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Silence Golden No More
Electricity dereg begets busy new ad market
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Business New Haven
8/24/1998
By: BNH
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With electric deregulation in Connecticut a fait accompli, it doesn't take a brain surgeon to figure out that electric companies will have to start advertising to establish corporate images and brand identities with customers.
And, where there's advertising there's cute Madison Avenue-style ad campaigns, business partnerships and lots of competition to entice customers to choose one company over another as their service provider.
United Illuminating, the company that currently provides electricity and energy-related services to 312,000 customers in 17 municipalities in the New Haven and Bridgeport areas, is nearing the end of its first major advertising campaign. The results, according to company spokesperson Fran Mayko, are encouraging.
Under deregulation, UI will divest itself of its power generation division and concentrate on power delivery and related services, Mayko says.
“In the past, our advertising has been limited to the standard, boring utility company ads or ads for special promotions like conservation programs,” Mayko says. “From now on, the way we market ourselves must change.”
Taking a cue from those who want us to buy their cereal, cars, soft drinks and other products and services, UI partnered with Trane, an international cooling and heating systems manufacturer, and launched a major campaign to give away a new Volkswagen Beetle.
Under a picture of the car, the ad asks, “Is there a bug in your home's central air conditioning system?”
The play on words is intentional and the underlying message of the campaign is energy-efficiency. Because Volkswagen “Bugs” and heat pumps are both energy-efficient in their own ways, UI believes the tie-in is apt, according to Mayko.
Inserts announcing the promotion included basic information about the Trane system and the contest as well as an entry blank that asked questions about the customer's current system and whether he would like further information about the Trane system.
The inserts were included in every bill, and a mailing to 25,000 select customers was also sent out. In addition, the company created a billboard ad in Bridgeport and placed radio and print ads throughout the region.
As of August 12, more than 2,000 entries had been received. Of these, more than 700 asked for more information about the Trane system, according to Mayko.
“We consider that a good return,” Mayko says.
“The company's slogan - 'Positive Energy' - reinforces UI's strengths in service reliability and customer service,” Mayko explains, “and all our advertising will play into this theme to make us more visible in the wake of the restructuring of the electric industry.”
The campaign is also designed to let customers know that when they install an efficient heat pump system, they qualify for a special UI rate, according to UI's heat pump sales manager, Anthony Marone. - L.G.M.
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