Executive Summary

The purpose of this business report is to provide our client, CleanPeak Energy (Australia),
with a marketing strategy by applying an analysis of the internal factors that influence
consumer behavior in the purchase process of household rooftop solar PV panels.

As people progressively come to understand how important it is to conserve resources and

safeguard the environment, the use of solar panels has dramatically expanded in recent years.
CleanPeak Energy's target market includes people interested in using renewable energy
sources and environmentally conscious Australian homeowners. This segment contains
individuals who prioritize long-term cost savings and are willing to invest in solar energy
systems to reduce dependence on traditional sources of electricity.

Environmental awareness is always at the forefront of consumers' minds in this campaign, as

they strive to reduce their carbon footprint and promote a sustainable strategy. According to
NASA statistics, in less than 200 years, human activity has increased the carbon dioxide
content of the atmosphere by 50%. Therefore, CleanPeak should prioritize highlighting the
environmental benefits of solar panels in its campaign. Additionally, budget considerations
are crucial in the decision-making process for customers. With the use of solar PV panels,
people will be able to lower their electricity costs along with a good warranty, which will
encourage durability, improve the company's reputation, and boost customer trust.

For the program to reach more consumers, CleanPeak Energy should implement an
installment program to allow homeowners to overcome the upfront cost barrier. This
initiative will help reach a wider audience and increase adoption rates. Secondly, investing in
user-friendly websites and engaging social media platforms will enhance the overall customer
experience, enabling potential customers to easily access essential product information and
further research the brand. By combining these strategies, CleanPeak Energy can effectively
market its offerings and attract environmentally conscious consumers.

By taking into account the internal factors that affect consumer behavior in the purchase of
residential rooftop solar PV panels, CleanPeak Energy can improve its marketing strategies
and efficiently target potential customers.

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Table of Contents

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 1. Introduction
1.1. Purpose of the Report
CleanPeak Energy is a renewable energy company seeking to understand the internal factors
influencing consumer behavior in the purchase of household rooftop solar PV panels. This
report serves as their marketing consultant and aims to offer perceptions and suggestions to
guide CleanPeak Energy's marketing plans in the Australian market.

1.2. Introduction of the Industry

The renewable energy industry has seen significant growth and transformation in recent
years. According to Australian Government statistics (2021), one-third of all electricity in
Australia comes from renewable energy sources, including solar (12%), wind (10%), and
hydro (6%). The proportion of renewable energy in total electricity production in 2021 was
the highest in Australia's history, demonstrating environmental awareness as well as its
positive influence on people's consciousness.
As more and more households use solar energy, the rooftop solar panel industry in Australia
has seen remarkable growth thanks to increasing environmental awareness. People fighting
want to replace traditional energy sources with sustainable energy sources. CleanPeak can
capitalize on these trends to position itself in the market as one of the leading suppliers of
solar panels.

1.3. Scope of the Report

This report aims to provide valuable insights and recommendations for CleanPeak Energy.
We will analyze the target market profile, including demographics, psychographics, and
consumer behavior insights. Additionally, we will examine the internal factors that influence
consumer behavior in the purchase of rooftop solar PV panels. Based on our analysis, we will
present key findings and two strategic recommendations to enhance CleanPeak Energy's
marketing efforts. Implementation details for each recommendation will be provided,
considering potential marketing strategies, product pricing, communications, and logistics
decisions. Our research will employ a mixed-methods approach, combining primary research
through surveys or interviews with secondary research from industry reports and relevant
literature to ensure comprehensive and reliable insights.

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 2. Target Market Selection
In this section, we will define and explain the process of segmenting the target market for
CleanPeak Energy's revised marketing strategies. Market segmentation is an important
process for dividing consumers or potential consumers within a market into various groups or
segments (McDonald & Dunbar, 2012, p. 9). By segmenting the market, CleanPeak Energy
can create specialized marketing plans that successfully engage and reach particular target
audiences. We will present a segmentation table and evaluate the attractiveness of each
segment, demonstrating the use of market segmentation for CleanPeak Energy.

