_________________________________________________________
INTERNATIONAL ENERGY AGENCY
IMPLEMENTING AGREEMENT ON TECHNOLOGIES
AND PROGRAMMES FOR DEMAND SIDE MANAGEMENT
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Proposed Task
Branding of Energy Efficiency
Task Definition Paper
Prepared by:
Balawant Joshi
Director
ABPS Infrastructure Private Limited
703/704, The Avenue,
Opp The Leela, Intl Airport Road
Andheri (East), Mumbai – 400 069
India
Ph: +91 22 2825 0050
Fax: +91 22 2825 0051
Email:balawant.joshi@abpsinfra.com
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Introduction & Objective
The Concept Paper on ‘Branding of Energy Efficiency’ was presented during Executive
Committee held in Brugge in October 2007. The Executive Committee members were asked
to express their interest in sending an Expert to a Task Definition meeting. Australia,
Austria, Belgium, Finland, France, India, Korea, Spain, the UK and the US agreed to
consider sending Experts to such a meeting. Further, the Executive Committee decided
that Balawant Joshi should take the proposal to a Task Definition stage and present a work
plan at the next Executive Committee meeting.
The Task is expected to build on the achievement of Task VII. While Task VII has taken the
initial step towards development of a framework for market transformation, it is necessary
to evolve a comprehensive framework, which could be used by the government and
industry to develop the market for energy efficient products. Specifically, need for research
in the following areas was felt to be immediate:
1. Capability of Energy Efficiency suppliers in the market
2. Knowledge and attitude of private households in developing electricity markets
3. Best practices in definition of suppliers of energy efficiency products and services
4. Potential for energy efficiency products and services in other energy consuming
sectors such as agriculture, industrial and commercial, etc.
5. Potential for programmatic approach towards energy efficiency
6. Barriers to branding of energy efficiency.
Analysis of these issues is likely to throw light on the rather poor state of energy efficiency
branding, which holds significant promise of transforming the market, which has not yet
been penetrated by the traditional approach of sales and marketing. This could also lead to
explosion of market which has not yet been visualized by the conventional products and
services. While ‘Branding’ may not be the only answer to the problem of energy efficiency,
it certainly is a key to development of the energy efficiency market.
The Proposed Task is expected to develop significant understanding of barriers associated
with branding of energy efficiency, and strategies to overcome those barriers. The task has
been proposed with belief that it should be possible to reverse the fortunes of the energy
efficiency products and services, if successful branding is achieved. Branding of energy
efficiency products and services would increase their visibility and credibility. The
proposed task will explore the avenues available to national governments to promote
branding of energy efficiency.
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However, to be successful at branding, it would be necessary to work on three levels, viz.
products/services and suppliers, consumers and finally, at the strategic or policy level. At
product/service level, one will have to be deal with several problem areas such as lack of
accurate definition of product/service, strong relationship with maturity of electricity
market, lack of awareness, lack of appeal, etc. At consumer level, it may be necessary to
understand the consumer behaviour across markets as well as societal strata, by employing
advanced marketing/branding theories such as cognitive information processing, emotion
driven choice, etc. While working on consumer related issues, though the results of Task
VII in this regard will be very useful, significant understanding regarding consumers in
large markets in developing economies need to be developed. Finally, it would be
necessary to develop policies/ strategies taking into consideration supplier as well as
consumer analysis.
The Primary Objective of this Task would be to ‘Develop cogent and comprehensive
framework for promotion of branding of energy efficiency in electricity markets at
different level of maturity’.
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Work Plan
The work plan for this task will consist of following five tasks.
Sub-task I:
Energy Efficiency Offerings Analysis
Sub-task II:
Energy Efficiency Consumer Analysis
Sub-task III:
Assessment of relationship between EE product pricing and maturity of
electricity market
Sub-task III:
Review of branding strategies in similar areas
Sub-task V:
Identification of Best Practices in Branding of EE
In the subsequent paragraphs, the activities proposed under each of the above mentioned
sub-tasks have been provided.
Sub-task I:
Energy Efficiency Offerings Analysis
In order to ensure comprehensive analysis, we have proposed a comprehensive Energy
Efficiency Branding framework. This framework demonstrates that apart from products
and services, two more potential avenues for branding, with a strong relationship, also
exist. These two avenues are programs and companies. Strong relationship exists between
these four aspects for any successful branding concept. It would be necessary to explore
the nature of these relationships while identifying best practices for developing branding
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strategies. The assessment will form the basis for sub-task IV in which suitable institutional
structures for successful branding would be identified.
Programs
Services
Branding of
Energy
Efficiency
Products
Companies
As a part of this sub-task, a survey of energy efficiency products and services in all
countries participating in this Task would be undertaken by the Operating Agent with the
help of country experts.
1. Identify product categories offering EE attributes
2. Assess technological maturity of the existing EE products
3. Identify ‘Best Practices’ in definition of products and services
4. Identify other aspects amenable to energy efficiency
5. Identify services/ programs serving EE attributes
6. Identify barriers experienced in successful branding effort
7. Identify special needs of developing countries
This sub-task is expected to fill up a gap in understanding of important aspect of energy
efficiency value chain i.e. EE products analysis. An attempt would be made to assess the
technological maturity of the sample product categories.
Sub-task II:
Energy Efficiency Consumer Analysis
As a part of this sub-task, survey of consumers in all countries participating in the Task
would be undertaken. Appropriate sampling techniques would be used to ensure an
optimal sample for the survey. The survey will be carried out specifically for products and
services identified in the sub-task I. This will help ensure that the survey is able to collect
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data on consumers’ attitude towards the products and services which suppliers are in a
position to provide in the market. This sub-task will undertake the following activities.
