Final Marketing Plan Project - Fall 2018

Anni Garvy, Brooke Holsinger, Kate Dinges, Sary Martinez, Catherine Cole
December 11, 2018
Executive Summary

Environmental pollution and the concern of sustainability are huge problems within our world
today. Thus, the solar panel industry is vastly becoming popular with more and more companies
wanting to rely on renewable energy as their main source of energy. First Solar Incorporation is a
solar panel manufacturer who provides utility-scale solar panel power plants and supports
services such as finance, maintenance, construction, and recycling (“Corporate Responsibility”,
n.d.). First Solar uses a marketing strategy that emphasizes brand awareness. The internal
environment of First Solar is one that promotes an inclusive company culture which in turn
promotes innovation and new ideas for products. Although, First Solar’s external environment is
filled with competition located domestically and internationally. First Solar’s main competitors
within the United States include SunPower and main competition abroad are with companies
located in Asia. First Solar’s strengths are able to overcome their competitors within the market,
because in the United States First Solar holds 19.3 percent of the entire marketing share (“Solar
Panel Manufacturing”, 2018). They also have a competitive advantage due to the material they
make their solar panels out of. With any company, First Solar does have its weaknesses.
Although, with natural gas prices rising there is an opportunity for First Solar to expand their
products and offer new solutions to sustainability. Thus, this paper seeks to understand the
marketing strategies for how First Solar can introduce a new product within their market.
Outlined below we introduce the target market for our new product, the product analysis
strategies in which the product will be adapted from. We also analyze the pricing strategies in
which we believe the new product should be priced at while focusing on customer satisfaction as
a main goal. Another important topic is the distribution strategy in which First Solar will
distribute the new product to its customers. The promotion strategies will ultimately increase
awareness around the company and create knowledge about the new product available.
Although, the implementation of the action plan, timeline, and budget is necessary for the new
product to be successful within the market.

Company Intro

First Solar Incorporation is an American solar panel manufacturer located in Tempe, Arizona.
Their mission statement states, “our mission is to create enduring value by enabling a world
powered by clean, affordable solar electricity.” (“Corporate Responsibility”, n.d.). With their
technology, they are ultimately able to displace 89-98% of greenhouse gas emissions when
energy is replaced by renewable energy (“Corporate Responsibility”, n.d.). First Solar offers
solar panels that are made out of thin film using cadmium telluride as the material, which is
much more inexpensive than the material competitors use (“Corporate Responsibility”, n.d.).
This differs from existing competitors who mainly produce solar panels made out of silicon
(“Corporate Responsibility”, n.d.). Their products include their technology, series 4 solar panels,
and series 6 solar panels (“Our Technology”, n.d.). Although First Solar also has additional
services they offer to customers, such as, installation, construction, financing, and maintenance
(“Our Technology”, n.d.). Increasingly, other companies, domestically and internationally, are
constantly proposing as a threat to First Solar. Since the CEO of First Solar, Mark Widmar,
emphasizes the main strategy of the company is to “see the business and the industry from the
customers” (Wesoff, 2017). It would ultimately be beneficial if First Solar created a personal
solar panel product for individual customers. The new product that is suggested is a cell phone
portable charging device called Series 6 – PCD (portable charging device) that would be
marketed as “environmentally friendly charging on-the-go.”

Situation Analysis
Internal Environment
First Solar has a unique company culture which fosters growth and cooperation. CEO Mark
Widmar stated, “First Solar welcomes and strongly supports a work environment inclusive of all.
Ours is a corporate culture of inclusion, and we are stronger for the richness of our geographic,
cultural, ethnic, social and gender diversity. In a world that demands agility and innovation, this
diversity is an asset in dealing with the complexity of our markets. It is, in fact, vital to our
long-term success” (“Careers”, 2018). This inclusive culture is beneficial to the success of the
company as collaboration between different types of people promotes productivity and
innovation within the industry, thus allowing First Solar to develop new ideas for sustainable
products within the solar industry. The company continues to grow and in 2017 alone they hired
2,270 plus employees globally (“Careers”, 2018). First solar continues to expand the company,
while maintaining their strong company culture.

