CM Deck Nov 2016(web)
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Transcript of CM Deck Nov 2016(web)
PROPANE EDUCATION & RESEARCH COUNCILNAPLES, FLORIDA
November 2 – 3, 2016
CHAIRMAN’S REPORT
Tom Van Buren
ADVISORY COMMITTEE REPORT
Bruce Montroy
AUDIT COMMITTEE REPORT
Randy Doyle
STRATEGY TASK FORCE
Drew Combs
PERC STRATEGY WORKSHOP RESULTS
• Refresh Aspiration Statement
• Define Strategic Initiative Success
• Prioritize Strategies
• Establish Strategy emphasis
• Next Steps• Align Tactics with Strategic Priorities
through Strategic Emphasis
Aspiration
Initiative Initiative
StrategyStrategy
Initiative
Priorities
Tactic
TacticTactic
REFRESHING PERC’S ASPIRATION
Current:
To expand and grow the safe, efficient use of odorized propane gas as a preferred energy source through consumer education, training, technology development and the commercialization of new products.
Proposed:
Provide tools, resources and brand stewardship that support the propane industry's efforts to expand and grow the safe, efficient use of propane through consumer education, training, technology development, and the commercialization of new products.
Emphasis shifted to highlight PERC’s primary responsibility as an enabler.
Aspiration
StrategicInitiatives
STRATEGIC INITIATIVES TO ACHIEVE THE ASPIRATION
Consumer Awareness
Provide tools, resources and brand stewardship that support the propane
industry's efforts to expand and grow the safe, efficient use of propane through
consumer education, training, technology development and the
commercialization of new products.
Product DevelopmentSafety & Training
Industry Engagement
PERC has defined 4 Strategic Initiatives to achieve the Aspiration
This Task Force used these broad initiatives as a given.
Parking lot: PERC Staff may need to revisit the Initiatives to validate.
Top Strategies
RECOMMENDED OVERALL STRATEGY PRIORITIES 2017-2019
Middle Strategies
Lower Strategies
Cause Marketing
Paid Media
Research (CA tracking)
Owned Media Earned Media
Direct Marketing
State Associations
National Associations
CompaniesIndustry Workforce
Training
External AudienceTraining
Safety Messages
Residential/Commercial
AutogasAgricultureOutdoor Power
Equipment
Material Handling
Technical/Operational Innovation
Industry Engagement
Safety & Training
Product Development
Consumer Awareness
EMPHASIS FILTER BY STRATEGYCONSUMER AWARENESS
StrategiesCampaign/CA
ResearchPaid Media Owned Media
Emphasis
Nielsen Campaign Tracking
VOC research
Digital Websites/ Microsites/
Landing pages
Social Media
TV
Radio
Cause Marketing
Adopt a classroom
Use only to support major
marketing initiative
Earned Media
Press Releases from success
stories
Heritage of propane history
Only for specific
coordinated marketing projects
Direct Marketing
Top
Middle
Low
EMPHASIS FILTER BY STRATEGYPRODUCT DEVELOPMENT
Strategies
Emphasis
OPE
Lawn & Landscape
Dealer Outreach
Top 3 OEM Golf Equipment
Affordability of Equipment
Ag AutogasTech Op
Research
Work with co-ops/extension
agents
School Bus
Irrigation
Propane Industry Fleets
Align with TS&S to identify
industry needs
Regulation response
Emissions quantification
Structure Heat
Emissions Research
Marketing Collateral
Fuel Quality
Mobile Refueling Infrastructure
code & development
Res/Com Material Handling
Consumer Campaign (+HVAC,
Plumbers, etc.)