1. Identify attitudes and behaviour of the consumers towards various aspects of
energy efficiency
2. Establish preferences for range of products and services
3. Identify socio-cultural issues in selection of products and services
4. Understand the pre-requisites for successful branding
5. Identify pre-requisites to ensure that ‘brand’ approach would focus more strongly
on people as brand aware, self-conscious consumers.
Appropriate methodologies such as socio-cultural value maps, cognitive information
processing, emotion driven choices, etc., would be employed during this sub-task. This
sub-task will identify products and services most suitable for branding in that particular
market from the consumers’ perspective.
Sub-task III: Assessment of relationship between EE product pricing and maturity of
electricity market
It is an established fact that overall marketplace has significant impact on the success and
failure of products and services. On many occasions products and services launched
‘ahead of time’ have experienced failures on account of under-developed market. One such
prime example is ‘Iridium Satellite Phones’. Therefore, it is proposed to analyse
marketplace for energy efficiency products. Given that prospects for energy efficiency
products, services exists in several parts of the energy economy such as automobile,
different types of industries, etc, it is proposed to limit the scope of this sub-task to
electricity sectors. Applicability of the findings of this study to non-electricity energy
segments may be tested at a later stage.
1. Identify the relationship between the product offerings and maturity of the
electricity market
2. Develop statistical models for determination of relationship between electricity
price and energy efficiency pricing
Sub-task IV: Review of branding strategies in similar areas
Currently, energy efficiency products and services are at nascent stage of development in
many countries. Several products such as electricity, organic foods and services such as
banking, insurance, etc would have passed through this phase during their development. It
may be possible to learn from strategies employed by these products and services during
early periods in their life cycles.
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It is proposed to carry out research to identify the branding strategies deployed by similar
products and services during early period of their life cycle. The challenge here would be
to identify which products and services are ‘similar’ in nature to energy efficiency. The Cooperating Agent is expected to assist in identification of ‘similar’ products and services and
carry out research necessary for this sub-task.
Sub-task V:
Identification of ‘Best Practices in Branding EE’
In this sub-task, survey of successful efforts in branding of energy efficiency in the
participating countries as well as other countries will be undertaken. One such successful
branding effort is ‘Energy Star’ program in USA. Operating Agent (with the help of
Cooperating Agent) will develop questionnaire for development of case studies.
This sub-task will also help develop best practices in branding of energy efficiency in four
aspects i.e. products, services, programs and companies. Following activities would be
undertaken as a part of this sub-task.
1. Development of Case Studies for Successful branding efforts across the globe
2. Synthesize information collected during sub-tasks I & II
3. Understand business enablers for branding in each case
4. Identify best practice in each of the four key aspects of Branding of EE
5. Identify inter-linkages for different aspects of branding
6. Identify role of institutional structures and government support in development of
successful branding strategies
7. Identify key lessons which may be adopted in development of successful branding
strategies
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Timeframe
It is proposed to commence the task in May 2008 and complete the same in 24 months
thereafter.
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Operating Agent & Co-operating agent
The proposed Operating Agent for the task is Balawant Joshi, Director ABPS Infrastructure
Private Limited. Balawant has more than 15 years experience in energy and utilities sector
in India. This experience spans from operations management to financial modeling and
valuation, from utility to consulting, from technology to regulatory etc. Further, he has
worked in entire value chain in power sector i.e. generation, transmission, distribution and
supply.
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He started his career with Tata Electric Companies where he served there for about eight
years. He joined ICRA Advisory Services in September 1999 and was Head – Regulatory &
Transaction Practice when he joined Deloitte as Senior Manager in Energy & Utilities
Practice. He was Director in Energy & Utilities Practice when he quit to start ABPS
Infrastructure Advisory where he is Managing Partner of the firm.
He has been member of several committees set up by Government and/or Industry
Organisations to review and recommend on critical issues associated with the energy &
utilities sector. Balawant is a member of the advisory for Solar Power Development set up
to recommend strategy for development of solar power in India. He has also been involved
in the drafting of ‘Renewable Energy Law’ for India, proposed to ensure sustainable
development of energy resources in the country. Currently, he is working as a Country
Expert for Task XV of the IEA – DSM IA.
It has been proposed to identify suitable person as Co-operating Agent for the task. The cooperating agent will be the expert in the field of marketing/ branding. S/He will provide
key inputs during the execution of the task, primarily in the area of development of case
studies for in sub-task I and consumer analysis in sub-task II, and execution of sub-task IV
and V. While s/he will provide key inputs during the execution of the entire task, it shall
be the sole responsibility of the Operating Agent to ensure completion of the task.
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Task Information Plan
The database of information about various case studies identified in sub-task 1 will be the
major output of the Task. This database, maintained on-line on a secure website could be
accesses by only country Experts and the Operating Agent. Twelve months after the
completion of the Task, the database will be made publicly available.
Apart from the database, the task will produce four major reports, one each at the end of
each sub-task. It will be the responsibility of the Operating Agent to produce these reports.
These Reports will be available to each of the participating country free of cost. Twelve
months after the completion of the Task, the reports will be made publicly available.
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Further Information
Countries and organizations interested in participating in the ‘Branding of Energy
Efficiency’ Task may register this interest by contacting:
Balawant Joshi
Director
ABPS Infrastructure Private Limited
703/704, The Avenue,
Opp The Leela, Intl Airport Road
Andheri (East), Mumbai – 400 069
India
Ph:
Fax:
Email:
+91 22 2825 0050
+91 22 2825 0051
balawant.joshi@abpsinfra.com
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