During the last century, our dependence on coal, gas and oil for energy was significant. However, the oil crisis in the 1970s forced the Government to seek alternatives to non-renewable sources. As a result, in the Indian economy, the renewable energy sector saw significant growth in the subsequent years.
Today, renewable sources like solar, wind, geothermal, hydropower and ocean energy are commercial energy sources, while biomass is a non-commercial energy source. It is crucial to shift towards sustainable sources of energy as conventional sources, such as coal oil and natural gas, have negative impacts on the environment (acid rain, temperature rise, etc.) and human health (asthma, allergies, lung disease, etc.).
Renewable sources are abundant and easily accessible in the environment, making them a viable option for energy production. Embracing sustainable products and practices is not only beneficial for the environment and human health but also more cost-effective, providing better control over energy generation. According to the Central Electricity Authority of India’s 2016-17 report, the percentage of renewable energy in total installations increased from 3% in 2002 to 32% in 2022 and is expected to rise to 35% in the coming years. This growth has opened doors for entrepreneurs to venture into the renewable field, necessitating changes in business practices and marketing strategies to sustain in the volatile market.
Let’s take a look at some of these new-age business practices.
Sustainable Marketing Strategies
1. Targeted Marketing
To cater to different geographical areas and economies, it is essential to create tailored marketing plans that promote the right products or services to the right customers at the right time.
2. Digital Marketing
Utilising digital resources allows businesses to provide the right information to the targeted customer and interact with them directly or indirectly, showcasing their unique products and services and how they are better than other services available in the market. Digital resources include emails, videos, content and social media.
3. Content Marketing
Crafting appropriate and impactful content plays a crucial role in building a positive image and trust in customers’ minds. The content should focus on features and benefits while being neither too lengthy nor too brief.
4. Social Media Marketing
Social media, such as Facebook, Twitter, LinkedIn, and WhatsApp, offer an effective way for solar companies to reach a large amount of population with a single click and share information about their products and services.
5. Online Sales
Companies can leverage online marketplaces like Amazon and India Mart to register and sell renewable energy products online.
Inventory and Supply Chain Management
Effective inventory and supply chain management are critical for businesses in the renewable energy industry, given the demand and price fluctuations. Effective inventory and supply chain management are critical for businesses in the renewable energy industry, given the demand and price fluctuations.
1. Demand
While it is not easy to predict the demand in a highly competitive market, understanding a company’s previous sales patterns can provide valuable insights into inventory requirements.
2. Price Fluctuations
Holding inventory for extended periods carries the risk of losses if prices fall. Businesses should carefully manage inventory levels to mitigate this risk.
3. Procurement and Lead Time
Efficient procurement and timely delivery of materials are important as they help to complete projects on time and save the installation cost. Planning the ‘bill of the material’ during project installation is also vital.
Diversification for Long-Term Sustainability
Diversification is one of the key factors to sustain any business in the long run. It involves entering new markets or starting businesses related to the core business, as well as creating new product lines or services. Diversification provides additional revenue streams, helps build new customer bases, and reduces the risk associated with reliance on a single market.
Case in point, Polycab, a leading company in the cable industry, has diversified its core EPC (Engineering, Procurement, and Construction) business into solar inverters and EPC of solar power plants. Similarly, many small businesses focused on EPC of solar power plants have diversified into trading solar panels, solar inverters and other necessary materials.
One-Stop Solutions
Businesses in the renewable energy sector should strive to provide one-stop solutions for customers. This means that when a customer approaches a company, the organisation should be able to supply the end-to-end solution packages that include quotations, procurement services, installation, government interactions and post-installation services such as cleaning maintenance in case of component failure. Offering comprehensive solutions builds trust in customers’ minds and enhances the overall customer experience.
Monitoring, Analysing and Customer Relation Management
Regular monitoring of ongoing projects and post-completion analysis is crucial for understanding a company’s strengths, weaknesses, threats and scope for improvement in future projects. Also, effective Customer Relationship Management (CRM) is vital to build and maintain a loyal customer base.
All businesses in the energy industry are operated by repetitive business service routines. As efficient CRM helps build the customer base, business revenues and profits experience unprecedented growth. It is important that all communications with existing and potential customers are controlled to ensure quality of service. Messages, phone calls and emails to customers enquiring about the working condition of the installed system and regular updates regarding the products and services help to maintain customer relations.
Conclusion
The renewable energy sector has immense potential for sustainable development, innovation, economic growth, and employment opportunities. To secure a bright and successful future, companies must adapt to sustainable marketing and business practices. This includes implementing effective marketing strategies, optimising inventory and supply chain management, embracing diversification, monitoring projects, leveraging social media, and prioritising customer relations. Technological advancements, such as Information and Communication Technology (ICT), play a crucial role in improving pre and post-installation processes, enhancing system efficiency, and minimising maintenance time. By incorporating sustainable practices, businesses can thrive in a rapidly evolving and dynamic market.
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