Rebates for appliances
(direct or state)
Product Development &
commercialization
Dealer & Distributor outreach
Affordable GHP or similar
application
Emission & Economics research
Top
Middle
Low
OEM Engine Development
EMPHASIS FILTER BY STRATEGYSAFETY & TRAINING
StrategiesExternal Audience Training
Emphasis
First responders
Construction Pros (HVAC,
Plumbers, etc)
Dispenser Operators
Engine Mechanics
Safety Messages
Industry Workforce Training
Safety Videos
Anti-DIY
Safe Grilling
CETP online/blended
learning
MTST
“Safety Talk” Resources for
marketers
Propane Industry
Recruitment
Top
Middle
Low
Compliance Reviews for
new products
EMPHASIS FILTER BY STRATEGYINDUSTRY ENGAGEMENT
StrategiesNational
AssociationsCompanies
Emphasis
Curating Online content
Align with states to be frontline with marketers
Utilizing AC & Council volunteers (to represent PERC) during industry
conferences
Create relationships for bilateral
information sharing
State Associations
Staff and Member Leadership Outreach
Conference/Annual Meeting support
Align PWS with National campaign
Top
Middle
Low
Marketer Surveys
NEXT STEPS
• Create a brief narrative for industry to digest
• PERC Staff and Task Force to filter tactics against priorities
• Staff to re-organize existing Plan
• PERC to publish new Long Range Plan
• All above completed by April Council Meeting
INDUSTRY OUTREACH COMMITTEE
Bob Barry
CHAIRMAN’S COMMENTS
VICE-CHAIRMAN’S REPORT – MARKETERS
Drew Combs
NPGA REPORT
Rick Roldan, President & CEO, NPGA
VICE-CHAIRMAN’S REPORT – PRODUCERS
Bruce Leonard
GPA REPORT
Mark Sutton, Executive Director, GPA
TREASURER’S REPORT
Rob Chalmers
SURPLUS VARIANCE HIGHLIGHTS2016 FORECAST TO BUDGET ($ IN MILLONS)
Category Forecast Budget Variance
Beginning Surplus $7.6 $10.4 ($2.8)
Program Funding ($31.8) ($35.7) $3.9
Rebates ($7.1) ($7.2) $0.1
Forecasted Ending Surplus $2.6
Assessments $35.6 $36.3 ($0.8)
Deobligations $1.1 $0.8 $0.3
Total Variance from Highlights $0.8
Other Budget Components $0.2
Forecasted Added Surplus $1.0
2016 Budget Surplus $1.6
PERC INVESTMENT ALLOCATION AS OF AUGUST 31, 2016 (IN MILLIONS)
Deposits, $4.0, 17%
CD, $16.1, 67%
MB, $3.8, 16%
TOTAL: $23.9 M
Cash & Money Market(Deposits)
Cert.of Deposits (CD)
Municipal Bond (MB)
PERC TWELVE MONTH CUMULATIVE INVESTMENT RETURNS AT AUGUST 31, 2016
0.00%
1.00%
2.00%
3.00%
Total
1.03% 1.06%Return %
Investment
Actual Returns CPI
(0.03%)
CHIEF EXECUTIVE OFFICER’S REPORT
Roy Willis
2017 PARTNERSHIP AGREEMENT
Docket 21039
DOCKET 21039 – PARTNERSHIP AGREEMENT
Research & Technology, $744,500 , 54%
Coordination with Qualified Industry Organizations,
$50,000 , 4%
Industry Conferences & Conventions, $115,000 , 8%
Employee Safety & Training,
$60,000 , 4%
Codes & Standards Collaboration,
$150,000 , 11%
CETP Outreach, $75,000 , 5%
Agency Outreach, Industry & Public Affairs,
$200,000 , 14%
Total: $1,394,500
INDUSTRY PROGRAMS ($4,770,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Partnership
Agreement$1,394,500 $1,394,500 $3,376,000
2017 Industry Outreach $340,000 $340,000 $3,036,000
2017 Corporate
Communications$610,000* $610,000 $2,426,000
2017 MTST $700,000 $700,000 $1,726,000
2017 Partnership with
States$1,500,000 $1,500,000 $226,000
* Additional $400,000 Program Support
Initiatives, $75,000 Safety & Training
CHIEF BUSINESS DEVELOPMENT OFFICER’S REPORTTucker Perkins
2016 MARKET OUTREACH RECAP
PULL THE PLUG ON ELECTRIC WATER HEATERS CAMPAIGN
• Through September 30, 2016:
• 63,379 users visited
KnowYourWaterHeater.com.
