University of PhoenixMKT 450/International MarketingJuly 7, 2009a.Describe the market segment you are targeting and explain how you will position your product/service based on your analysis of this segment.
Wholesale Solar is a United States (U.S.)-based company that introduced energy conservation and energy independence to American consumers. The company has been very successful in their mission. The company jumped on the "going green" bandwagon by marketing new innovative environmentally friendly forms of energy. (Wholesale Solar, 2009). Consumers are beginning to understand that energy independence translates into long-term cost savings. Solar energy products and services are not foreign to German consumers. Consumers who use solar energy are offered incentives by the German Government.
In this case, the geographic target market is Germany, specifically the German states of Bavaria, Bremen, and Rhineland-Palatinate. According to Renewable Energy World.com,houses built in the 1960s use on average four times more energy for heating than updated, energy-efficient houses.
In the meantime, oil prices in Germany have tripled since 2001. The German government is allocating 350 million euros ($517 million dollars) a year in grants for homeowners to install renewable energy systems, such as solar panels. On the other hand, homeowners who fail to switch to their heating systems will face fines up to 500,000 euros ($739,000 dollars). Under new German regulations, the size of the solar panel required will depend on the size of the house. For example, solar panels will need to have an area equal to 4% of the total are of a house. The government is also launching a program to improve insulation in the country's housing to cut back on energy waste. The implementation of new energy ratings is another incentive for homeowners to invest in energy efficiency in order to protect the value of their homes. (Burgermeister, 2007).