Owners Business Plan Jumana AlUmran 200800444 BUSI 4261: Entrepreneurship Section 202 - Fall 2012 Business Plan Owners Jumana AlUmran 200800444 Miznah AlMansour 200900258 Sara AlZamil 200800118

Outline Introduction Description of SolaRays Industry Analysis Market Analysis Marketing Plan Management Team and Company Structure Operations Plan Business Model Plan for Designing and Developing SolaRays’s Services Financial Projections Summary

Introduction The growing concerns of global warming and the decrease of oil reserves made it inevitable to seek alternative energy from renewable energy resources Since Saudi Arabia is enriched with higher level of solar radiation, and to cope with the increasing electricity consumption trends, it is the perfect timing to introduce SolaRays to the citizens of Saudi Arabia SolaRays offers solar electric systems to residential and commercial buildings

Introduction The Ninth Development Plan concentrates on the economic resource development Contribution of the alternative energy sector to GDP is expected to be 1.9% in 2014 Saudi Arabia aims to using renewable energy in order to meet rising electricity demand, as well as reducing the domestic use of crude oil and hence release additional oil capacity for exports

Introduction Economic Resources Development: The Plan aims to expend about SR227.6 billion on the development of economic resources, including agriculture, water, electricity, oil, gas, minerals, industry and general economic services. These amounts constitute 15.7% of the total allocation approved in the Plan for all development sectors, and exceed comparable allocations under the Eighth Development Plan by 115.1%, reflecting increased efforts to develop economic resources, improve the efficiency of their utilization, and maximize their economic and social returns.

Description of SolaRays Background & Reasons for Developing SolaRays Oil is a non-renewable energy source Global warming burns fossil fuels, this releases CO2 to the environment The sun is an everlasting source

Description of SolaRays Vision “To have a brighter today and a brighter tomorrow, SolaRays provides solar power systems and their installation as well as services for the maintenance of such systems. SolaRays will help reduce the country’s reliance on oil, create a more sustainable future for our planet and reduce global warming.”

Description of SolaRays Mission “SolaRays aspires to become a premier provider of solar energy products and solutions, by delivering economically viable, environmentally sensible and socially responsible alternative energy to residential and commercial properties in Saudi Arabia. SolaRays seeks to produce financial rewards by investing in human resources, and monitoring global technological trends to provide clean and renewable energy solutions.”

Description of SolaRays Services SolaRays sells, installs and maintains residential and commercial solar systems in the Kingdom of Saudi Arabia. Some of our initial services: Identify appropriate solar energy strategies focusing on photovoltaic technologies System concept design Feasibility Assessment Project management and consulting Technology review and recommendations Solar system installation Monitoring Maintenance of existence installations

Four Basic Components of the System Rooftop Solar Modules An Inverter An In-Home Solar Power Monitor An Electric Meter

Description of SolaRays SolaRays’s Status We are three PMU graduates All three will equally share the ownership of the business Diminishing partnership contracts with a local bank Preparing all documents to apply for a license from the Chamber of Commerce

Description of SolaRays SolaRays’s Key Partnerships SolaRays will be importing a specific type of solar panels that have high performance in high DNI regions, such Saudi Arabia. Concentrator Photovoltaic (CPV) Soitec is a France-based leading manufacturer and supplier of CPV systems, and considered to be one of the world’s largest photovoltaic manufacturers

Industry Analysis Saudi Arabia alone has twice the average solar irradiation experienced in Europe, with yearly normal energy up to 2,550 kWh/ m2 The renewable energy sector is an emerging industry, as it faces recent changes in demand and advances in technology The Kingdom’s solar energy industry is expected to encounter fast-growing demand for renewable energy

Industry Analysis The population is expanding by 2.3% The economy is annually growing by 5% to 6% The demand for electricity is increasing by annual 5% Electricity demand in Saudi Arabia is anticipated to grow from 40 gigawatt (GW) to reach 120 gigawatt (GW) between the years of 2010 and 2028.

Industry Analysis Trends An increase in the awareness of going green and saving the environment The technological improvements in energy solutions

Industry Analysis Key Success Factors The technology differentiation and technology strategy A strong public awareness on energy would support renewable energy efforts The brand strength and access to distribution channels

Industry Analysis The energy sector is highly fragmented Oil Natural gas Clean and alternative energy Wind energy Solar energy Nuclear energy

Industry Analysis Five Force Model

Market Analysis Target Market Average-to-high-income commercial and household customers (above 150,000 SR annually) who are in need of efficiency investments. People with high degree of awareness and concern for environmental and social issues Care about using renewable energy sources.

