Future of I&C Sales & Marketing: Segmentation

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
  • METHODOLOGY
• ANALYSIS
  • As markets liberalise, demand segments are created which do not represent buyers
    • Markets are liberalised progressively, with the largest buyers able to switch first.
    • The portfolio of sites with any one buyer is split by both geography and consumption.
    • Price differentials between markets are evidence that significant structural and market barriers to pan-European competition exist.
    • The geographic spread and site size mix of buyers must be matched by the suppliers that wish to serve them.
    • Only a single EU energy market will reveal the true purchasing scope of the largest buyers.
    • If liberalisation is able to remove geographic barriers, buyer portfolio and company structure will determine their needs.
  • For example, Datamonitor divides UK power buyers into 5 categories.
    • Datamonitor segments buyers within the UK to group together organisations that have similar buying priorities.
  • Suppliers will compete for the buyer segments that they believe have the greatest future value.
    • Incumbents facing customer losses in their home market must both retain, and market to, their chosen buyer segments.
    • In choosing their preferred buyer segments, suppliers must decide on their core competencies.
    • As a result of regional/national boundaries, buyer segments are shared equally between suppliers prior to liberalisation.
    • Specialisations develop as markets mature and new entrants target specific buyer segments.
• APPENDIX
  • Ask the analyst
  • List of Figures
    • Figure 1: Sample portfolio of pan-European sites
    • Figure 2: Average spot power prices and interconnections within the EU
    • Figure 3: Customer Identification Matrix
    • Figure 4: Contracting of energy buyers with pan-European portfolios
    • Figure 5: Datamonitor segments buyers within the UK to group together organisations that have similar buying priorities.
    • Figure 6: Different buyer segments contract for their energy in their own way.
    • Figure 7: Buyer Segments also play a role in determining levels of Third Party Intermediary (TPI) assistance.
    • Figure 8: Buyers have different service priorities from their suppliers.
    • Figure 9: Supplier positioning within liberalised markets
    • Figure 10: Market shares within buyer segments with regional segmentation
    • Figure 11: Market shares within buyer segments after supplier specialisation