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Alliance Penetration Rates Are Low in The UK Energy Retail Market - as the Market is Dominated by Major Players.


DUBLIN Dublin, city, Republic of Ireland
Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River.
, Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles.  -- Research and Markets (http://www.researchandmarkets.com/reports/c32822) has announced the addition of Alliances in UK Energy Retail to their offering.

This document provides an analysis of niche marketing A niche market also known as a target market is a focused, targetable portion (subset) of a market sector.

By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers.
, loyalty scheme, sales tie-up tie-up
n.
A temporary immobilization, as of traffic, work, or mechanical operation.

Noun 1. tie-up - a social or business relationship; "a valuable financial affiliation"; "he was sorry he had to sever his ties with other
 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 Scottish Power Limited is a vertically integrated energy company with its headquarters in Glasgow, Scotland, and a subsidiary of the Spanish utility Iberdrola. It is the Distribution Network Operator (DNO) for the central and southern Scotland (voltage  with scale, niche marketing alliances have assisted with new tariffs This is a list of tariffs and trade legislation:
  • List of tariffs in Canada
  • List of tariffs in United States
  • List of tariffs in India
  • List of tariffs in China
  • List of tariffs in Russia
, 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 small-scale
adj.
1. Limited in scope or extent; modest: a small-scale plan.

2. Created on a 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.

Topics Covered

Chapter 1

Executive summary

Barriers in forming alliances, have hindered their penetration, yet they can assist in scale, differentiation and retention.

Chapter 2

Alliances in the UK energy retail

The four types of alliance are:

white labeling

niche marketing alliances

sales tie-ups

and loyalty partnerships.

Niche marketing favors suppliers most white labelling the least loyalty partnerships and sales tie-ups are operational.

Alliances exist in the energy market because both parties need each other to provide sales or marketing differentiation.

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.

Many alliances exist today, the biggest are ScottishPower's two white label deals with LTSB LTSB Land Trust Service Bureau
LTSB Lloyds Trustee Savings Bank
LTSB Line Time Slot Bridging
 and Sainsbury's.

Niche marketing alliances typically target eco-friendly eco-friendly adjecológico

eco-friendly adjnon nuisible à or qui ne nuit pas à l'environnement

eco-friendly adj
 or older customers. The largest loyalty schemes have entered the energy market, through half the major suppliers.

Apart from two white label deals, the retail market has been largely unaffected by sales tie-ups and white label deals.

White labelling has provided ScottishPower with scale, niche marketing alliances have assisted with new tariffs, and loyalty partnerships have been targeted at improving retention.

Benefits of alliances, in retention and differentiation, are mitigated mit·i·gate  
v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates

v.tr.
To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve.

v.intr.
To become milder.
 by the market structure and position of the "big six".

Chapter 3

Appendix

Methodology, related reports and contact details

List of Figures

Figure 1: Datamonitor's framework for classifying the four types of alliance.

Figure 2: Alliances have not heavily penetrated the UK market, due to the dominance of the major players and the Tier1* balance.

Figure 3: Desciptions of the main aliiances in the UK (1)

Figure 4: Desciptions of the main aliiances in the UK (2)

Figure 5: Datamonitor's framework classifying alliance, seen in the UK retail market

For more information visit http://www.researchandmarkets.com/reports/c32822

Source: Datamonitor Datamonitor is a provider of online database and analysis services. The company is based in the United Kingdom and also has offices in the United States, Japan, and other countries.[1] The Datamonitor team includes analysts and professional researchers.  
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Feb 14, 2006
Words:595
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