At CHARGE 2016, Tomaz Oresic, Chairman of the board at Elektro Maribor, presented on the current outlook of the electricity supply value chain is going through major changes, with new players entering the market, shift of perception of electricity as a basic commodity and how the customer is increasingly being put at the very centre. These disruptive trends are changing the old electric utility business model with the result of an increasing number of utilities starting to pay more attention to branding.
Tomaz points out that utilities have been marketing an almost invisible product to an undefined customer with top-down communication strategies. These engagement strategies have often failed since the electricity suppliers have not walked the talk and due to mismatched communication.
As Ryan O’Keeffe pointed out during his presentation at the CHARGE Energy Branding Conference last September, large energy companies with a long legacy of generating and selling electricity, are not normally considered cool.
The company has and is going through a comprehensive overhaul of its image, meaning and role in the fast-changing energy environment. As Mr O’Keeffe pointed out, it was a change in strategy that was long overdue, the company’s old logo was designed when Google was still operating out of a garage in Silicon Valley.
We as a power company can and must play a key role in tackling these challenges.
Enel found itself working in a new energy paradigm and found that how it had been conducting itself for the last fifty years was not going to work in the next fifty years. During the rebranding process, there were some strengths that the brand possessed that would become valuable in the changing energy landscape. By taking a humble approach and acknowledging that a big corporation with a big corporation culture might not foster innovation that could keep up with the time. The brand turned this weakness into a strength by using its global scale and resources to foster open innovation; helping entrepreneurs that are set out to change the energy paradigm even further.
Ryan’s presentation from CHARGE – The World’s First Energy Branding conference can be seen below. Enel was one of the finalists for the 2016 CHARGE Awards as one of the world’s best energy brands. The report on the best utility brands has been published by LarsEn Energy Branding and can be found here. The 2017 CHARGE Energy Branding conference takes place in Reykjavik October 9-10 where the CHARGE Awards will be presented for the second time.
Landsvirkjun is Iceland’s biggest power generation company, generating over 70% of electricity in the country. There has been a lot of changes in the Icelandic power market and Landsvirkjun has moved from focusing on low-cost electricity buyers market to a more balanced seller’s market, offering competitive prices.
The company offers 100% renewable power on the wholesale market, having only a few customers, meaning that their branding and image building is a bit different from other traditional power companies. It is, however, important for the largest power company in Iceland to deliver a clear message to their stakeholders (the company is owned by the Icelandic authorities) and their customers.
Landsvirkjun’s mission statement is:
Landsvirkjun’s role is to maximise the potential yield and value of the natural resources it has been entrusted with in a sustainable, responsible and efficient manner.
The role of the company has changed in the last years. Instead of focusing on growth and creating new jobs, its focus is today on more value creation than before. The energy transition and the way renewable resources have become more valuable for end consumers has enabled Landsvirkjun to focus more on the Green value proposition.
One of the major challenges utilities face is getting the consumers to trust them. Eggert Gudmundsson has an interesting background, after receiving an MBA degree he worked for several years for Philips before returning to Iceland to become the CEO of the countries biggest fishing companies and then became the CEO of Iceland’s biggest fuel and retail company. With this background in commodities, electronics and finally energy, Eggert is now heading the innovative energy enabler eTactica which has developed an EMS for SME’s. The eTactica solution enables energy companies to create tighter bonds with their customers and adds measurable value to their services.
Jim Rogers, the retired former CEO of Duke Energy was the first CEO of a major utility to address environmental issues and once named by Newsweek as one of the “50 Most Powerful People in the World”.
In his presentation at the Green Energy track at CHARGE 2016, Jim talked about the customer relationship during the transformation of the Power Industry in the United States.
Duke Energy has the reputation of being affordable, reliable and safe. No one would say that they were green, they were the highest contributors of Co2 in the United States.
You can’t brand yourself unless you walk the talk.
Duke Energy has cut down Co2 emissions by almost 30 per cent but Jim admits that although the number seems high and the amount of emissions cut is quite large, the company is still a major contributor of Co2 emissions in the United States. For the effort, the company has been on the Dow Jones sustainability index for eleven years.
Branding: it’s not what you say about yourself, but what others say about you.
In addition to cutting down emissions, the company has made some considerable investments in wind and solar as well as investing in solutions that provide customers with rooftop solar.
