar energy customers is supplying enough solar cells in each panel to meet electricity usage per household. Extremely low prices are not essential to Solar Solutions marketers because we are marketing to people that can afford and are willing to pay a premium for our high quality, efficient, and expertly installed

BLACK & WHITE CONSULTING 5 solar panels. From information gathered through the companys CRM system, the company learned that customers appreciate the 24-hour customer service provided to him or her. A product warranty is something that every customer wants, and our clientele especially, demand. Therefore, Solar Solutions will guaranty every installation for two full years. Market Potential and Growth B & Ws market growth should be consistent over the years to come, with the world moving in a more eco-friendly direction. Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level ("BusinessDictionary.com"). However, B & W expects consistent market growth with some peaks, because of customer referrals. Because we are operating in the high end market, word of mouth and public perception of the brand are essential. That is why customer service is a top priority at Solar Solutions! SWOT Analysis Strengths Solar power is in high demand in Fiji, a group of 300 islands, 100 of which inhabits, surrounding the Koro Sea in the South Pacific Ocean. It has two main islands, Viti Levu, and Vanua Leva. Viti Levu covers about half of the Fiji area. Vanua Leva takes a third of the land. It is about 1,300 miles north of New Zealand. Fiji's total land area is 7,055 square miles (solarsystemsintl.com, 2010). The high number of upper class American and European ecotourists who visit this area makes it a prime market for our firm. Weaknesses - The larger islands originated from volcanoes, but the smaller ones are coral reefs. Because these islands were not man-made, cost and safety are a huge factor when installing the panels (Pacificscoop, com 2011). Another potential weakness for B & W is the

BLACK & WHITE CONSULTING 6 size of this market. It will be difficult to achieve economies of scale on the remote islands of Fiji. Therefore, we will rely on premium pricing to capture value. Opportunity - The temperature in Fiji usually ranges from 75 degrees to 85 degrees Fahrenheit year-round, and the climate is generally hot and wet. This is an ideal climate for the solar panel industry (Fiji-faqs.com, 2011 There are numerous resorts, which take advantage of this premium climate to attract tourists. Trends - Suva is the capital of Oceania as well as its largest city, with a population of approximately 180,000. Fiji, has a population of approximately 810,000. Population considered target possibly (15-64 years: 63% (male 263,127; female 262,686) because of the limited access and availability of electricity at this popular resort location, Fiji is setting the stage for other resorts to be as reclusive as they are (turtleislands.com, 2008). While many eco-tourists want to avoid the noise and congestion of traditional cities, they will appreciate spending a week or more in a completely energy-independent hut in a remote location. Threats The poverty level in the Oceania islands is currently at 38%. Because of the cost of a vacation to an island (approximately $7,200 per person) as well as the economic downturn, tourism has dropped to severe levels (statsfiji.gov.fj, 2008). B & W, however, is targeting a market segment that has survived the recession quite well. Our clients are successful upper income businessmen and women from western countries. Competition The environment has been one of the top social focuses in the past five years. The current state of the economy has also been a focal point, and has made consumers more cautious

BLACK & WHITE CONSULTING 7 about how they spend their money. The environment and the current economy coupled together make this a prime time for Solar Solutions to enter the market. Currently, there are not many direct competitors in the solar roofing industry that service noncommercial buildings at a reasonable cost. SolarCity is B & Ws number one competitor. Theyve been in business for almost six years, and built their business on servicing other businesses and government organizations. SolarCity recently entered the homeowner market, and have quickly taken over a significant piece of the market share. The factors that contribute to their success are monthly promotions to cut consumer costs, partnerships with established organizations such as Wal-Mart, high-end investors such as Google, and industry innovations that have become many of the solar industry standards. The executive management team at B &W commits to monitoring and assessing the competition proactively to identify any trends or changes to the market. To effectively devise and implement the best brand positioning strategies, companies must pay keen attention to their competitors (Keller, 2007). Most of the research is done online as the Internet serves as an infinite resource for competitive market analysis. The more information the executives (and staff) are able to gather about the competition, the easier it will be to make smarter decisions in building the business and strengthening our market positioning. Marketing Strategy and Objectives Channel strategy defines a method that controls the flow of goods and services from the manufacturer to the end-user (investorword, 2011). Because Black & White Consulting is not going to manufacture the solar panels itself, the firm will rely upon inexpensive imports from a select group of Chinese exporters. Otherwise, the Chinese government highly subsidizes the

