Promotion Strategy

(includes the social engineering and operation and maintenance).

Sales prices will remain competitive, but competing on price is not the most important basis of competition. The comparative advantages of our solar home systems lie in characteristics and benefits other than price, and these will be the most important factors in positioning the product: A lower price is not always the best strategy.

Our pricing strategy combines penetration pricing and “Cost-plus” pricing. Our price involves taking the total cost (fixed + variable) per unit and adding a % mark-up, which represents a “fair” margin. (We are still below competitor’s pricing, and the product has a good value to consumers).

Break-Even Point:

𝑈𝑆$ 50515

𝑈𝑆$ 700 − 𝑈𝑆$ 506= 260 𝑢𝑛𝑖𝑡𝑠

According to our sales plan (see below) that figure will be achieved within the first year.

Subsidy: We will sale the solar home systems to our corporate clients, and then we will install them in the families that agree to be part of the project. Therefore the end users have a significant subsidy. However there is a family contribution as shown in Table 14.

However, the subsidy to families is justified on the grounds that electricity projects to be viable need certain amount of subsidy. See Appendix 7 for level of subsidies in grid electricity projects for selected countries.

4.5. Promotion Strategy

Without an organized promotion strategy, customers will not automatically become conscious of our products, and of the benefits they offer. Since money in social enterprise programs is always limited, our promotion strategy will be developed with care and creativity. Much of the information gathered on the characteristics of our target

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Regarding branding and communications, we consider the following:

Messaging and brand standard: This messaging conveys the promise of our work — the vision that we are working towards: “A rural Peru where every family has access to electricity in their homes.” We believe that this has a potential to capture the attention of our customers and other stakeholders. We will have guidelines for a consistent use of the logo and colors associated with the brand to be used in documents: brochures, templates for memos, slide presentations, and other materials that will ensure consistent branding and messaging. See the logo below:

Figure 9: Our Logo

The rationale behind the logo is simple: the icon conveys the message of the source of the energy (the sun). It has a distressed design because the ultimate populations we work with are in the rural area. The typography “Noteworthy Light” was chosen because its simplicity matches with the drawing of the sun. From the perspective of color psychology, orange represents affordability, creativity, enthusiasm, lighthearted and high-spirited. All of them are related to our vision and core values. Green represents natural, sustainable, renewable, and growth.

Our slogan is “Empowering Prosperity”: It conveys our values and mission. We empower families via our social engineering strategy and we want to contribute to a more prosperous family, community and society.

Promotional messages: Our message to motivate customers to purchase our products and service will attempt to trigger a customer emotions, self-image and political

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Actually they may become the titles of the projects:

 “Creating the first solar district / province / region”

 “Reaching the families in the last kilometers via solar energy”

 “Solar energy for social inclusion”

 “Empowering families”

We will use the “five F’s” formula as a way to remember advantages of our product:

Table 15: Five “Fs”

Five “Fs” For Actual Customers

When deciding to reach an agreement with us

For End User/Consumers

When deciding to partake in the project

Function Inti-Power provides the adequate solution for a key problem in the district/province or region.

The solar home system is what they need for lighting in the night and listening to the radio, charging the cell phone or watching TV.

Financial Affordable and high quality solar home systems.

It will help them to avoid wasting money in fuels and candles that damage their health.

Freedom Inti-Power will implement the project on behalf of the client acknowledging the source of the funding.

Having electricity at home! No need to buy fuel or candles every time.

Feeling Fosters the idea of: “good governance”, “concerned leaders taking action against a serious problem” or “companies taking care of communities welfare”

The entire family can have light when flipping the switch. They can see themselves as having a key public service.

Future The decision maker is likely to win the support from population if they run for another period. Or companies’ image will improve.

Increase their sense of security. If the grid does not reach their house, they will have the service available for at least 25 years.

If there is a problem they will have access to technicians for operation and maintenance.

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Promotional vehicles: Including but not limited to:

 Direct mail and information meetings: with prospective clients to introduce our enterprise, product and complementary service.

 Cause-related marketing: exploiting the social value of the enterprise via local media with no charge for it.

 Practical Demo: Will be done in the communities or districts where the project is to be implemented (after signing the partnership agreement).

 Radio-short drama/comedy: As part of the social engineering activity to promote the benefits of having a solar home system. Will be done with a local comedian utilizing the local language. In previous similar projects (water and sanitation) we tested the effectiveness of this strategy. It is very cost effective.

 A Web site: The following domain will be acquired: www.intipower.org.pe

 Brochures and other public documents that showcase the organization’s perspective on the social problem and how our solution can make an impact.

 A conference in partnership with a prestigious university will be hosted annually from the 2^nd year onwards. This will be dedicated to raising awareness of the target social issue and positioning Inti-Power as a leader in its field.

 Social media: a Facebook fan page will be arranged.