At First Solar, they use a marketing strategy that emphasizes promoting brand awareness to
downstream customers. Due to First Solar being in the solar panel production market, they must
focus their marketing efforts on getting their products in the hands of commercial properties
along with in individuals’ homes. According to IBISWorld, marketing costs are estimated to
consume 0.1% of revenue (“Solar Panel Manufacturing”, 2018). First Solar does not invest a lot
of their revenue into marketing efforts as they do not implement a growth-at-all-cost strategy.
Instead, they focus on customers and delivering profits (Wesoff, 2017). As a result of this
approach, First Solar has 2.5 billion in cash and no corporate level debt (Wesoff, 2017) .

First Solar offers “solar module manufacturing; solar power system design and installation; and
power plant project development, engineering, construction, financing and operations and
maintenance” (“Solar Panel Manufacturing”, 2018). By providing services in addition to their
solar panels, First Solar creates a strong value proposition. Most solar panel manufacturers just
produce the panels. Additional services for maintenance and options to finance purchases are
appealing resources to consumers and thus helps First Solar’s business.

External Environment
First Solar has both domestic and international competitors that influence their decision making.
Within the United States, SunPower is a main competitor. SunPower brings in $1.9 billion of
revenue and employs 7,300 people world wide (“Solar Panel Manufacturing”, 2018). Although
SunPower generates roughly one billion dollars less in revenue than First Solar, they are one of a
few large American solar companies, thus making them legitimate competition. In 2018,
SunPower is expected to introduce manufacturing capacity in the United States (“Solar Panel
Manufacturing”, 2018). This strategic business move will likely give SunPower operational
advantages within the industry, thus increasing their influence and competitive advantage.

Economically this is a good time for the solar panel manufacturing business within the United
States. President Trump implemented tariffs on the Chinese markets to increase the cost of
importing goods into the United States. China produces solar panels at lower costs than the
United States. In implementing these tarifs, Trump is bringing manufacturing operations back to
the United States. As a result, revenue within the industry is expected to rise 6.8% in 2018
(“Solar Panel Manufacturing”, 2018). With less Chinese imports, U.S. companies like First Solar
experience less international competition and thus gain more control over their prices. In addition
to increasing tariffs, the U.S. government incentivizes individuals and companies to purchase
solar panels through grants and subsidies through Solar Investment Tax Credit (“Solar Panel
Manufacturing”, 2018). These subsidies are mutually beneficial as they help customers
financially for making an environmentally friendly choice and they bring solar companies more
business.

In the solar industry, the largest market segment is commercial properties, including office
buildings, shops, and malls. In 2009, the American Recovery and Reinvestment Act
implemented the 1603 Treasury Program which gives commercial customers a direct grant
payment instead of a tax credit (“Solar Panel Manufacturing”, 2018). This serves as a large
incentive for commercial properties to invest in solar panels, and thus, this market segment is
expected to continue to increase. Additionally, the residential segment is strong within the U.S.
solar panel manufacturing industry. In 2018, IBISWorld “expects residential customers to
generate 42.8% of industry revenue” (“Solar Panel Manufacturing”, 2018). Equipping homes
with solar panels is becoming increasingly more popular as green initiatives are on the rise.
Ultimately, the market segments in the solar panel industry are strong, making it an optimal time
in the business cycle for First Solar.

SWOT Analysis
Strengths
First Solar has a large advantage within the United States solar power manufacturing industry as
it holds 19.3 percent of the entire market share (“Solar Panel Manufacturing”, 2018).
Additionally, no other competitor is expected to make up more than five percent of the industry
(“Solar Panel Manufacturing”, 2018). Holding majority control of the industry is a crucial
strength for the company. With increasingly high barriers to entry and limited competition within
the U.S. market, First Solar has a real advantage. The company is able to focus on internal
growth strategies and how to best target their consumer markets as they have less to worry about
from competing companies.