BLACK & WHITE CONSULTING 8 renewable energy industry through inexpensive state-backed loans and lax enforcement of intellectual property rights, Black & White Consulting will take advantage of the low cost goods to maximize profits. The cost of solar panels has dropped dramatically in recent years, which is bad news for manufacturers but good news for distributors and consumers. Our firm will be marketing our solar panel windows direct to the consumer, and take advantage of low PV cell prices to improve our margins. Similar to other high touch in-home window consultants, like Feldco in the Chicagoland area, Black & White Consulting will provide exceptional customer service. We will not rely on anyone to come between our firm and the customer; we must market directly to our clients through a barrage of television, radio, and Internet ads. We will compete against the various inhome window installation firms by providing one-of-a-kind solar window consulting and a trademarked Black & White Consulting Home Energy Plan. Our Plans will incorporate customer unique vision of their home into our product offering. We will customize each installation to the exact specification of our clients, so that no two installations are identical and each customer receives a personalized experience. We will use state of the art home visualization software to provide the customer with a glimpse of his or her future home, the energy they will save, and the amount of carbon dioxide they will prevent from polluting the environment over the 20-year-life cycle of our product. Pricing Pricing strategy refers to the method companies use to price their products or services. Almost all companies, large or small, base the price of their products and services on production, labor and advertising expenses and add on a certain percentage so they can make a profit. There are several pricing strategies, such as penetration pricing, price skimming, discount pricing,

BLACK & WHITE CONSULTING 9 product life cycle pricing and competitive pricing (.chron.com, 2011). Black & White Consulting will implement a price skimming strategy. Our firm doesnt want to saturate the market and drive down prices for all participants. The U.S. solar market is so large and growing so quickly that we can earn a tidy profit while only capturing a small fraction of the total market. The expensive segment! Marketing Communication Individual customers make their buying decision independently or within the influences of close social groups (Chlebiov, Kyzekov, & Zajaroov, 2011). Examining customer and market data in comparison to marketing response goals allows companies to develop an effective marketing communication plan (Planning, Evaluating, and Controlling the Marketing Communication System and program, 2001). The design of the marketing communication system should be based on knowledge-driven rationale and contributory judgments and decisions. Black & White Consulting has developed a marketing communications strategy that will help the business acquire a larger portion of the market share. -Factors to Consider In order for B&Ws marketing communications strategy to be effective, it must have consistent objectives. A consonance that has an adaptive response to the trading and wider social environment, able to maintain a competitive advantage, and it must not create unsolvable problems or deplete available resources (Planning, Evaluating, and Controlling the Marketing Communication System and program, 2001). Communication for consumer markets involves pre-buying and buying behavior and individual motivation for buying a product or a service (Fill, 1995). A marketing communication analysis should focus on the impact of communicating in particular modes, using particular methods and tools, and in particular styles, at the points of

BLACK & WHITE CONSULTING 10 interaction. Using the linear hierarchy of communication, awareness, attitude change and behavioral change can measure the effects of the marketing communication system (Planning, Evaluating, and Controlling the Marketing Communication System and program, 2001). Domestic & International Markets According to Kotler and Keller, developing effective communications requires eight steps (Kotler & Keller, 2007, p. 282): 1) Identifying the target markets. The target market in Fiji will be resort owners who cater to eco-tourists (upper middle class westerners who want a green vacation experience). The target market in the United States will be upper middle class suburban families who want to go green while also saving money on their electric bills. 2) Determining communications objectives. The communications objective in Fiji and the United States will be brand purchase intention self instructions to purchase the brand or to take purchase-related action (Kotler & Keller, 2007, p. 283). 3) Designing the communications. The Fiji communication will be through direct sales reps with statistical evidence about the market for green vacations. Our Fiji sales will be to mostly business owners (business to business), so we will take a dollar and cents approach. In the U.S. market, we will appeal more to the altruistic motivations of our target market (B to C communications). 4) Selecting the channels. In Fiji, we will use personal communication channels and an on the ground marketing force to get our message out. In the United States, we will use a combination of radio and television ads, because our target market is more dispersed (individual home owners vs. hotel managers)

