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ENERGY STAR: Strategic Brand Management

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Title: ENERGY STAR: Strategic Brand Management


1
ENERGY STAR Strategic Brand Management
CEE WINTER PROGRAM MEETING JANUARY 15, 2008
  • Sam Rashkin
  • National Director, ENERGY STAR for Homes
  • U.S. EPA

2
Today
  • Brand Success to Date What it Means for
    Tomorrow
  • Program Foundation
  • Outreach Activities New PSA Campaign and Other
    Efforts
  • Updates ProductsResidentialCommercial/Industria
    l Update

3
Environmental Brand Success Requires
Finding/Building Upon Intersection of Interests
Environmental Protection
Cost-Effective No Sacrifice in Performance
Consumer is Key
4
ENERGY STAR
  • Protects the Environment through superior energy
    efficiency
  • No Tradeoffs in performance or quality
  • Cost Effective (2nd price tag)
  • Source of Authority Govt. backed symbol
    providing valuable, unbiased information
  • Binary (Y/N)
  • Power of the individual to make a difference

5
ENERGY STAR Strategies
  • Residential
  • Labeled Products
  • 50 products
  • 1700 manufacturers
  • Labeled New Homes
  • 20-30 more efficient
  • Home Improvement
  • beyond products
  • ducts / home sealing
  • whole home retrofits
  • Commercial
  • Corporate Energy Management
  • benchmarking, goals, upgrades(management,
    systems vs. widgets)
  • whole building label for excellence
  • technical Assistance
  • Labeled Products
  • plug loads, not system components
  • Industrial
  • Small Business

International partnerships Canada, EU, Japan,
etc
6
ENERGY STAR Accomplishments
  • In 2006, Americans with the help of ENERGY STAR
  • 37 MTCe GHG emissions prevented 25 million
    vehicles
  • 14 billion energy bill savings
  • 170 billion kWh lower energy use almost 5 of
    US electricity sales
  • 1/3 total US GHG emissions reduction from EPAs
    CCPs

7
ENERGY STAR Program Success
  • 70 Public awareness
  • 9,000 organizations engaged in man., delivery,
    adoption
  • 2 billion qualified products purchased by
    consumers
  • 725,000 new homes
  • 10 of new homes starts
  • 10,000s buildings benchmarked
  • 1,000s of buildings improved

Environmental Results Positioned to Double over
next 10 Years
8
Large Environmental Benefit
9
A Brand
  • Complex relationship emotional connections
    and functional benefits
  • Exists in the mind of consumer
  • Everything you do defines your brand
  • -- products -- people -- communications
  • -- services and support -- website -- RD
  • the list goes on

10
Loyalty is the goal
Performance
Communications
Brand Management
11
ENERGY STAR has evolved
  • Mark now works harder
  • Established brand guidelines/book
  • Consistent personality/communications
  • Co-branding platform
  • Dialed up emotion with rational equity speak to
    head AND heart

12
Protecting Integrity of ENERGY STAR Label
  • Self-certification program works
  • competitive market place
  • active consumer groups (Consumer Reports)
  • EPA monitors use/protects integrity of brand
  • Information on products and appropriate logo use
    required
  • Routine checking of manufacturer submitted
    information
  • Selective product testing
  • Pulling from retail shelves twice annually
  • Customer calls
  • Manufacturer information on competitors
  • Designed supplemental testing program for problem
    areas -- lighting products
  • Track all advertisements (reports monthly)
  • All printed press coverage daily, monthly
  • Web report qtly
  • Integrity Report - annually
  • Insure correct use of mark all violations dealt
    with coord. with EPAs OGC
  • Complementary reinforcing package

13
New Report on ENERGY STAR Brand
  • Strong Brand
  • History, Evolution, Current Status
  • Benchmarks other brands, lessons learned
  • Intl Brand ExpertInterbrand

14
ENERGY STAR is a strong brand
  • Applied lessons learned from 1000s Brands
  • Brand tenants are serving ENERGY STAR well and
    cannot be compromised
  • Proven technology
  • Carbon reductions
  • Benefits reasonably immediate and measurable
  • Protect the brand
  • Moving forward
  • Continue to carefully manage the brand
  • Be consistent protect brand definition
  • Results must be tangible
  • Remain customer driven
  • Innovate to maintain momentum

15
ENERGY STAR SpecificationsCriteria
  • Significant energy (GHG) savings
  • Consumption/performance can be measured and
    verified
  • Maintain/enhanced performance
  • Cost effective
  • No bias to one technology.
  • Effective differentiation for consumers
  • Target strive for top 25 percent of product
    models (not sales) but key criteria can trump
    that goal