In 2017, First Solar generated $2.9 billion in global revenue (“Solar Panel Manufacturing”,
2018). The company was able to make such significant profits as they manufacture solar panels
using thin-film technology which is significantly less expensive than traditional silicon cells
(“Solar Panel Manufacturing”, 2018). Using less expensive materials is a strength for the
company as they allocate remaining financial resources towards manufacturing process
improvements. First Solar uses a fully integrated manufacturing process which has provided
them with the highest efficiency rates in the industry (“Solar Panel Manufacturing”, 2018). This
strategy creates a relatively low-cost, streamlined process that creates profit maximization and a
significant competitive advantage over other domestic solar panel companies.

In addition to their successful manufacturing process, First Solar addresses issues of “climate
change, energy security, water scarcity, and the unsustainable growing consumption of natural
resources” (“Careers”, 2018). The emphasis on the positive environmental impacts of the
company is a strength that attracts individuals and companies looking to conserve energy and
make a social impact. After attracting consumers by addressing the benefits of their products,
First Solar uses a vertical integration strategy in which they offer project development and
engineering design for their customers (“Solar Panel Manufacturing”, 2018). This approach is a
significant strength of the company as it works to improve and simplify the consumer
experience. First solar provides all the necessary resources to attract consumers which ultimately
drives their business and allows them to continue the growth of their market share.

Weaknesses
Although First Solar holds the largest market share in the U.S. solar power manufacturing
industry, the company does have some substantial weaknesses. It is projected that the company’s
revenue will fall because the price of silicon is decreasing and thus demand for silicon cell solar
panels is on the rise (“Solar Panel Manufacturing”, 2018). This is a weakness for First Solar as
they primarily produce thin-film solar panels which and thus their products are not decreasing in
price. Consumers are price conscious and if other companies’ products are less expensive, they
will likely opt for an alternative to First Solar.

In addition to financial problems with their materials, in 2018 First Solar is expected to
experience a $63.1 million operating loss (“Solar Panel Manufacturing”, 2018). This loss
combined with the decreasing cost of silicon will have negative implications on the financial
stability of First Solar. In order to develop new products and manufacturing strategies, First Solar
must sustain economic growth, not decay. Despite their position in the market, this is a
significant weakness that if continued could have serious implications detrimental to their
success.

Table retrieved from (“Solar Panel Manufacturing”, 2018).

Opportunities
There are many opportunities in the market for First Solar to expand its reach. Two U.S
competitors within the industry, Suniva and SolarWorld AG declared bankruptcy as a result of
Chinese companies saturating the market with less expensive solar panels (“Solar Panel
Manufacturing”, 2018). There are a relatively small number of solar panel companies located in
the United States, so the bankruptcy of two big players in the industry provides an opportunity
for First Solar to expand and gain more control of the market. Additionally, the financial failure
of Suniva and SolarWorld highlights the reality of Chinese companies infiltrating the market.
With this knowledge, First Solar has the opportunity and to evaluate and change its prices and
strategy if necessary so they do not face the same implications.

First Solar is dedicated to environmental change and there is great opportunity for them to make
strides with this objective. Natural gas prices are expected to rise at an annual rate of 3.5%
(“Solar Panel Manufacturing”, 2018). Not only is gas usage bad for the environment, but because
it is a limited resource, prices are on the rise. Gas is an elastic good; there will be a price at
which customers will stop using it and seek an alternative. First Solar has the ability to capitalize
on this trend of increasing gas prices and attract new customers with less expensive,
environmentally friendly solar panels. This inverse relationship between the natural gas and solar
industry will continue to provide First Solar with opportunities to ensure the success of the
company.

President Trump imposed 30% tariffs on China which have decreased Chinese imports,
particularly in the solar industry (“Solar Panel Manufacturing”, 2018). The Asian market for
solar panels is extremely strong and poses a treat on many American companies. So, the
reduction of Chinese imports is a crucial opportunity for First Solar to expand their consumer
base within the United States. With less foreign competition, First Solar will face less pressure to
lower their prices to stay competitive and can thus improve their financials.

