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Executive Summary
This business report is about developing a country-specific brand strategy plan for Ovoenergy, a UK-based small energy company providing greener and cheaper energy to households and businesses in the country, in the context of its market expansion to Lebanon. Currently, the company is well-recognized in the UK market for its incredibly cheap monthly energy plans that give particular focus to the promotion of renewable electricity. In addition, the company has been ranked top in consumer satisfaction surveys constantly over the last years in terms of product delivery and customer service. Since Lebanon is a fast emerging country, its energy needs are growing steadily, and therefore, it is the apt time for the Ovoenergy to expand into this foreign market. An effective country-specific brand strategy is vital for the company to enter the Lebanese energy sector successfully and establish its brand. For developing a brand strategy plan, the organization should recognize its overall business approach and target audience initially. The narrower the market-focus the faster will be the growth. Hence, it is suggestible for Ovoenergy management to focus only on households and businesses in Lebanon in the initial stage. In addition, the company should develop a brand positioning strategy and a messaging strategy to communicate to the target audience effectively. In addition, developing a meaningful logo and tagline is particularly essential for the organization to influence the Lebanese energy market properly. The organization should also develop an official website for its Lebanese energy business to capture market attention in a comprehensive manner. Finally, the Ovoenergy management is advised to keep track of the progress of the brand strategy following its implementation.
Introduction
Although the global financial crisis 2008-09 has hit the global economy severely, most of the affected nations are in the path of economic recovery. Hence, the demand for energy is growing fast worldwide. In addition, the modern world is really concerned about the fast depleting non-renewable energy sources and the horrific impacts of intense environmental issues like global warming and climate change to which combustion of fuels contributes notably. In the context, a business like Ovoenergy that provides greener energy at cheaper costs can attain a great market success. Currently, the company competes with Big Six energy suppliers in the UK mainly in terms of cost and has attained a market reputation for being one of the cheapest energy providers in the market. In addition, consumer satisfaction surveys have been constantly recognizing the firm’s customer service better in comparison to its competitors. In this favorable market scenario, it is better for the organization to expand into a fast developing foreign market so as to tap the potential business opportunities emerging there. Considering the GDP growth rate and industry growth rate of Lebanon, it appears that Lebanon will be such a market for Ovoenergy. In addition, political, legal, and environmental factors in Lebanon are in favor of Ovoenergy. This business report will consider developing a country-specific brand strategy plan for Ovoenergy in the context of its business expansion into Lebanon.
Brand Characteristics
A unique brand image is one of the significant brand characteristics of the Ovoenergy. This brand enjoys a reputation of being one of the major 15 smaller energy companies competing with Big Six energy suppliers that dominate the UK energy market. Although the company commenced its operations in 2009 only, the UK energy market has recognized the organization’s vehement efforts over the years to deliver greener and cheaper energy to consumers. It is interesting to see that the organization offers 100% renewable electricity at £74 a month. Currently, people are increasingly aware of the dreadful consequences of non-renewable energy use, which not only leads to the emission of greenhouses gases like CO2 but also the depletion of valuable non-renewable energy sources. In this context, the Ovoenergy’s policy to promote green energy across the UK market can greatly add to the firm’s unique brand image. Increased competitiveness is another major brand feature of Ovoenergy. In 2011, the ‘Which? Switch’ consumer survey selected Ovoenergy as the ‘Top Energy Provider’ based on qualities such as customer service, bill clarity, and value for money (Which?). Although the company failed to maintain this status in the following years, Ovoenergy managed to regain the top position in January 2016 with a score of 82% (Which?). Consistency also appears to be a notable brand characteristic of this brand though 7 years is not a fair period to rate it. Ovoenergy kept its prices low when the Big Six energy suppliers significantly increased energy prices. The firm’s managing director Stephen Fitzpatrick created a controversy when he said that he was ‘somewhat confused’ by the explanation given the Big Six energy suppliers for raising energy prices (The Telegraph). Finally, Ovoenergy maintains a strong brand loyalty. To make it clear, Ovoenergy consistently receives five stars for its customer service in consumer surveys.
Brand Portfolio
While analyzing the brand portfolio of Ovoenergy, it seems that the organization does not own too many brands but it markets all its products and services under single brand called OVO. Since its foundation in 2009, the company has been supplying gas and electricity to its domestic customers. In April 2013, the organization entered the business energy market, which is dominated by corporate giants like Big Six energy suppliers. The OVO brand offers two types of payment plans such as pay monthly and prepayment plans. Under the pay monthly plan (as mentioned on its website), customers are given two options including a better energy plan (cheapest energy at £69 a month) and a greener energy plan (100% renewable energy at £74 a month) (Ovoenergy, official site). There are two options under the prepayment plan too. One is Smart PAYG (Pay As You Go) + and the other is Traditional PAYG. The Smart PAYG+ allows customers to top up energy by mobile apps, online, text, and at the shop whereas the traditional PAYG permits top up at the ship only. Both the Smart PAYG+ and Traditional PAYG cost £87 a month. In short, the current brand portfolio of the Ovoenergy is simple and it represents only one brand called OVO (Ovoenergy).
Brand Strategy Plan
With regard to the brand characteristics and brand portfolio of Ovoenergy, it seems that this brand has a great growth potential in the global energy market. Ovoenergy has already become a popular brand in United Kingdom and now it is the time for the company to expand its operations with a global focus. Considering the growing energy needs of the modern world, the company has the potential for achieving a rapid growth in the global energy sector. The following part will discuss some key strategies to develop a country specific brand strategy plan for Ovoenergy so as to expand its business into Lebanon.
