TMNG Global Develops a Business Plan for a Utility

Challenge

An energy utility needed a business plan to increase revenue through the marketing and sales of related energy products. TMNG Global was engaged to research several energy products, create a business plan, report on profitability analysis, and make recommendations regarding the marketing of products in regulated and deregulated markets.

TMNG Global Solution

We conducted extensive industry and product-specific research through secondary sources, such as industry publications, internet resources, and analyst reports. We also interviewed several industry experts. In addition, we developed collaborative relationships throughout the utility’s corporate divisions to gather input and assistance from individuals with expertise and institutional knowledge. Finally, we worked with vendors to gather the most current product applications and availabilities, to research partnering opportunities, and to negotiate prices that would result in the most favorable P&L projections for product offerings. On the basis of this thorough research, TMNG Global presented business plans and made recommendations for current pursuits and development of future strategies.

We developed two plans for the client. One plan addressed the current course of the regulated objectives and, at the same time, possibilities for expanding market penetration and customer satisfaction. This plan analyzed the existing product offerings and proposed the elimination of those lines of product that lost money and expanding more profitable lines. The plan offered suggestions for cutting expenses in some areas so that products needed by municipal or government sectors could be continued for political reasons.

The second plan called for a future product offering and a strategy for bundling several related products into a branding strategy that would further the market recognition of the company, increase the customer satisfaction ratings, meet the regulator’s expectation of utility’s public responsibilities, and position the utility company for the future de-regulated marketplace.

Benefits to the Client

In the changing landscape of the energy industry, we guided the company in pursuing new approaches—branding strategies, customer experience programs, and political strategies to help the company gain ground with regulating agencies. In the short-term, we gave senior marketing management the information to present a proposal to senior executives and gain support for product marketing campaigns. Further, we provided the client with a comprehensive 5-year program, as well as the arguments for marketing and sales proponents to get buy-ins from the supply side of the regulated business.