Project Save Power - Communication Strategy to save power

Communication Strategy for
Electricity Conservation Campaign
in Oman
Created by:
Shantanu Sengupta
Advertising International Co. LLC (ADINC)
22nd February 2010

©ADINC©ShantanuSengupta2010-2015;ALLRIGHTSRESERVED
Scope of the presentation
• The Brief
• The Market Reality
• Understanding Consumer Behavior
• Communication Task
• Communication Strategy
• Roll-Out Details
• Campaign Monitoring
2/22/2010 Electricity Conservation Campaign in Oman © ALL RIGHTS RESERVED 2

Copyright Material
The document is shared in good faith for academic use only. Any
illegal or commercial use of the contents of the document, without
prior written permission of the copyright owners is banned.
Violators are liable to be penalized as per international law.

The Brief – Background
• Electricity Holding Co. (EHC )
• Omani govt. owned Co. that oversees Electricity sector in Oman.
• Holds govt. shares of 9 subsidiary Cos. engaged in infrastructure,
generation, transmission and distribution of Electric Power.
• EHC’s 2015 vision:
• Regional leader in electricity industry.
• 2009 summer
• EHC launched “Save Electricity” campaign which received “some
positive response”.
• 2010
• EHC wished to leverage the benefits of last year, by doing a 2nd
phase, which reinforces the benefits of saving electricity across all
sectors of community and industry.

The Brief – Scope and TA
• Scope of campaign:
• Objective – generate awareness for saving electricity and
conserve energy
• Focus – reducing consumption of Air Conditioning
• Target Audience : cover the whole Omani community:
• Residential Customers
• Students and children
• Govt. Institutions and NGOs
• Corporations and Businesses

Electricity Consumption in Oman
The Market Realities

Gross consumption of electricity
Oman’s Electricity consumption in 2009 was 11.19
billion KWh (reported in 2007).
Source: CIA World Factbook - accurate as of Sept 17, 2009.

Oman Electricity Sector - Market Structure
• There are 3 main
sources / systems
of Power
generation and
distribution
• The MIS (Main
Interconnected
System) accounts
for a majority of
the demand/
supply in the
country
(MIS)

Per-capita Electricity Consumption
• Oman currently has
the lowest rate of
consumption in GCC
(4250 KWh in 2006)
• However, Oman
consumes more
than double of
China (2041 KWh)
and 1.5 times that
of the World
average (2750 KWh)
per capita

Growth in Electricity demand (MIS*) - 2015
• The max. power
demand in the MIS*
is expected to grow
up to 5,348 MW by
the year 2015, at an
average annual rate
of 8.5%
• Therefore the annual
energy demand is
expected to be
approx. 25,598 GWh
in 2015.
* Main Interconnected System (MIS) covers Muscat, Buraimi and most of S.Batinah, N.Batinah Dakhliyah, Sharqiya, and Dhahirah
regions, serving around 500, 000 customers. Source: OPWP'S 7-YEAR STATEMENT (2009-2015) published Dec2008

Power shortfall projections (MIS)
• At the current rate of demand and supply, a minimum of ~2,100
MW of additional on-peak generation is required by 2015, in
order to maintain standard LOLH*
Shortfall
LOLH = expected loss of load hours, which in any year must not exceed 24 hours.
Source: OPWP'S 7-YEAR STATEMENT (2009-2015) published Dec2008

Electricity Tariff Structure*
• Domestic Tariff
• Increases with the
quantity of
consumption.
• Non-Domestic Tariff
• Commercial Tariff = 20
Bz/kWh without any
max. unit for
consumption.
• Industrial Tariff = 24
Bz/kWh in summer and
12 Bz/kWh in winter
* Based on 2005 figures. Source: “Electricity Tariff based on long-run marginal costs …” (2005)
by Arif S. Malika,, Salem Al-Zubeidib,
Currently huge difference exists between Domestic
and Commercial tariffs