Threats
First Solar faces threats both domestically and internationally. Although they have the strongest
market share percentage in the U.S. market for solar panel manufacturing, “SolarWorld AG
recently sold its SolarWorld Americas Inc. segment to SunPower Corporation, which previously
did not maintain domestic manufacturing capacity” (“Solar Panel Manufacturing”, 2018).
SunPower Corporation's acquisition poses a large threat to First Solar as they now have a
presence in the U.S. industry. Any new company that arises in the United States has the ability to
increase its reach and compete with First Solar. So, First Solar must take this development
seriously and work to ensure they maintain competitiveness. Additionally, within the U.S., the
government provides tax credits for individuals and companies that use solar panels as an energy
source. Unitil 2019, there is a credit equal to 30% of solar panel costs. However, starting in 2022,
that credit will decrease to 10% for commercial use (“Solar Panel Manufacturing”, 2018). Solar
panels and their installation are expensive, so the government credit is a large incentive for many
consumers to switch to solar energy. A 20% decrease in credit is a massive cut that will certainly
pose a threat to First Solar’s sales. Many consumers who could justify purchasing solar panels
with the 30% credit will likely be lost once the cut is enforced. This threat will make it difficult
for First Solar to acquire new customers and will likely hurt their sales.

Asia dominates the solar panel industry, which naturally poses a threat to First Solar as an
American company. Solar panel companies abroad have lower per-unit manufacturing costs and
thus can sell their products at a lower cost. Within the United States, imports are mostly coming
from Malaysia, Korea and Vietnam. These imports “are more affordable than US-produced solar
panels and typically dictate solar panel prices in the domestic market” (“Solar Panel
Manufacturing”, 2018). U.S. companies like First Solar have little control on price setting for
solar panels within the United States which is a threat to their financial stability. The cost of
production is naturally higher in the United States than in Asian countries. So, First Solar incurs
higher manufacturing prices and then is forced to sell their products at lower prices in order to
stay competitive within the market. When Aisan companies infiltrate the U.S. market with
cheaper products, the viability of First Solar is threatened.

Objectives
First Solar’s CEO, Mark Widmar, emphasizes that the main strategy of the company is to “see
the business and the industry from the customer’s eyes”(Wesoff, 2017). One of the first steps in
the marketing objectives is to create a promotional strategy that will reach other businesses
which will buy the final products for consumers to access them. This would be successful when
introducing the product Series 6- PCD. Additionally, by doing this First Solar is continuing the
Business-to-Business (B2B) approach. As stated on the situation analysis, First Solar uses a
marketing strategy that emphasizes promoting brand awareness to downstream customers. First
Solar does little investing on marketing techniques for mass consumers, rather they use a
growth-at-all-cost strategy. First Solar focuses on customers and delivering profits (Wesoff,
2017).

Given that First Solar offers a wide range of products ranging from solar power system design
and installation, power plant project development, engineering, construction, financing to
operations and maintenance (“Solar Panel Manufacturing”, 2018), a successful marketing
objective would be to retain current customers, other businesses, and introduce a new product,
Series 6- PCD, to those with whom the brand has a strong presence. This objective aligned with
First Solar’s focus on building a strong clientele rather than investing a budget on marketing
strategies for new customers on the mass level.

Although First Solar is very successful in local markets, the company should focus on expanding
to new global markets as a marketing objective by introducing current products including Series
6- PCD which offers a fresh competitive advantage. There is a growth in the demand for
electricity where prices are high but a higher solar radiation could be the possible solution
(Alster, 2013). This also presents challenges such as global competitors on the mass scale. In
contrast, focusing on expanding to global markets gives First Solar a competitive advantage. In
the long term, a new competitive advantage with a focus on new technology must be developed.

