Leva Energy Marketing Plan

Objective

Provide strategic go-to-market recommendations that will build brand equity and enable Leva Energy (LE) to meet its projected revenue and become a profitable organization by year four (4).

The Leva Power Burner

The patented Leva Power Burner attaches to thermal equipment by replacing less efficient and high-emission burners. The product integrates a turbine with a burner and utilizes natural gas to co-generate heat and power. Electricity is generated at a low cost of $0.025 kW/h and is produced with significantly lower NOx and Co2 emissions. Further, it consumes 100% of the waste heat from the turbine, pushing the combined heat and power (CHP) efficiency to 82%. What’s more, an investment in the Leva Power Burner offers an impressive payback in less than 2 years. The Power Burner is backed by the Department of Energy (DOE) and the California Energy Commission (CEC).

Analysis

Customer & Context

LE is targeting three key market sectors: large industrial/commercial, mid to large industrial/commercial, and all commercial. The large industrial/ commercial market boasts revenue potential of $33.6 billion and is comprised of auto manufacturers, defense and security, metals, mining and oil and gas. An additional $58.4 billion represents the mid to large industrial/commercial segment and is made up of agribusiness, food and drink, pharmaceuticals and healthcare, and electronics manufacturers. Finally, the third segment, all commercial, includes hotels, casinos and theme parks and represents $85.8.8 billion in prospective sales. Leva will take a phased approach in targeting each of the aforementioned segments. Years 1-4 will be focused on the large industrial/commercial market. Mid to large industrial/commercial will be the key target in years 5-6, followed by all commercial in years 7+. (Exhibit 1)

To secure sales and its market position, LE must capitalize on their three strongest order winners: price, features and quality. The Power Burner is not only cost effective, but also results in savings of between $70,000 - $210,000 per year, exclusive of applicable tax credits and/or rebates. Typically, boiler fuel accounts for 30% to 50% of total energy budgets in plants with large thermal loads and gas and oil prices have also been on the rise. In comparison, natural gas prices are much lower and more stable. Furthermore, Leva factors in the shrinking budgets many organizations are currently working with and offers customers flexible purchase options. A business can either make the capital expenditure investment and purchase the Power Burner with a 1.8 year payback or opt for a power purchase agreement (PPA) where they sign a 10-year contract for significantly discounted, pay-per-use power. In addition, the Power Burner offers the feature of convenience. Installing and implementing