Tariff subsidies*
• Oman electricity tariffs are still based on average production
cost of electricity generated, transmitted and distributed in the
country.
• The tariffs are then adjusted/modified for different sectors and heavily
subsidized for residential sector.
• Average cost of electricity was approx. 25.17 Bz/KWh (2005)
• In contrast, the minimum tariff applicable for a domestic consumer was
only 10 Bz/KWh
• Hence the tariffs don’t reflect the true cost of generation,
transmission and distribution of electricity at the consumer end.
*Source: “Electricity Tariff based on long-run marginal costs …” (2005) by Arif S. Malika,, Salem Al-Zubeidib,

Summarizing, the stark realities are…
• Oman’s per-capita Electricity consumption is alarmingly
high – higher than the world’s most populated country
• Currently, Oman is just being able to meet it’s Electricity
Demand
• Demand is about to outstrip Supply as early as this year
• The govt. provided OR 140 Million* worth of subsidies to
the Electricity sector this year
• Growth in consumption has increased this subsidy by 25% vs. 2009
. *Source: OMAN Budget 2010

However, is the Consumer Bothered at all?
We chose to probe a little deeper…
152/22/2010 Electricity Conservation Campaign in Oman © ALL RIGHTS RESERVED

Consumer Research
• OBJECTIVES
• Probe attitudes towards using electricity in general
• Understand patterns of Electricity Consumption
• Identify specific attitudes towards using Air conditioners
• Understand current awareness of Electricity Conservation
• PRIMARY RESEARCH
• Qualitative Depth Interviews
• Omani = 5 nos. Expats = 3 nos.
• SECONDARY RESEARCH
• Internet Forums

Key findings
“I need electricity in everything I do;
from Mobile phones to shaving to
entertainment to cooking! You name
a task and I can’t think of doing it
without electricity.”
- Omani Man
“I feel electricity is now as crucial as water or
air; Gone are the days when you could think
of alternatives; Life in the Gulf has made me
more dependent on Electricity than ever!”
- Expat woman
“I don’t recall any day from my childhood when I
did not use electricity. I feel I’ve become a slave to
it now. I use electricity to for every little chore of
my life. It saves so much of my time”
- Omani Woman
“I guess in Muscat we still have the chance
to respect electricity. Otherwise in other
GCC countries, you don’t feel that it’s a dire
need , since you hardly miss it”
- Expat Man

Key findings (contd.)
• Electricity is taken for granted for anything and everything
a person does in life – which is pretty common to all
residents in the GCC
• Standard household consumption - through AC, Fridge, Geysers,
Music, Entertainment and Cooking
• Considerable usage also noted in gardening, special illumination,
security, room heating, etc.
• Expats in general have a tendency to be selective in
consumption – akin to their lifestyle back in their home
countries
• Omanis in general are easy-going and experiential towards
electricity usage – as if finding a new reason to use it often
• Interestingly, Geysers are used even during summers in some
cases, esp. early mornings and late nights!

“Most ACs in our home are always
running for long periods of time… I
can't stand a warm bedroom so that
one runs about 13 hours / day….”
- Omani Student
“Last July, I got my highest ever
electricity bill, because we stayed
home during annual leave; so ACs
were running 24/7.” - Expat Man
“Hmmm my electricity bill is... quite high as my
rooms AC is always switched on... I need a cool
room when I come back from college . Otherwise
I can’t sleep in hot summer…”
- Omani Student
“When we went for 7 days’ vacation last summer, we
left my ACs switched ON in a higher temp. setting; It
smells stuffy when ACs are off for long in a closed
room…” - Omani Woman
“I like to have my cabin to be perfectly cooled before I enter
office…. It immediately relaxes me after a hot drive from
home. I also prefer to keep the AC ON while leaving office”
- Expat Office-goer

