MARKETING

Marketing



Marketing

Executive Summary

G7 Inc. plans to release an eco-friendly Solar Electric System which will help reduce the power shortage in Ghana. The systems are available in various categories based on the power output required and can generate electrical power required for any residential purpose.

Currently, our goal is to attain market leadership in Ghana. We will be the first company to enter this territory with this product and we would leverage our first mover advantage to gain maximum market share before any competitors enter.

Our demographic is mainly lower middle class, upper middle class and high income group families living individual houses and housing societies. After conducting a survey it was found that there were approximately 1.2 million such households. In our first year of operation we would be targeting only 2.5% of these households as this would be a new concept for the market in Ghana.

The sale price of the systems is in the range of US $1499 and US $24999 including the installation charges. We intend to make a profit of 20% in the first year and the will break even after a sale of approximately 13000 units.

Our promotion strategy includes: radio, print and television

Customer satisfaction is our primary concern; therefore we will be monitoring the installation and product quality and put a process in place to handle customer complaints resolve issues in a speedy manner.

Situation Analysis

Market summary

The electricity supply situation in Ghana is characterized by chronic outages and fluctuating voltage.

Electricity is generated by Volta River Authority from the Akosombo and Kpong Hydro Electric dams and TICO from the Thermal Plant in Aboadze near Takoradi. The distribution is done by Electricity Company of Ghana (ECG) which caters for the Southern sector while Northern Electricity Department (NED) takes care of the Northern sector of the country. Some industries and individuals own generators but this is normally used as a back-up to the supply form ECG/NED. A negligible number of individuals who lived or visited abroad have installed solar panels in their homes.

Market Demographics

The identified market has a population of 15m and about 4million households, out of which G7 Inc is targeting about 300,000.00 households in the first year of operation. The population is growing at 2.6% per annum. However, demand for electricity is forecast to grow at 6% per annum

Market Needs

Today electricity is considered an essential commodity. Everybody needs electricity.

In Ghana electricity is used for

a)Lightening b) Industrial c) Cooking d) Heating

With increased disposable income, the gap between supply and demand has been widening. The target market needs a reliable source of uninterruptible electricity.

Market Growth

Ghana has enjoyed an average 5% GDP growth in the last decade. It is projected to grow by 6-8% over the next decade. Since 1992 it has had a democratically elected government with the president serving a maximum two four-year terms. It has also embraced market-led economic policies and for long has been the darling of the Breton-Woods organization (IMF and World Bank

Market Trends

Only 50% of the population is connected to the National Electric ...