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Solar Generator Report
Solar Generator Report
By the grace of Allah Almighty, we have successfully completed the term report on our
marketing management project "SOLAR GENERATOR."
The project was assigned to us by Mr. Hammad Ur Rehman. We are thankful to him for giving
us a chance to learn about marketing strategies. This will help us in enhancing our
entrepreneurial and creative skills.
In successful launch of our SOLAR GENERATOR, we are thankful to several people without
whom the launch would not have been possible. We thank our families for their support and
coping up with our absences. Our class fellows and friends also helped us with their suggestions
and ideas.
Finally, the members of the group are thankful to each other for supporting and complementing
each other whenever need be.
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TABLE OF CONTENTS
1. Acknowledgments 3
2. 1.1 Executive Summary 5
3. Strategic Focus And Plan 6
4. Mission And Vision 6
5. Core Competency And Sustainable 7
Competitive Advantage
6. National Power Sector at a glance 8
7. Solar Generator Mechanism 9
8. Solar Viability in Pakistan 11
9. Free Power Set by Power Generator 12
10. Marketing Mix 13
11. Promotion Channels 13
12. Market Segmentation Strategy 15
13. SWOT Analysis 17
14. PEST Analysis 18
15. BCG Matrix 18
16. Competitor Analysis 19
17. Customer Analysis 19
18. Financial Plan 21
19. References 25
20. Tax exemption letter, government of Pakistan
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EXECUTIVE SUMMARY
This report is about the launch of our new product “SOLAR GENERATOR”. The report consists
of variable aspects of marketing plan which will be practiced in the launching and later
invigorated for the promotion of the product. There are few solar products that could satisfy the
needs of natives in Karachi. They need products through which they will not only live a healthy
life but should add confidence to their personality.
Nowadays, electricity is a necessity. High-tech machines that business factories operate need
energy; else their operations will be paralyzed. To add, entertainment-giving gadgets need to be
plugged into electrical outlets to function. Air conditioners and other devices giving comfort and
convenience need electricity to be useful. Everywhere you go, electricity is in high demand. Yet
due to this high electricity demand, the nonrenewable sources of energy are being utilized in
large amounts. These sources are considered as unfriendly to our environment. These are the
propane, petroleum, coal, and natural gas. The good news is that the discovery of solar energy as
an alternative energy source has provided a good option to electricity consumers.
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STRATEGIC FOCUS AND PLAN
Power generator aspires to an agent of change by providing efficient power products to satisfy
consumers need while understanding the importance of environmental sustainability. The
company’s short term approach is to inculcate customized solar systems in Pakistan which can
address the needs of all the valued corporate and domestic customers.
“The vision is to make the total cost of solar energy economically workable for everyday use, so
that all Pakistani will benefit from this clean renewable energy resource”
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CORE COMPETENCY AND SUSTAINABLE COMPETITIVE
ADVANTAGE
Sustainable Competitive Advantage: Low cost and low maintenance efficient energy production
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NATIONAL POWER SECTOR AT AGLANCE
Pakistan has two integrated public sector power utilities, the Water and Power Development
Authority (WAPDA) and the Karachi Electric Supply Corporation (KESC). WAPDA supplies
power to the whole of Pakistan except the metropolitan city of Karachi, which is supplied by
KESC. The system of WAPDA and KESC are interconnected through 220 kV double circuit
transmission lines. The country has a total installed generating capacity of about 19522 MW. The
installed capacities owned by various agencies operating in the country. These are:
Water & Power Development Authority (WAPDA): 11327 MW
Karachi Electric Supply Corporation (KESC): 1756 MW
Pakistan Atomic Energy Commission (PAEC): 462 MW
Independent Power Producers (IPPs): 5977 MW
WAPDA was established in 1958 and entrusted with a massive agenda, which included
generation, transmission and distribution of power along with irrigation, drainage and flood
control etc. It owns about 58% of the country’s total power generation capacity and serves about
88% of all the electricity customers in the country. It serves over 13 million customers.
