BUS302 - E-Solar Business Plan: Solar Energy Business Venture Proposal

This document presents a business plan proposal for e-Solar, a solar energy company in Australia, focusing on solar water heating systems. The company aims to become a premier provider of high-quality solar water heating solutions with effective consumer service. The plan details the company's background, mission, product offerings (including a DIY model), market analysis, target consumer segments (DIY and convenience consumers), marketing strategies (product, pricing, distribution, and promotion), and a financial plan with a goal to increase market value to $200,000 within the first year by attracting $100,000 in investments. It also addresses critical risks and competitive landscape within the Australian solar energy market. The company will target DIY consumers and convenience consumers.

Running head: BUSINESS PLAN PROPOSAL FOR E-SOLAR
Business Plan Proposal for Solar Energy Business “e-Solar”
Name of the University:
Name of the Student:
Authors Note:

1BUSINESS PLAN PROPOSAL FOR E-SOLAR
Executive Summary
Solar water heating systems will be offered as per the demand of the consumers. The mission of
e-Solar Company is to position itself as a premier solar water heater organization that offers
superior quality products along with effective consumer service. e-Solar will focus on offering
two major versions of a solar water heating system among which one will be a unit sold to be a
“do-it yourself” model. Focused on such innovative approach in this new business plan, solar
water heating systems will be offered as per the demand of the consumers. The trend of
environmentalism in Australia has encouraged the new business plan of solar to target the below
mentioned target consumer segments as increased number of people look for an economical way
to reduce negative impact on environment by using solar water heating.

2BUSINESS PLAN PROPOSAL FOR E-SOLAR
Table of Contents
1. Background......................................................................................................................3
2. Mission............................................................................................................................3
3. Product or Service Offering.............................................................................................3
4. Market Analysis...............................................................................................................3
4.1. Indistry Analysis.......................................................................................................3
4.2. Competition..............................................................................................................3
5. Primary Target Market....................................................................................................3
6. Marketing.........................................................................................................................3
6.1. Product......................................................................................................................3
6.2. Pricing.......................................................................................................................3
6.3. Distribution...............................................................................................................3
6.4. Promotion.................................................................................................................3
7. Financial Plan..................................................................................................................3
8. Critical Risks...................................................................................................................3
References............................................................................................................................4

3BUSINESS PLAN PROPOSAL FOR E-SOLAR
1. Background
E-Solar Company is positioned as solar energy products Supplier Company registered in
Australia. The company is one of the renowned solar panel organizations in Australia that offers
best brands for solar power and hot water systems (Bendato et al. 2016). The company is situated
in Perth region of Australia where the company has increased profitable scope for its business.
Installing the solar panels from the e-Solar Company within homes can decrease increased
dependence on the national grid and coal fuelled electricity that is highly energy efficient. The
company is now focused on diversifying its business to offer solar water heating systems all over
Australia. Through opening a new business segment, solar Company is intended to increase its
market value to $200,000 over the first year of its business (Boyd et al. 2017). For successful
attainment of increasing the company’s capital value, e-Solar is intended to attract investors to
make high investments of an amount of $100,000. The new solar water heating systems will be
situated in Perth region as the location is highly suitable for this new business. The location is
suitable for new business as it has more sunny days in a year that makes it perfect for solar
energy use (Burger and Luke 2017).
2. Mission
The mission of e-Solar Company is to position itself as a premier solar water heater
organization that offers superior quality products along with effective consumer service. The
company will also have mission to save money of consumers along with facilitating to make
positive contribution to the business surrounding (Chambers and Humble 2017). Few more
business objectives of this new business plan for e-Solar Company are explained under:

4BUSINESS PLAN PROPOSAL FOR E-SOLAR
 To position itself as the premier manufacturer of solar based systems used for water
heating
 To rapidly attain market penetration within the first three years of the company’s
business
 To develop an organization that is consumer focused relied on the cutting edge
technology
3. Product or Service Offering
e-Solar will focus on offering two major versions of a solar water heating system among
which one will be a unit sold to be a “do-it yourself” model. Focused on such innovative
approach in this new business plan, solar water heating systems will be offered as per the
demand of the consumers. Specifically, 30% to 40% of a family’s electricity bill is focused on
using water (Engelken et al. 2016). Focusing on such problem, this new product will address all
the summer time heating requirements. In less sunlight, the solar water heating systems will
preheat the water and bring it up to temperature through conventional water heating system
completely ready.
Solar collectors or panels are another produce of e-Solar Company that will be offered to
the consumers to be situated on the roof of the houses. This new product of the company will be
linked with the solar heater in a location that will have full exposure to sun. To attain the
advantage from this new product “solar panel” must be facing 30 degrees towards the south.
Moreover, these panels must will have insulated tubes in the collected which will help in heating
the water (Ferrell and Fraedrich 2015).

