GridHome is a business that sells and installs residential battery systems that store electricity generated from rooftop solar panels. Customers can monitor battery performance using a mobile app.
GridHome’s current offer is a “Battery + Install” package sold through its website and a small network of independent solar retailers. The business has grown steadily, but a new competitor has entered the market with heavy advertising and a lower advertised “from” price.
GridHome’s management team is reviewing the strategic role of marketing in the next 18 months. They have identified three issues:
Internal information (last 6 months):
| Item | Data |
|---|---|
| Website enquiries | 4,800 |
| Enquiries that proceed to an on-site assessment | 1,440 |
| On-site assessments that convert to a sale | 432 |
| Average package selling price (incl. install) | \$12,400 |
| Average gross profit per installation | \$2,850 |
| Percentage of cancellations after deposit is paid | 8% |
| Main cancellation reason | “Expected full-home backup / different savings” |
Two alternative marketing directions are being considered:
GridHome’s overall business objectives include sustainable profit growth, reduced cancellations, and protecting long-term brand trust in a market where safety and reliability are important.
Recommend whether GridHome should prioritise Direction 1 or Direction 2 over the next 18 months. Justify your recommendation by evaluating the strategic role of marketing in achieving GridHome’s objectives, including at least one risk and one mitigation strategy.
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