The organization has to follow ten steps to develop a comprehensive country-specific brand strategy to promote its operations in Lebanon. While developing a brand strategy, the Ovoenergy has to make certain that the strategy is in line with the firm’s business objectives. Hence, in the first step, the company has to consider its overall business strategy to make sure that the proposed brand strategy would not hurt the fundamental values of the business. From the previous parts, it is clear that Ovoenergy is committed to meet the growing energy needs of customers at cheaper costs. In addition, the company is well recognizable for its efforts to promote greener energy sources and to fight environmental issues like global warming and climate change. It is also identified that Ovoenergy management gives particular emphasis to the economic and social uplift of communities in which it operates. Therefore, the firm has to be concerned about all these basic values while developing a new brand strategy for the Lebanon market.
When they are asked ‘who are your target clients’, a number business development managers reply ‘everybody’. However, they are making a big mistake because market research studies suggest that high growth/profit firms have a much focused market strategy and a well-defined client base. Hence, the Ovoenergy should identify its target clients in Lebanon. Currently, the organization is successfully delivering greener energy to households and businesses. The company is advised to focus on household customers and business clients in the Lebanon market too. Since the organization enters the Lebanon energy market for the first time, it is better for the company to have a narrower focus to attain faster growth.
Similarly, it is advisable for the Ovoenergy management to form a clear understanding of the target client groups so as to respond quickly and effectively to opportunities/threats emerging in the energy sector. Evidences suggest that firms that conduct systematic researches on their target client group grow at a tremendous pace and are more profitable. In the current scenario, Lebanon is a fast emerging economy, and hence, there is a growing need for energy in this market environment. In a developing nation, the demand for energy in the business sector will be growing constantly, and therefore, it is good for the brand to focus particularly on the country’s business sector. In addition, the company is recommended to anticipate the future needs of Lebanese households and businesses with regard to energy consumption and to take proactive steps to keep the brand strategy flexible enough to meet those needs.
Once the company is done with the above stated steps, then it has to deal with brand positioning, which is simply the practice of establishing the brand in the minds of consumers. Brand, product, and price are the major three techniques used in positioning, and combination of these three can assist a business to develop a successful brand positioning strategy. The Ovoenergy management has to give specific emphasis to product and price factors because the company is well-recognizable for delivering greener energy at cheaper costs. It would be great if the company develops a succinct but effective brand positioning statement. The company may use ‘greener, cheaper, closer, and friendlier’ as its positioning statement.
Developing a messaging strategy is the next step of framing a brand strategy plan. An effective messaging strategy can assist the Ovoenergy to translate its brand positioning to messages that various target audience groups can understand. It is clear that Lebanese households and businesses will have different needs with respect to energy consumption, and therefore, a single message may not be appealing to both these client groups. Therefore, while developing the messaging strategy, the management has to make sure that specific concerns of different clients groups are addressed properly.
In the next phase, the organization is needed to develop a name, logo, and tagline for the brand. In current case, the brand name OVO is well-recognizable and therefore, it is recommendable for the company to keep the same brand name for the Lebanese market too. However, the company has to redesign its logo in such a way to depict the business’ commitment to promoting the use of greener energy. In addition, a change in tagline is also advisable for the company because the current tagline that is intended to influence British clients may not be communicable to the Lebanese clients.
The next step is to develop a content marketing strategy, which appears to be very effective for fast growing small businesses like Ovoenergy. In the current internet age, content marketing can execute numerous tasks in addition to performing traditional marketing roles. Under content marketing, valuable educational contents may be used to attract potential consumers and thereby enhance sales volume. To illustrate, the Ovoenergy may publish some informative articles on global warming, climate change, or environmental sustainability in internet platforms like social media so as to direct people to this brand. The major advantage of this strategy is that it increases both visibility and reputation at the same time.
Following the development of content marketing strategy, the Ovoenergy is required to design and activate its official website for the Lebanese business segment. The Ovoenergy management should pay particular attention to website development because this official website will be the place where the target audience visits to understand what the company does and who its clients are. It is vital for the management understand that prospective clients’ buying decision will be largely based on the firm’s official website. In addition, the content marketing strategy also directs people to the official website where they should be convinced enough to close the sale.
In the subsequent phase, the organization must build its marketing toolkit so as to keep the target audience informed of the key services and the market segments served by the firm. One-page sales sheets describing the core service offerings of the company and an e-brochure detailing the operations of the firm can be a key part of building the marketing toolkit. Nowadays, videos have become an integral part of the marketing toolkit. In this context, it is recommendable for the Ovoenergy to create attractive YouTube videos depicting the key service offerings of the brand. The company may use other social media platforms like Facebook, Twitter, and Instagram to promote these videos.
In the final stage of developing the brand strategy plan, the organization has to implement, monitor, and alter the brand strategy. It is very common that business managers forget about the brand strategy once it is implemented, and this situation in turn would lead to the failure of even a promising brand strategy. Hence, the Ovoenergy management is strongly advised to keep track of the progress of the brand strategy implemented. This practice can help the company make appropriate changes to the plan if there is any unwanted outcome.
Conclusion
Works Cited
Ovoenergy. Official website. https://www.ovoenergy.com/ [accessed 08 June 2016].
The Telegraph. “Energy boss 'can't explain' competitors' price hikes”. Web. 29 Oct 2013. http://www.telegraph.co.uk/finance/newsbysector/energy/10412378/Energy-boss-cant-explain-competitors-price-hikes.html [accessed 08 June 2016].
Which? “Energy companies reviewed: Best and worst energy companies”. Web. http://www.which.co.uk/energy/saving-money/reviews-ns/energy-companies-reviewed/best-and-worst-energy-companies/ [accessed 08 June 2016].