Market Analysis Competitor Analysis

Product Features Durability Price Quality Customer Service Target Customers SolaRays Rawa NSS EGPHIL

Market Analysis Competitive Profile Matrix (CPM)

Marketing Plan We will issue ads that inform, engage, interact and entertain customers The advertisement campaign will deliver great impact and high awareness, to turn shoppers in any shopping mall into buyers! Chamber of Commerce, Water and Electricity Ministry in the Eastern Province, Saudi Aramco, SABIC, and SCECO

Marketing Plan Marketing Mix Product/Service SolaRays offers a special solar power systems made up of concentrator photovoltaic panels that have high and constant performance in Saudi climatic challenges.

Marketing Plan Marketing Mix Price Compared to the wide used electricity generated through oil, the pricing of solar power systems might be high at first, but over a short period of time, it would generate high return on investment. SolaRays installs photovoltaic solar home system at 10 SR per watt.

Marketing Plan Marketing Mix Promotion Newspapers, brushers, fliers, billboards, and online advertising and social media network Banner ads on Google and Yahoo! The Solar Energy Summit in 2013 Booths in ABYAT and SACO

This isn’t a billboard. It’s a power plant. www.solarays.com Nozhat AlKhaleej, Ad Dammam. 03-8957384

Marketing Plan Marketing Mix Place SolaRays will be located in Nozhat AlKhaleej

Marketing Plan Marketing Mix People Staff have appropriate interpersonal skills, and the service knowledge to provide the best service that our customers are paying for SolaRays is dedicated to provide highly qualified engineers, technicians and other technical professionals to meet every specialized requirement of our clientele.

Marketing Plan Marketing Mix Process An assessment for the building would be conducted by one of the team’s certified installer Engineers will create a system concept design The installation phase starts, supervised by the installation and operations department SolaRays offers an ongoing monitoring system

Marketing Plan Marketing Mix Physical Evidence The showroom of SolaRays will be fully operated using one of its solar power systems.

Marketing Plan Channels of Distribution The Ministry of Water and Electricity Campaigns, advertising, and raising awareness, people will become familiar with the brand Third party logistics (3PL) vendor

Management Team and Company Structure Our management will be composed of hand-picked individuals who are leaders in their field. Managers will be experts in the engineering field. We will try to pick people with high expertise to help in consulting.

Installation and Operations Board of Directors Consultation & Design Receptionist Consultant Engineers R & D Research Engineers Installation and Operations Technicians Sales & Marketing Brand Marketing Manager Social Media Manager Public Relations Manager Sales Manager Finance Accountant Management Team and Company Structure

Operations Plan Initially SolaRays will be located in on Nozhat AlKhaleej district, located between Ad Dammam and AlKhobar The showroom will be on the ground floor Offices will be located on the floor above Office equipment An initial stock of solar panels, PV cells, solar batteries

Business Model Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Channels Key Resources Cost Structure Revenue Streams Retention-focused Siotec System Installation Residential Cutting-edge technology In-person The Water and Electricity Ministry After-Sale Services Commercial Telephone High performance of panels in Saudi climates Email Average-high income level 3LP Reach the target audience SACO Online media Environmentally-minded Excellent service before, during and after installation Offline media Good location ABYAT Commercial booths Brand Installation methods Social presence Supplier Product/service sales Marketing & Sales Maintenance services Logistics Staff

Plan for Designing and Developing SolaRays’s Services What do we still need to do? SolaRays will be importing the CPV from (Soitec) Is a well-known company, located in France Provides the solar energy products that fits with KSA climate Low transportation costs What is our risk and challenge? Not getting enough customers How will we protect ourselves? By focusing on our competitive advantage Thus, SolaRays’s competitive advantage is the special type of the panels used for the system. This technology is the most competitive solution in the market, offers the best design for use in dry and sunny climates, and delivers the highest efficiencies on the market As well as the excellent service before, during and after installation by closely monitoring the solar power system’s performance remotely after it’s running.

Financial Projections

Financial Projections Sources of Funds A diminishing partnership contract with Albilad bank

Summary There are numerous factors ensure the attractiveness of the renewable energy industry in Saudi Arabia The reason for developing SolaRays is its timeliness to answering the needs of the populace of Saudi Arabia for renewable safe and sustainable energy source SolaRays’s team believes that there will no doubt be risks and challenges along the way. But, SolaRays will focus on its competitive advantage that will come from its cutting-edge technologies used in the solar panels its high level of customer services the core competencies and strategic resources, which will not be easy to copy

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