Danish Solar Consumer Study (IQP)

The goal of my IQP project was to create a comprehensive report on Danish consumers’ opportunities, perceptions, motivations, and experiences with installing photovoltaic solar panels or a small wind turbine on their homes. Our report was commissioned by the Danish Consumer Council, such that they could more effectively represent consumers’ interests in policy making efforts and advise consumers. 

The project objective was to answer the following research questions: 

• How is information concerning the purchase and installation of solar panels and small wind turbines presented to consumers in Denmark? 
• What motivates or discourages Danish consumers from installing solar panels or a small wind turbine? 
• For those who have already installed solar panels or a small wind turbine, how did they learn about, select, and install the equipment? 
• What regulations and incentive programs currently influence the market for solar panels and small wind turbines in Denmark? 

From my teams research, we learned about existing incentive programs that promote the use of solar panels or small wind turbines in the home, the factors that most commonly motivate and discourage consumers from installing them, and some of the technical implications of these systems for consumers and energy distributors alike. We leveraged this information to devise a list of stakeholders in Denmark to consult for additional information. Upon our arrival in Denmark, we gathered information through interviews of installers, energy companies, and other non-government organizations and surveys of danish consumers.

We then condensed our consumer data into a set of lessons learned; these were organized by each step a consumer might follow when purchasing and installing solar panels or a small wind turbine: 

• How they learn about these opportunities
• What they know and do not know about them, their motivations and deterrents, and, for those who actually purchased the equipment, how they chose, installed, maintained, and assessed the performance of their installation. 

Our discussions with installers, energy companies, and other non-government organizations in the area also yielded important information, especially about the government incentive programs in Denmark for people who contribute electricity to the grid. We conclude: 

• Consumers are very interested in solar, but upfront costs and lack of knowledge are big deterrents. Other countries have provided ways to address this, such as low-interest loans, but these are not available in Denmark. 
• When searching for detailed information, consumers tended to reference information provided by equipment retailers and installers. These sources are biased, and this is reflected in consumer interactions with them. 
• We initially expected that energy producers and distributors would be more enthusiastic about and promote renewable energy generation, but they are still investigating the impact of many small energy sources on grid infrastructure. Instead, individual consumers and equipment retailers, who are very interested in the profitability of the venture, lead promotion efforts alongside environmentally-minded non-government organizations. 
• Consumers are less knowledgeable about and less interested in wind turbines. The larger upfront cost required and strict and lengthy site approval process are significant deterrents, unless one consumes enough electricity or has enough space to scale up. 

PV Technologies

PV Technologies (PVT) was leading the solar energy industry since the birth of the industry.  While the company paved the way in the growing solar industry, it was only a matter of time when their services would not be the only provider of competitive solar products on the market. PVT was met with a sales dilemma that could potentially impact the companies sales forever.  Solenergy, an innovative energy solutions company, was planning on purchasing a large scale PV system.  Among the competitors for Solenergy's business was PVT.  Morgan, a Solenergy representative had to determine which company had the best product to buy.  Through a competative analysis, taking into account several criteria, Morgan found that PVT was only worthy of the number three spot.  PVT was appalled by this ranking, claiming they were deserving of the number one ranking among their competitors.  In order to gain Solenergy's valuable business, PVT created four potential plans to entice Solenergy to choose PVT. These plans included:

1) Offer to extend original 10 year warranty to 20 years
2) Offer 99% uptime guarantee of reimbursement of energy lost due to malfunction
3) Offer Solenergy a new product that would enhance their PV system
4) Talk to Morgan to confim his findings on PVT and the competition

Each option has potential benefits and disadvantages.  While none of the plans would be able to guarantee Solenergy's business, from a consumer point of view, option 2 would be the most enticing.  The offer of reimbursement of energy lost would guarantee Solenergy that their PV system would function properly and essentially eliminate the need for a warranty.  Solenergy's business is very important to PVT so while it is important to get Solenergy to choose PVT, it shows that staying competitive in an industry is always the key to maintaining dominance in the market.

