Centrica Plc Marketing Pland and Branding Strategies
... • Early stages of market liberalisation resulting in legislative restrictions • Corporate scandals CONTINENTAL EUROPE LUMINUS Strengths • Good market position in the Flanders • Extensive experience in the business area • Customer oriented company values • Weaknesses • Starting business, in its early stages • Need for investments • Low brand awareness and image Opportunities • Growth through ongoing deregulation throughout Europe • Increase brand awareness and image • Build the service portfolio • Attract customers through extended service packages and close customer relationships Threats • Foreign ownership of the company • Corporate scandals MARKETING OBJECTIVES AND GOALS Centrica Plc Marketing Goal: To increase shareholder value by striving towards market leadership in all operational markets and constantly seek opportunities for expansion in new markets. To boost all business?s performance by developing close relationships with customers and using opportunities for cross- and package-selling Centrica Plc Marketing Objectives: Can be seen as goal for each business unit • Keep growth of British Gas in the United Kingdom through increased customer satisfaction and added value • Develop One.Tel through increasing its customer base • Maintain market leadership of AA and improve its competitive position • Introduce new exclusive customer relationship organisation (Centrica), which will allow for cross targeting of the customers of all existing businesses and will compensate for the current shortcomings in awareness and service levels of certain units • Continue penetrating and establish positions the North American markets • Enhance current positions and expand to new markets in Europe CENTRICA A quite probable reason for the unsatisfactory performance of the financial services of AA can be seen in the gap between them and the brand?s traditional business. In the case of British Gas, the quality of service has never been regarded as strength. As these perceptions stem from years of experience and personal beliefs, they are difficult to change. It would be cheaper, faster and easier to create another business unit, whose specialization is in these fields exclusively. This can be the consumer hub of Centrica, which will handle efficiently all customer relationship activities of all units. The importance of Centrica will be further emphasized in the brand strategies section. Marketing Objectives: • Successfully introduce as a separate brand with its own image and strong market presence (max 6 month) • Develop long term relationships with all existing customers of all business units, stressing on the high quality service that they provide (within the first year) • Gaining full advantage of the broadness of products and services offered, and thus stimulating growth of all business units (constantly) Marketing strategies: Segmentation and Targeting Full Services Partial Services INCOME Low Average High AGE 18 - 24 25 - 44 45 - 60 60 + Considering the wide range of services in the portfolio, it wouldn?t be beneficial to target a narrow segment of customers. This is also underlined by the wide variety of current customers of each business unit. However, targeting techniques can be used in designing service packages which are attractive to a certain part of the customers. This will be used as a major tool for cross selling, and therefore designing attractive package deals is the basis for success of this idea. Competitive Advantage Able to offer a wide range of well known and established services in a consumer friendly way (convenience) ? the meta-supplier Personalized and friendly customer service Wide base of already active customers The structure allows for expanding further the product and service portfolio Wide opportunities for cross selling Marketing Mix: Product Centrica will offer the products of all business units under their own brand names: British Gas electricity and gas, AA automobile services and assistance, One.Tel communications solutions. Since there is an overlap between British Gas Telecommunications and One.Tel, British Gas will cease offering communication services. The core idea of creating this new business unit should be seen as high service standards; therefore Centrica will take over all home services of British Gas, as well as all AA and British Gas financial and insurance services. Price The products marketed under the brand name of Centrica will be the whole range of household and financial services. As the target market is quite large, it would be necessary to develop several groups of services, targeted at each segment. Segmentation here can be based on the general segmentation matrix, as the risk averseness and desired extent of service can be derived from the age and income categories. Place Centrica products should be easily available and reachable for the public. The internet and call centres are a must. Special consideration has to be given to targeting older people, since their knowledge of technology is quite low and their attitude towards it is not favourable. Promotion Promotion will be the major tool for cross selling, the major idea behind creating this unit. Customers should be given incentives to utilize a greater part of the services and products offered by Centrica. Predefined product packages (special discount deals) can be developed in accordance with the segmentation and targeting policy. These packages should necessarily allow for flexibility and customization. Although this will make the system rather complex, it will strengthen customer perception of Centrica as a customer oriented business and will have positive effect on their inclination to choose for its services. BRITISH GAS Marketing Objectives: • Continue stable growth of gas customers at a rate of 400.000 per annum • Substantially increase the number of electricity consumers, with a final target of 90% of the gas consumers to be reached by the end of year 3 of this plan. This implies an annual increase in customers of around 2.9 million. • Sustain current growth in B2B business ONE.TEL Marketing Objectives: • Increase brand recognition to 75% among all age groups. Achieve brand recall o...