16
ENERGY STAR SpecificationsWell-Documented
Process (Transparency)
17
ENERGY STAR in the US 50 Product Categories
Appliances Clothes washers Dishwashers Refrigerato
rs Dehumidifiers Air cleaners Water coolers
Heating Cooling Central AC Heat
pumps Boilers Furnaces Ceiling fans Room
AC Ventilating fans
Home Electronics Battery chargers Cordless
phones Answering machines TV/VCRs DVD
products Home audio External power adapters DTAs
Office Equipment Computers Monitors Printers Copi
ers Scanners Fax machines Multi-function devices
Commercial Food Service Refrigerators Freezers F
ryers Steamers Vending machines
Home Envelope Home sealing Roof
products Windows/Doors
Lighting CFLs Residential light fixtures Exit
signs
18
Overview of New and Revised Specs
19
Other Possibilities
  • New Specs
  • Non-Ducted AC (aka mini-splits)
  • Heat Recovery ventilators
  • Microwaves
  • Hand dryers
  • Comm Clothes Washers
  • Soft Serve Machines
  • Autoclaves/Sterilizers
  • Revisions
  • Boilers
  • Ceiling fan light kits
  • Water coolers
  • Audio/DVD

Will monitor market penetration, update scoping
papers, develop new scoping papers to assess
feasibility, potential energy savings, etc
20
Result Product Sales Growing
21
Building Demand Outreach critical to
environmental results
  • Specs are foundation
  • People must ACT to achieve environmental benefit
  • Substantial resources to outreach with results
  • Annual outreach strategy
  • Media reach of 1 billion plus per year
  • 6 million web visits per year

22
Why talk about the environment?
  • Americans are concerned
  • 87 strongly agree or agree with the statement I
    am very concerned about the environment.
  • 93 strongly agree that Saving energy helps the
    environment
  • 74 of consumers believe that a product that is
    better for the environment is a somewhat to a
    very important consideration when purchasing an
    appliance or an energy using product
  • Create a long term connection for action help to
    motivate change
  • Emotional

23
The time is right energy efficiency and global
warming
  • 82 of Americans believe in global warming, and
    there is widespread belief that human behavior is
    contributing to the problem.
  • Fox News/Opinion Dynamics Poll, Spring 2007
  • Majority believe immediate action needed
  • NY Times/CBS Poll, April 2007
  • 86 would choose one home over another based on
    its energy efficiency.
  • Shelton Group/Energy Pulse 2006)
  • 63 say change their consumption habitsbased on
    increase in energy prices.
  • Shelton Group/Energy Pulse 2006

24
Coordinated Outreach Across Program Partners and
Key Product Categories
  • Broad
  • PSA profiles of real people
  • ENERGY STAR Advice energystar_at_home
  • ENERGY Home energy advisor
  • Lighting
  • Change A Light / Change the World
  • HVAC
  • Cool your world summer campaign
  • DIY Home sealing
  • Properly used thermostat
  • Office equipment
  • Monitor enabling
  • New Low Carbon IT campaign
  • Consumer electronics
  • Coordination with CEE members
  • Commercial Food Service
  • Working with utilities/other program admin.

Multiple Goals Build Awareness Provide value to
program partners Promote action Promote growth in
product sales
25
ENERGY STAR PSA CampaignCurrent Components
  • 30 TV PSA (currently in distribution)
  • 5 print PSAs (in development)
  • 2 CI, 2 Residential, 1 Special
  • 2 minute video

26
ENERGY STAR PSA CampaignPrint campaign
  • Designed to work across ENERGY STAR offerings
  • Residential
  • Commercial
  • Change a Light
  • Available to Co-op

27
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28
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29
  • ENERGY STAR in the Residential Sector

30
2007 Campaigns ENERGY STAR Change a Light
  • ENERGY STAR Change a Light Day, Oct. 3, 2007
  • Turnkey materials
  • 20 day bus tour 10 stops
  • 2006 and 2007 successes
  • 1,000,000 pledges to date
  • 650 participating organizations
  • State leadership activity in nearly every state
  • 30 proclamations of ENERGY STAR Change a Light
    Day

31
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32
ENERGY STAR _at_ home
  • Focal point for extending ENERGY STARs market
    position as a trusted source on energy savings
    information
  • Broad range of tipsin addition to highlighting
    labeled products, (e.g. wash full loads)
  • Systematic selection and documentation process
    behind advice

