Canadian Solar Inc. US Market Analysis and Marketing Plan Report

This report provides a comprehensive analysis of Canadian Solar Inc.'s US market, examining customer needs, market size, and marketing objectives. The report begins with an overview of Canadian Solar Inc., its market position, and the benefits of its solar panel products. It then delves into customer analysis, including the purchase process, influencers, and payment methods. The report further explores market segmentation, targeting, and product positioning (STP) strategies for the US market. The analysis includes an assessment of the market size, distribution channels, and regulatory factors. The report also presents proposed marketing objectives, both long-term and short-term, for the US market. Finally, the report concludes by summarizing the key findings and implications for Canadian Solar Inc.'s marketing strategy in the United States.

Running head: MARKETING PLAN
MARKETING PLAN
Student’s Name
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Step 6: Research and Analyze the Company's US Market
Introduction
In order to promote services in the market, customer analysis is very important for
managing the strategic direction of the company in a particular market segment (Aanesen,
Heck& Pinner, 2017). The purpose of this study is to critically analyze the potential
customers of Canadian Solar, Inc. in US market based on different aspects.
Market Analysis
Canadian Solar,Inc. can be considered as one of the world’s largestsolar power
producing company that has made its significant contribution in the Maplewood solar project.
By making the operational agreement with Anheuser-Busch for 310MWp/222 MWac of
electricity, it has become the seventh largest power generating institute
(Investors.canadiansolar.com, 2020). In the year 2001, Canadian Solar, Inc. was introduced in
the Canadian market. Over the last few years, the company is delivering the premium quality
of services in almost 150 countries. Since 2006, the company has been listed on NASDAQ as
the most bankable solar company (Investors.canadiansolar.com, 2020). CSI designs,
develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power
products. By continuing this, it can be said that the mission statement of the company has
been developed for making the solar power mainstream. It aims to provide the service for
fighting against the emerging climatic change issues. Increasing the accessibility of solar
power, the company has aimed to provide social well-being to the customers. Annual revenue
of the company reached US$3,744.5 million for the fiscal year ending December 2018.

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Figure: PV Module Market Share Ranking
Source: (Globaldata.com)
As per the Global data, due to market saturation, drop in module prices and decrease
in subsidies there has been negative annual growth rate. However, Canadian Solar Inc.
Remained committed to its shipments by supplying and expanding in global markets thereby
improving its market demand. The company is in the fifth position due to its product quality
and reliability. Analyzing the PV module market share, it can be said that gradual growth of
CSI in the market has helped the company to develop its significant position in the market.
Benefits of Solar Panels to the Customers
Analyzing the benefits provided by Canadian Solar Inc., it can be said that
maintaining the electricity agreement, it aims to provide the 10GW solar project pipeline all
over the world. In the case of Asia and Americas the company has promoted 17
manufacturing facilities for maintaining the uninterrupted supply of power
(Investors.canadiansolar.com, 2020). This is the cost-effective initiative that can generate
better environment for the customers. Delivering the global pipeline, CSI can centralize the
procurement team for generating the satisfactory results for the customers. Being the solar
technology leader, the company has promoted innovation in the US market. Therefore, it can

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be said that providing clean energy for the communities and businesses, within the
competitive price, CSI has promoted betterment to the society. The 24hr current support team
has been promoted by CSI for customers benefits. It is true that for promoting the customers
benefit after installing the product, 90 days of warranty is being provided so that the
customers can get the replacing opportunities if they do not like the service. The warranty
statement is being promoted with the UL and IEC certification in terms of maintaining the
authenticity of the service (Investors.canadiansolar.com, 2020). For getting the certificates,
the customers are being provided download opportunities. In order to avoid the thermal
stress, panel cleaning services are being provided by the company.
Ways in which customers pay- (Payment plans, financing and
banking arrangements)
The company received full payment upon completion of the projects, it receives
payment on timely manner. In Canada, the customers have the opportunity to opt for personal
loans to cover the expenditure of solar systems. There is zero down solar loans available to
the customers offered through the solar installation company. Hence investing in solar
systems is easier. Canadian solar Inc. Depends on the tax credit passes to them after its
approval (generally within 18 months). Outside financing is also done to enable the
customers to cover the expenditure of solar systems. The customers also have opportunities
like Financelt website to get short term loans (12 months). There is also an innovative
program called Halifax solar city program available to the consumers enabling them bear the
cost of the solar system in annual payments at a fixed interest rate.
Market size of Solar panels

