EPGP-06 :: Course MM07-04: Business 2 Business Marketing
PVT – Case Analysis Note Dated: 03rd May 2015
Q1: What could be the reasons for the unfavorable evaluation of PV technologies by Greg Morgan?
Answer: Solenergy is the top customer of PVT. PVT is under the assumption that any deal from Solenergy would come to them. Even though their Marketing Officer Salvatori had a fabulous relationship with Greg Morgan, Chief Electrical Officer and Solenergy, PVT did not invest anything more than Salvatori to improve the customer relationship. Also PVT did not develop any long term product roadmap partnerships to meet and improve the Solenergy capabilities.
Greg Morgan’s evaluation is primarily around the low upfront capital cost and low overall cost of ownership and ...view middle of the document...
But they should immediately form a task force to study the current production costs and try to cut costs where every possible to gain some competitive advantage.
I would recommend PVT to take Alternative 3 & 4 and they should execute them in parallel. As Solenergy’s primary suppliers, they should not hesitate to approach Morgan and clarify the evaluation methodology, take Morgan’s feedback and address it.
They also should expedite Alternative 3 and bring the 1.25MW advanced technology/low cost inverter to market ahead of the planned schedule. This would ensure their market leadership. They should invest in additional manpower to support the shortened test cycle of 1.25MW inverter and ensure adequate support for other top customers.
Q3. What short term and long term policies and processes should PVT develop and implement to effectively improve its marketing programs?
Answer: In the short term PVT should implement the following strategies:
* PVT should expedite the development of new advanced tech and low cost 1.25MW inverter and launch it into market ASAP.
* PVT should run a good short term marketing campaign to educate the customer on the advantages of 1.25MW inverters including the new total cost of ownership of 1.25MW unit.
* Their sales force should start building more close relationships and plan to involve in their customers product road maps.
In the long term PVT should focus on the following strategies:
* PVT should further improve its R&D investments.
* PVT should layout 3-5 year product line road maps. Closely study the competition and try to launch innovative new and hybrid combination of inverters to match various customer segment needs.
* PVT should also try to explore the low cost production options by shifting production/outsourcing production to low cost places/countries to gain in the TCO area.