BLACK & WHITE CONSULTING 11 5) Establishing the budget. We will use the competitive-parity method to determine our budget in Fiji. There is no sense spending more on our sales force than necessary, if our competitors are not heavily invested in this market. In the United States, we will be competing against the likes of Home Depot, Lowes, Feldco, and other large budget home improvement outfits, so our spending will be commensurate with the challenge to get our message through the noise. 6) Deciding the media mix. In Fiji, our media mix will be a combination of personal selling and sales promotion. In the United States, we will have to focus on a less people-intensive approach, and the mix will be more advertising and publicity. 7) Measuring the results. In Fiji, we will measure results by the percentage of hotels that choose to install our solar product. We will target a 30% adoption rate. In the U.S., we will measure our results by our market share of home window upgrades. We will target a 15% share in our first year of the window-related home improvement in our target market. 8) Managing integrated marketing communications. We are a small firm and will have a relatively small sales force in Fiji, so it should be relatively easy to manage the integrated marketing message (our entire sales force could fit in one conference room). In the United States the firm will be more geographically dispersed, the number of communications channels will be higher, and we will have quarterly marketing meetings to ensure all team members are sending a consistent message. Financial Budget and Expenses Marketing Research Over the past few decades, the population on this earth has been steadily increasing. As a result, the demand on natural resources and energy has been increasing, but it appears that the supply is not enough to suffice the needs of this world in the future. It is imperative for members

BLACK & WHITE CONSULTING 12 of society to be more attentive and frugal in their energy consumption. For decades people have been encouraged to protect the environment, not only for themselves but for those who will inhabit the planet (McLaughlin, 2008). One way to conserve the electricity is through solar panels on homes. State subsidies, tax credits and steadily improving technology can turn southfacing roofs into electricity generators (Gibson, 2008). Solar panels are made of silicon. When sunlight strikes the silicon that has been arranged in a photovoltaic cell, electrons break free to create an electrical current (Gibson, 2008). The use of solar panels is a money saving alternative for the use of electricity. Although the cost of electricity from fossil fuels has increased 3 to 5 percent a year for the past decade, the cost of solar panels has fallen on average 20% (Mims, 2009). -Economic and Government Factors Now is the perfect time to launch our solar window product in the United States. First, interest rates are at historic lows, so our cost of capital will be extremely low. We expect to fund our venture with 80% debt and 20% equity. The debt financed at around 5%. Second, there are numerous government tax credits at the federal, state, and local level, which our customers can take advantage of lowering their total cost. It will be our in-home consultants job to educate our clients on all the most current incentives, so our sales team will need to stay current in this field. -International Factors in Europe In France, as in most other European countries, there are both private and public companies (Policy areas of the European Union). There are four major legal entities in Europe, Sarls, Eurls, Sas, and Sass. The four entities are similar to United Sates entities. For example, Sarls entities function like a corporation, Eurls are LLCs, Sas are public companies like government agencies, and Sass are joint ventures. Solar Energy will function as a limited

BLACK & WHITE CONSULTING 13 liability company internationally. Fiscally, as with United States limited liability companies (LLCS), Eurls will normally be transparent for tax purposes, although as in many other instances under French tax legislation; it is possible to elect standard corporate tax treatment (Policy areas of the European Union). Operating as an LLC will help protect the personal assets of the LLC owners in case of a lawsuit. In contrast, operating as an LLC has many advantages but there are some disadvantages and risk associated with this entity. For example, if more than 35% of losses are allocated to none managers, the limited liability company may lose its ability to use the cash method of accounting. Also most LLC members are subject to self-employment taxes. -Innovation and Technology Black and White Consulting will soon be on the leading edge of technology in the solar energy arena. The company is bringing to market a technology that will enable concentrated solar, and we will be the first firm in the United States. to sell it. The innovation harnesses the power of 1,300 suns, and can achieve 40% efficiency. This product offering will differentiate Black & White Consulting from other firms as the leader in high efficiency PV technology. One of the main products responsible for the successful rollout of the concentrated solar market is the solar carport. The solar carport has taken off in the commercial market. The carports offer clients a worry-free winter by keeping the carport at a specific temperature. The heat produced prevents any frost/snow from accumulating. The technology will give Black and White a competitive advantage it is an affordable alternative for properties without heated garages because they have no routine maintenance costs. Conclusion