• The general attitude is to keep the ACs always ON at
homes during summers
• People don’t mind the high electricity bills due to this
• Behavior of some respondents differ between their
Homes and offices:
• Tend to have ACs ON before they reach office – even though
they would switch off before leaving home
• Tend to have ACs on highest cooling mode in Offices
• Respondents prefer to install / use Split ACs which are
perceived to offer uniform and faster cooling than
Window ACs

• Expats in general are more aware of the need to conserve
electricity than the Omanis
• Respondents in general are still not very conversant with
simple techniques of Electricity Conservation
• Young Omani respondents have comparatively more carefree attitude
towards saving electricity than the older ones
• Young Omanis are more aware of 2009 campaign on Save
Electricity
• Many relate saving electricity to 2009 campaign, but have not
followed the message in practice
• Females seem to be more concerned about the message of
conservation;
• however younger ones do find reluctance and (perhaps) futility in
pursuing it.

Research - Conclusions
• Electricity and ACs are almost taken for granted in Oman
– even when the bills shoot up due to carefree usage
• While Expats are careful, Omanis seem to be more daring
in their usage of Electricity
• Usage pattern of electricity and ACs may differ from
Home to Office in some cases
• Message of Conservation though recalled, is not practiced
in most cases by the respondents

In short, therefore…
• Consumers are either not aware or (more likely)
NOT BOTHERED about the need for electricity
conservation
• Consumers are COMPLETELY ALOOF of the
repercussions of an imminent widening of gap
between electricity demand and supply

Communication Tasks
• Generate deep-rooted awareness and moral
commitment towards Electricity Conservation
• Develop a sense of responsibility towards
Electricity Conservation
• Demonstrate the short and long term impact of
Electricity Wastage in their lives

What could be the possible Impact of Wastage?
1. Electricity Demand will outstrip Supply; frequent power
cuts will be a harsh reality
• Impact on Consumer: DENIAL
• “This couldn’t be happening to me!!”
2. Oman may be forced to buy electricity from neighboring
countries
• Impact on Economy:
• Bleeding National Resources; Lesser Employment Opportunities,
Reduced development; Stalled Manufacturing;
• Impact on Consumers: PUNCTURED PRIDE
• “Oman is no longer self-sufficient!”
3. Subsidy on Electricity will keep escalating every year
• Impact on Economy:
• Diminishing Opportunities for public infrastructure, e.g. Hospitals,
Colleges, schools, employment, etc.
• Impact on Consumers: LABELLED as LAGGARDS
• “Omanis are lagging in growth within this region”

Communication Strategy
DENIAL
“Couldn’t be
happening
to me”PUNCTURED
PRIDE
“Oman is no
longer self-
sufficient”
LABELLED as
LAGGARDS
“Omanis are
falling behind in
growth“
feeling of GUILT
Create a feeling of GUILT
for the colossal drainage of national wealth
that they are contributing to!

Communication Platform / Positioning
Rationale / Reason to believe:
Simple individual efforts towards saving electricity
ACTUALLY makes a bigger contribution towards
enhancing the Omani pride.
Save Electricity!
Save National Pride!

Communication Strategy #1:
SHAKE THE USERS TO SOME STARK REALITIES

Communication Strategy #1 (contd.)
The reality is that Oman spends RO 140 million each
year as subsidy (to reduce user bills) on electricity.
In other words, this subsidy is costing the exchequer
140 million riyals.
“And you and I waste this money by sheer negligence!”
292/22/2010 Electricity Conservation Campaign in Oman © ALL RIGHTS RESERVED2/22/2010

Communication Strategy #2:
A CAMPAIGN THAT URGES THE USERS TO
STOP
WASTAGE OF ELECTRICITY IN A SIMPLE WAY

Communication STRATEGY #3
CHAMPION A DRIVE AND INVITE PARTICIPATION
FROM EVERYONE WHO LOVES OMAN
“Save Your Wealth” drive

