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Alliances in UK Energy Retail
Datamonitor, Dec 2005, Pages: 19
This document provides an analysis of niche marketing, loyalty scheme, sales tie-up and white labelling alliances in the UK residential energy market. It aims to explain the penetration of alliances, the factors influencing this and the alliances to date.
Scope of this title:
- An analysis of sales and marketing alliances in the residential retail market.
- An explanation of the types alliances that exist, by four categories and descriptions as to their strategic use.
- An explanation of what alliances exist (or have existed), with descriptions of the parties involved and the basic relationship undertaken.
Highlights of this title:
The four types of alliance are: white labelling; niche marketing alliances; sales tie-ups; and loyalty partnerships. Niche marketing favours suppliers most; white labelling the least; loyalty partnerships and sales tie-ups are operational.
Alliances have not heavily penetrated the UK market, due to the dominance of the major players and the tier1 balance. Suppliers have generally perceived white labelling to be de-valuing, sharing the balance of power with a non-utility player.
White labelling has provided Scottish Power with scale, niche marketing alliances have assisted with new tariffs, and loyalty partnerships have been targeted at improving retention. With no requirement for the big six suppliers to enter into alliances, such alliances will remain small-scale or niche.
Reasons to order your copy:
- Gain insight into what alliances exist, the value they bring to the residential supplier and the reasons for their existence.
- Understand that the market power of existing suppliers, coupled with the wholesale market has reduced the need for suppliers to enter into alliances.
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