The key point in adapting to and investing in green technology is to be able to communicate with and educate different stakeholders. The customer expects affordability and the investor want to see that the company will see a return on their green energy investment.
As Jim put it, the company invested in where the wind blows and the sun shines as well as looking at opportunities where the regulatory environment is favourable towards green investment.
The CHARGE team is in full swing reaching out to the brands that were shortlisted by a panel of experts as the World’s Best Energy Brands. The panel consists of specialists in marketing and branding as well as energy professionals around the world. The panel has members in academia, energy companies, energy associations, energy innovation, advertising agencies and marketing consultancies.
We are reaching out to 90 brands in 6 categories of the best energy brands in the world. The categories are established brands, challenger brands, green brands, transmission brands, distribution brands and energy product brands.
The methodology derives from decades of academic research and studies in the fields of marketing and branding to determine how consumers perceive brands in general. To make the measurement more relevant to the energy space, knowledge from recent research on consumer perception of energy utilities was added to make the methodology more specific for the energy space. The methodology is also the basis for the Energy Branding Benchmarking Index (EBBI) which is used by power companies around the world to measure their energy brands.
We will reveal the finalists later this summer, each category can have up to five finalists. The finalists will be featured in the next edition of the best brands report. The report might also feature a selection of shortlisted brands that will not make it into the final selection.
The CHARGE Awards were a great success at the inaugural CHARGE Energy Branding Conference which was the world’s first conference to focus on branding in the energy space. Following the success of last year’s event- we have decided to expand the awards from three categories to six this year.
Sustainability has been a part IKEA’s identity since it’s humble beginnings in Sweden decades ago. Guðný Camilla Aradóttir is the Sustainability Responsible at IKEA Iceland, taking care of sustainability issues. The goal of the brand is to eliminate waste at all time.
IKEA’s sustainability strategy, titled People & Planet Positive, set out some ambitious goals for the brand to head towards more sustainability. IKEA operates wind farms around the world and has installed solar panels on the rooftops of its store locations around the world, installed panels on office buildings and even sold solar panels for homes at some of its locations.
Effective product branding is about putting the right frame around your value proposition according to Mei Shibata, CEO of Essense Partners – an award-winning strategic marketing firm based in New York.
Mei uses the case of the electric cars to show how branding boils down to framing the value proposition. Despite the many advances the electric car has over the traditional combustion engine car, Mei’s research has shown that the biggest challenge facing the electric car is perceptional and related to the image the electric car has rather than technological, such as range, speed, charging time or the overall driving experience.
Mei points out that if you are not proactively doing your branding work, someone else is doing it for you and controlling the dialogue and setting the frame of reference for consumers.
Eneco was one of the first of the established energy utilities in the world to become fully renewable and became the frontrunner in the Dutch energy industry in the production of electricity from sustainable sources. Regine Alewijnse, Brand Manager of Eneco presented the brand’s story and the challenges that are facing truly renewable companies when many companies in the energy value chain present themselves as renewable when in fact, a majority of them are renewable only as far as the marketing message goes.
To further the point, Regine explained how sustainability can become more than a hollow marketing message, by making sustainability a valuable brand asset.
Eneco’s approach has not only been to offer renewable energy and offer customers a choice but also to enable customers the possibility to monitor their energy usage and helping them to cut down usage without noticing it by offering software that monitors and detects usage.
Stephen Fitzpatrick – CEO of OVO Energy – describes the company as a big small company. As a challenger to the Big Six energy companies in the UK, the company has grown from a simple idea around the kitchen table to servicing over 700.000 customers in the retail energy market and employing around 1.000 people. Even though the company is no longer small, they still act and think like a startup.
Stephen’s presentation was not only on the future of energy but on the future of customer expectations in general and how children growing up to be the consumers of tomorrow are growing up in an on-demand world that gives them different expectations from brands than today’s consumers have. In just three years, on-demand services have revolutionised industry after industry and no one knows how fast the next three years are going to change. But by always thinking like a customer, OVO Energy anticipates being prepared to stay on top of the energy market that might have changed dramatically in an unforeseen way.
OVO Energy was the winner of the first CHARGE Awards and was crowned the World’s Best Energy Brand at the CHARGE Awards ceremony in 2016. The brand did well both in both the score of the global panel of experts but more importantly, the brand is doing an excellent job according to their customers.