Marketing strategy for biomass pellet fuel

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Biomass energy is solar energy that is fixed to the earth by photosynthesis of plants and is most likely to be one of the major new energy sources in the 21st century. It is developing rapidly with rapid momentum. Biomass pellet fuel is a solid fuel that is processed into a certain shape and a certain density in a specific equipment after being pretreated by crashing, pelletizing, and drying etc. Due to its good renewability and environmental friendliness, the fuel has been valued by countries all over the world. The industrialization in Europe and the United States has been relatively mature, but its development in China is relatively slow, and can even be said to be bad. For its industrialization development in China, academic research focuses on how to reduce costs. From the perspective of the market, research on its marketing strategy may be a unique way to develop its industrialization.

Target marketing strategy for biomass pellet fuel

More detailed market segmentation

Biomass pellet fuels are niche products, and the market should be refined to choose the target market that suits them. To this end, the market can be divided into foreign markets and domestic markets, rural markets and urban markets according to geographical factors, according to age, the elderly market, middle-aged market, youth market and others, and can also be divided into domestic energy and production according to the purpose  use energy.

Accurate target market selection

As a substitute for coal, farmers, industrial boilers and thermal power plants are the target markets for biomass pellet fuels. As far as farmers are concerned, young families, empty-nest elderly people and wealthier families are the main potential consumers. In recent years, most of the gas-poisoning families in rural areas have been living in empty nest families. Biomass energy can do some articles in this regard. For industrial boilers and thermal power plants, potential users are relatively more in large and medium-sized cities with certain economic strength and serious pollution.


Higher market positioning strategy 

Relatively speaking, the future development of biomass pellet fuel should be positioned at the high end, making it a high-tech environmentally friendly product, rather than relying on price to win. The reasons are as follows: 

First, cost considerations. For a long time, the production cost of biomass pellet fuels has remained high. Enterprises and companies want to do everything possible to reduce costs. It is better to change the way of thinking, increase the technical content and quality of products by increasing the investment in research and development, and highlight the products and straws. Differences in alternatives such as coal, relying on differences to create their own unique advantages. 

The second is the consideration of demand. At present, people's awareness of environmental protection is not very strong, and users who can accept such products are, after all, a minority. In the case of a small audience, it is difficult for the production of the enterprise to achieve the scale effect, and of course, there is no condition for low-cost competition. 

The third is market considerations. As a major substitute for this type of products, fossil energy is showing a gradual decline. However, due to the maturity of technology, market wideness and policy bias, biomass pellet fuel is very promising in the foreseeable future. It is difficult to have a price advantage comparable to it. Of course, compared with the straw and fuelwood used by farmers every day, the new fuel is less likely to have a price advantage.

Marketing strategy for biomass pellet fuel

Improve product technical content and quality

China introduces the development of biomass pellet fuel for a short time, mainly relying on crop straw as raw material. It is different from the forest residues widely used in Europe and the United States, which makes it more difficult to process and produce, and the product density is low. In the process of use, slag formation and deposition corrosion often occur. Therefore, relevant production enterprises should fundamentally change their business concepts, from pursuing low-cost to pursuing high quality, continuously increasing technology research and development efforts, and focusing on improving product technology content. Studies have shown that environmental protection has replaced economics as the primary factor to consider when farmers choose energy. Therefore, under the premise of ensuring good use, the focus of research and development of biomass pellet fuel technology should be placed on the excavation and improvement of unique advantages such as environmental protection and safety, instead of pursuing thermal efficiency or comprehensive improvement.

Deeply cultivate channels to improve accessibility 

Since most of the material-forming fuels produced in China are small-scale enterprises with small scale and lack of funds, they often invest more in the production process, but they do not pay enough attention to marketing, especially channel construction. This is also the case that many enterprises are not well managed or even switched and discontinued. Therefore, companies should pay attention to deep-rooted channels and fully mobilize the enthusiasm of dealers. With the popularity of the Internet, some companies have now realized their great influence. It is worth learning by establishing network marketing channels to promote and reduce channel costs. 

Take a more accurate promotion method 

In order to adapt to the high-end positioning of biomass pellet fuel, the design of product advertising image should focus on the enjoyment of healthy and happy life, so in the choice of media, we should choose a professional medium. As a new type of energy, trial sales are particularly important. Select some influential users to gradually promote them through demonstration effects.

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