2.1. Segmentation (Demographics)

Segmentation Power
Market Size Behaviors
(Housing Type) Consumption

Homeowners with control over

Single-Family
High Large property and decision-making power
Homes
for home improvements

Residents who may have shared walls

Duplexes and and be in closer proximity to
Moderate Low
Semi-Detached neighbors have some control over
property modifications

Residents are reliant on property

Apartments Moderate to High Large management for property
modifications and decision-making

Homeowners in self-contained units

Villas Moderate to High Low with shared amenities, often located
within retirement communities

Homeowners in multi-level, attached

Townhouses Moderate Low
units with shared walls

Residents of narrow, multi-level

Terrace Homes Low to Moderate Low
homes typically live in urban areas

Figure 1. Segmentation Table 1 (Demographics)

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 Based on the segmentation analysis and evaluation of segment attractiveness, CleanPeak
Energy can now conclude that the target market for its revised marketing strategies primarily
focuses on Homeowners of free-standing houses. This segment demonstrates high potential
with a large market size, as these homeowners have control over their properties and
decision-making power regarding home improvements. By targeting this segment, CleanPeak
Energy can tailor its marketing strategies to effectively reach and engage these homeowners,
promoting the adoption of rooftop solar PV panel installations.

2.2. Segmentation (Psychographics)

Segmentation Preferred Energy

Behaviors Attractiveness
(Psychographics) Solutions

Solar panels and Environmentally conscious,

Eco-Conscious
renewable energy prioritize sustainability, and ✓✓✓
Advocates
sources support renewable energy

Energy-efficient Value-oriented, seeking

Cost-Conscious appliances and LED cost-effective solutions, and ✓✓
lighting prioritizing financial savings

Early adopters of technology,

Smart home energy
embrace smart home
Technological management systems
solutions and are interested ✓✓
Innovators and energy monitoring
in innovative energy
devices
solutions

Skeptical of renewable
Traditional electric energy claims, resistant to
Skeptics ✓
power sources change, prefer traditional
energy sources

Figure 2. Segmentation Table 2 (Psychographics)

Based on the psychographic segmentation table, one potential target that CleanPeak Energy
can choose is "Eco-Conscious Advocates". This group consists of environmentally conscious
individuals who prioritize sustainability and have a high awareness of energy consumption.
By focusing on this group, CleanPeak Energy can develop targeted marketing strategies to
persuade and attract customers from this segment.

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 2.3. Persona

Figure 3. Persona (Vanessa Bryant)

⇒ After carefully evaluating the segmentation tables based on demographic and

psychographic factors, the chosen target market segment for CleanPeak Energy's revised
marketing strategies is Single-Family Homeowners with Eco-Conscious Advocates. This
segment exhibits strong potential for rooftop solar PV panel installations, aligning with
CleanPeak Energy's objectives.

⇒ Vanessa Bryant, the persona representing this segment, embodies the characteristics and
frustrations of Single-Family Homeowners seeking sustainable energy solutions. Her
frustration with rising electricity bills and her desire for cost savings align perfectly with the
benefits offered by CleanPeak Energy's solar PV panels. The persona of Vanessa Bryant
provides a deeper understanding of the target market's aspirations, frustrations, and lifestyle,
allowing CleanPeak Energy to create more personalized and compelling marketing
campaigns.

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 3. Internal Factors Influencing Consumer Behavior
3.1. Needs and Motivation

Definition: The key term "needs" in marketing refers to individuals' fundamental

requirements or desires that drive their behavior and consumption choices. Maslow's
Hierarchy of Needs Theory divides needs into five categories: physiological, safety, social,
esteem, and self-actualization (Maslow, 1943). On the other hand, "motivation" in marketing
refers to the internal psychological processes that activate, direct, and sustain behavior toward
achieving specific goals. According to the expectancy theory of motivation, people are
motivated when they value the outcomes of their efforts and think that they will produce the
desired results (Vroom, 1964).

Explanation:
The needs and motivation theory is a psychological framework that seeks to understand why
and how consumers behave based on their underlying needs and motivations. In the context
of our TM, understanding their perception and the factors that drive their behavior toward
solar PV systems is essential.

According to Maslow's hierarchy of needs, people have needs that range from more
fundamental physiological needs to more advanced psychological needs. Our TM's
perception and behavior towards solar PV systems can be influenced by their specific needs
and motivations. In this case, their perception of solar PV systems may be driven by the need
to reduce their electricity expenses and achieve long-term financial benefits. They may view
solar PV systems as a viable solution to lower their energy bills and improve their financial
well-being, which in turn influences their behavior towards adopting such systems.