33
ENERGY STAR New Homes
  • Nearly 200,000 homes in 200612 market share
  • 12 states 20 market pen.
  • 3,500 builder partners
  • New spec in 2007 first quarter 2007 shows about
    11 market penetration.
  • More High growth markets Salt Lake City, North
    Carolina, Denver, Atlanta, and Pacific Northwest

34
ENERGY STAR New Homes2007/08 Activities
  • Expand Multi-Family High Rise Pilot20 ASHRAE
    90.1
  • Annual sponsor meetingDevelop national strategy
    for ME
  • Promote carbon neutral homeLink with Climate
    Technology Initiative
  • Expand efforts in affordable housingBOPs and
    Outreach to State Housing Agencies
  • Launch Designed to be ENERGY STAR

35
ENERGY STAR and Existing Homes
  • 30,000 Retrofits to Dateunder Home Performance
    with ENERGY STAR -- Show average savings of 20
    per household
  • New HPwES Programs in 2006Long Island Power
    Authority, New Jersey, Maine and Excel Energy in
    Minnesota (pilot program)
  • 2007 5 More Sponsors and 20,000 Retrofits
  • Continued Support for BPI (EPA, DOE, HUD) More
    than 1,200 certified contractors in 31 states and
    growing

36
National HPwES Activity
WI Focus on Energy
ME Energy Office
OR - Energy Trust of Oregon
VT Efficiency Vermont
ID Energy Division
Mass Saves NGRID NStar
NY - NYSERDA
WY Energy Office
First Energy
NY - LIPA
Peoria TRICON
NJ - NJBPU
West Penn Power Sustainable Energy Fund
City of Anaheim
CO - E-Star Colorado Ft Collins Utilities
City of Bolder Colorado Springs
Maryland Energy Administration
So. California Edison
Existing Programs Launching Programs Considering
Programs
Georgia Power
Phoenix - FSL
Austin Energy
Jackson EMC
37
Other Activities Existing Homes
  • ES HVAC Quality Installation Guidelines
  • Completing pilots with SCE and Oncor to collect
    cost data and test verification procedures
  • Propose proper HVAC installation program this
    Fall 07 with CEE and ACCA
  • Launch in Spring 08
  • Provide program best practices and contractor
    training
  • HVAC maintenance campaign in 2008
  • Web site tools
  • ENERGY STAR Home Advisor
  • Continue Home Energy Yardstick
  • Seal Insulate w/ENERGY STAR
  • New graphic for insulation man./retailers
  • Spanish language Do-It-Yourself Guide

38
  • ENERGY STAR in the Commercial and Industrial
    Sector

39
Commercial Sector Approach
  • Whole Building Performance
  • promote integration of systems
  • about energy savings -- not presence of new
    technology
  • achieve twice the savings for a given investment
  • Performance Measurement System
  • can not manage what you can not measure
  • fix missing market information
  • how to measure efficiency / performance
  • when is a building efficient
  • provide information linked to real market
    transactions (like energy bills)
  • Leadership in the market place
  • overcome confusion over role of codes
  • Working with utility programs
  • model for green building programs

40
Commercial Buildings ENERGY STAR Challenge
  • Announced in 2005 with 20 states, assoc., etc
  • Improve buildings by 10 or more
  • Key first step assess building efficiency
    using standardized measurement system
  • Cannot manage what you can not measure
  • Galvanizing many end users, states, associations

41
Commercial Buildings Program Growth
  • Building benchmarking being used as energy
    management/ investment tool
  • Over 6 billion sf of commercial space rated
  • 10,000 schools
  • 3,200 buildings earn ENERGY STAR
  • Added water tracking in 2006
  • 2,300 water meters already added

42
Commercial Buildings 2007 Update
  • Energy Performance Ratings
  • Expand ratings to new markets
  • release rating for big box retail Oct. 1
  • Update existing ratings with new data
  • office building rating released Oct. 1
  • Capturing environmental benefits/profile of
    buildings
  • Portfolio Manager incorporates emissions from
    EGRID
  • California Benchmarking Initiative
  • PGE automated utility bill transfer successful,
    expanded
  • Model for national implementation

43
Commercial Buildings 2007 Update (cont.)
BEEP Building Energy Efficiency Program
  • BOMA
  • BEEP first year launch trained 5,000 building
    owners/managers
  • Challenges members to 30 reductions measured
    w/EPA rating.
  • BOMA Locals launching ES initiatives (Portland,
    Seattle, Austin)
  • CoStar
  • Comm. real estate listing service
  • Highlights buildings earning ES
  • Next step All CoStar listings to provide ES
    performance rating

