Marketing Strategies in the European Energy Supply Markets

Introduction

Marketing has come to the forefront of Europe's supply markets as they begin to see economic recovery: yet the market lacks a play-book and has little regional comparability. The sale and marketing of energy presents unique challenges - with a homogeneous delivered commodity, energy companies have to develop innovative ways of differentiating by brand and proposition

Features and benefits

• Overview of the techniques employed by Europe's main suppliers to face the challenge of differentiating themselves in a homogenous market
• Ranking of how effectively Europe's main suppliers market their business, with analysis of areas to improve
• Forecast of how the energy markets will develop to account for changing regulation and marketing legislation
  

Highlights

Social media is not the holy grail for the energy sector despite its major potential. Indeed it is traditional marketing that offers greater scope for innovation and remains the core element of marketing
Despite the predominance of traditional marketing, suppliers no longer get what they pay for. Originality and a genuine understanding of the market are far more effective commercial qualities

Your key questions answered

• Develop a clear understanding of the various marketing channels and how they are most effectively used
• Analyse key trends in the the current European market and recognise how cultural differentiators influence marketing tactics

Table Of Contents

OVERVIEW
Catalyst
Summary
Actionable recommendations

CONCEPTS IN MARKETING
Bought recognition
Traditional routes to market are well established but also very costly. What is their future in the face of the Internet?
Earned recognition
New routes to market altered the marketing sphere but rather than replacing traditional channels, have offered an alternative
Brand reputation
What makes people spend is key to marketing experts
Energy is a homogenous commodity and as such can only be sold on its branding
Value generation
Advertising does NOT generate value; it merely attracts peoples’ attention. Companies need a proposition to seal the deal
The energy market has never faced the level of comparison that it does now. Individuals expect to be informed about the market and suppliers' differentiating qualities before making any conclusive decisions
Cost per mille may no longer be a sound metric to calculate the cost benefit of advertising channels, but the industry is unable to replace it

ANALYSIS OF THE MARKETING TACTICS OF EUROPEAN ENERGY SUPPLIERS
Methodology of case study
Channels
Suppliers
Channel analysis
Channel scoring
Channel effectiveness
Calculation of effectiveness
Traditional channels
Traditional channels of advertising have seen a remarkable range of quality from Europe’s top suppliers, from exceptional to poor
New channels
New channels have huge potential but few suppliers have drawn any value from this, as the rules of best practice have not been explored
"Below the line" channels
Below the line advertising is the most intrusive form of marketing but is by far the most effective, according to Datamonitor's survey
Brand consolidation channels
Advertising corporate responsibility is expensive and its benefits are the least evident

ANALYSIS – PART 1
Results of Datamonitor's survey
European suppliers scored well in Datamonitor's survey. There is not much to separate the top five suppliers, as each has uncovered new ways to win over struggling customers

ANALYSIS – PART 2
Analysis of traditional channels
Datamonitor results
TV and cinema
Radio and newspapers
Public transport
Analysis of new channels
Datamonitor results
Social media
Technology
Traditional channels vs new channels
How do traditional channels compete against the cheaper new marketing channels in the European energy sector?
TV advertising is resisting the growth of the Internet
The European energy sector lacks experience in the online sector. A more targeted strategy is required to obtain convincing results

ANALYSIS – PART 3
Analysis of below the line channels
Datamonitor results
Billboards and viral campaigns
Direct action
Analysis of brand/CSR channels
Datamonitor results
Community projects and joint ventures
Sponsorship and brand penetration
Hi-tech vs lo-tech channels
Does marketing need to be hi-tech in our electronic age or do European customers feel alienated by the adoption of technology?
The European energy sector does not necessarily need to spend a lot to ensure a successful advertising campaign.

CONCLUSION
Is there a most effective channel?
All channels have value if used well
Do the benefits of marketing justify the cost?
Do suppliers need to market their company? Is this actually the most valuable way to invest their business development funds?
Advertising coverage does not equate to advertising effectiveness, calling into question where the value derives from

APPENDIX
Supplier scores by channel
Traditional
New
Below the Line
Brand/CSR
Ask the analyst
Disclaimer