Prepaid Energy: Marketing to the Millennial Consumer
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1 Prepaid Energy: Marketing to the Millennial Consumer Joint effort between DEFG LLC and the New York University Gallatin School Spring-Summer 2013
2 Challenge Statement DEFG, a management consulting firm specializing in energy, joined forces with students of the New York University (NYU) Gallatin School to develop innovative and targeted prepaid energy marketing approaches focused on millennial consumers. The students were presented a challenge to craft a marketing approach based on research provided by DEFG and additional insights gleaned from other industries and peer interviews, and then develop and present a campaign focused on engagement with and enrollment of millennials (18 30 yr. olds) in a prepaid energy offering. The campaign needed to promote the benefits of a prepaid energy option (e.g. convenience, flexibility) in a manner relevant to millennials Ancillary benefits (e.g., reductions in energy consumption leading to lower bills, and positive impacts on the environment and climate) also had to be considered A premium was placed on overall creativity 2
3 Structure & Deliverables Students were organized into teams. Each team was responsible for producing deliverables. DEFG provided relevant survey results and research reports, and was available to interact with the teams in order to answer questions or review materials. The teams individually presented market and primary research findings and initial analysis to DEFG via webcast. DEFG provided input and guidance. The teams then crafted marketing approaches and campaign pitches that were presented via webcast to the member companies and public stakeholders of DEFG s Prepay Energy Working Group. The presentation decks included: Overarching marketing concept Messaging Communication strategy Metrics / Projections regarding success Marketing collateral, such as Ad/poster, social media outreach, short video, other. The Prepay Energy Working Group members selected the winning campaign presentation. 3
4 Highlights from the Students Campaigns
5 Team 1 The Diane Kang Sabrina Mercado Marissa Neiwirth
6 The Create a MOVEMENT that doesn t just target millennial consumers, it personifies them Be original, authentic, and compelling Be REAL with our target market and in our messaging Drive SENTIMENT and AWARENESS around Prepaid Energy Create a BRAND with social appeal to drive conversion to prepaid energy plan and market favorability Become a MARKET LEADER
7 The This movement starts with the product: PREPAID ENERGY Prepaid energy fits with the Millennial consumer. The DEFG 2012 national survey revealed a significant number of Americans were interested in prepaid electricity (38%) Interest was highest among men (40% v. 36% women), younger adults (44% for yrs v. 23% for 55+) and renters (45% v. 33% home owners) The consulting firm Aite reports that 45% of all Americans who have opted out of traditional banking relationships are Millennials. Think Finance reports that among those Millennials it surveyed last year, 51% had used prepaid cards in the previous 12 months; this was the case both at the highest and the lowest income levels.
8 The The Light the Night is a movement created for Millennials. The movement is a way to deeply engage with Millennials and gain a respected reputation for prepaid energy. By being a part of the movement, Millennials are supporting a new way of doing things and changing the way we look at energy consumption. We propose partnering with local businesses to host a night out to raise energy awareness and promote the option of pre-paid energy. Consumers will join the movement and turn off their lights for a night, and celebrate the occasion with special events hosted at local businesses. Various mediums highly utilized by Millennials will be used to drive awareness of the event, including various digital platforms integrated with real-world events.
9 The
10 Team 2 ENERGY AHEAD CONVENIENT. SIMPLE. EFFECTIVE. Daniel Fein Corey Cano Alena M. Field Kelsi Dulin
11 Current Problems in the Energy Market: Post-consumption bill paying Ambiguous usage to payment relationship Regional monopolies Manual meter reading Left in the dark regarding cost Overconsumption and bad energy habits No option for customer choice Dependency on manual, inefficient labor
12 The 6 i's millennials look for in products: Integration with online platforms & apps Instant access & gratification Input on how the product could improve Influence over the product itself Involvement with the future of the product Interactivity with the product MILLENNIALS LIKE PROGRESSIVE, CREATIVE, ORIGINAL, ENGAGING, SHARE-WORTHY PRODUCTS!
13 Energy Market Solution: Prepaid CONVENIENCE Top up anytime, anywhere. From your mobile device, online, or select commercial locations. ACCURACY No surprise bill every month, consume only what you spend. CONTROL By paying only what you decide, YOU are in control of your spending and consumption. PROACTIVITY Access to your energy info in REAL TIME! PROGRESSIVE Consciousness towards consumption breeds responsible habits SAVINGS!!!! Individual in-home meters provide constant updates regarding usage, transforming energy into a finite commodity with monetary value
14 Tea How we plan to... JOLT Millennials into adopting prepaid energy.
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18 Team 4
19 Interest in prepaid energy (%) Source: DEFG LLC National Survey (2012)
20 Millennials don t want to deal with: > bad design It is not only ugly. It can also be: > Indicative of a bad underlying product > Confusing and time-consuming
21
22 FAMILIARITY INTEREST ADOPTION
23 Contact Information DEFG is a management consulting firm specializing in energy. Since 2003, DEFG has partnered with energy utilities to create value in a commodity marketplace. Customers provide unique resources, reduce risks and increase revenue potential. We help our clients better engage with residential and commercial customers. To learn more about DEFG, visit our website: For more information regarding the marketing challenge, contact: Jamie Wimberly, CEO jwimberly@defgllc.com Cindy O Dwyer, VP codwyer@defgllc.com
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