marketing plan mili patel, chris castaldini, melissa revenaugh, melodie shimomura, and hari panem...
TRANSCRIPT
M a r ke t i n g P l a n
Mili Patel, Chris Castaldini, Melissa Revenaugh,
Melodie Shimomura, and Hari Panem
August 9, 2010
A g e n d a
Product Overview Market Analysis Opportunities & Challenges Target Market & Value Proposition Marketing Strategies Pricing & Payback Model Success Metrics Q&A
P r o d u c t O v e r v i e w
What is the Power Burner?
Uses natural gas to co-generate heat and power
Attaches to thermal equipment by replacing the legacy burner
Utilizes 100% of the waste heat pushing the Combined Heat and Power (CHP) efficiency to 82%
Generates electricity @ $0.025 kW/h
Offers less than a 2-year payback without considering incentives
M a r k e t A n a l y s i s
Massive market opportunity (~$84B) Green and sustainable technology markets are booming
– Increased awareness of environmental issues– 84% of businesses say energy efficiency is a priority for new
construction and retrofit projects– Large companies and VC’s are fueling the buzz
Large scale industries more cognizant of sources of renewable energy– Expected growth in energy consumption– Rising cost of energy
Federal Government regulation (ARB Rule 7, Reg. 9) Indirect competition: Fuel Cell, Solar PV & CHP System
O p p o r t u n i t i e s & C h a l l e n g e s
Opportunities No direct competition 1/3 of the CA market is
required to meet new NOx emission standards
44% of organizations require a 3 year payback or less
Challenges Limited resources Industry is slow to adopt
new and untested technology
Low brand awareness Negative view of CHP
Ta r g e t M a r k e t
Available Global Market Leva’s Target Market / Sales
Operating Years Customer Segment Installed Units
(Retrofit Market)Target Market Size (Units)
Target Market Location
Yrs 1 – 4Industrial /
Commercial (Large)
$33.6B / 249K Units 3,192 California
Yrs 5 – 6Industrial /
Commercial (Large/Mid)
$58.4B / 449K Units 416,364 NA /Europe
/BRIC
Yrs 7+ Industrial / Commercial (All)
$85.8B / 659K Units 704,164 Global
V a l u e P r o p o s i t i o n
For industrial and commercial organizations, Leva Energy provides the Power Burner, which unlike the competition,
offers a cost-effective, efficient energy solution with a shorter payback and minimal switching costs.
Higher Electricity Prices
Energy Efficiency
Emission Regulations
M a r k e t i n g O b j e c t i v e s
Positioning– First CHP company to launch a power-generating burner making
distributed generation economically viable
Short-term strategies (1 – 2 years)– Introduce Leva Energy Power Burner to market– Establish strategic partnerships with resellers and distributors– Create brand awareness
Long-term strategies (3 – 7 years)– Increase brand equity– Increase market penetration– Expansion into North America and International markets
S h o r t - t e r m S t r a t e g y
In Order of Priority: Recruit channel partners
– Resellers and distributors
Beta Testing– Hitachi
Develop marketing and sales tools– Animated Power Burner video– “Rep Only” webpage
Form strategic alliances with select utility companies Establish Salesforce.com CRM database
L o n g - t e r m S t r a t e g y
In Order of Priority: Establish Energy Star SPP partnership Join trade associations Establish CHP Partnership Program through the EPA Develop Leva Energy direct sales channel Launch PR campaign Continue R&D (Power Burner 135, 270 & 400) Establish OEM co-marketing & sales partnerships Print advertisements
P r i c i n g / P a y b a c k M o d e l
Capital Expenditure Equipment Installation Service plan ($0.005 per kWh)
Power Purchase Agreement Discounted power Installation & service 10-year agreement
Customer Pays:
Equipment $135,000
Installation $20,000
Service $4,000
Total $159,000
Savings $84,240 / Year
Payback Period 1.89 Years
Customer Pays:
Power $0.06 kWh
Installation $20,000
Service $4,000
Total $24,000
Savings $21,840 / Year
Payback Period 1.10 Years
S u c c e s s M e t r i c s
Develop separate and unique sales channels– 3 Resellers– 4 Distributors– 3 OEMs
Positive cash flow by year 4 1% market share by year 7 Bring to market “generation 2” models by end of 2012
Quest ions?