Develop a concise set of highly focussed marketing strategies for your most attr
ID: 449155 • Letter: D
Question
Develop a concise set of highly focussed marketing strategies for your most attractive and highest priority markets at Duke Energy. These strategies will guide your market entry, market development, and brand building activities. Establish budgets for these activities. Set realistic and measurable performance targets and time lines for each market entry/development strategy. These targets are critical to designing and building business and production capacities aligned with expected market demands on entry, and in to the future.
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The Duke Energy Foundation invests in high-performing, sustainable programs and initiatives that contribute to our goal of helping build a diverse workforce of the future Duke Energy Corporation (DUK) is a heavyweight in the U.S. electric utilities industry.It mainly operates in the U.S. and Latin America.
In 2013, its operations had $24.6 billion in revenue. This translated into $8.6 billion of earnings before interest, tax, depreciation, and amortization.Its regulated utility operations serve 7.2 million electric retail customers in six states in the Southeast and Midwest. The area represents a population of ~21 million people. As of December 31, 2013, Duke Energy owned a generating capacity of 57,500 megawatts ,86% is regulated by government.The rest is used for its commercial and international business.
It is important to remember that they do not produce natural gas. They buy all of the natural gas necessary to supply their customers from wholesale suppliers. By law, this cost is passed through dollar-for-dollar to our customers after review by the state public utility commissions. In other words, they make no profit from increases in the wholesale price of natural gas.
It is also important to note that wholesale natural gas prices are driven principally by national market conditions such as availability of supply, the level of demand, and by the weather. But, while we cannot control such market conditions, there is much that they can do to reduce the impact of these conditions on their customers.
Duke Energy relies on a balanced purchasing strategy to manage and hedge the cost of natural gas for their customers. Duke Energy locks in a portion of its gas supply in the summer months for delivery in the winter, through storage injections or fixed price contracts. The balance of Duke Energy’s winter natural gas supply is met with either monthly or daily purchases.
In each case, they negotiate aggressively with their suppliers, and continuously seek out new sources of supply to make sure they are getting the best price possible for our customers. they believe our balanced purchasing strategy is one of the reasons that Duke Energy’s natural gas costs, on average, have been 6% lower than the other major gas utilities in Ohio and Kentucky over the last three years.
The company began in 1900 as the Catawba Power Company when Dr. Walker Gill Wylie and his brother financed the building of a hydroelectric power station at India Hook Shoals along the Catawba River near India Hook, South Carolina.In 1917 the Wateree Power Company was formed as a holding company for several utilities that had been founded and/or owned by Duke, his family, or his associates, and in 1924 the name was changed to Duke Power. In 1927, most of the subsidiary companies, including Southern Power Company, Catawba Power Company, Great Falls Power Company, and Western Carolina Power Company were merged into Duke Power, although Southern Public Utilities, 100% owned by Duke Power, maintained a legally separate existence for the retail marketing of Duke-generated power to residential and commercial customers.
In 1988, Nantahala Power & Light Co., which served southwestern North Carolina, was purchased by Duke and is now operated under the Duke Power Nantahala Area brand. Duke Power merged with PanEnergy, a natural gas company, in 1997 to form Duke Energy.[9] The Duke Power name continued as the electric utility business of Duke Energy until the Cinergy merger.
On July 3, 2012, Duke Energy merged with Progress Energy Inc with the Duke Energy name being retained along with the Charlotte, North Carolina headquarters.
In early 2008, Duke Energy announced a plan to build the new, 800-megawatt Cliffside Unit 6 coal plant 55 miles (89 km) west of Charlotte, North Carolina. The plan has been strongly opposed by environmental groups such as Rising Tide North America, Rainforest Action Network, the community-based Canary Coalition as well as the Southern Environmental Law Center, which has threatened to sue Duke if it does not halt construction plans. On April 1, activists locked themselves to machinery at the Cliffside construction area as part of Fossil Fools Day.
Duke Energy (DUK) operates in three business segments—Regulated Utilities, Commercial Power, and International Energy.
1- Regulated utilities- Regulated utilities are responsible for most of Duke Energy’s retail sales. It’s the core strength of the company. The segment accounts for 86% of the revenues.
2- Commercial Power- Commercial Power owns, operates, and manages power plants. The segment engages in the wholesale marketing and procurement of electric power, It also deals with the fuel and emission allowances related to these plants as well as other contractual positions. Commercial Power’s generating operations—excluding renewable energy generation assets—mainly consists of coal-fired and gas-fired non-regulated generation assets. The assets are dispatched into wholesale markets. This segment generates only 2% of Duke’s revenue.
3- International Energy- International Energy contributes 12% of Duke Energy’s revenues. The segment operates ~4,900 MW of generation facilities. International Energy mainly targets power generation in Latin America. The segment also owns a 25% interest in National Methanol Company (or NMC). It’s located in Saudi Arabia.
Duke is one the few utilities companies in the U.S. that has sizable international operations. Nearly 12% of its revenues come from its operations in Latin America and its 25% stake in National Methane Company (or NMC)—located in Saudi Arabia.
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