One of the current megatrends that developed during the last years was the increasing global demand for energy due to a continuous economic growth in the emerging markets. As a consequence, the availability of natural resources declines steadily. Therefore renewable and sustainable energies like solar, wind or water technologies become more and more important, both in industrialized and emerging markets.
As a specialized manufacturer for renewable energy systems, Diehl Controls is established in the European market for building up energy-efficient solar energy plants. With regards to the company’s growth strategy, emerging markets have become increasingly important, as high market potentials are estimated for countries like South Africa. Therefore, the following term paper describes the development of a marketing plan for Diehl Controls in order to enter the South African solar energy market. Based on an environmental and strategic analysis, the marketing plan concentrates on the SAVE model to describe the strategic implications for the company.
Table of Contents
1 Introduction
2 Environmental analysis
2.1 PESTLE analysis
2.2 Near environment analysis
2.3 Industry analysis – Porter’s Five Forces
3 Strategic analysis
3.1 SWOT analysis for Diehl Controls
3.2 Gap analysis
4 Development of a marketing plan
4.1 Target market selection
4.2 SAVE – Marketing mix
5 Conclusion
Objectives and Research Themes
This document explores the development of a strategic marketing plan for Diehl Controls, a specialized manufacturer of renewable energy systems, to facilitate its entry into the South African solar energy market. The core research addresses how an environmental and strategic analysis can inform the adoption of the SAVE marketing model to overcome market barriers and establish a sustainable competitive position.
- Strategic market entry planning for emerging markets
- Application of the PESTLE framework and Porter’s Five Forces in the energy sector
- SWOT and gap analysis for organizational positioning
- Transition from traditional 4P marketing to the solution-oriented SAVE model
- Addressing infrastructure and regulatory challenges in the South African solar industry
Excerpt from the Book
3.1 SWOT analysis for Diehl Controls
Before developing the strategic choice for the company’s solar inverters, an internal view on the company’s strengths and weaknesses has to be undertaken. Furthermore, an external view on market opportunities and threats needs to be taken in consideration. The linkage between the company’s strengths and market opportunities offers a market entry strategy. The SWOT-analysis of Diehl Controls can be summarized as shown in the figure below.
As pointed out in the SWOT analysis, the company’s strengths are located in the engineering and manufacturing area, as well as in the management’s know how to enter foreign markets. The South African energy market offers the opportunity of insufficient energy supply in combination with a forecasted increasing demand over the next 20 years. The currently small market for renewable energy is going to expand strongly due to governmental energy resource plans and tendering programs to attract foreign investors. Although the governmental focus lies on large-scale solar and photovoltaic power plants in order to develop renewable energy sources quickly, three different markets for foreign investors exist:
1) Large-scale power plants: Investors need to purchase a power agreement from Eskom in a tendering process. This is a long-term contract to build up a power plant with a 20-year guaranteed feed-in tariff. Before installing the power plant a generators license provided by NERSA is necessary. Important for foreign investors is a governmental local content requirement of at least 45 per cent.
2) Off-grid power plants: PV generated electricity for own usage, e.g. for industrial applications. Therefore, no license agreement with NERSA is necessary. Currently, a financial support by the Integrated Demand Management (IDM) program is offered by Eskom, spending 1,20R per kWh.
3) Small-scale power plants for local grids: Cities or regions with bad power supply establish local grids to serve the increasing energy demand. Energy providers can choose local partners instead of Eskom to feed electricity into the grid. For power plants with a capacity lower than 100kW no generators license is needed.
Summary of Chapters
1 Introduction: This chapter introduces the global megatrend of increasing energy demand and establishes the motivation for Diehl Controls to expand into the South African market.
2 Environmental analysis: This section provides a comprehensive PESTLE analysis of the South African business environment and assesses the solar industry via Porter’s Five Forces.
3 Strategic analysis: This chapter utilizes SWOT and gap analysis to evaluate internal capabilities against external market conditions to determine the appropriate entry strategy.
4 Development of a marketing plan: This chapter details the target market selection and applies the SAVE marketing model to outline the strategy for success.
5 Conclusion: This chapter summarizes the market potential for Diehl Controls and reaffirms the strategic recommendation to focus on small-scale and off-grid solutions.
Keywords
South Africa, solar energy, Diehl Controls, PESTLE analysis, Porter’s Five Forces, SWOT analysis, marketing plan, SAVE model, renewable energy, photovoltaic, grid infrastructure, emerging markets, energy supply, B2B marketing, market entry strategy
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on developing a practical marketing plan for the German solar inverter manufacturer Diehl Controls to successfully enter the South African solar energy market.
What are the central themes discussed in this work?
The work covers environmental scanning, market analysis, strategic planning, and the adaptation of marketing communication strategies tailored for the B2B solar energy sector.
What is the core objective of the research?
The objective is to identify a viable market entry strategy for Diehl Controls by leveraging its core competencies in engineering and management to address South Africa's specific energy needs.
Which analytical frameworks are employed?
The author uses the PESTLE model for macro-environmental analysis, Porter's Five Forces for industry evaluation, a SWOT analysis, and the SAVE model for the marketing mix.
What is the main subject of the marketing section?
The marketing section centers on shifting from a product-feature focus (4Ps) to a customer-value focus (SAVE), emphasizing turnkey solar solutions.
How is this research characterized in terms of keywords?
It is characterized by terms such as renewable energy, photovoltaic, South Africa, market entry, strategic analysis, and B2B marketing strategy.
Why is the "SAVE" model preferred over the "4P" model in this study?
The SAVE model is preferred because it better aligns with the needs of technology-driven B2B markets by shifting focus from product features to customer solutions, access, value, and education.
What specific competitive disadvantage does the author highlight for foreign manufacturers?
The author notes that while foreign companies offer high quality, they face price competition from Asian manufacturers who benefit from mass production and economies of scale.
What is the significance of the "local content requirement"?
It is a regulatory barrier requiring 45 percent domestic content for large-scale energy projects, which necessitates partnerships with local entities for successful market entry.
- Quote paper
- Dipl.-Wirtsch.-Ing. Christian Biewald (Author), 2013, Development of a marketing plan for the South African solar energy market, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/231358