5BUSINESS PLAN PROPOSAL FOR E-SOLAR
The sun heat system is another new oroduct of e-Solar Company that will be designed for
single family dwellings. This sun heat system will encompass a solar collector, a huge storage
collector, a pump along with different values all through these new systems. The puling from the
storage taking to the collectors will be impacted through city water pressure “on the grid”
(Gabriel and Kirkwood 2016).
4. Market Analysis
4.1. Industry Analysis
The Australian solar products industry includes several producers of solar water heating
systems and components. Few companies operate their business through serving the industrial
market and the others sere the target consumers within the residential market. In the industry
there also exist numerous organizational that develop components that are sold by them to
different assemblers (Jayaraman and Ling 2017). The solar energy companies operating within
the Australian market also make all the components for their systems through in-house manner.
Certain solar heating systems are deemed to be complex by means of employing computers to
make certain adjustments that include an angle of the collectors relied on the position of the sun.
Other solar systems are observed to be highly basic and it is also interesting to consider that
almost no one is observed to compete within the different markets. This is because of the reason
that each organization has selected a distinct niche and approaches to have monopoly business
within the Australian solar energy industry (Jayaraman and Ling 2017).

6BUSINESS PLAN PROPOSAL FOR E-SOLAR
4.2. Competition
Solar Company of Australia is deemed to have numerous competitors within the market
from which it faces the threat of operating its new business plan within the market. The
competitors of the organizations are explained below:
 Solar energy systems: This solar Energy Company is situated as renowned
manufacturers to be very basic and do-it you systems. The company’s products are
considerably cheaper but are of inferior quality with having very less features (Sekaran
and Bougie 2016).
 Mega sun: This Company is positioned as Helopakami Company and their products are
deemed to be efficient as they are used within the European Union shipping. Moreover,
the manufacturing costs make the prices of its products very less competitive.
 Imagination Solar: This Company has a simple yet an ineffective DIY system operating
within the Australian market.
 Go Solar Company: This Company is recently observed to manufacture the solar
electric systems and also releases a solar water heating systems within the next few
months (Swart 2014).
 Shell Solar: This Company is a high end manufacturer that focuses on increased use of
copper for enhancing efficiency. The products of this company are observed to be highly
effective and the cost of copper makes its products highly costly for the target market of
this company.

7BUSINESS PLAN PROPOSAL FOR E-SOLAR
5. Primary Target Market
The trend of environmentalism in Australia has encouraged the new business plan of
solar to target the below mentioned target consumer segments as increased number of people
look for an economical way to reduce negative impact on environment by using solar water
heating (Robinson et al. 2014). Solar Company has identified to major market segments as its
target consumers that are explained below:
 DIY Consumers- This consumer segment is involved in making lot of repairs along with
upgrades in their homes. These consumers are observed to belong to the age group of 29-
56 years, majorly male with having approximate household income ranges from $50,000-
$80,000. These people are observed to have a lot of repair and building skills and are
focused on dealing with projects along with learning fresh skills. These people have
motivation to save money through using renewable resources and also intend to
accomplish their project on their own. This consumer group prefers to attain their solar
products by means of retailing so that they can resell these products for individual
families to install (Ryan and Kutschera 2018).
 Convenience Consumers- The demographic specifications of this target consumer group
includes married people within the age group of 35-65 years. These consumers generally
have at least one child at home, have an undergraduate degree and have a household
income range of $62,000-$110,000. These consumers are also observed to have an aid
contractor for conducting at least single protect on home improvement in the past 12
months. This target consumer group is focused on purchasing approved sun heat
installers. This consumer segment looks for the advantages within the solar based water
heating system that does not have any challenge related with its installation. These people

8BUSINESS PLAN PROPOSAL FOR E-SOLAR
also appreciate the value offered by the solar heating system offered by solar Company.
This group of target market identifies the economic as well as environmental advantages
of solar water heating and considers selecting a professional installer.
6. Marketing
6.1. Product
Solar water heating systems will be offered as per the demand of the consumers.
Focusing on the problem of reducing negative environment impact, this new product will address
all the summer time heating requirements. In less sunlight, the solar water heating systems will
preheat the water and bring it up to temperature through conventional water heating system
completely ready (Lüdeke-Freund 2014).
Solar collectors or panels are another product of e-Solar Company that will be offered to
the consumers to be situated on the roof of the houses. This new product of the company will be
linked with the solar heater in a location that will have full exposure to sun. To attain the
advantage from this new product “solar panel” must be facing 30 degrees towards the south.
Moreover, these panels must have insulated tubes in the collected which will help in heating the
water (McKeever 2016).
The sun heat system is another new product of e-Solar Company that will be designed for
single family dwellings. This sun heat system will encompass a solar collector, a huge storage
collector, a pump along with different values all through these new systems. The puling from the
storage taking to the collectors will be impacted through city water pressure “on the grid”
(Overholm 2015).

