CASE STUDY
kinetic energy
TM
KINETIC ENERGY CASE STUDY
GOAL Introduce the brand from scratch. Migrate the consumer mindset from, “It’s not electricity I want”, to...“It’s Kinetic Energy that I need.”
ASSIGNMENT Develop Kinetic Energy’s corporate identity, introduce the brand as belonging to the community it serves, increase awareness and meet pre-set goals for growing the customer base.
BACKGROUND Kinetic Energy was a one-year-old electricity reseller serving the state of Texas when they came to Vendor Inc. to help build awareness and define the brand. The electricity reseller market is highly competitive in Texas, with 48 companies reselling electricity off the electric grid. These companies do not generate electricity, nor do they repair electricity delivery problems. Not only is their offering a commodity, it is the exact same product offered by their competitors. Kinetic Energy competes in a marketplace where the incumbent electricity generators (TXU, Reliant, etc.) have boundless marketing communications resources and a commanding market share. The category leaders retain a 50% share of all customers who have never switched, or do not intend to switch providers. This leaves nearly 50 brands competing for less then 50% of available market share. This presents quite a challenge to differentiate and stand out in the market. Additionally, among the 50% share that is at play, the category has always been driven by price and little else.
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01 ABOUT US
02 ENERGY PLANS RESIdENTIAL
03 GO GREEN
04 SUPPORT
05
COMMUNITY
06
SIGN UP NOW
COMMERCIAL
©2010 Kinetic Energy
Dude, I Flogatillied with my girlfriend and six of her best friends yesterday and it was insane. (I’ll never look at a kazoo quite the same way.)
Find out more ways to do good and be a bit silly at kinetictx.com It’s electric out there.
kinetic energy energy kinetic First comes the shower, then comes the Woo-oggling. Click here to find out more things to jump into.
Get green energy for the same price as conventional energy.
It’s electric out there.
It’s electric out there.
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kinetic energy energy kinetic
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It’S eLectrIc oUt tHere!
If you’re going to Obdowl in your neighbor’s front yard, for goodness sake, do it loudly.
Get green energy for the same price as conventional energy.
It’s electric out there.
It’s electric out there.
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THE CHALLENGES Create a brand out of a company that had little history or heritage. Breathe life into a brand that had an unsophisticated voice and a presence that was at best misunderstood. Operate in an environment where consumers dislike electricity providers more than cable companies. Prepare for market conditions where Kinetic would not be the price leader (after spending much of 2009 as the price leader), nor would they utilize gimmick pricing. Leverage the company’s commitment to be a positive force in the communities it serves. Do it all with very few marketing dollars.
THE IDEA Conventional marketing in this category talks at, not with, consumers. Old utilities speak down to everyone from their long-held position atop the mountain. They celebrate what they do for their customers, and use fear to keep people locked into their products at a significant premium. Both Vendor Inc. and Kinetic knew that to succeed in this environment, Kinetic could not accept these conventions, much less follow them. Instead, we needed to identify the strongest opportunity for Kinetic to VEER from convention. The insight: While we sell electricity, and that is important, it is actually the second most powerful source of energy to our customers. The most powerful source is the energy created by Texas communities and the people that live in them. Kinetic Energy set out to give customers credit and celebrate the energy they create in their own communities. This energy is what fuels friendships, business and new ideas that keep alive old traditions. It is the fuel for the bottomless source of optimism that makes Texas great. We summarized this idea simply, but powerfully, with this platform: Kinetic Energy It’s Electric Out There This idea was the foundation for creating a dialog with customers, speaking “with” them as opposed to “at” them. More importantly, it positioned Kinetic in a place where they could belong to, and participate in, the communities they serve. We believed it was possible for Kinetic to become the first electric company that people actually liked.
THE CAMPAIGN The launch was a fully integrated multi-channel campaign designed to flow from the community up, as opposed to from a media channel down. Kinetic targeted select events, sponsorships and opportunities that allowed them to not only celebrate, but also participate in the communities they serve in a meaningful way. It’s a crucial difference in behavior that is in direct contrast to talking “at” people. This approach to media was responsible for Kinetic beginning to Belong in the state of Texas. Here’s how it worked. When Kinetic would engage in a community event, they would choose the appropriate media assets as part of their involvement. TV commercials utilized a troupe of puppets that promoted fun activities for members of the community to do together, then share their participation in the social space. DJ endorsements, outdoor, print and digital efforts were used to tap into other existing communities to promote participation in the event at hand.
THE RESULTS Given the dollar limitations, the campaign was flighted with two significant efforts. One was in spring, the other in fall. Early results have been significant both in driving business and in establishing the type of brand Kinetic Energy wants to represent in the marketplace. At the end of its first year in market, Kinetic Energy was tied for first in customer service in the category. In one short year, people liked them and welcomed them into their lives at a pace that equaled or bettered every single electricity provider in the state. The residential customer base increased 18%. The increase was achieved despite the reality that Kinetic Energy was rarely the price leader in the category. This is a significant point given Kinetic’s size and share of voice; prior to Kinetic’s entrance into the marketplace, price had been the sole driver for new customers and switchers for years.
This is but a brief sampling of our work. Please contact us to see and learn more.
Tom Hollerbach tom.hollerbach@vendorinc.com 512.474.8363