What is ‘Save Your Wealth’ Drive
A campaign not driven by a creative idea...
But an ideal!
A drive, forceful enough to make it a mass activity that
cuts across schools, colleges, government offices,
corporate, factories, etc.…

Implications of ‘Save Your Wealth’ Drive
• National Level
• Energy saved is wealth saved for the nation.
• The nation’s resources are used with prudence - Oman does
not have to depend on other countries.
• Oman will not have to face power cuts - present in some
neighboring countries.
• Personal Level:
• The electricity bills paid by all are heavily subsidized.
• If the current usage pattern continues the users will face
shortage or demand will outstrip supply.
• Government will be forced to take off the subsidy - means one
would have to pay more, and personal wealth will get eroded

Stages of ‘Save Your Wealth’ Drive
Stage 1
The Campaign is taken across as a pledge by
Residents, Students, Children, Govt, NGOs,
Business Establishments, etc.
Stage 2
Booklets are distributed on simple ways to save
electricity drive through Gas Stations, Schools,
Supermarkets, Govt. establishments., etc.
Stage 3
A Contest to generate ideas on how the people
are able to save electricity differently

Campaign ROLL-OUT Details

Campaign Strategy / 360O Roll-out
‘SAVE YOUR WEALTH’
Print Ads
TV / Film Ads Public Relations
Events
Outdoor
Activation Online
Direct Resp.
Institutions
Radio Ads
Electricity Bills

Campaign Activity Chart
Print Ads
TV / Cinema
Public Relations
Event / Activation
Outdoor
Elec. Bills
Direct Resp.
Institutions
Radio Ads
Activity June July Aug Sept.
Online

Print Advertising
• Newspapers (2 months)
• Half Page Ads to be used for the launch period, followed by Qtr
page insertions
• Mainline Arabic and English dailies will add to the News and
announcement value
• Magazine Advertising (2 months)
• Full page Magazine Ads will sustain the campaign for a longer
period
• Direct Response Adverts (throughout)
• This will be an ongoing activity running with the Print Advertising
• All Print Ads will carry a direct response coupon, filling which
entitles the respondent to get a booklet of tips to save electricity
and national pride

Electricity Bills Campaign
• Utilize advertising space available in Electricity Bills
• Convey the message of Saving electricity.
• Even utilize the envelope to carry the same message
• Insert Details on reducing AC consumption and wastage in
each bill
• Demonstrate how small savings actually add up to massive amounts
• Include a “Call for Action” in the Bill
• Steer respondents to register online OR express solidarity OR share
experiences online / thru e-mail

Advertising on TV/Radio
• TV Advertising
• A 30sec spot will run through the local Arabic TV, for a period
of 40 days
• Cinema Advertising
• Since satellite TV is costly, the same ad will be run through
select screens in Muscat, in order to increase visibility
• Radio Advertising
• In order to gain quick recall and mileage, one English and one
Arabic radio will be used for a period of 2 months each
• Topical Radio talk shows and call-in programs could also be
looked into, depending on availability

Outdoor Advertising
• MEGACOM Campaign
• A 3 month campaign will be run in 10 locations each in Muscat
and Interiors
• Megacoms will help to sustain recall
• Roof-Top advertising
• Depending on availabilities and locations, strategic Roof-Top
locations would be taken, where Megacoms are not available

Monitoring thru Direct Response Ads
• All Print Ads will carry a direct response coupon to:
• Fill in name, age, address, email, mobile number
• Write a line stating how he/ she will save electricity
• Send the filled-in coupon to a collection center address appearing
in the ad.
• Alternatively, the respondent can log in to a mini-site and
enter the same details, plus where he saw the ad
• Rewards for respondents:
• Respondents to receive a booklet on tips to save electricity.
• The one with the best suggestion to save electricity will get and
award in a public ceremony

