Marketing Objectives and Strategy
The marketing objective of CE is to gain a majority of the market share in windmill energy in Eritrea and Argentina while achieving the highest profits possible in the first three years of business. As the market for windmill energy begins to grow, CE is targeting households, neighborhoods, and commercial businesses by using persuasion regarding the return customers will receive after five to seven years (when the windmill costs pay for itself). Because windmill energy lasts up to 50 years and CE offers several warranty and service packages, customers will experience up to 45 years of return on windmill energy. Because of the expensive initial investment windmill energy requires, the marketing strategy will include an abundance of information on the benefits, cost savings, and rate of return along with persuasive techniques using lifestyle, social, and environmental reasons for using windmill energy.
The pricing strategy is to set the price high to discourage competitors from entering the windmill market. CE can price high when entering the market because of the lack of other alternative energy sources and the return on investment that the windmill energy will provide after five to seven years. Eventually, the price will lower as the business continues to grow and competition ultimately enters the market. CE will price the windmills starting at $35,000 to residential locations, and that includes the price of installation. An individual can choose to have the windmill for his or her own home or a neighborhood could have a number of windmills to power the designated residential area. Commercially, the average cost for the windmills would start $1,200,000. The substantial cost difference is a direct result of the level of energy production required for commercial versus residential.
CE will become a formidable leader, both domestically and internationally, by providing an efficient and affordable alternative for energy production. Marketing in Eritrea and Argentina will focus on a product that can be placed not only on a wind farm but also in a residential setting without the fear of many associated health hazards, such as cancer, created through traditional energy production. Items to consider while initiating the marketing communication pla