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Simple Steps Workshop Appliances January 22 nd, 2015.

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Presentation on theme: "Simple Steps Workshop Appliances January 22 nd, 2015."— Presentation transcript:

1 Simple Steps Workshop Appliances January 22 nd, 2015

2 Retail Appliance Program Development Hosting two workshops on appliances Last Thursday, 1/22 Today, 1/27 Follow up – ranking tool Compile feedback Share retail appliance plan in February Monthly program management meetings 2

3 Why Appliances, Why Now? 3 Utilities requested appliance options Opportunities to benefit consumers Low rebates not meaningful to consumers Proof of concept on a new program model

4 Program Overview 2015 Program Timing Development Jan – May 2015 Launch – June 1, 2015 Includes clothes washers, refrigerators and freezers Similar to lighting & showerhead promotions No rebate forms Utilize RSAT for allocations Monthly invoices/reports Field services Opt in and priced separately 4

5 Types of Retail Implementation 5 Utility Funding Upstream manufacturers Upstream manufacturers Midstream retailers Midstream retailers Downstream direct to customer Downstream direct to customer

6 Retail Implementation Options 6 Option #3 Midstream Retail Incentives Option #2 Upstream Manufacturer Incentives Option #1 Direct Markdowns Option #4 Digital Reward Redemptions

7 Option 1: Direct Markdowns (at purchase) 7 Benefits Familiar to retailers, manufacturers, utilities and consumers Instant consumer markdown Barriers Low impact on end-price for consumer Less valuable to retailers and manufacturers Difficult to execute consistently at retail

8 Option 1: Direct Markdowns Mechanics Funds applied to product markdowns only Dependent on proper execution of product markdowns In-store utility-branded collateral Incentive $ paid to retail and/or manufacturer partners Sales data required Not all major retailers are able to support this 8

9 Option 2: Upstream Manufacturer Incentives 9 Benefits Utility visibility to consumers Opportunity to leverage national/regional promotions Flexibility to use $ for markdowns and/or marketing Comfortable for manufacturers Scalable to participating territories Barriers Markdowns may not be obvious to consumer Funding divided across several manufacturers Limited by retailer stocking decisions Limits accessibility to retailer Utility discomfort with how funds are used

10 Option 2: Upstream Manufacturer Incentives Mechanics Incentives $ paid to manufacturer Funds applied to manufacturer’s product only Limited-duration promotions In-store utility-branded collateral Sales data required 10

11 Option 3: Midstream Retail Incentives Benefits Highest probability for success, most cost effective Utility visibility to consumers Promotional alignment across products and brands Opportunity to leverage national/regional promotions Flexibility to use $ for markdowns and/or marketing Helps influence stocking practices Scalable to participating territories Barriers Coordinating with existing utility programs Utility discomfort with how funds are used 11

12 Option 3: Midstream Retail Incentives Mechanics Incentives directly to retail partners Cooperative advertising with manufacturer Limited-duration promotions In-store utility-branded collateral Sales data required 12

13 Field Services Utility representation in store Assists product sales Promotes special offerings Sales associate training Coordinates large multi-store competitions 13

14 Sharing Store Allocations Utility A (supporting retail promotion) 70% Allocation 14 Utility B (supporting mail in rebate) 30% Allocation Sales

15 Option 4: Digital Rewards 15 Benefits Available where there are limited retailers Online purchases Utility branding opportunities Customer data Barriers Doesn’t capture all sales Customer must complete online redemption Low incentive levels

16 Option 4: Digital Rewards Mechanics Post-purchase online format Customer submits purchase information Approval required Pre-paid Visa card sent to customer 16

17 Recommendations 17 #1: Direct Product Markdowns #2: Upstream Manufacturer Incentive #3: Midstream Retail Incentive #4: Digital Reward Redemptions In-store POPXXX Easy for customerXXX Turnkey for utilityXXX Sales Data RequiredXXXX Captures all salesXXX Online AccessibleXX Customer rewardXXXX Marketing supportXXX Product diversityXX Event engagementXX Associate educationXX

18 Retail Implementation Options 18 Option #3 Midstream Retail Incentives Option #2 Upstream Manufacturer Incentives Option #1 Direct Markdowns Option #4 Digital Reward Redemptions

19 Interested Utilities (as of 1/20/15) Benton County PUD No. 1 Chelan County PUD No. 1 Clallam County PUD Clark PUD Cowlitz County PUD Idaho Power Co. 19 Franklin PUD Mason County PUD No. 3 City of Port Angeles Springfield Utility Board City of Centralia

20 Discussion and Feedback 20 What options do you like? What else do you want the promotion to support? Submit your feedback Ranking tool will be sent to utilities immediately following the workshop Compile feedback Share implementation plan late February

21 Contacts Ryan Crews Associate Manager Heather Gates Senior Program Associate Dave Murphy Program Manager


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