Abstract
Overview
Introduction
Prior to liberalisation, and particularly within energy markets that are
fragmented regionally, buyer motivation is difficult to understand as their
portfolios are divided. As markets open, buyers become more visible as they
begin to group their sites together.
Scope
- Insight into the changing nature and focus of segmentation as energy
markets liberalise
- Segmentation structures developed by Datamonitor to allow companies to
build their own internal framework
- Descriptions of the variation in needs and priorities of different buyer
segments as they buy energy
- Understanding of the likely target markets of utilities according to their
structural positions
Highlights
Market openings are typically staged progressively, with larger sites able to
switch before those with lower consumption. This has the effect of splitting
the sites managed by individual buyers into multiple contracts which become
challenging to re-unite in the future as contracts are out of step with each
other.
To effectively identify and market to new customers, it is important to know
where the most attractive customers are and what sites and volumes that they
hold. An effective segmentation model is crucial as this allows buyers with
similar needs and priorities to be grouped and then targeted.
As markets liberalise, it is typical for suppliers that have historically had
a regional focus to turn their attention to particular customer segments in
which they feel that they have commercial or strategic advantages. This is
assisted by the development of effective Third Party Access (TPA) rights that
begin to break down geographic barriers.
Reasons to Purchase
- Develop entry strategies within new regions as governments liberalise
their energy markets
- Understand the motivations both of current, as well as prospective future,
utility customers
- Target the customer groups that are the most commercially attractive for
each utility
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