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Source: (Statista.com)
Market Distribution Channel and Products
Canadian Solar, Inc. can be considered as the global solar energy service provider that
manufactures the PV module. In order to maintain its string distribution channel, CSI has
focused on maintaining the five-stage distribution channel (Wang et al., 2016). Distributors,
System Integrators, Project Developers and Installers are the significant contributors in the
supply chain promoted by CSI. Developing the worldwide PV projects,CSI has specialized
on system designing and the financing process.
Purchase Process, Influencers and Buyers
The notable customers of the company are Blackrock, TransCanada, BluEarth
Renewable and Samsung. Especially in the US market, Star Energy Service and Duke Energy
are the important customers of CSI (Investors.canadiansolar.com, 2020). As the company
operates in both the demotic and commercial market, in that case, solar panels are being sold
directly to the customers. Understanding the changes in customers demand pattern CSI has
promoted capacity utilization process in its market mix. In the annual form 30, the company
has focused on introducing the proper transparency for gaining the trust of the customers.
Using the forward-looking statement, the safe harbour is being provided by CSI.
Customer Financing Process
It has been identified that CSI promotes a better financing process and has introduced
a better solution in the market. In order to bring more solar projects in the US market CSI has
a new financial solution program by extending the terms, as well as a commercial loan
offering process being improvised. In case of demonstrating the CSI commitment for the
customer success, they made the partnership with De large Landen Financial Services, Inc.
(DLL), which is a global provider of financing services. For the commercial installation, the
company has designed the commercial installer program (Investors.canadiansolar.com,
2020).
The financial solution provided by CSI can provide the extra value to the customer by
reducing the complexity in solar financing options. By continuing this it can be said that in
order to avoid the uncertainties in the market, U.S. Private Securities Litigation Reform Act

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of 1995 is being followed by CSI for maintaining the legislative framework. As per the
legislative statements, the SEC investigation process is strictly brought followed by CSI
where the high purity of the products is being maintained (Kamal, Sarker& Pramanik, 2016).
Conclusion
In this study, it can be concluded that being a popular solar energy producing
company Canadian Solar,Inc. has promoted various benefits to the customers. The aim of CSI
depends on promoting sustainable development in the market so that better life can be
represented to the future generation.

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Step 7: Marketing Objectives-
Introduction
In the current business scenario, marketing has become the important strategic move
for promoting the better growth in the market. Analyzing the emerging solar market in US, it
has been identified that increasing numbers of competitors have become major barrier for the
company’s growth (Zhao et al., 2018). The purpose of this study is to introduce effective
marketing objectives that can help the company to establish its strong position in the
competitive business market
Proposed Marketing Objectives for the US Market
Long term objective:
Specific Increase revenue by 15%
Increase sales by 20%
Gain market share – 30%
Measurable Expected income for next five years $500 million
Achievable The goal can be achieved by expanding the marketing activities and
implementing sustainable development related campaign
Relevant The goal is relevant as it will increase the popularity in the market
that can help Canadian Solar Inc to gain its competitive advantage.
Time duration In order to achieve the goal 5 years will be needed.
Short term objective:
Specific Total solar module shipments - 7500 MW
Solar power projects: 50,000
Measurable The sales revenue can be measured on monthly/annual basis
Achievable Adding the graphics in the company app where the customers can
enter through adding their own login Id.
Assessing customer feedback
Relevant The customer relationship management can be improvised based on
the particular objective.
Time duration In order to achieve the goal 12 months will be needed.
Conclusion
In this study, it can be concluded that marketing objectives are very important for
Canadian Solar, Inc. to promote better relationship with the customers. By continuing this, it

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can be said that the marketing goals that have been selected by CSI to operate in the US
market can promote better customer satisfaction, which can indirectly help them increase its
revenue growth.

