Company Analysis- SHIFT Energy due Company Analysis- SHIFT Energy White Labeling According to Egan & John(2008), white labeling which is actually using other companies to sell one’s product under their brand name is an effective way of penetrating the market at very low costs than the individual company going out rightly to do extensive marketing for their product. The amount of finance required to do marketing for new product or to command a necessary proportion of market share to enhance survival is enormous which could be very complicated for SHIFT energy as a young company struggling to utilize its resources appropriately. Though SHIFT energy provides an alternative means to energy management, the companies with which it chooses to market their products and services through, will brand and sell these products and services as their own (Gordon, Carrigan & Hastings, 2011).
The immediate advantage that SHIFT energy will enjoy is the customer base that these established companies enjoy as well as the loyalty customers show to the companies. As a result, SHIFT energy will be assured of sales and survival in the market.
The cost of marketing will have been reduced considerably with such funds being used for the envisaged Research and Development as well as more production. The disadvantage in such an arrangement for SHIFT will be that the companies under which they sell their products as white label also have their own personal strategies and market encroachment policies as well as product preferences (Ottman, 2011). These will mainly work against the products and services of SHIFT energy making them to attract low revenues. Future sales outright for SHIFT energy products will be affected as to run low when the image of the white labels fall.
If the company feels that SHIFT energy products are causing a threat to their products, they might choose not to sell them and SHIFT energy will have to leave it late to enter the market proper (Mathur. , et. al 2006). In this circumstance, the products and services will be associated with the white label company making it even difficult for SHIFT to wrestle the market. Exclusivity In light of the numerous disadvantages that SHIFT energy can encounter as a service business, the absolute way to go would be exclusivity (Wind, 2009).
Where SHIFT energy will be able to identify their target group and market their products and services to them, they will be able to develop a strong brand that consumers will be willing to associate with. Though this could be quite expensive, it will ensure that SHIFT energy a strong and loyal customer base which will comfortable to identify with the products (Jeannet & Hennessey, 1995). The services of SHIFT energy including telecommunication consultancies and energy technical support in itself is not exclusive but if they tailor it to suit particular or specific market then that aspect brings in exclusivity which will develop the strong market brand they need. The partners of SHIFT energy namely NueWatts, VIPenergy and Marriner compete for the same customers as they seek to provide energy solutions (http: //www. shiftenergy. com/).
SHIFT energy on the other hand provides energy management technologies to enhance efficiency and affordability in using such energy. Definitely the competition involved among these partners will be influenced by the nature of marketing direction that SHIFT energy will adopt.
In the event it opts for exclusivity, the product that is favored by its method will ultimately benefit. As the partners in building construction seek to provide energy to their clients, the exclusivity in this case will determine the direction of the market and might make SHIFT energy to lose some of its partners. Positioning & Value Propositions By embracing exclusivity, SHIFT energy will have the options of either positioning or value proposing their products to meet the needs of the end users of their products or their partners. Kerin, Hartley & Rudelius (2011) explains as a brand, it is necessary that this position and value propositions be targeted towards the end users so that the products and services remain relevant in the market without depending on the services and market strength of the partners. In this case, SHIFT energy will be well positioned to meet and satisfy the needs of their end users.
The success of this company depends on the ability to research and respond to the needs of the customers or users of their products. Therefore, by positioning their services or products to meet the needs of their clients will help them grow and develop while keeping hold on their customer base (Ryan & Jones, 2009).
They will remain relevant to target customers; will enjoy communicative advantage over the other competitors and develop trust and loyalty from the customers. Suppliers SHIFT energy can choose to gauge its suppliers based on their aggressiveness and performance. This is effectively done through deal count which will enable them know the most appropriate of their suppliers and capitalize on such opportunities while not concentrating on less aggressive ones.
The company will have an overall benefit if they supplied their products directly through SHIFT as they will be able to develop and sustain a strong market brand (Kurtz & Boone, 2010). Marketing Focus for Ontario Launch The marketing approach outlined for the launch of the services in Ontario is as outlined below and is very effective as regards the position and the nature of operation for SHIFT energy Inc. By building up a corporate brand, an EnergyMentor™ brand, organizing Workshop/tradeshows and involving Partner support/co-sponsor the company will be able to acquire a market share for its product in Ontario as planned. References Egan. , & John.
(2008). A century of marketing. The Marketing Review, 8(1), 3-23. Gordon, R., Carrigan, M., & Hastings, G. (2011). A framework for sustainable marketing. Marketing Theory, 11(2), 143-163. Jeannet, J., & Hennessey, H. D. (1995). Global marketing strategies (3rd ed. ). Boston: Houghton Mifflin. Kerin, R. A., Hartley, S. W., & Rudelius, W. (2011). Marketing (10th ed. ). Boston: McGraw-Hill/Irwin. Kurtz, D. L., & Boone, L. E. (2010). Contemporary marketing (14th ed. ). Mason, OH: South-Western Cengage Learning.
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