KESC was incorporated in 1913 and is responsible for the generation, transmission and
distribution of electricity in Karachi and its adjoining areas. It has nearly 1.5 million customers,
predominantly urban consumers. In order to promote fair competition in the electricity industry
and to protect the rights of consumers as well as producers and sellers of electricity, the
Government of Pakistan has enacted act the Regulation of Generation, Transmission and
Distribution of Electric Power regulation Act, 1997. Under this act the National Electric
Power Regulatory Authority (NEPRA) performs three main regulatory functions i.e., licensing of
generation, transmission and distribution of electric power, tariff determination and prescription
of standards and rules for conduct of business.
Between 1984/85 and 2004/05, Pakistan’s total installed power generating capacity increased
nearly fourfold, from 5229 MW to 19,522 MW, but then this trend was not duly followed which
has resulted in energy crises.
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SOLAR GENERATOR MECHANISM
Solar power is the technology of obtaining usable energy from the light of the sun. Solar energy
has been used in many traditional technologies for centuries and has come into widespread use
where other power supplies are absent. For example in remote locations, and in space.Pakistan
being unlucky country with regards to fuel reserves has to switch over to solar energy ultimately
for its ever growing needs.
According to energy experts, with the current rate of supplies, the total reserves of oil and gas in
Pakistan will last 12 years, coal will take 200 years to exhaust which can face tough resistance
from environmentalists while hydro power can meet one-fifth of the present needs.
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With this situation, for the requirements of 14 million people living in cities and villages of
Pakistan should adopt renewable energy. Among renewable energy, solar energy is the most
abundant and widely spread in Pakistan.
At present, Pakistan faces serious energy problems: significant part of its electricity generation
comes from hydropower, which becomes less productive during the driest, hottest months of the
year and cannot keep pace with the sharp rise in energy demand.
If the current growth trend in the energy supply and demand continues then it is estimated that
Pakistan would be facing a shortage of 31 percent of energy by the year 2020, which will
seriously affect the balance of payment position of the country and would make it difficult for
the economy to continue moving on the present growth trajectory.
On the other hand, Pakistan covers 796,095 square kilometers of land between latitudes 24° and
36° north and longitudes 61° and 76° east. That means solar energy has excellent potential in
central parts of Pakistan that receive high levels of solar radiation throughout the year. Every
day, for example, the country receives an average of about 19 mega joules per square meter of
solar energy.
The total amount of solar energy incepted by the earth every minute is greater than the amount of
energy the world uses in fossils and fuels each year. Solar power is pollution free during use.
Production end wastes and emissions are manageable using existing pollution controls.
Solar electric generation is economically competitive where grid connection or fuel transport is
difficult, costly or impossible. Examples include satellites, island communities, remote locations
and ocean vessels.
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SOLAR VIABILITY IN PAKISTAN
As is becoming painfully evident with summer around the corner, Pakistan is an exceptionally sunny country.
If 0.25% of Baluchistan was covered with solar panels with an efficiency of 20%, enough electricity would be
generated to cover all of Pakistani demand. In all provinces the AEDB has created 100 solar homes in order to
exploit solar energy.
Solar energy makes much sense for Pakistan for several reasons: firstly, 70% of the population lives in 50,000
villages that are very far away from the national grid, according to a report by the Solar Energy Research
Centre (SERC). Connecting these villages to the national grid would be very costly, thus giving each house a
solar panel would be cost efficient and would empower people both economically and socially.
In many Pakistani villages, wood and animal dung is used for cooking fuel; however, this is causing
widespread deforestation. Women are also forced to walk for many miles each day to gather wood. Then, their
health suffers from the smoke emitted from cooking on wood fires. The AEDB completed a project whereby
villagers that received solar panels were also given solar cookers. During the project, deforestation decreased
by 80% near the villages and the cookers were also made in Pakistan, which generated local economic growth.
The average temperature of the country remains extremely hot most of year which can be a
remarkable breeding ground for solar energy. The success of this idea has been evident
throughout the country, particularly in Baluchistan where solar power generation on both
domestic as well as commercial level has served as cost saving incentive for government as well
as social and economic escalation for the people.
