Southwest Wind Power is currently seeking to take the opportunity of tax credits in the USA by creating markets for its products. The company is also wishing to expand its markets to one more country and from the selection, the most favorite would be the United Arab Emirates. With its new strategy to produce small wind turbines that can be effective for home use, it is likely to capture even greater markets both in the USA and in the United Arab Emirates. Its main idea is to overcome the traditional method of large, centralized power stations that have become expensive in providing electricity for home use.
The company’s key investors include Rockport Capital Partners, NGP Energy Technology Partners, and the GE Energy Financial Services and CTTV investments by Chevron. They have contributed to the funding of Southwest Wind Power, while the company was still operating in Flagstaff in Ariz and despite the high amount of spending that it is likely to incur, the company is determined to make a change in the power generating sector. The government policy that is providing a stimulus package of 30% federal tax credits is positively helping Southwest Wind Power to homeowners at low costs. This is one of the factors that will enable the company to be able to target other markets outside America.
This study identifies the most suitable country that Southwest Wind Power would expand its markets in and the factors that would have to be considered in this respect. The most suitable country, in this case, is the United Arab Emirates and since it is a developed and modernized country, the wind turbines business will work effectively.
The United Arab Emirates
The UAE is rich in oil and natural gas and it is one of the most developed countries in Asia and this makes it an effective market for the wind turbines provided by Southwest Wind Power. The UAE’s relations with foreign states through investment, foreign co-operation, and modernization have made it possible for external investors to market their products and the Southwest Wind Power would also be able to venture into the country effectively (Abed, 2001). The wind turbines would be used to produce energy and would complement the oil products, hence making energy available to not only the large commercial enterprises but to the home users as well.
The major factors that make the United Arab Emirates a good market for wind turbines are
Good relations with other countries
According to Abed (2001), the UAE has been able to maintain strong economic and political relations with other countries especially in the Gulf and this has enhanced its investment opportunities for companies outside the country. The country has created close relationships with members of the Gulf Co-operation Council and other Arab countries. The country invests in different countries like Egypt and this has highly promoted its economy. With its desire to enhance its economy and be able to continue investing in other states, the country would most effectively adapt to the wind energy business that Southwest would be establishing.
The largest demography in the country is Indian and with a population of about four million, the majority is foreigners. Nationals form a percentage of approximately 21.9% only with the rest of the residents being nationals of other countries. With the high standards of living and high levels of economic opportunities, the wind energy business is likely to thrive and be a success. With the relatively high population also, the Southwest Power Company can promote its products so that every household acquires the wind turbines and hence increase its revenue. The company may benefit greatly from the fact that some of the expatriates in UAE are from developed nations and hence will most likely adopt wind energy production in their households (Hellyer, 2001).
The majority of the UAE population is urbanized and will take up the strategy of establishing small wind turbines in their homes (Abed, 2001). The urbanized population would be willing to use the new form of energy because it is cleaner than oil energy and it does not require great costs to set up. The population living in small towns located outside the urban centers will also be a good market for wind turbines. People located in these towns would be willing to have their source of energy that is clean and is easily available. Those living in oilfield camps would also like to have substitute energy and since the desert areas in UAE experiences high windy conditions, the wind turbines will be effective and will benefit the people in these areas. This implies that, with the different lifestyles in UAE, wind energy production through small wind turbines would provide a good alternative to all people.
Hellyer (2001) points out that, UAE does not depend highly on natural resources for the provision of revenue but it still exports petroleum and natural gas to other countries. This means that the two sources of energy are not only used for domestic purposes but exports as well. The investment of wind turbines would help the country identify another means of providing energy to the residents and the country may decide to increase its exports in petroleum and natural gas while it makes use of wind energy locally. With the expansion of the manufacturing sector, wind turbines can also be used for commercial purposes besides domestic use.
Justification of the market
According to Hellyer (2001), the United Arab Emirates is one of the most developed countries in the Gulf and this creates a favorable environment for marketing wind turbines. The country mainly production of petroleum and natural oil products and the introduction of wind turbines would mean creating new markets because its use is not popular. The Southwest Power Company must identify those factors that are likely to affect the marketing of the product in this new market.
