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Marketing Paper 1

 

Market Analysis:
Radium Technologies – Renewable energy

Word count: 2015

Executive Summary
The purpose of this report is to introduce Radium Technologies INC and to provide a detailed analysis of our marketing strategy into the renewable energy construction sector. In this marketing strategy we will use the 5C analysis to break down the foundational elements of the marketing plan, followed be a SWOT analysis to show the pros and cons we have found withing this analysis. In this report you will find the recommendation of Radium Technologies to pursue this strategy based on the positioning they have determined themselves to be in. Within the much broader spectrum of energy construction projects throughout Alberta, it is our belief that a successful breakout into this budding industry will provide a unique and potentially profitable source of revenue for our organization. It will also create a strong organizational image, which can be of growing importance in today’s climate.

Table of Contents
Executive Summary 1
1 Introduction 3
2 Market situation analysis 3
3 Market segmentation analysis 6
4 Target market recommendation 6
5 Recommended Positioning 6
6 Conclusion 7
References 8
Appendix 1: Organisational Consent 9
References 10

1 Introduction
In this report our objective is it analyse and make our case for the pursuit of construction contracts in the Alberta renewable energy sector. We will make clear why this trajectory was proposed and ultimately pursued for our company and why this market is worth targeting. With a notoriously competitive energy market in our province, we have weighed the potential for breaking out into this undeveloped but growing industry. We have used the 5C analysis to breakdown the different elements that help us highlight in greater detail the variables both good and bad. When consulting the value pyramid in B2B marketing, this has shown to align us well with our own values as an organization and puts us in a good space to align with the values we believe potential customer are chasing in this business climate. This is then followed by the SWOT analysis, this will show the strengths, weaknesses, opportunities, and threats that are present within this marketing strategy and how that helps us make our case. We believe with the information put together in this report, we will make a comprehensive case for the use and pursuit of this marketing strategy.
Radium Technologies was founded in 2007 out of Grand Prairie, Alberta, as a construction contractor and has progressively grown in the years since. We Operate is western Canada and have completed projects in all 4 western provinces. We have a diverse management team from many backgrounds and an ownership group with ambition. Currently we operate with 100-150 employees and are continuing to grow, we bring an average revenue of 25 million dollars a year (averaged from 2019-2021). Our expertise across several industries has helped put us in a place where we can reliably execute a much more diverse portfolio of projects. We have recently taken on and succeeded in the renewable energy sector, with the near completion of the 13-million-dollar Futera Geothermal expansion project. This has positioned us well is a sector that is just beginning to grow at scale in the Alberta industrial sector and presented us with an opportunity to pursue this market more vigorously. The limitations for us are size and reputation as we are a much smaller outfit than a great deal of our competitors. This is the reasoning for a well thought out and segmented marketing plan, to try and give us an advantage moving forward.

2 Market situation analysis
The 5C framework identifies the five most important foundational elements of marketing. Analysing these elements provides insight into a company’s key internal and external drivers of success and its risk exposure to environmental factor (Steenburgh 2010). We also based certain identifiers using the B2B Value pyramid. This gives us a broken-down look at the 5 sections of value commonly used and helps us gauge our directive based on this.
Utilitarian – Benefits of this product on the life of the customer are many, this provides them with another reliable and committed option for the construction of their renewable energy projects and the feeling that they are contributing to a more global effort to reduce emissions and lessen their carbon footprint.
Symbolic – This fills the need of innovation and vision, the companies that capitalize on early growth have a unique opportunity to position themselves as a leader in the industry in its early growth stages, this helps root your organization with key stakeholders on both ends and can be beneficial on solidifying a good reputation early.
Emotional – People associate the clean and renewable energy with a sense of hope, amidst the calls of a climate catastrophe, people and corporations are looking at renewables to help mitigate their current concerns.
Social – This is important socially, in its ability to show the true values of an organisation. This brings a unique ability to put yourself in a socially responsible environment. The members of your organization can feel a sense of wellbeing, knowing that the public recognizes what the organization is doing.

Climate/Context
Economic – With Alberta being the third highest GDP in the nation as of 2018 we have traditionally been in an economy with opportunity with lots of projects going on. We have a very coal and oil and gas dominant economy currently and with the plans for these to be scaled back, we may find ourselves with new opportunity. Alberta’s energy capacity by fuel type currently sits just under 20% for all fuel sources outside of Coal and oil related. This positions new energy renewable project in a growing market well as the government moves away from primary means of energy.
Socio-Cultural/Political – With a well-documented move worldwide in western cultures to scale back fossil fuels, an ability to handle renewable construction projects moving forward puts Radium at a strategic advantage.
Technological – With the technology used primarily in engineering these new facilities, the companies with the proven track record of executing these projects will hold an advantage over new bidders. This is apparent in every industry but the real benefit with this would be there will not be a lot of competition with that historical record during the early adaption of these facilities.