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FREE POWER SET BY POWER GENERATOR
Brand name plays a significant role in the success or failure of any product. Being in accordance
with the product type and company’s mission and vision, it would be marked as “Free Power
Set.” The philosophy behind the brand name reflects the potential customers both corporate and
domestic who are engaged in various problems due to shortfalls of electricity and are being
empowered by POWER GENERATOR to resolve their issues in a socially responsible manner.
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1.1.1 MARKETING MIX
PROMOTION CHANNELS
Promotion being the one of the most essential part of the marketing, deals with the actual selling,
advertising, or publicity of the product; it entails communications with the customers and trying
to convince or persuade them to purchase company’s products and services. This could be done
through various channels including television commercials, magazine ads, direct mailings to
residences or businesses, and billboards.
1. Television Advertisement:
TV channels like GEO, Express, Ary, Dawn would be preferred and the time slots would
include the News Bulletin, at 8:58 & 9:05. And it would be a continuous pattern; 1 st and
2nd week, and then would pulse; once a month. And in the followed by every 1st week of
every month continuously.
2. Newspaper and Magazines:
Regular advertisement will be published in widely circulated newspapers i.e. are Dawn,
The News, Jung etc. However, after the product has sustained in the market, the
advertisement will be relatively lowered.
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Popular Magazines and yellow pages will be used for publishing advertisement in which
the green element and relieve from load shedding will be highlighted.
Social networking websites including face book, twitter and various other websites like
Dawn.com, express tribune etc are important mediums of effective advertisement to the
target markets.
3. Billboards:
Branding will be done on billboard on various locations in the city including II
Chundirghar Road, Balouch Colony Flyover etc.
Currently
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MARKET SEGMENTATION STRATEGY
During the segmentation of our market we divided it into the following segments.
Consumer Markets
Business Markets
Consumer Markets:
For segmentation of our market we examined the market to determine the energy needs of the
people satisfied by wapda, KANNUP, Sui northern and different dams of Pakistan and those as
well where we can exploit the market i.e. those needs which are not yet satisfied by wapda and
other power generation companies. During our market research we found that a large number of
our population residing in rural and remote areas is completely devoid of electricity. those that
are getting electricity are paying electricity bill monthly and are quite frustrated with the fact that
wapda fails to provide them the assurance about electricity. People desire to have a more safe
electricity provision. In storms, thunders and lightning and rains the voltage wires are short
circuited and cause lot of damage to property as well as human life. Secondly they are oriented
toward getting energy at lowest possible cost because the average income per capita is $2600,
which is not sufficient to afford the energy bills and the diesel they have to buy to draw water.
We can make the purchase of solar panels easy for them by providing them panels at lease. As
the people in villages are not all very well off so they can’t afford to buy panels.
From the above research we found that our project has a lot to offer to these groups of people
because the average temperature of Pakistan is sufficient and useful in the implementation of
solar energy at domestic as well as commercial level. As the large percentage of Pakistan is
devoid of electricity so it can prove to be a potential target market. Being an agricultural country
electricity or diesel is needed by Pakistani farmers for running turbines, threshers and harvester’s
etc. The current rate of diesel oil is 106/liter, this is not cost effective.
Business Markets:
During our market research we found that there are a large number of investors eager to invest in
solar panels. As the quality manufacturers of solar panels a large number of local as well as
foreign distributors have shown interest in our business. As they prefer quality products and on
time delivery we have taken a great care in the establishment of our location in the market. This
has minimized the cost of transportation to the buyers.
Even the cities of Pakistan can also be potentially targeted for solar energy implementation.
Especially the hot areas of Pakistan such as Multan, Sibbi, Kohat, Karachi, Lahore, Jacobabad
and Mardan that receive sufficient energy.
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Targeting Strategy
Socially responsible target marketing is responsibly of marketing the company’s product. Various
targeting strategies customized for domestic, commercial, urban and rural population will be
adopted to reach all the potential customers in their respective societies. The USP of the product
will be customization, cost effective and maintenance free green power solution.
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SWOT ANALYSIS
Strengths Weaknesses
PEST ANALYSIS
BCG MATRIX
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Free Power Set is an innovative product introduced by Green solutions and thus it will maintain
its stance in the question mark face. The growing market potential and product need may result
in cash cow in a short term future time.