The psychographic background of the people of UAE is such that they are willing to try a new product in their lifestyle. The fact that wind turbines can effectively be used for domestic purposes makes people have a positive opinion of the product. The people can choose between the different alternatives of the sources of energy with the introduction of wind energy for domestic purposes. This is unlike when the country’s only sources were petroleum and oil and very rarely solar energy. The country had not developed the source of energy that would provide people with domestic energy that is clean and cost-effective.
According to Deighton (2005), culture is another factor that affects the marketing of a product. This includes the people’s beliefs, morals, norms and any other factors that are acquired by people in the society. In the UAE, people believe in enhancing their living standards with technology in the best way possible. Since most of the UAE residents are foreigners, their culture varies but they all focus on improving their living standards and promoting the country’s economy (Abed, 2001). In this aspect, the introduction of wind turbines as a source of energy would be accepted by the majority and this would promote the marketing of the product in the country.
The Southwest Power Company needs also to understand clearly the demographics of the United Arab Emirates before venturing into the market (Deighton, 2005). This means that there is a need to understand the implications of the introduction of wind turbines in the people’s way of living and among the country’s population. UAE has one of the most diverse groups of people in the whole Middle East and this has greatly helped in the development of its economy. With different expatriates, the country can take up new technology and implement it in their ways of life and this will effectively enhance the marketing of wind turbines in the domestic industry. On the other hand, since the majority of the population is the younger and economically productive generation, the country is likely to benefit from the wind turbines and this will help Southwest Power Company to effectively market its product.
According to Abed (2001), the social status of the UAE population is also likely to affect the marketing of wind turbines. The majority of people are urbanized and developed but some live in the outskirts of towns and whose living standards are not high. This group of people may not afford to acquire wind turbines as a source of energy. However, the larger population in the urban areas that have relatively large compounds will more easily adapt to the new source of energy. Hence, even though the company would want to market its product to all parts of the UAE, the markets may be restricted by the people’s social status, among other factors.
Magazine advertisement for an automatic lawn mower
The automatic lawn mower, otherwise known as ‘auto mower’, has been one of the most effective technologies ever seen. The mower is user-friendly, all one needs to do is relax as the auto mower does its work. It comes in attractive shapes and the different sizes give you a choice to select from depending on the size of your lawn and the amount of money that is available. Even with the larger sizes, the auto mowers are relatively affordable and one does not have to incur a lot of expenses.
There has not been a more environmentally friendly lawn mower than the auto mower. The mower does not emit gases because it is purely automatic and therefore does not require petrol or gas to run it. The mower has been made in such a way that all the clippings that are cut are sliced into very small pieces and then spread very neatly across the lawn, while the larger pieces are gathered in the vacuum bag inside the mower. Hence, users do not have to use up their time collecting the clippings as the grass is cut. As the small pieces of grass are spread on the lawn, valuable nutrients get back to the surface, and hence no loss is experienced.
The auto mower is a very fast lawnmower, faster than any other mower that has ever been developed. It saves so much on time and since it is not operated manually, one does not need to spend a lot of his/her time mowing the lawn. The mower also has specialized blades that neatly trim the edge of the lawn, leaving no shreds of grass uncut. The auto mower is one of the safest lawn mowers that one can use. With no gases being emitted and with the blades very well fitted, the mower is one of the best. Those who have already started using it say that mowing has never been easier and more attractive.
There are no tools needed to replace the blades. They are easy to fix and they take a relatively long period before replacement is needed, unlike other lawnmowers. The blades can also be easily adjusted into high-cuts or low-cuts to handle all sizes of grass and to trim grass to the customer’s desired level. The blades are durable and can withstand all weather conditions and they are also suitable for all types of grass and can therefore be used in different parts of the globe. The mower is made in such a way that the sound it produces while mowing is not too loud, unlike the traditional lawn mowers that cause a lot of noise while mowing.
The auto mower can be guarded against theft because it has a user-controlled protection system that uses a user password and has an alarm system as well. The other characteristic feature of the auto mower is that it has a ‘child guard’ that guards t against use by children. Customers, therefore, do not have to worry while trying to look for the most appropriate way of preventing children from having access to the mower. It also has bumpers that can sense any kind of touch and will therefore function even in those lawns that are not well cleared. The mower also has an automatic warning alert buzzer that produces sound to warn people to move away from the lawn being mowed and this is one of the effective ways of ensuring accidents are not caused.
