October, 2007 ABPS Infrastructure Advisory ABPS Infrastructure Private Limited _________________________________________ INTERNATIONAL ENERGY AGENCY IMPLEMENTING AGREEMENT ON TECHNOLOGIES AND PROGRAMMES FOR DEMAND SIDE MANAGEMENT ________________________________________ Branding of Energy Efficiency Concept Note for Type 2 Decision Request to ExCO to discuss issues, give guidance for the process and to decide to initiate the task definition for new Task

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Agenda Introduction to Concept Introduction to Concept Objective Objective Approach Approach Expectations & Results Expectations & Results

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Why Energy Efficiency has not got lifestyle status? Products & Services lacking a strong brand image, fail to attract the consumer’s attraction. Energy Efficiency (EE) products & services falls in this category. Sales pitch for any EE product or service has some variant of ‘Save Money – Save Planet’ cliché. EE has not been able to excite people to create brands which would bring lifestyle tag to energy efficiency, similar to that for organic food. This failure of energy efficiency assumes even more significance when we note that EE has significant positive economic impact.

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Why Branding? ‘Brands’ facilitate recollection of products & services. Branding helps in defining products & services with precision. ’,Brands help create ‘trust ’, which reduces the perception of risk associated with purchase decision. Brands help add an ‘image’ to the product, which help to create an ‘emotional attachment’ with the brand and product represented by the brand. The prime benefit of successful branding is that such brands create a ‘Pull’ for the products or service in the market

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited What Branding of EE may lead to….. Therefore, it is necessary to create strong and successful brands in Energy Efficiency. Successful Branding of EE may lead to………. – –Significant increase visibility and credibility of EE products & services, – –Reverse the fortune of EE industry.

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Primary Motivation The primary motivation behind undertaking ‘Branding Energy Efficiency’ as a task is:   To understand the reason for absence of energy efficiency brands; and   To develop suitable framework for development of strategies for successful branding in energy efficiency

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Likely areas for research Research is needed in the following areas:   Knowledge & attitude of consumers in the developed as well as developing electricity markets   Capability of Energy Efficiency suppliers in the market   Best practices in definition of suppliers of energy efficient products and services   Potential for energy efficiency products and services in other energy consuming sectors such as agricultural, industrial & commercial etc.   Potential for programmatic approach towards energy efficiency   Barriers to branding of energy efficiency.

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Proposed Sub Tasks The task warrants analysis at three level, products & services, consumers and at strategic level for development of solutions. We have proposed following three sub-tasks:   Sub-task I: Energy Efficiency Offerings Analysis   Sub-task II: Energy Efficiency Consumer Analysis   Sub-task III: Strategic Analysis

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Sub-task I: Energy Efficiency Offerings Analysis To ensure in-depth analysis of all three levels, we have proposed comprehensive Energy Efficiency Branding framework. This framework demonstrates two more potential avenues (Programmes & Companies) apart from usual suspects Services & Products. It would be useful to explore these relationships while develop branding strategies & suitable institutional structure.

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Sub-task I: Energy Efficiency Offerings Analysis Different activities to be undertake in this sub task:   Identify aspects amenable to branding   Identify barriers to development of brands for energy efficiency   Identify ‘Best Practices’ in definition of products & services   Identify relationship between the product offering and maturity of the electricity market   Identify products / services suitable for branding   Identify special needs of developing countries.

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Sub-task II: Energy Efficiency Consumer Analysis Consumers survey in all participating countries using sampling techniques for products & services identified in subtask I. Various other activities to be undertaken in this subtask   Identify attitudes and behaviour of the consumers towards various aspects of energy efficiency   Establish preference for range of products & services   Identify socio-cultural issues in selection of products & services   Understand the pre-requisites for successful branding   Develop statistical models for determination of relationship between electricity price and energy efficiency pricing   Identify pre-requisites to ensure that ‘brand’ approach would focus more strongly on people as brand aware, self-conscious consumers.

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Sub-task III: Develop branding strategy Development of framework for branding strategies for products & services selected in subtask II. Various activities to be undertaken under this task:   Synthesize information collected during sub-task I & II.   Understand business enablers for branding in each case   Develop appropriate business strategies   Identify suitable institutional structures   Identify roles and responsibilities of various stake holders   Design framework for coordinated branding to be supported by the Government and industry.

Practical Solutions to Real Life Problems ABPS Infrastructure Private Limited Expectations / Results Develop significant understanding of barriers associated with branding of energy efficiency; Identify appropriate strategies to overcome those barriers; and also; Develop suitable framework for development of strategies for successful branding in energy efficiency.

October, 2007 ABPS Infrastructure Advisory ABPS Infrastructure Private Limited ABPS Infrastructure Advisory 703/704, The Avenue, Opposite The Leela, International Airport Road, Andheri (East), Mumbai Ph: / Fax: ABPS Infrastructure Advisory Practical Solutions to Real Life Problems