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• In order for a company to maintain any existing dominance in a competitive industry market, they must be the first to move forward with new innovation and knowledge
• R&D is extremely important to staying competitive  
• PVT was able to push ahead in the solar industry largely due to their focus on research and development, and as a result, they were a leading competitor in the solar market.
• Offering extra services to single customers can be dangerous
• When customers receive special treatment, other customers may feel that they too deserve the extra offers or services, thus, more money may either be spent on providing those service or trying to retain the customers if they feel the need to take their business elsewhere.
• There is never a set way to approach a customer that is not convinced on your product
• PVT had to act fast if they were to save a potential business partner, Solenergy.  They made several plans to conduct should Solenergy not wish to settle with PVT; however, all of these plans had benefits and disadvantages that PVT would have to weigh to determine the best route.
• It can sometimes be necessary to cut your losses
• Solenergy was a very important partner to PVT; however, if their business can impact future and present customers, it can be necessary to not offer Solenergy anything to gain their business
• Always have good competitor analysis to maintain a big picture of your standings in the industry

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Seller's Viewpoint

PVT was working on a hunch when they got word that Solenergy had rated them number three compared to other competitors.  Before even confirming whether these reporting were true, PVT scrambled employees to find a solution to their problem.  Should the case arise that Solenergy really may not choose PVT, PVT must be able to offer the customer an option to gain both trust and credibility.  To do this, PVT should offer a solution that would not affect future customers.  One solution would be to offer discounted prices or services for a limited amount of time to all customers in order to gain credibility. However, as a leading company in the solar industry, PVT has many more options than just Solenergy.  

WPI Venture Forum

Out of all the companies that attended the venture forum, there were several that grabbed my attention immediately.  The first company was the first presentation for the 5 minute pitch contest.  The company, Freight Farms, gave one of the better prepared presentations at the venture forum.  The company converts large freight containers into movable farms for anywhere in the world.  They claim that these freights are not affected by adverse weather and can grow a variety of crops (so far, mostly herbs).  The presentation; however, did not do justice to the business model of the company.  The presentation was geared more toward the consumer, rather than the investor, lacking the necessary information about the future of the company.  Despite these downfalls, the presentation was well organized and well delivered.

The second company that caught my attention was the company responsible for the development of the unmanned helicopter. The UAV (unmanned arial vehicle) is unique in that they vehicle does not have a rear propellor, making the vehicle more transportable and maneuverable.  The concept is unique and plausible; however the presentation was not well delivered.  The CEO of the company gave the pitch, but he seemed unable to answer all of the questions about the product.  It may have been a better plan to have someone who was more involved in the project and able to answer the more technical questions.

Finally, the winner of the pitch competition, the designer of the Amico bracelet, was another product idea that was very interesting.  The product is a bracelet that allows users to find other relevant people wirelessly when they are around other users.  While the idea a interesting, it does not seem like a plausible of marketable idea.  While the product could become a common product which would revolutionize social media connection, the first customer is not clear, and the product would need a large following that would be hard to obtain in order for the bracelet to be a profitable product.

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• Gear your presentation to the audience.
• In the case of freight farms, the presenter explained how the system works and what their company is capable of, without sufficiently addressing the companies future and they model of how they will accomplish their goals.
• Have the more involved partners deliver a pitch
• While it may look good for the CEO or other company head figure to deliver a presentation, it makes more sense for the most involved partner to deliver the pitch and answer the pertinent questions.
• Deliver a pitch slowly and concisely
• The presenter for Freight Farms did a great job transitioning through the slides and delivering a concise presentation by allowing the audience to digest the information presented
• Always remember to stay flexible
• The Freight Farms presenter ran into a small technical problem when his video sound did not work, instead of stopping to fix the problem, with the limited time, he was able to improvise and save the presentation.
• Communicating the business model to the investor is key
• The investor wants to know how their money will be spent and when they will see a return on their investment, always have that information ready or the investor will not be interested.
• Events such as the WPI venture forum, despite the size and small cash incentive, are still a great way to network and get your company name out to potential customers and investors
• I had considered the event not important based on the size and small cash prize, but these events are some of the best ways to meet potential investors and customers that would help your business grow.