Company
Business model – We currently market ourselves as a complete construction company, specializing in 3d scanning and design and construction. We can implement this into our bidding process and position ourselves better to secure these renewable jobs. In completing our first large scale renewable energy geothermal project in a market that is readily generating new renewable energy projects, we have both the experience at scale and the financial capabilities to secure these moving forward. In our ability to complete the construction project phases in their entirety and our low overhead costs, we have put ourselves in a good position to win these projects and grow withing the sector.
Competitive strategy/advantage – Given the nature of the of the construction business, our competitive strategy is strengthened by being able to provide historical data on unit rates for construction, it works within the organization to be able to bid based on rates that have been shown as accurate within a certain industry and our current project completions have afforded us this data. The social media presence of companies moving into the renewable sector is a selling point for these organizations. Being a company that has successfully achieved a project of this type in an up-and-coming organization gives us a presence we wouldn’t normally have. We have continuously marketed ourselves within several domains, but LinkedIn is a platform of choice. As we continue to scale up our following and have documented partnerships with these renewable organizations, we will continue to make ourselves more visible. With a growing business development department and plan, we are also aligning ourselves with new clients and growing our partnerships.
Collaborators/complementors
Our suppliers in (alliance) and their buying power, put us at a strategic advantage for procurement, our past client and new hitter in the geothermal production market in Alberta (Futera) give us a strong project completion bump and have readily marketed us a great collaborator on this.
Any company that accepts our tender is at a benefit, the purpose of this strategy is to market ourselves as a streamlined contractor with the ability to to complete this at lower cost and higher quality.

Competitors
– TAHK – currently our direct and major competitor in oil and gas construction projects. Positioned well in two major hubs in Alberta but no current projects of note in the renewable sector.
Tier 1 companies – Aecom, Strike, Ledcor
These companies have a much higher cash flow than Radium, they have been in business for far longer which provides them with reach we do not have. They also are much more capable of in-house engineering in house engineering, which could give them a strategic advantage of the client is looking for this.
They do however house very high overhead costs, Currently Radium technologies requires 3 million dollars in revenue to keep the operation running at minimum. This puts in a good spot during the bidding process
Their strategies include social media presence and followings (LinkedIn). These companies consistently use their platforms to reach a much higher number of followers which can help sway reputation and opinions in their favour. They also house much larger business development departments which gre4atly increases their personal relationships with clients

SWOT Analysis
Strengths
• Already positioned as contractor in this sector with a large-scale successful project
• Strong business development department
• Ability to provide all services needed for the project within a lower tier cost structure Weaknesses
• Smaller sized company
• No in house engineering
Opportunities
• Budding industry in Canada and Alberta
• Early adoption Threats
• Stagnant Industry, not adapting to renewable
• Larger Companies

 

3 Market segmentation analysis

4 Target market recommendation
Buying behaviours – Renewable energy has already secured over 2 billion in investments as of 2019, with a forecast of 80% investment taking place in Alberta through 2019-2024.
Demographics – With less than 10% of Alberta’s current electricity generation occupied by renewables, and only 20% capacity by fuel type occupied be renewables, the market is primed to grow.
Purchasing Approaches – With pre-existing relationships and trust already solidified, the base of client contractor trust is already strong for Radium in this market. We are able to use these client bases to help infuse ourselves into other opportunities as this industry is heavily based on relationships for work

5 Recommended Positioning
The CER predicts the total capacity of renewable energy sources in Alberta will reach 26 per cent by 2023. It expects the province to add “significant” solar capacity, or 1,200 megawatts, by the same year. This market has shown excellent growth in recent years and being that it is still in its infancy compared to the traditional energy sources in Alberta, it is forecasted to make large gains in the coming years. It is Radium’s position that continuing to collaborate with existing clients and pursuing new contracts in this specific segment of the energy sector will have positive outcome on company growth. The key points of focus will be on specific relationships in high output clients to solidify the contracts.

6 Conclusion
In conclusion, and after using the available tools required to analyse ourselves and the market, Radium has shown with its comprehensive 5C and SWOT analysis that our plan for growth and contract procurement in the renewable energy sector within Alberta, presents a promising segment to pursue. This will potentially offer a high likelihood of success. We believe the statistics for growth and our current relationships within this small but growing sector will present a unique opportunity to capitalize on this market and become a more recognizable name in the future. The ability to confidently price and bid a project, and a properly researched marketing plan, offer to us an acceptable degree of risk with a greater potential of reward. With the estimated new investment value in the billions for this industry and not too many organizations with the experience to take on this market, the availability for growth looks to be substantial.

References
Canadas Renewable Power – Canadian Government, 2022. (Online)
Available at: CER – Canada’s Renewable Power – Canada (cer-rec.gc.ca)
Gross Domestic Product – Albverta Governmentt. (online)
Available at: Gross Domestic Product (alberta.ca)
Renewable Energy, 2022. (Online)
Available at: Renewable Energy – Invest Alberta
Radium Technologies Internal Data
Steenburgh, TA, J 2010, ‘Marketing analysis toolkit: situation analysis’, DOI:HBR 9-510-019.
Wind and Solar: A Robust Forecast for Renewable Energy in Alberta, 2022. (Online)
Available at: Wind and Solar: A Robust Forecast for Renewable Energy in Alberta – Energy News for the Canadian Oil & Gas Industry | EnergyNow.ca

Appendix 1: Organisational Consent

 

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