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Executive Summary
Objectives
Calculate the size of gas turbine market and prioritize geographies based on market attractiveness Influence of micro and macro trends on the gas turbine market Developing value proposition and Go To Market strategy
Approach
Calculation of market size of filters done for different geographies based on electricity production volumes using natural gas Prioritization of geographies done on the basis of usage, growth rate, and market share of natural gas turbines for power generation Identification of micro and macro trends which will affect the turbine sales in the future and their market attractiveness impact Value proposition for E10 cartridge synthetic filter in comparison to E9 and E12 Preparation of Go To Market strategy keeping in mind the customer type and value proposition for reach type
Production (MW)
154699 84889 121711 11332 123088 35419 531138
No of cartridge
293927.1804 499144.8767 354178.226 33316.97945 596977.9737 68004.82192 1845550.058
Market size($)
96995969.52 164717809.32 116878814.59 10994603.22 197002731.34 22441591.23 609031519.21
africa 2%
Europe
Mexico
Marco trends
Convergence of electricity prices and natural gas
Impact
Supply and demand Energy prices Competition High elasticity
Detailed Explanation
Reliability and operational issues in one can exacerbate the effects on supply and demand in the other Extreme and volatile energy prices at times of natural gas Where gas supply is limited, competition increases between gas and electricity markets Where weather sensitive electricity , high elasticity in energy prices.
Market Attractive
Medium Medium Medium Medium
Other users
Environment regulation on emission Up gradation Switching Growing power need Increase in production Dependence Concern about nuclear energy Industrial sector reforms Switching Usage
Low
High High High High High High
Micro trends
Global shale boom
Impact
Switching and cost Flexibility and efficienct Increase in cost and availability
Detailed Explanation
Making natural gas cheap and plentiful.Natural gas produce cheap electricity 6 cents per kilowatt-hour as compared to costly 7.5 cents for new coal-fired power plants. More turbines and higher usage of natural gas Some can quickly increase and decrease power output to meet spikes or lulls in electricity demand, while others are able to hum along steadily without using much natural gas but take hours to bring up to speed Transportation issues, heavy weight, complexity and the unavailability of specialty alloys
Market Attractive
High
High
Low
Value Proposition
Parameter
E10
E9
E12
Advantage of E10
24
24
12
120
90
180
20
60
300
Every 1% decrease in downtime causes loss of 1.5-1.9 MW per hour per turbine and cost($90-114) Suitable for harsh operating conditions and marine, arid, humid and sub-tropical climates
Filter technology
Synthetic
Cellulose
Cellulose
Maximum Capacity
190 MW
180 MW
180 MW
Yes
No
No
Self cleaning mechanism will lower operating and maintenance costs and reduce fouling High efficiency in varied climate types with minimal maintenance and usable in excessive heat, high humidity, high pollution, etc.
High
Low
Low
Go To Market Strategy
For Mature markets (Europe and North America)
Value proposition : Lower operating costs, Higher output and efficiency, Less downtime and maintenance, Rugged and Adaptable Strong existing brand name. Use this to promote E10 to existing customers Use existing channel of distributors, turbine operators, maintenance operators. Strong sales force to address value to clients Sales channel design of 2 or 3 level channel differentiated based on geographies to avoid channel conflict. Direct selling
More cost effective More control Better satisfaction
Supply to competitors to be limited in the initial years so as to build a strong brand name for E10 and later leverage it for higher prices Sales of E9 and E12 to be continued alongside to reach the whole customer base Competitive positioning : Low downtime , Self cleaning , value for money. Reduction in prices by 1% downtime ($90-$114 per turbine per hour)
Go To Market Strategy
For Emerging markets (Middle East, Asia and Africa)
Value proposition : Efficient in Arid/Humid climates, Lower operating costs, Higher output and efficiency, Less downtime and maintenance, Rugged and Adaptable Sell via competitors to cover the majority of market Sell through distributors to develop the brand name of E10 in the nascent market Direct selling where accessibility is high and distributors for remote or difficult to access regions. Breadth of channel should be more than length. Selective distribution strategy rather than intensive Pricing to be done competitively so as to gain market penetration Provide complete solutions including servicing, maintenance etc. through consultative selling This market has high future potential and growth rate Africa is growing tremendously so moving early can get many opportunities.
europe middle east rest of asia africa north america latin america
arid
mixed humid
2
3 4
99271000
1078253000 310272000 4,65,27,65,000.00
11332
123088 35419 531138
11106
119396 34002
Assumption
mixed = 3%
Cartridge synthetic market share 0.2 0.6 0.3 0.3 0.5 0.2
Market size ($330) 96995969.52 164717809.32 116878814.59 10994603.22 197002731.34 22441591.23 609031519.21