Marketing Plan



Marketing Plan

Executive Summary

G7 Inc. plans to launch an eco-friendly Solar Electric System which will facilitate to cut the power shortage in Ghana. The systems are presented in a variety of groups depends on the power output needed and can produce electrical power essential for any residential use.

At present, our objective is to reach market control in Ghana. We will be the first company to go through this territory with this invention and we would control our first mover advantage to increase highest market share before any rival come in.

Our demographic is largely lower middle class, upper middle class and high income group families who lived in individual houses and housing schemes. Access to utility services in Ghana is relatively high by African standards. Access is much more prevalent among the rich, even if a significant minority of lower-income households have access to electricity. Because access to power services in Ghana is so inequitable, subsidized tariffs are highly regressive.

Recent empirical analysis shows that poor households capture far less than their fair share of power and water subsidies in Ghana. In the case of power, poor households capture one-third of the subsidy that should reach them based solely on their share in the overall population. In the case of water, poor households capture one-sixth of the subsidy that should reach them based solely on their share in the overall population. While it is typical for utility subsidies to be regressive in African countries, the distributional performance of Ghana's subsidies is particularly poor .

Situation Analysis

Market summary

The electricity supply state in Ghana is distinguished by chronic outages and fluctuating power. Ghana went through a power supply crisis in 2006-2007, when low rainfall affected the yield of the Akosombo Reservoir. The enterprise survey for 2007 reports 116 days of outages per year, much higher than the 40 day benchmark for the low-income peer group at that time. Similarly, the percentage of firms relying on own generation in Ghana was close to 30 percent, which was substantially higher than the low-income benchmark. Power shortages took a heavy toll on Ghana's economy in 2006, with the lost load valued at around 1.9 percent of GDP, one of the higher levels in Africa.

During the low rainfall period, Ghana was forced to rely extensively on oil-based generation. The price differential between hydropower and oil generation depends on the market price of oil but tends to be large. Hydropower has historically cost the country approximately $0.05 per kilowatt-hour, while the average total cost of oil-based generation has exceeded $0.20 per kilowatt-hour in recent years. As rainfall increased again, Ghana was able to shift back toward hydropower. However, more recently, the very high rates of growth in power demand are rapidly outstripping what the Akosombo Reservoir can supply, and as a result the country must use the expensive oil-fired plant to meet demand. Furthermore, the country remains exposed to future hydrological shocks.

Market Demographics

The identified market has a population of 15m and about 4million households, out of which G7 ...