COMPETITOR ANALYSIS
Our product will be competing mainly with Green Biz Co, First solar and various small solar
products vendors directly as these companies are importing and/or selling solar panels. Power
generation and distribution companies including Wapda and K.E.S.C will be classified as indirect
competitors. From reports we know that Wapda is providing 58%of the total energy being
provided. There is currently load shedding of 700 MW a day because of shortage and poor
transmission capabilities. This means that wapda is not being able to meet the requirements of
electricity of people. So in this matter our product will be competitive with it and will surely
provide electricity more economically. It might prove uneconomical in the short run but it will
run out profitable in the long term. They also incur much less operation and maintenance costs
and have a longer lifetime as compared with other sources of energy which Wapda provides.
CUSTOMER ANALYSIS
There are about 19211738 (www.statpak.gov.pk) house holds in Pakistan and there are 6.80
individuals in each home on the average and the persons per room are 3.13. With a high rate of
growth of population we can expect Pakistan as a big market of solar energy converters. We can
distinguish the population in rural population and urban population.
Rural Population:
The 67.5 % population of Pakistan is living in rural areas. Their major earning factors are
agricultural activities, jobs in cities, jobs in army, small shops in rural areas and etc. Also in
many rural areas of Pakistan the electricity is not available. If it is available in some areas then it
is too expensive to afford by rural area’s population. We can focus on these rural areas. We can
motivate them to buy our products because after buying the solar energy products they will not
have to pay heavy electricity bills. Moreover in many rural areas people have to go to nearly
towns to pay electricity bills if they are given electricity. This is a big problem for rural areas
people. To motivate them our mobile team can go to almost very village and tell the people the
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importance of the solar energy converters they can tell the benefits of using solar energy
converters and we should keep on communicating with them. Remember that people are
interested deeply in that thing which they see working in front of them so we can show them
some equipment working live. I can say here that rural areas of Pakistan are a big market of solar
energy converters.
The Urban Population:
About 32.5% of population of Pakistan is living in urban areas. We can see that in Pakistan there
is a severe summer and winter season. People use Electric heaters in winter and air-conditioners
in summer season to escape from the violence of season. Major population of Pakistan belongs to
middle and lower middle class and electricity is more expensive in Pakistan. People of the urban
areas have to pay electricity, telephone, water bills. Some have to pay their monthly house rents.
Some additional expenses such as High tuition fee of children, constantly increasing inflation
rate, low increase in wages, dependent parents, brother & sisters and parents, health care
expenses, etc. It is very difficult for a middle class person to bear all these expenses at time.
Therefore we can focus on this middle class people to attract our products which can escape
them from high electricity bills. This middle class population can easily be convinced for buying
our products. We just have to tell them that this is the cheapest way of getting electricity.
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FINANCIAL PLAN
Solar Panel:
63 x 100 = 6300
16 x 238= 3808
Approx: 1700
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Costing of 100 Watt Inverter:
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Total Variable Cost:
Description VC/unit Units Total
VC 50341.204 500 25170602
Total Cost:
Description Amount
fixed cost 558800
Variable Cost 25170602
Total Cost 25729402
Break even:
Profit (TR-TC) 4475598
Profit of a month (Profit/6) 745933
Break even (FC/Price - VC)
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Break Even In Rs 55.501255
Sources of Finance:
The sources of financing for the product are the four members of the solar generator group, who
have agreed to invest in the product on an equal share basis.
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REFERENCES
http://solarlighting-s.com/solar-generator/
http://www.pcb007.com/pages/zone.cgi?a=56814
http://www.hebesolar.com/portable-solar-power-generator-systems.html
http://www.tbl.com.pk/the-feasibility-of-renewable-energy-in-pakistan/
http://www.energytribune.com/articles.cfm?aid=864
http://www.rural-electrification.com
http://alternate-power.org/
http://www.clean-energy-ideas.com/articles/disadvantages_of_solar_energy.html
http://www.mobilesolarpower.net/
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TAX EXEMPTION LETTER, GOVERNMENT OF PAKISTAN
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http://www.aedb.org/Downloads/exem.pdf
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