Online Advertising and Activation
• Online Adverting
• Flash banners would be taken in key websites visited from the
region
• An e-form will appear in the advertised website, which will
collect information like Name, age, address, mobile, email, of
the respondent, PLUS a line stating how he wishes to save
electricity (part of direct response campaign)
• Online Activation
• Agency proposes to have a mini-site for the campaign, that will
register respondent’s solidarity with the campaign (just a
simple registration will be enough)
• Once registered, the respondent can participate in an IDEAS
program for saving electricity
• A separate section will also collect info on any case studies /
small project successes in the respondents’ locality

Publicity thru PR, Events & Activation
• Press Releases
• Standard releases announcing / reporting campaign launch / progress
• Each of the activation stages to be supported with PR
• Events / Activation
• Launch Event
• Announce the launch of the event in media and press
• “Conservation for National Pride” seminar (under aegis of EHC)
• Invite Univ students to share ideas and their efforts in the region
• “Reduce AC usage” event
• Small events in populated localities; educate on efficient ways to use ACs
• Electricity Conservation Workshop in Schools for all age groups
• Include Art and craft, modeling, writing related to Electricity conservation,
• Seminars and Regeneration workshop in Colleges
• Promotional Kiosks for tips and reminders in Offices / Institutions

Activation at Home and Public Places
• HOME
• Stage 1 :
• Flyer distribution in high AC use localities (e.g. multi-storeyed buildings)
• Stage 2
• Collect Responses and Solidarity with the Ideas thru online registration
• MALLS / PUBLIC PLACES
• Promotional Events
• Inform and Involve respondents into the campaign
• Kiosks in strategic locations where Promo Events are not possible
• Permanent info. Kiosks
• Health Centers / Hospitals / Collection Centers/ Cust.Care centers
• Each event will distribute information, along with a request to log in
and express solidarity with Electricity Conservation

Monitoring / Measuring the Success
3-pronged Monitoring Approach…

APPROACH #1
Thru Direct Response Advertising
• Response Coupon within Print Ads
• Restricted to the 1st/ 2nd and 4th/ 5th insertions only
• Apart from respondent details, the coupon will contain the
name of the publication
• Collection of Responses
• Choice to either fill and send the coupon to an address, OR
• Log-in to a mini-site to fill in the same details of the coupon
• Receipt and counting of coupons will measure success for the
launch phase as well as the progress of the campaign
• Database Generation
• The info on the coupon could be used to generate a database
for follow-up / other activities

APPROACH #2
Thru Online registrations at a Mini-site
• Whether the message of Save Electricity is received through a
Press Ad, or flyers in Kiosks, or Electricity Bills, or Activation
programs, the respondent will be directed to register at a site
within the campaign period
• Registration will ensure distribution free e-booklets on power
conservation and plenty of ideas to engage respondents of
every age-group
• Even if a respondent is not registering, a site visit will be
recorded and reported on basis of page views / site views /
time spent, etc.
• This process can continue throughout the campaign, and
progress reported regularly

APPROACH #3
Comprehensive Campaign Effectiveness Study
• Propose “Before” / “After” monitoring and measurement
• BEFORE CAMPAIGN
• A minimum representative sample will be agreed upon, to do a
systematic awareness study
• Fieldwork of the study will be completed just before the campaign
• AFTER THE CAMPAIGN
• Same sample size and profile (not the same respondents) will be
tested for awareness, 2 weeks after the last campaign activity
• The data will be analyzed together and presented as a Benchmark
for future campaigns

Copyright Material
The document is shared in good faith for academic use only. Any
illegal or commercial use of the contents of the document, without
prior written permission of the copyright owners is banned.
Violators are liable to be penalized as per international law.

Thank You
2/22/2010 51Electricity Conservation Campaign in Oman © ALL RIGHTS RESERVED
Shantanu Sengupta
(Branding Strategist • Marcom Specialist)
Planning & Research Director – ADINC
shantanu.seng@gmail.com
For further information contact:

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