44
Commercial Buildings 2007 Update (cont.)
  • Local Government and the ES 10 Challenge
  • Cities/counties play a vital dual role in the
    Challenge
  • Lead by example and improve own buildings
  • Promote energy efficiency to constituents
  • Unanimous Support for ES ChallengeU.S. Conf. of
    Mayors (USCM) and National Assoc. of Counties
    (NACo)
  • Expanded materials to support ES Challenge
  • Sector Fact Sheets
  • Energy Facts
  • Co-Brandable brochures, posters

45
Commercial Buildings Energy and Water Update
  • ENERGY STAR Water and Wastewater Focus
  • Benchmarking tools and energy efficiency best
    practice guides completed by October 1, 2007
  • Water tracking in Portfolio Manager (PM)
  • Added in June 2006
  • Over 1,000 PM users tracking water use
  • More than 2,300 water meters
  • Joint energy and water utility meeting - March 08
  • New ES specs for products using energy and water
  • Commercial dishwashers
  • Ice Makers

46
Industrial Program
  • Grown to include 10 industrial sectors
  • Focus meetings a continuing success
  • Peer exchange
  • Sector-specific barriers and opportunities
  • 2006, first 20 man. plants ES qualified
  • auto assembly,
  • cement, and
  • wet corn milling plants
  • 2007, petroleum refining earned ES
  • New industries to be added each year
  • fiberglass and cereal production in 2007
  • Two a year

47
Assisting Industry with Excellence in Energy
Management
2007 Priorities Finalize 3 EPIs for the
freezing and canning of fruits and vegetables,
flat glass, and container glass productionupdate
EPI for auto assembly, and advance 2nd EPI for
food industry for cereal production plants
48
Industrial ProgramNew report
  • Energy Strategy for the Road Ahead, Scenario
    Thinking for Business Executives and Corporate
    Boards issued by the Global Business Network
  • Business Leaders broad cross-segment of American
    industry including autos, chemicals, high tech,
    banking, consumer products and logistics.
  • Focuses on 4 Scenarios
  • Need to Move Beyond Short-term Planning Think
    strategically about energy reaction is the wrong
    way to face the future.

49
CI Focus for 2008
  • Broaden the ENERGY STAR Challenge
  • Reach new associations
  • Target 10-15 priority cities to serve as model
    cities to implement Challenge
  • Revise/Expand EPAs energy performance ratings
  • Update existing ratings (schools, supermarkets,
    hotels)
  • Address data centers
  • Build the market for energy efficiency services
  • Continue to engage energy service providers,
    utilities, state energy programs
  • Challenge architects to design buildings that
    will earn the ENERGY STAR.
  • Cont. easy link carbon emissions/reductions w/ES
  • Make it easy to assess energy use on a cont.
    basis
  • Leverage 70 brand awareness in CI
    marketENERGY STAR becomes the brand to look for
    at home and work

50
ENERGY STARBrand Goals for the future
  • Triple carbon savings by 2012 (from 2000).
  • From 16 MMTCE to over 50
  • Build consumer brand awareness and loyalty
  • Motivate consumers and build demand
  • Maintain meaning/integrity on full suite of
    products
  • Quality, cost-effective, relevance
  • Enhance partnership with utilities and EEPS
  • Reduce costs of assisting partners to expand
  • Need to manage more products builders/new homes
    commercial/industrial partners
  • Build home improvement beyond products
  • Duct sealing, home sealing, whole home
    performance are big opportunities
  • Transform CI approaches
  • Whole building approach, many building types,
    industrial

51
Maximizing the Use of the ENERGY STAR Platform
  • ENERGY STAR label for products/homes
  • Broadly relevant technologies
  • Meet brand principles
  • Well-proven
  • ENERGY STAR Save More
  • Broadly available
  • Well proven
  • But high costs
  • Advanced Technologies
  • Exploring how to leverage ENERGY STAR
    infrastructure to help address market barriers
  • Inappropriate to use ENERGY STAR Brand

52
On Track to Meet Future GHG Reduction Goals
  • Priority Areas
  • Lighting
  • HVAC
  • Consumer Electronics (and power supplies)
  • Office Equipment
  • Commercial Food Service

Goals
Source LBNL Analysis (2007)
53
  • THANK YOU!
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