Marketing Strategies
- ​Target Market (Customer Analysis)-

First Solar fits into the solar energy market. This market is growing as the ‘environmentally
friendly’ movement is growing globally (allied). This growth is driven by environmental
pollution and governmental incentives and tax rebates to solar panel installation (allied). The
market is driven by strong competition between solar panel manufacturers. These competitors all
try to achieve being the lowest cost advantage, as price is the major buying influence of solar
panel consumers. Restraints on the market include the fluctuating prices of materials to make the
solar technologies including silver and polysilicon and climatic factors that limit market growth
in certain regions (i.e. snowfall and rainfall). Competitors in the market are constantly making
attempts at new technologies in order to create a more cost effective product (allied). First Solar
created a solar panel using cadmium telluride instead of polysilicon, which allowed them to
create a comparative advantage with this new technology and a lower cost advantage (allster).

Within this market, there are three segments of consumers. The segments are residential,
commercial, and utility. These segments are based off of the type of industry the consumers fit
into and if the consumer is an individual or a business (allied). Within these segments, First Solar
selects utility industry businesses as their target segment. First Solar is a B2B company. They
sell mainly to utility based companies, including those in the manufacturing industry, electric
and wiring equipment industry, renewable energy services & equipment industry, oil refineries
industry, communications equipment industry, semiconductors industry, consumer electronics
industry, electric utilities industry, and the natural gas utilities industry (csi). Within these
industries, they sell mainly to companies in the Western US (alster). These business customers
have a buying situation of modified rebuy. This means that business consumers shop around for
suppliers with better prices, quality, or delivery times. This could also mean that have new needs
for a product it already buys. This is the case for consumers of First Solar because there are so
many competitors to choose from that a business consumer might not rebuy from the same
supplier each time.

In terms of positioning First Solar as a supplier for a business consumer, their main strategy is
emphasizing their competitive advantage. Competitors use polysilicon solar panels, whereas First
Solar uses cadmium telluride solar panels. This allows First Solar to have lower prices. First
Solar’s positioning statement is developing solar panels for utilities based companies at lower
prices due to cadmium telluride technology. For the new product that we suggest they should
produce, the positioning statement changes slightly, with a more narrowed customer segment.
This other positioning statement is for First Solar to develop portable charging devices for the
consumer electronics industry using cadmium telluride technology for environmentally friendly
charging on-the-go.

When business consumers buy from First Solar, they go through buying strategy steps. First, the
business consumers recognize a problem or a need for a new product. In this case, the business
would recognize a need for solar panels/ solar charging devices and form a buying center to
purchase these solar technologies. Next, the business would search for information. This includes
developing product specifications (quality, size, weight, and other details required from a
product) and identifying potential suppliers that have products that fit these needs. In this search,
First Solar would become a potential supplier. Then the business would evaluate alternatives and
compare proposals from each supplier. In the solar energy market, there are many competitors so
this evaluation would most likely be based on price. Next the business would select a product
and supplier. In this case, this would be an example of single sourcing (buying a particular
product from only one supplier). Lastly, the business would evaluate the supplier and product
post purchase. The business would consider qualities like installation, delivery, and the service of
the supplier.

Products/Service Analysis Strategies

First Solar’s newest and most innovative product is their Series 6. This is a new adaptation of a
solar panel, and the first of its kind. First Solar has created this product to cut down on panel
installation time, increase efficiency and safety in inclement weather, and make the panel overall
more attractive (Investors, 2018). These new implementations give the company a competitive
advantage by decreasing time, energy and money customers will have to spend on installing, and
keeping the panels up-to-date. Additionally, First Solar uses cadmium telluride, a material in
their panels, that allows for the price of their products to be less than their competitors
(“Corporate Responsibility,” n.d.).

First Solar’s ability to go above and beyond the competition has not gone unnoticed by the
consumers. They have been voted top operations and service solar providers in the world for four
year (First Solar, 2017). They are known for their impeccable safety precautions within their
products and throughout their workforce (First Solar, 2017). The combination of safety and their
ability to keep costs low, add to the competitive advantage First Solar has over their competitions
and keeps customers loyal.