Application 1 (AX1):
Based on the explanation of needs and motivations influencing consumer behavior, an ideal
marketing strategy for the TM would be to focus on the "Product" aspect of the 4Ps. This
means developing solar PV systems that align with the TM's needs and motivations, such as
emphasizing their environmental sustainability benefits or highlighting their potential cost
savings. By crafting and promoting solar PV products that address these specific needs,
CleanPeak Energy can enhance the TM's perception and create a stronger appeal for their

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target market. This strategy would involve product development, packaging, pricing, and
communication strategies that emphasize the key benefits and features that resonate with the
TM's needs and motivations.

Application 2 (AX2):
Based on the previous analysis, the "Product" aspect refers to the solar PV systems offered by
CleanPeak Energy. Currently, the client is focusing on offering a range of solar PV systems
with different sizes, features, and pricing options to cater to various customer segments. They
may highlight the technical specifications, efficiency, and reliability of their products.
However, based on the needs and motivations theory, it is suggested that the client should go
beyond the technical aspects and emphasize the environmental sustainability and cost-saving
benefits of their solar PV systems. This means incorporating eco-friendly design features,
promoting the use of sustainable materials, and highlighting long-term financial advantages
for customers. By shifting its focus from purely technical aspects to addressing the needs and
motivations of customers, CleanPeak Energy can enhance the value proposition of its
products.

3.2. Perception

Definition: Perception theory and self-concept theory are two important frameworks that
help explain consumer behavior. Perception theory focuses on how individuals interpret and
process information from their environment, influencing their attitudes and behaviors
(Solomon, 2017).

Explanation: The theory of perception has been widely discussed in various marketing
literature. For example, (Keller & Kotler, 2016) emphasizes the importance of creating a
favorable perception of a brand through effective communication and positioning strategies.
Perception theories explain how consumers behave based on their interpretations of
information and their self-identity. For our TM, Vanessa, who values environmental
sustainability, her perception of solar PV systems is influenced by their environmental
benefits. It aligns with her self-concept as an environmentally conscious individual. By
understanding Vanessa's perception and self-concept, marketers can tailor their messaging
and positioning to appeal to her motivations and identity, effectively reaching consumers who
prioritize sustainability.

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Application 1 (AX1):
Based on perception theory, an ideal marketing strategy for Vanessa would be to focus on the
"Price" aspect of the 4Ps. Research by Schiffman and Kanuk (2010) highlights the
importance of price perception in consumer decision-making. They explain that consumers
often form judgments about product quality and value based on the perceived price.
Moreover, Kotler and Keller (2016) emphasize the role of pricing as a strategic tool to
position a brand and communicate its value proposition to the target market.
The pricing strategy should reflect the value proposition of the solar PV systems and align
with Vanessa's perception of quality and sustainability. Offering competitive pricing that is
perceived as fair and reasonable for the eco-friendly features and benefits of the product can
attract Vanessa as a price-conscious consumer who values environmentally responsible
choices. Additionally, providing flexible pricing options such as installment plans or
financing can address affordability concerns and make the product more accessible to
Vanessa and others who prioritize environmental sustainability.

Application 2 (AX2):
To evaluate CleanPeak Energy's current pricing strategy, it is important to consider its
approach to setting prices for its solar PV systems. Currently, the company likely considers
factors such as production costs, competition, and profitability. However, in line with the
perception and self-concept theory, CleanPeak Energy could benefit from adopting a pricing
strategy that emphasizes the value of sustainability and environmental benefits. By pricing
their solar PV systems to reflect long-term energy savings, eco-friendliness, and their
contribution to a greener environment, the company can better appeal to environmentally
conscious consumers like Vanessa. This approach aligns with Vanessa's perception of the
brand and her prioritization of sustainability in purchase decisions.

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 4. Recommendation
Recommendation 1: Installment Program (BNPL - Buy Now, Pay Later)

Description: CleanPeak Energy should establish strategic partnerships with reputable

financial institutions to provide homeowners interested in solar panel installation with
convenient installment programs featuring low-interest loans. By collaborating with
appointed financial entities, CleanPeak Energy can offer tailored financial solutions that
address the cost barrier associated with solar panel installation. This initiative aims to make
renewable energy more accessible and affordable for financially disadvantaged homeowners,
enabling them to embrace sustainable practices without significant upfront expenses.