9BUSINESS PLAN PROPOSAL FOR E-SOLAR
6.2. Pricing
Penetration pricing strategy will be considered by solar Company for its solar water
heating system. Implementation of this pricing strategy will make sure the company’s flexibility
on setting suitable prices as expectations of its consumer segments and will ensure constant
monitoring of the market condition. The new products offered by the company will be divided
into two segments focused on which the pricing policy will be set (Kumar 2016). Consumer
segment requiring value in products will make sure that the company sets low process for
products in catering to the needs of the consumers. Premium pricing of few products will be set
based on the target consumers those look for huge costly investments in their projects.
6.3. Distribution
Two distribution strategies are developed by solar Company and for reaching its DIY
consumer segment, the company will make tie-up with the retailers in order to sell the DIY units
to inform them regarding the product along with offering high competition. Retailers will be
responsible for selling the DIY units focusing on the fact that it is vital to have better
relationships with them and for supporting those with many resources and information are
possible (Knuckles 2016). Moreover, direct distribution channels will also be implemented by
the company for addressing the demands of the consumers. Direct distribution channels
implemented by the company will make sure direct communication among the company and its
associated target consumers that in turn will prove as highly advantageous for all its investors.
Solar is planning to appoint the sales representatives those will be responsible for offering the
products to consumers along with fulfilling the assigned duties. The distribution process of these
new products of the company will encompass product placement, attaining sales targets, securing
the feedbacks attained for the products, resolving consumer issues in acquiring products. The

10BUSINESS PLAN PROPOSAL FOR E-SOLAR
target consumer group prefers to attain their solar products by means of retailing so that they can
resell these products for individual families to install. Considering such preferences of all its
target consumers, the solar products will be offered to them through the above mentioned desired
marketing channels.
6.4. Promotion
In promoting the new water heating solar sustain developed by solar Company marketing
campaign will be focused on increasing awareness regarding the economic and environmental
advantages of acquiring a solar water based water heating system. The company’s advertisement
through social media, TV and through posters is focused on communicating the economic
advantages of using a renewable source along with no toxic emissions or discharge (Karakaya,
Nuur and Hidalgo 2016). This facilitates the individuals to make purchasing its products that can
enhance their commitments in using sustainable resources. The marketing strategies of solar will
also consider preparing advertising and trade shows. Within all of such venues the company will
target the DIY along with professional install markets as well as retailers carrying “sun heat”
products. In its promotional strategies, solar will focus on developing relationship with the
utilities through having an attempt of providing rebates or several other financial incentives.
These promotional activities will be focused on utility consumers employing the alternative
source of energy. Moreover, the internet marketing advertising strategy will also be implemented
as the e-market concept is deemed to operate within a cloud forum and the customers are deemed
to be free to access, see through and purchase the offered product portfolios (Khan et al. 2015).
Such product promotion strategy is intended to develop an automatic market which will add to
the sustainability of this new business plan of the company in the future users of its business
operation.

11BUSINESS PLAN PROPOSAL FOR E-SOLAR
7. Financial Plan
Solar Company is observed to have $100,000 as capital assets that it intends to rise from
its investors (Jayaraman and Ling 2017). To make sure that the financial plan is prepared in an
efficient manner the capital assets are segmented in the following manner based on its use in the
new business plan:
 $30000 will be employed within solar product distribution process
 $10000 will be used for market research and identification
 $25000 will be employed in developing advertising strategies
 $10000 will be used in employing experts in the engineering field for research and
development
 $50000 will be invested within the research and development of new solar products and
in the strategies of innovating
 $25000 will be employed for establishing a new solar product manufacturing unit along
with purchase of new machineries
8. Critical Risks
The critical risks that can be faced by the new business plan developed by solar can be
understood as the uncertainties or hindrances that must be considered by solar Company in order
to avoid it from drastic business downfall (Hatten 2015). Such risks that can faced by this new
business encompass dealing with competition barrier, loss of faith from its target consumer base
and loosing of integrity along with chance of its brand value degradation with time. Improper
development of the research strategies along with faulty implementation of developed policies
must be one of the bigger concerns for e-Solar Company that must be addressed by it.

12BUSINESS PLAN PROPOSAL FOR E-SOLAR
9. Conclusion
The mission of e-Solar Company is to position itself as a premier solar water heater
organization that offers superior quality products along with effective consumer service. The
company is now focused on diversifying its business to offer solar water heating systems all over
Australia. The trend of environmentalism in Australia has encouraged the new business plan of
solar to target the below mentioned target consumer segments as increased number of people
look for an economical way to reduce negative impact on environment by using solar water
heating. Through opening a new business segment, solar Company is intended to increase its
market value over the first year of its business.

13BUSINESS PLAN PROPOSAL FOR E-SOLAR
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