Pricing Strategies
First Solar has many costs they must consider for a breakeven analysis. Being a technology
company, a large portion of the income goes back toward research. The other costs go towards
operating costs, such as labor, materials, property, utilities ,and equipment. First Solar is an
international company with main factories in Malaysia, Vietnam, and Ohio. A new Ohio factory
is to be opened in the next year to produce Series 6 and that is where the majority of costs came
from in the previous year (Investors, 2018). They have a lower cost of materials compared to
competitors because of their choice to use cadmium telluride instead of silicon (“Corporate
Responsibility,” n.d.).

First Solar already holds the majority of the market share so increasing the market share is not a
present objective (Investors, 2018). As the growing need for green energy increases, First solar
wants to capitalize on customer satisfaction objectives, meaning, obtaining profits as a result of
customer satisfaction is the primary pricing objective. The Series 6 solar line keeps customers
satisfied by keeping prices at an all-time-low (Investors, 2018). Another way they are satisfying
customers is by creating a product that allows consumers to use solar power in an everyday
environment. Normal panels are expensive and not attainable to everyone, this device is leading
to a larger number of people able to use green energy.
Demand for this product stems from the current usage of solar panels within utility
companies. Most solar products that are currently offered are unattainable for middle-class
Americans due to price. The customer satisfaction pricing objective leads the utility companies
to demand the Series 6-PCD so they can adapt the PCD to fulfill their customers growing wants
in the green energy sector.
The first pricing strategy appropriate for First Solar is cost-plus pricing. First Solar strives
to produce the lowest priced products without disrupting their quality. Cost-plus pricing keeps a
price steady and keeps customers from constantly changing prices due to demand. Cadmium
telluride is a readily available product, so declining available resources will not affect the cost of
production.
The price change tactic to be used with Series 6-PCD is quantity discounts. Being able to
charge reduced prices for purchases of larger quantities makes it easier to push more inventory.
With the large profit margin the PCD creates, First Solar is able to sell under the indicated sale
price. Selling in bulk allows the company to cut down on the cost of holding inventory as well.

- ​Place/Distribution Strategies-​
First solar is a manufacturer within a distribution channel. For their solar panels, this
channel includes First Solar as the manufacturer and one of their business consumers and the end
customer. Within this channel, there are no intermediaries. For the new product that we are
suggesting for First Solar, the portable charging device, the distribution channel would be
slightly different. First solar would create the solar technology needed for the charging devices,
which is then sold to a consumer electronics utilities company. This company would be First
Solar’s end consumer. From there, the consumer electronics utilities company would produce the
rest of the device to then sell to a retailer.

​Promotion Strategies-
The promotion mix for First Solar includes advertising, public relations, and personal
selling. Because First Solar sells to businesses, the promotion mix is slightly different. There is a
lot of direct contact between First Solar and business customers, due to no channel
intermediaries in the distribution channel. Advertising includes factsheets, datasheets, and
brochures about solar products offered to businesses. First Solar’s website also includes
advertising in the form of informational videos and product information geared towards business
consumers. Public relations for First Solar includes the release of financial information and new
technologies with customers and shareholders. Personal selling occurs within First Solar since
there is direct communication in the sale of solar panels to their consumers.
First Solar’s main promotional objectives are informing the market. They need to provide
knowledge of the benefits of their solar products over other competitors. They do this by using
their website, brochures, informative videos, and personal selling. There is a focus on advertising
with this promotional objective, which is seen by the datasheets, brochures, and videos on First
Solar’s website.
First Solar’s promotional strategies align with their stage in the hierarchy of effects. They
focus on advertising and are attempting to inform the market. We believe this is an ideal strategy
for First Solar, as they are trying to get as many customers over competitors. This will be
accomplished by advertising their competitive advantage of offering new technologies at lower
prices. One thing that First Solar could add to their promotion mix, is attending trade shows. This
would allow them to showcase their new technologies in person to business consumers.