Porche Canada: Selling Winter Driving

Porsche, a worldwide motor vehicle manufacturer best known for making luxury cars, opened an office in Canada after increased sales in the country in 2007.  Porsche has made great strides in the luxury sports car market with the success of the 911 and Boxter, as well as the luxury midsize car market with the cayenne.  With luxury cars selling at premium prices, Porsche's target market included the middle and upper class.  However, many of Porsche's customers never perceived the luxury car company as a manufacturer of all weather vehicles.  This downfall led to a dilemma in the marketing of Porsche vehicles:  How would Porsche overcome the common perception that Porsche cars are not winter vehicles?  Jasmin Rawlinson, Director of Marketing in Porsche Canada, knew the capabilities of Porsche vehicles; however, the consumers did not.  Porsche vehicles are made with quality parts, capable of withstanding poor driving condition and performing in adverse weather, yet with Porsche best known for luxury, the Porsche vehicle line is perceived as a seasonal driving vehicle. Based on common consumer knowledge, poor conditions in the winter lead to damages to the Porsche vehicle, pushing drivers to only use their luxury vehicle in the summer and spring months.  It was necessary for Jasmin Rawlinson to reevaluate the Porsche Canada marketing strategy in order to educate and convince drivers and potential consumers to consider Porsche cars an all weather vehicle.

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• Relying on a single characteristic to maintain the consumer market leads to misperceptions and misunderstandings about other characteristics
• Porsche's most notable attribute, luxury, served as a weakness in the longrun when consumers connected luxury sports car with seasonal driving only.
• It is necessary for Porsche to reach multiple consumer bases by diversifying their marketing campaign.
• Porsche might have considered providing video/live demonstrations of their winter equipment rather than just email and brochures.
• Rawlinson began by gathering information from Porsche consumers regarding their willingness to buy winter equipment.  This strategy led to increased winter capability awareness through email and brochure.  However, simple letter and emails may not be enough for consumers to move to purchase expensive equipment.
• Educating consumers on additional product capabilities can be difficult when there is evidence to suggest that these capabilities are not always plausible.
• While some Porsche vehicles are designed to handle adverse weather, past examples of car failures and damages in winter weather are more notable than a Porsche's good performance in winter weather.
• Additional winter ads could prove to be the most viable solution to the Porsche Canada marketing dilemma.

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Buyer's Viewpoint

The average Porsche consumer's usually have an initial perception of luxury and class and are educated on basic Porsche capabilities.  This includes the perception that sports cars are seasonal vehicles and cannot handle well in adverse winter weather.  A Porsche consumer usually buys the vehicle for summer and spring driving, and based on examples of sports cars not being able to handle themselves in the winter, they buy the car planning on only driving it in the summer and spring.  The buyers education may even include the winter equipment that Porsche may offer; however, due to the fanatic nature of many sports car drivers, the car will always be considered a seasonal vehicle.  The seller must find a way to overcome these consumer behaviors.

Inside Intel Inside

Intel, a leading computer microprocessor developer, has proven itself in the computer industry since its inception in 1968.  With booming microprocessor sales since the start, Intel managed to hook the right business contract with the right companies, pushing Intel to the company it is today.  However, without it's committed marketing plans Intel may not have succeeded to the extent seen today.  Youngme Moon's article "Inside Intel Inside" dives into Intel's elaborate marketing scheme "Inside Intel."  Intel, waas a company selling its products to other companies developing  and building computers.  In business to business sales it would make sense to sell directly to the company that will buy your product.  Intel, however, launched a new marketing plan: market to the end user.  Intel had noticed that it was the end user that had the most effect on their sales.  It was the end user that needed to be aware of  Intel's products, not the company that bought their products.  Intel, first launched the "Red-X" campaign, subtly and creatively, educating the end user of the benefits of buying a computer with and Intel chip.  The campaign proved successful and throughout its coming years, Intel launched "Inside Intel" a similar program that allowed PC users to easily understand that Intel was superior to its competitors.  These ongoing campaigns would not only benefit Intel, but also the PC manufacturers by boosting computer sales, thereby boosting Intel microprocessor sales.  

Today, Intel is dealing with more than just computers.  Intel now provides microprocessing chips for cellphones, PDA's, tablets and many other systems.  With the product expansion, marketing must also adapt.  This is Intel's dilema.  Pamela Pollace, VP and director of Intel's marketing, is faced with the potential expansion of the longstanding marketing scheme, "Inside Intel."  Pollace, however, must weight the potential risks and rewards for expanding the "Inside Intel" campaign.  With such a long standing relationship between the "Inside Intel" campaign and the customers it influences, expanding to the cell phone and other markets could confuse consumers and thereby hurt Intel as a whole.  Pollace must determine if Intel's limited stake in other markets is worth potentially dismantling a market campaign that Intel's maketing division has worked so hard to make succeed.

