SVAEShenandoah Valley Alternative Energy

Presented by

Tracy May Eric Wampler

Karl Marx Souffrant

Shenandoah Valley Alternative Energy Our goal is to partner with residents of the

Shenandoah Valley to provide homegrown electricity and introduce competition into a monopoly

Utilize PPAs to counter the extremely high costs of typical wind turbine generator

Provide a suite of services that goes beyond traditional utility-consumer relationships

Vision Statement Shenandoah Valley Alternative Energy LLC plans

to introduce a solution to the residential communities of the valley allowing the consumer to benefit by making their homes more energy efficient, creating a tax saving event, while contributing to the greater good of our nation by using a renewable energy system.

Goal and Objective Working with Professionals in the local community,

as well as experts in the field Create awareness Establish a alternative energy solution to help

consumers take advantage of tax savings, as well as lower heating & cooling cost

SVAE Strategy Canvas

Target Markets

Intentional Communities Subdivisions, Apartment Complexes, Resort Communities

Businesses Provide an easy way to market themselves as part of the

green revolution Residential Farms

How Did We Get Here?Barriers to market entry: Cost

SVAE can achieve cost parity w/ current utilities NIMBY (Not In My Backyard)

Education and brand positioning Poor Production Capability

Most studies have been conducted on a macro scale

Market Research Wind capacity in the United

States is enough to meet U.S. electricity consumption, according to a report from the Department of Energy. The country’s wind could generate 37 million gigawatt hours of electricity a year. SVAE intends to be at the forefront of this movement.

Market Research continued

Market Research (continue)

Market SegmentsSVAE will target three main market segments such as Farmers, households, and small businesses.

SurveysWe will use a stratified random sample to capture key population characteristics. After determining first, the population of farmers, as well as the population of households and small businesses.

Market Research (continue)

QuestionnaireWe will use hand out / online questionnaire with 10 key questions to help us understand how our events are meeting target markets expectations, giving us the data we need to maximize our return on investment for all our event activities.

Qualitative or QuantitativeSVAE will seek out and obtain hard numbers from a statistically significant sample to safely measure off our broader target market or explore the softer side of our audience segments and uncover the emotions, thoughts, and opinions behind their behaviors.

Market Research (continue)

Focus GroupTen people from different market segments will be invited to a debate on residential wind turbine. To get the community’s perceptions, concerns, reactions and behaviors, we use the following questions:

1. What are the advantages and disadvantages of wind technology on the environment?

2. What are the social and economic benefits of the technology?

3. What would wind technology mean for you in Virginia?

Market Research (continue)

Market Research (continue)

Market Analysis Experimental Research Secondary Sources Marketing Metrics Geographic Segmentation Branding Market Barriers

SVAE Products

Product OfferedSVAE offers both services and products to its customers. Mostly the turbines will be jointly owned by SVAE and a manufacturer.

Product & Service DifferentiationThere is a difference between those who want purely service and those who want the product and service.

Services

Services & Value Creation from the WindShenandoah Valley Energy LLC is a Virginia-based full service wind systems company, serving home, small farms and business owners in the Shenandoah.Our commitment and dedication is providing clients with wind energy solutions. With increasing oil prices, global warming concerns, and rising utility rates, wind energy is now the fastest growing energy source in the world.By keeping our focus on wind energy, we are able to stay current on technology changes, industry advancements and legislative actions.

The Cost of Wind Systems

PricingAccording to Wind Power America, “installation costs vary greatly depend ing on local zoning, permitting, and utility interconnection costs. A small turbine can cost anywhere from $3,000 to $50,000 installed, depending on size, application, and service agree ments with the manufacturer. (The American Wind Energy Association [AWEA] says a typical home wind system costs approximately $32,000 (10 kW); a comparable photovoltaic [PV] solar system would cost over $80,000.)”.

The Cost of Wind Systems

Maximum Market ShareEven though wind power is the fastest growing renewable energy, the demand for wind power in Virginia is inelastic. The quantity demand cannot yet affect price. SVAE offers customers the choice of whether they want to purchase the technology or the service. This will allow us to maximize our market share. Customers are charge reasonably compared to our competitors

Marketing IntegrationHow are THEY going to learn to know us??

Advertising Public Relations/Organizations Sales Promotions Sales Activities Partnerships

Marketing Mix Advertising

Traditional methods to plant the seed (awareness) and fertilize it with an innovative campaign to hit the consumer square in the solar plexus and for them to reconsider how they consume mass media

Vertical turbines allow for “windvertising” where a logo is printed on the blades

Co Branding with our strategic alliances will allow for potential consumers to see the brand

Marketing Mix Sales Promotions

Educational events and on site demonstrations Public Relations

Constant contact Be the “Outside Expert”

Personal Sales Press the flesh, generate leads, make deals –

break deals ABC- Always Be Closing

Marketing Intermediaries Unique position to solicit business from our

strategic alliances Reciprocal relationship with Williams Mullen law

firm and the Hantzmon Weibel accounting firm Using established local brands to promote SVAE

Media Mix “GOING GREEN” in the Valley Printed Materials Social Media/Free Media

Partnerships Real Estate Agents/Developers Contractors Electricians Rockingham, Shenandoah, & Augusta County City of Harrisonburg

Public Relations/Organizations Environmental Protection Agency Shenandoah Valley Environmental Awareness Earth Week Chamber of Commerce Events Other Sponsorships – Shenandoah Valley Home &

Garden Show

Future of SVAE LLC

The Future of SVAE

Future Service Future Development (Globalization)

Adaptive Learning Organization Low Speed Blades Offshore Wind Turbines Global Expansion

Adaptive Learning Organization Low Speed Blades Offshore Wind Turbines Global Expansion

Recommendation Recommend one or more of the strategies Summarize the results if things go as proposed What to do next Identify action items

Sources

US Department of Energy: http://www1.eere.energy.gov/windandhydro/pdfs/41869.pdf

WEA, 2009. Small Wind Turbine Global Market Study 2008. Retrieved on March 23, 2010 from http://www.awea.org/smallwind/pdf/2008_AWEA_Small_Wind_Turbine_Global_Market_Study.pdf

Kotler P., & Keller K. L. (2006). Marketing Management: Value Networks. New Jersey: Pearson/Prentice Hall. 12ed. NREL, 2010. Small Wind Turbine Independent Testing. Retrieved on March 23, 2010 from

http://www.nrel.gov/wind/smallwind/independent_testing.html

PJM, 2006. Behind-the-Meter Generation Business Rules. Retrieved on March 24, 2010 fromhttp://ftp.pjm.com/markets-and-operations/rpm/cap-credit-archive/~/media/markets-ops/rpm/capacity-credit/btm-rules.ashx

Wind Power America (2005). Small Wind Electric Systems. Retrieved on March 24, 2010 fromhttp://www.windpoweringamerica.gov/pdfs/small_wind/small_wind_guide.pdf