Implementation

Action Plan
The new product we are suggesting First Solar to help manufacture is a cell phone
portable charging device called Series 6 – PCD. PCD would stand for portable charging device.
Series 6 is First Solar’s new technology using cadmium telluride instead of polysilicon. This
technology also allows for easier installation, better temperature control (cold and hot), and
stronger glass panels (website). They would manufacture smaller solar panels to be used in this
portable device using this same technology to allow for a low cost advantage. This device would
be marketed with the approach of “environmentally friendly charging on-the-go”.
The production of these smaller panels will be at First Solar’s new Series 6 production
facilities located in Ohio. These production facilities solely produce Series 6 panels, and these
new panels designed for the PCD would be another product to manufacture here.
 This product would be made using a distribution channel with First Solar as the
manufacturer. First solar would supply the small Series 6 solar panels. They would sell these
panels to a consumer electronics utilities company in order to produce the final product using
First Solar’s solar panels. From here, the consumer electronics utilities company would sell the
devices to electronic retailers (Best Buy, Walmart, Target, etc.).
With the promotion of this new product, First Solar is still targeting utilities business
consumers. This means that the promotions that they need to sell these smaller solar panels are
trade promotions that focus on members of the overall supply chain. For this type of product,
First Solar could use case allowances in order to sell large quantities of these panels for the PCD.
A case allowance would provide a discount for the consumer electronics utilities company that
buys the PCD solar panels if they buy larger quantities of the panels. Other promotional
strategies would be to create awareness of this new product offering that involves First Solar. For
First Solar this would most likely take the form of repetitive advertising. This could be done on
their website and also their channel intermediaries. For this product it would be important for
First Solar to use a push strategy rather than a pull strategy. This would entail having channel
intermediaries sell this product, including the consumer electronics utilities company and the
final retailers.

Responsibility
In order to make this product, the initial design would fall to the technology research
team (R&D), under the Chief Technology Officer, Raffi Garabedian (Leadership). From there, it
would be manufactured at the new Series 6 Ohio production facilities most likely under Chief
Operations Officer, Philip Tymen deJong (Leadership). Then the product would be advertised to
be sold to business consumers. These advertisements would be created and produced by the
advertising team. The social media manager would also run advertisements on the First Solar
website. The sales of the product would be handled by the sales team, who will utilize personal
selling to sell to business consumers. The case allowances offering will also be handled by the
sales team.

Timeline
Research of new technology and materials began at the end Q3 of 2018 and will continue
until the end of Q2 of 2019. During this time, decisions will be made on finalizing materials,
production technique, marketing objective and prices.
Once research is completed, the First Solar sales team will begin connecting with long
term consumers in the consumer electronic industry to sell their product for further PCD
production. Channel intermediaries will need to be decided before production, so that the final
PCD production is established. Potential business customers will be narrowed down using
measures of financial stability, and market saturation.
 Production of the Series 6-PCD is unable to begin until the Series 6 factory is finished by
the beginning of the 4th quarter of 2019. Until then, First Solar’s neighboring factory has the
space to hold raw materials (Investors, 2018). Beginning in Q3 of 2019, PCD materials will be
purchased, covering the need for only year one’s production (to decrease the amount of
inventory build-up), and stored in the neighboring factory.
By having the materials readily available in the neighboring factory, production is able to
begin Q4 of 2019, immediately when the factory opens. Production of one Series 6 Solar Panel
takes 4 days (Investors, 2018). As the PCD panels are smaller, the time of production is nearly
cut in half. Expecting a production time of 2 days, First Solar expects to produce around 1,000
units per day.
After the first year of production, a financial analysis will be done on success of the new
product. If actual sales are up to the projected levels, production will continue. If not, First Solar
will decide if removing Series 6-PCD from production is the best and least costly option.
Once the production of Series 6-PCD is complete, the promotional strategies for this
product will begin. Advertisements such as informational videos, brochures, and datasheets will
be available on the First Solar website. First Star will also start establishing a push strategy to get
the Series 6-PCD panels to end consumers. During this stage of the hierarchy of effects, First
Star and its channel intermediaries need to create awareness for this new product, using
repetitive advertising