BLACK & WHITE CONSULTING 14 Black & White Consulting will provide a unique product offering to the U.S. and international markets. Our firm will implement a skimming approach to capture high end suburban customers who want to help the environment, want a customized in-home experience personalized to their tastes, and want the leading solar PV technology installed in their home. The cultural differences among the target audiences within the main markets (domestic, international) were factored in to make the campaign effective. All advertising, promotions, and technological developments at B & W are centered on the current trends of market with change acting as the catalyst to initiate action.

BLACK & WHITE CONSULTING 15 References Chapter sixteen: Planning, Evaluating, and Controlling the Marketing Communication System and program, (2001). Marketing Communication (pp. 303-323). Taylor & Francis Ltd / Books. Retrieved from EBSCOhost. Chlebiov, E., Kyzekov, J., & Zajaroov, M. (2011). New approaches to the Business to Business Marketing Communication. Economics & Management, 161231-1237. Retrieved from EBSCOhost. Fill, C. (1995). Marketing Communications : Frameworks, theories and applications. London, Great Britain: Prentice Hall. Gibson, S. (2008). Solar Energy. (cover story). Mother Earth News, (229), 40. Retrieved from EBSCOhost. Henrich, J., & Gil-White, F. J. (2001). The evolution of prestige: Freely conferred deference as a mechanism for enhancing the benefits of cultural transmission. Evolution and Human Behavior, 22, 165196. Higgins, J. M. (2009). YOUR SOLAR-POWER FUTURE. Futurist, 43(3), 25. Retrieved from EBSCOhost Kotler, P., & Keller, K. L. (2007). A framework for marketing management (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Kotler, P., & Keller, K. L. (2006). Marketing management (12th ed.). Upper Saddle

BLACK & WHITE CONSULTING 16 River, NJ: Pearson Prentice Hall.

McLaughlin, C. (2008). Energy and other scenarios. Technology & Children. p. 6. Retrieved from EBSCOhost. Mims, C. (2009). The No-Money-Down Solar Plan. Scientific American, 301(6), 50. Retrieved from EBSCOhost. Nikpour, M., Kandar, M., Ghomeshi, M., Moeinzadeh, N., & Ghasemi, M. (2011). Investigating the Effectiveness of Self-Shading Strategy on Overall Thermal Transfer Value and Window Size in High Rise Buildings. World Academy of Science, Engineering & Technology, 74165-170. Retrieved from EBSCOhost Pool, R. (2011). Crazy glazing?. Engineering & Technology (17509637), 6(7), 80-82. doi:10.1049/et.2011.0714 Sherwood, L., (2009) U.S. Solar Market Trends 2009. July 2010 SolarCity website. (2007) SolarCity Company Profile. Retrieved October 6, 2011 from http://www.solarcity.com/media-center/company-profile.aspx Solar panel information. Retrieved October 23, 2011 www.solarpower2day.net/solar-panels Tudor, Pamela. (2007) ADDING VALUE WITH DIVERSITY: WHAT BUSINESS LEADERS NEED TO KNOW. Retrieved 10/22/2011 from www.aimd.org/files/PamelaTudor.pdf tp://www.solarsystemsintl.com http://www.fiji-faqs.com/index.cfm/city/20/suva.html http://www.pacific.scoop.co.

BLACK & WHITE CONSULTING 17 http://www.turtleisland.com http://www.statsfiji.gov.fj http://www.businessdictionary.com/definition/market-growth.html