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Step 8: Segmenting and Targeting of the US Market and Product
Positioning (STP)
Introduction
The customer segmentation can be described as the process that divides different
customer groups depending on their common characteristics. It can be said that through the
segmentation process, effective marketing activities can be properly maintained by the
company. The purpose of this study is to critically analyze the business model introduced by
Canadian Solar,Inc.and divide the customers into different segments so that they can be able
to promote the betterment for the long run. By continuing, based on the competitors in the
market, the positioning map has also been developed in the study.
Discussion
As per the business model introduced by CSI, it has been identified that rather than
following the common segmentation process, they do it differently. It is true that the
significant amount of company revenue gets influenced by the residential customers. From
the demographic segment, the middle class and upper middle-class people have been selected
by CSI as it aims to provide the standard quality of products in the market, in that case,
targeting the particular segment, better growth can be promoted. From the geographic
segment, both the urban and rural areas have been targeted by CSI to generate the better
growth in the market. It is true that in the current scenario, people have become concerned
about environmental sustainability. Using the current awareness trend of people towards the
environmental sustainability, from the psychological segment people with the interest
towards sustainable environment are the target customers for CSI.
Target Market – The target customers of Canadian Solar Inc are the residential societies, the
beauty salons, the fast food chains, educational institutes, corporate sectors, builders,
apartment owners and the real estate developers. For the indoor products, the business
organization targets the household users, the hospitality service providers as well as the
hostilities. These are the target markets suitable for Canadian Solar Inc. The products and
services offered by CSI are highly popular among the mentioned target customers as per the
research and analysis. It has been identified that the people having higher income groups such
as the corporate owners or education institutes are more likely to make a purchase as they
have the power to purchase the offered products and services. However, it must be ensured

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that the benefits of the products and services are effectively marketed to the target customers
so as to effectively convert leads to potential customers of the business organization.
Segmentation
Demographic segmentation – The upper and middle income class consumers are targeted for
the products and services as they are able to afford the products offered by CSI. The business
organization aims to provide high quality products and services to the target customers. This
segment of consumers has been taken into consideration, as they provide wider growth
opportunities and scope for the business organization.
Geographic segmentation – Both the rural and the urban people are targeted throughout the
country. CSI aims to provide the products and services to both the rural and urban consumers
who can afford the services and products offered by the company.
Psychological segmentation – The primary customer point for targeting the consumers are
guilt feelings among them about emission and global warming. Hence, the consumers are
environmentally conscious are targeted. However, many people consider solar panels to be
expensive, the prices have dropped considerably. Furthermore, there are other long term
financial benefits for the customers.
Behavioural segmentation – The consumers running corporate and other business have to
face higher charges for electricity, therefore they consider it suitable to implement solar
panels. The people who understand the cost of the solar and care about the environment are
targeted.

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High Quality
High Price
Low Price
Low Quality
First Solar
Sun Power
Canadian Solar
Inc Solar
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Positioning
Figure: Positioning Map
As stated by authors and researchers that positioning of the product must be such that
it creates value and offerings to the customers. Positioning is considered to be one of the most
crucial steps to position the product and services in the minds of the customers. In the above
positioning map, the competitors of CSI have been positioned with the company in the high-
quality, low price that describes that Sun Power and First Solar the major competitors of CSI
in the market. As per the research and analysis, it has been identified that Sunpower has been
dominating the solar market through its solar panel efficiency and thereby positioning the
organization. The business organization is undoubtedly the biggest competitor of CSI, as it
has been making incredible gains in the market. The business organization has gained
significant competitive advantage in the market by its superior technology which ensures
long term growth and success. It has been predicted that the technology used by Sun power
might solidify the position of the company. The products offered by Sunpower have 23%

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efficiency, which turns the energy of the sun into electricity as compared to 19% efficiency of
CSI and 17% efficiency of First Solar Company. On the other hand, First Solar is also one of
the major competitors of CSI with its competitive thin-film technology and its cost
competitiveness. The technology of First Solar is able to produce more energy for less
money. However, it is less efficient then CSI technology.
Conclusion
In this study, it can be concluded that the current target segment of the company has
highly concentrated towards the sustainable business environment. Both the commercial and
domestic areas have been covered in the target market. It has been identified that the products
and services offered by the business organization are suitable for higher and middle income
consumer groups as they have the power to purchase the product and services offered. The
segmentation of CSI has been described in detail. The consumers who are conservative about
the environment and are conscious about the rise in prices of electricity are most likely to
purchase the solar panels offered by the company. Furthermore, as per the positioning map of
the company, CSI targets the desired high quality of product and its reasonable pricing
strategy.