Budget
​ First Solar’s quarterly financial statement allows the public to see their net income and
costs. This past quarter their cost of goods sold was close to $550M with their net sales being
$680M. This makes gross profit $130M and when taking out the rest of operating and
non-operating costs, net income is $58M​ (​ Investors, 2018). Of the $58M, $47M is allocated to
the new project.
First Solar is in the process of finishing their new production factory for Series 6 Solar
Panels, totaling around $400M (Investors, 2018). This cost is accrued in 2017’s income
statement, and the factory has the infrastructure to produce Series 6-PCD, so no additional
property needs to be obtained. The costs acquired in the addition of the new product are
equipment, research, advertisement, and cost of materials and labor.
$5M of this quarter’s allocated resources will go towards the non-operating cost:
technology and materials research. Since First Solar’s competitive advantage includes the lowest
prices in the industry, they must keep up with new advances in solar technology within the new
PCD. Another $2M is put in the budget to cover advertising costs, including but not limited to,
informational videos, brochures, and factsheets. This cost would also cover any trade
promotions, such as case allowances for channel intermediaries.
The remaining $40M of the previous quarter’s net income covers the entire cost of the
production (equipment, labor, materials) of Series 6- PCD for 5 years of production. Utilities are
not included because power and water expenses are already included in production costs of the
Series 6 Solar Panel. $15M is allocated for equipment and $25M is allocated for the variable
costs. The Series 6 factory has the infrastructure to produce 250,000 units per year making the
unit cost (excluding inflation) $32.00. The break-even sales are $21,126,760.56 with a selling
price as $70.00.
If all inventory is sold, First Solar is expecting to profit $38.00 per unit, equaling
$47,500,000. After subtracting non-operating costs, the company is left with $40,500,000 in net
income over the 5 years.

Measurement and Control

In order to know if our new product is a success, we would implement financial analyses.
These analyses will tell First Solar if the product is financially successful and profitable for First
Solar to continue production. We would also suggest for First Solar to market research involving
feedback from both channel intermediaries and end consumers. This market research would be
focused on the Series 6 technology, including its durability, installation, temperature control, and
charging lifespan. If the feedback was positive the First Solar could continue to use its Series 6
technology. If not, then First Solar might want to design technology specifically for these PCDs,
if the product is profitable.

Conclusion

In conclusion, in order for First Solar to expand and continue its competitive advantage over
other companies, they must introduce a new individualized product that can be used by all
customers. Thus, introducing a new product is necessary. The Series 6 – PCD (portable charging
device) that would be marketed as “environmentally friendly changing on-the-go,” would
introduce to customers a new way of charging their cell phones without having to find a plug for
electricity or using their car battery as they are driving. The organization’s potential for future
success lies in creating an individualized product all customers can use. First Solar does have a
large advantage within the United States solar power manufacturing industry as it holds 19.3
percent of the entire market share, although their domestic and international threats could lead
them to a substantial downfall. Asian companies are often infiltrating the U.S. market with
cheaper products. Also, First Solar relied on their competitive advantage of using a thin-film of
cadmium telluride to produce their solar panels because it is ultimately cheaper than silicon, the
material many other solar panel companies use. Although, since the price of silicon is rapidly
decreasing the demand for silicon cell solar panels will increase. Thus, First Solar may no longer
have a competitive advantage. Introducing this new product within the market will create a
viable way for First Solar to increase their revenue while keeping a customer focused business.
As a result of the population wanting to be eco-friendlier and more sustainable, we expect that by
emphasizing brand awareness and implementing a strong action plan that our product would be
successful within the First Solar market. If this product is a success, the organization has
potential to create more products similar to the Series 6 – PCD, and thus have a lot of success
within the market. First Solar’s potential for future success could rely on creating individualized
products for customers, as a result of the increasing demand for eco-friendly products.

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