Justification:
● Based on the TM profile and persona of Vanessa Bryant, the installment program with
low-interest loans would be a suitable recommendation. Vanessa Bryant, a single
mother and homeowner, is environmentally conscious and seeks affordable solutions
to reduce her carbon footprint. The installment program aligns with her financial
situation, allowing her to overcome the cost barrier associated with solar panel
installation. It provides her with the opportunity to adopt clean energy without
straining her budget, thereby fulfilling her desire for sustainability while addressing
her affordability concerns.

● Increased Customer Adoption & Convenience:

- Offering installment programs with low-interest loans can significantly boost
homeowners' adoption of solar panel systems. According to a survey, respondents
were asked to choose from a list of explanations for why they decided to use BNPL
for their purchases. The most popular justification given by BNPL users (52.6%) was
convenience, followed by the size of the asset (46.2%) and the ability to manage
finances better (43.8%). The options that received the least amount of votes were it is
my preferred payment method (11.5%), inability to obtain credit (13.6%), and lack of
credit (19.1%) (Akana, 2022, p. 7).

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 (Source: Federal Reserve Bank of Philadelphia CFI Buy Now, Pay Later Survey)
Figure 4. BNPL Users’ Reasons for Choosing BNPL

- Moreover, the theory of planned behavior (Ajzen, 1991, p. 179) supports the notion
that providing affordable financing options can influence consumers' intentions to
adopt renewable energy solutions. When homeowners perceive that the cost barrier is
mitigated through an installment program, their attitude towards solar panel
installation becomes more favorable, increasing their intention to take action.

Implementation Details:
● Develop Marketing Collateral: Create marketing materials, such as brochures,
online content, and social media campaigns, to promote the availability of the
low-interest installment program. Communicate the benefits and affordability of solar
panel installation through a partnership with the financial institution.

● Research and Identify Potential Financial Institutions: Conduct market research to

identify reputable financial institutions that offer installment programs with
low-interest loans. Highlight the benefits of collaborating with CleanPeak Energy,
emphasizing the goal of promoting sustainable energy solutions and making solar
panel installation more accessible.

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 Recommendation 2: Optimize Online Platforms for Enhanced User Experience

Description: CleanPeak Energy should prioritize the improvement of its online presence by
developing user-friendly websites and engaging social media platforms. Customers will have
easier access to detailed and relevant information about the company's products as a result,
improving the user experience. Furthermore, active and engaging social media platforms can
be used to share product updates and customer testimonials, resulting in a seamless and
informative online experience for users.

Justification:
● This recommendation aligns with the target market's preferences for digital channels
and their reliance on online research before making purchase decisions. Vanessa,
being tech-savvy, is likely to engage with websites and social media platforms to
gather information about solar panels and make informed choices.

● Influence Consumers’ Attitudes & Behaviors: The elaboration likelihood model

(Petty & Cacioppo, 1986) supports the idea that providing detailed product
information can positively influence consumers' attitudes and behaviors. When
consumers like Vanessa are highly motivated and engaged in a topic, they are more
likely to engage in central route processing, which involves careful evaluation of
information. By offering essential product information on websites and social media
platforms, CleanPeak Energy facilitates Vanessa's central route processing, allowing
her to gather relevant information, compare options, and make informed decisions.

Implementation Details:
● Website Development: CleanPeak Energy should allocate resources to develop a
user-friendly and informative website that showcases their sustainable energy
products. The website should have clear navigation, an intuitive interface, and
detailed information about the benefits, features, and pricing of its products.

● User Reviews and Testimonials: CleanPeak Energy should feature user reviews and
testimonials on its website and social media platforms. Positive reviews and
testimonials from satisfied customers can significantly influence potential customers'
perceptions and build trust in the brand and its products.

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 5. Conclusion
In conclusion, this report addressed the issue of expanding CleanPeak Energy's market reach
and enhancing the user experience in promoting sustainable energy solutions. The
recommendations put forward, informed by the analysis of both the target market persona and
the internal factors, offer a comprehensive approach to achieving these objectives. By
implementing an installment program and investing in websites and social media platforms,
CleanPeak Energy can effectively address the cost barrier and provide essential product
information to consumers like Vanessa who prioritize sustainability. These strategies align
with the internal factors of CleanPeak Energy, such as its commitment to innovation and
customer-centric approach. The successful implementation of these recommendations will
not only increase accessibility to solar panel installations but also strengthen CleanPeak
Energy's position as a market leader in sustainable energy while positively impacting the
environment.

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 6. References

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