REVIEW OF MARKETING STRATEGIES USED BY ELECTRICITY SUPPLIERS IN THE HOUSEHOLD RETAIL MARKETS

As a result of market liberalization, the supply side of the electricity value chain has changed dramatically compared to two decades ago. Consumers across the EU (both households and businesses) are now able to switch suppliers according to their preferences. These changes meant that utility companies had to adapt in order to, on the one hand, take advantage of new opportunities offered by the liberalized market and, on the other hand, limit the loss of revenue caused by increased competition. The aim of this paper is to provide a summary assessment of the marketing strategies employed by electricity suppliers in the household retail markets, focusing mainly on Europe. This will be achieved through a review of the academic works that discuss market trends, as well as practices employed by electricity suppliers that can be accredited to their marketing strategy. The design of the marketing strategies will be assessed based on the traditional 4P marketing strategy model. The results show that most of the effective measures that can be implemented are centered on product innovation and pricing strategies. The Product component is approached trough offerings such as 'green energy' packages, bundled services, smart meters and improved customer support. The Price component is generally designed around fixed or variable price contracts, along with price discrimination, green energy premiums and 'smart time of use' tariffs. Promotion is strongly related to communicating information about pricing or product innovation. Place is the least used component of the marketing strategy.