Flex Your Power- California

Case Study: Flex Your Power

Background
A building boom and increase in air conditioning installation in the 1990s was putting major strain on California's power grid. Furthermore, droughts and the lack of new power plants put California in an energy crisis at the end of 2000 and into the summer of 2001, resulting in rolling blackouts across the state. Research showed that raising energy rates to increase conservation didn't work, and that residents needed to undertake a true behavior change to solve the problem. To do this, the state of California asked PR firm Walter McGuire & Company in San Francisco to design an energy conservation, social marketing campaign.

Research

A public survey had found that about 10 percent of the people understood the concept of peak energy
Virtually everybody thought they were conserving but they didn't know, beyond turning out the lights, what to do
Yet over 80 percent thought they already had enough information.
A great number of people just felt the situation was hopeless
The slogan, "Flex Your Power," was developed in an effort to get residents and business leaders to understand that it was really in their hands, that they held responsibility.


Audience
C: Commercial
I: Industrial
G: Governmental
A: Agriculture
R: Residential
They wanted to focus on key influencers in each of those areas

Objectives

To cut energy use by 14 percent in 5 months
To shave peak energy use through conservation and/or shift it to after peak (after 7:00 p.m.)
To prevent blackouts
To make energy conservation, including energy efficiency, a way of life

Implementation
Used a variety of tools, tailored to each of the target segments:

Prohibitions: The state prohibited the use of outdoor lighting.
Incentives and Disincentives: The state increased efficiency funding in 2001 and put in a tiered pricing structure to penalize heavy energy users
CEO pledge: High level people within hundreds of businesses in the state were asked to publicly sign a commitment to cut energy use by 20 percent by the summer going into 2001 and committed to de-lamping every fourth light and getting thermostats turned up to 78 degrees Fahrenheit.
School challenge: A homework kit was sent home with all fourth, fifth and sixth graders. They did a little energy audit and calculated their family's wasted energy and parents had to sign it.
Water use: Supported farmers in reducing irrigation. Investments: The state's larger pension funds increased investments in energy efficiency and renewable energy.
Phase 1: 2000-2001

Used advertising and messaging "It's Not Even Hard" to convince people they could help
Phase 2: Summer 2001

Used press releases, events, and earned media to build momentum around the messaging "Together We Can Do This" and the idea that energy conservation could be a community way of life.
Phase 3: 2001-2002

Built partnerships, distributed flyers, developed a leadership and awards program to lock in the concept of conservation as a way of life and build motivation.

Website
Program planners also developed a multi-sector website, www.fypower.org, where residents, business owners, etc. could log on to download tip cards, get rebates for energy efficient appliances, etc. They also did online advertising and developed an electronic newsletter to promote energy efficiency, programs and ENERGY STAR products and new homes.

Results
During 2001 and 2002, Flex Your Power advertising and outreach was funded at almost $50 million per year. The Flex Your Power mass media advertising effort used the majority of this. Ongoing funding also came from the Public Goods Charge (a small percentage of every electricity and gas bill). Because of the Flex Your Power campaign,
in 2001:

There was 400 percent increase in sale of CFLs;
There was an average 100 percent increase in sale of Energy Star appliances;
Peak shifting was noticeable;
Peak energy use in June 2001 was cut by 14.1 percent;
in 2002:

Energy use increased, but remained below previous levels;
46 percent of those surveyed about this increase said that it was "just easy to slip back into old ways;"
46 percent said they believe there was "no need to conserve after summer/crisis;"
This was in spite of the fact that broadcast advertising reached of 95 percent of the primary targeted market.

Social Marketing
Yes, this is social marketing because:

Planners focused on a behavior change to benefit society;
The behavior was observable, measurable, specific, feasible, and had a direct link to the desired outcome;
Planners conducted extensive research to determine the consumer mind-set and determinants of behavior as well as competition;
And there is strong evidence of the consideration of marketing principles:
Product- Energy conservation, fewer blackouts
Price- Appliance and equipment rebates, lower energy bills
Place- Homes, businesses, schools, grocery stores, etc.
Promotion- Website, paid media, earned media, broadcast spots