With these features, the auto mower is the best and the most technologically advanced mower that is effectively creating a change in lawn mowing. Those who have tried it have not looked back or even regretted and those who have not, need therefore to give it a try.
The effectiveness of the advertisement in generating awareness and interest to consumers
The advertisement will be an effective way of encouraging more people to develop an interest in the automatic lawnmower. The advertisement has tried to understand the decision of consumers to buy any product and by giving all the relevant information regarding the lawnmower, the consumer will be able to make an appropriate and conclusive decision. This is going to promote the marketing of the mower because, as few consumers go for the product and find it effective, just like it had been pointed out in the advertisement, they will encourage other people to buy it and try it in their homes.
The advertisement has tried to understand the individual needs of people and their behavioral characteristics so that the wants of as large several consumers as possible are fulfilled. The automatic lawn mower has several features that make it appropriate to be used by people from different regions mainly in the developed nations. The advert understands that the customer is the user, the payer and the purchaser; hence the features that make the mower the best to be used are brought out together with its cost-effectiveness (Laermer, 2007).
The following consumer behavior concepts have been taken into consideration in promoting the marketing of the automatic lawnmower:
- Marketing stimuli concepts: These are focused on helping the consumer know the product well and also assist the sellers to be able to promote their sales (Loudon, 1988). The marketing stimuli concept takes into consideration concepts like the nature of the product, the price, the place where the product can easily be located and best be used, and the promotional factors that make the product better than the rest.
- Environmental stimuli concepts: According to Loudon (1988), these take into consideration the economic impact of the product, the technology used and its relevance to the users, the political factors as well as the cultural effects of the product. The advertisement on the automatic lawnmower has tried to bring out the environmental stimuli that will encourage people to buy the product.
- Characteristics of buyers: The advertisement has a target market which it ought to use as a guide to helping the seller understand the characteristics of the expected buyer. These characteristics include their lifestyle, attitude, perception of the product and personality. The seller needs to understand those factors that motivate buyers to purchase a particular product (Hawkins, 2007) and in this aspect, the advertisement on the automatic lawnmower has tried to incorporate these characteristics in describing the good features of Auto mower. This will help attract a large number of people to the targeted market.
- Decision-making process: In the concept of consumer behavior, there is the decision-making process that every consumer undertakes to be able to come up with the best choice of product to buy (Hawkins, 2007). While marketing a product, the seller must ensure that the decision made by the buyer will promote the product and not make it lose its market. Thus, according to Hawkins (2007), understanding the decision-making of the buyers will help develop their interest in the product. All the seller needs to do is to provide sufficient information and to allow the buyers to carry out an alternative evaluation so that they may make a proper choice and they may encourage other people to go for the product. The advertisement has provided enough information regarding the product and has therefore created sufficient awareness. It is upon the buyers now to make their final decision whether to buy the product or not. With all the benefits of the automatic lawn mower having been brought out in the advertisement, the consumers are likely to choose to buy the product.
The advertisement is best placed in the lifestyle type of magazine because the automatic lawnmower affects the people’s lifestyle. More people will tend to focus their attention on that news that affects their lifestyle and since the lawnmower is aiming at improving people’s way of living, the advertisement will capture the interest of many when it is in the lifestyle magazine.
In a conclusion, it can be argued that marketing is an important concept in both new and already existing products. Sellers and producers must ensure they get the most effective market for their products so that they may sell to as large several people as possible. Factors that should be taken into consideration while marketing products include cultural, psychological, political, economic and environmental factors, and these are most important especially when producers or sellers are targeting new markets. Consumer behavior principles and concepts must also be put into great consideration so that the market structure may be identified and the selling of the product may be promoted.
Abed, I and Hellyer, P (2001). United Arab Emirates, a New Perspective: Trident Press Ltd.
Deighton, J. (2005). Journal of Consumer Research.
Hawkins, D, David, L and Roger E. (2007) Consumer Behavior: Building Marketing Strategy: Irwin/McGraw-Hill, New York.
Laermer, R and Simmons, M. (2007). Punk Marketing: Harper Collins, New York: In Journal of Consumer Marketing 24 (7), 2007.
Loudon, D. (1988). Consumer Behavior: Concepts and Applications: McGraw Hill, London.