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• Intel's new approach to B2B marketing, expanded the companies horizons, thereby helping Intel grow to become the great company it has become.
• Intel possessed the contracts that would sustain Intel's microprocessor manufacturing; however, by marketing to the end user, Intel was able to educate the average consumer of the benefits of Intel.
• Intel's marketing division developed the necessary relationships with the engineers and technical groups within Intel to bring customer needs and wanted features to market.
• By closely working with the technical side of development, marketing can focus the results of its campaigns, including "Inside Intel," to better meet the customer wants and needs.
• Potential risks and rewards of opening "Inside Intel" to new markets pose a significant problem for Pollace
• High risk is involved with expanding to markets that Intel is not completely familiar with, nor has a large stake in the potential customers; however, potential rewards could amount to significant increase in profits and exposure.
• Intel's 'education' marketing proved significantly more effective than competition bashing.
• Many companies feel the need to out preform the competition, but by educating users of the benefits of Intel and by out-preforming within its own companies past technology, Intel was able to attract the attention of seemingly un-educated consumers.

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Buyer's Viewpoint

As a buyer, the most important thing you need the company that you buy products from to do is be reliable.  Intel must have the necessary credibility to first gain your business, and then maintain outstanding reliability for a company to continue buying products.  Intel, possesses the  the cutting edge computer processor technology that computer developers need, but with Intel's marketing campaigns, buyers can know that their products will sell.  "Inside intel" also offers an added bonus for the buyer, free marketing!

Siebel Systems: Anatomy of a Sales, Part 1

Siebel Systems made its way from ground zero to the top of the food chain in the software industry in less than seven years, an incredible feat for any newly founded company.  In those seven start-up years, the companies founder, Tom Siebel, led the company with one key value in mind: Customer satisfaction.  This "core value" led the company to reach over $2 billion in revenues in those seven years.  Siebel built its company on customer satisfaction, a key component of any successful company; however, through thoughtful solution solving and genuine care for the customers needs, Siebel was able to live up to its promise of the best customer service.  Furthermore, Siebel customers saw increases in their customer's satisfaction, employee productivity, and customer retention.  Seibel had created a well-rounded customer base with only a few core values.  These core values include: customer satisfaction, professionalism,  profesional courtesy, and bias for action; all of which helped the company push forward faster than any other company in the industry.

In one instance, a Siebel sales rep was met with a sudden challenge.  Carman, an experienced slaes representative, found himself trying to close a deal with the business Quick & Reilly.  He was approached by the VP of marketing and the VP of client sales, asking about Siebel services and the competitors of Siebel.  After a short interrogation from the Quick & Reilly representatives, Carman was faced with trying to convert the opportunity into a sale, keeping in mind customer satisfaction.

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• Customer satisfaction, while a goal of any company, can be severely underestimated in its impact on other aspects of a company's success.
• In obtaining credibility and trust, a company must convince and show it's customer that they will not only provide the best product, but also the best service, after the product has been sold.
• This can be difficult because it is hard to show that you will provide services in the future.  Siebel, was able to do this by showing past customer services satisfactions, along with increases in productivity, sales, and customer retention of it's own customers.
• Services after a sale should be a priority of any company if they wish to continue business with it's current clients.
• Understanding customer needs and wants is key to making sales and providing the best customer satisfaction.
• Quick & Reilly was unaware of the products on the market that would meet their needs, while Carman was under the impression that they were already well versed in the market.  While the outcome of their interaction is unknown, Carman made assumption about Quick & Reilly's level of knowledge and needs which may have led the sale to fail.
• Selling requires more than just a sales pitch.  Customer interaction at a personal level is needed to convince customers that the sale can impcat the future of the customer.

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Seller's Viewpoint

The seller in this case is Siebel (more specifically Carman).  In the case of Quick and Reilly, Carman was met with questions, that he would usually answer farther down the sales road.  He misinterpreted these questions as an indicator that they were well versed in the competition when Quick & Reilly really only wanted more information.  Carman was unsure of the wants and needs of Quick & Reilly in the first place, which placed him at a disadvantage to close the sale.  It is important for the seller, Carman, to understand the customer, asking and answering the necessary questions to determine how to approach the buyer.

Buyer's Viewpoint

From the buyer's viewpoint, Quick & Reilly, they were interested in gathering the necessary information to determine what the best product was on the market.  Siebel had a reputation, which Quick & Reilly may have been aware of when they talked to Carman.  The buyer is interested in both the best product and the best service following the sale.  In order for Carman to make his sale to Quick & Reilly he must be able to convince his buyer of the benefits of buying products from Siebel systems.