• 10,974 users completed the five question
quiz
• 2,923 fact sheets have been downloaded
• Over 5.5 million impressions from ads
• Compared with September 2015, water
heating pageviews increased by over
3900 percent and users increased their
average time on the page by 40 percent
OVERVIEW OF PROPANE DISTRIBUTION SYSTEMS
• Course completed in first
quarter of 2016
• Includes printed course, five
videos, and instructor materials
• Metrics to date:
• 1,753 total visits to page
• 226 course downloads
• 100 video views
RESIDENTIAL OPPORTUNITY INSIGHTS
• Launched in April 2016 at the
NPGA Southeastern Conference
• Metrics to date (April to present):
• 517 registered users
• 8,500 visits to website
• 1,320 reports downloaded
• 677 templates downloaded
NEW RESOURCES
Code & Above Code
Course, Infographic,
Fact Sheet
Commercial Generator Course
E-BooksUpdated Virtual Home
Generator BrochuresVideos
Updated Product Directory
Energy Calculators
US FORKLIFT SHIPMENTS
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
1990 1995 2000 2005 2010 2015
PROPANE INTERNALCOMBUSTIONENGINE(Classes 4 & 5)
ELECTRIC RIDER(Classes 1 & 2)
BACK TO SCHOOL CAMPAIGN METRICS
• Total Campaign – 90 million impressions
• Notable coverage:
• All news affiliates in San Antonio - KSAT, News 4 NBC, KENS 5, KABB, and Univision 41. Print included: San Antonio Express-News and the San Antonio Business Journal
• Yahoo! News, MarketWatch, Parade Magazine, Coffee with America (nationally syndicated).
• 30+ Business Journals across the country
• 3 million social media impressions
• 285 TV/radio placements in more than 30 markets across the U.S.
• Notable markets: Dallas/Fort Worth, Washington D.C., Atlanta, Tampa, Portland, Indianapolis, San Diego, and Columbus (Ohio)
• No paid media support
2017 BUDGET
Jim Harris, CFO
2017 BUDGET ($ IN THOUSANDS)
Category Updated Budget July Budget Variance
Funds From
Beginning Surplus$2,631 $1,747 $848
NPGA/GPA
Partnership$1,394 $1,319 $75
Additional Uses of Funds
Medium Duty Engine
Development$1,500 $1,000 $500
Engine Emissions
Research$615 $200 $415
2017 BUDGET CONSIDERATIONS
• Four (4) public comments from industry.
• Budget approval : authorizes the administrative budget, the program labor plan, assessment collection costs, IT program support cost and capital projects.
• Budget approval directs staff to move forward with the proposed Program Plan initiatives.
• All project and program activities are subject to the docket approval process. (Council approval, consent calendar, presidential approval.)
CONSENT CALENDAR
CHIEF MARKETING OFFICER’S REPORT
Dennis D. Vegas
CONSUMERBRAND CAMPAIGN
REINVENTING OUR BRAND 2016 AND BEYOND
AGENDA
• Introductions
• Campaign
• Results Reporting & Findings
• 2017 Marketing Plan
MARKETING MISSION
Provide tools, resources, and brand stewardshipthat support the propane industry's efforts to expandand grow the safe, efficient use of propane throughindustry collaboration and consumer education.
NIELSEN BRAND STUDY (FEB 2016)
Propane Users Propane Non-Users
Familiarity
93%
Familiarity
48%
Favorability
64%
Favorability
26%
BRAND PROMISE
Brand Vision
Delivering the energy you need when and where you need it
Brand Positioning
To those who are proud of how they live, Propane is the energy source that fuels their independent way of life
Brand Personality
A confident, surprisingly modern partner who always has your back
Brand Affiliation
Proudly Propane
GOALS AND STRATEGY
INCREASE
FAVORABILITY & FAMILIARITY
INSPIRE
ENGAGEMENT
CHANGE
PERCEPTIONS
CAMPAIGN GOALS
DRIVE AWARENESS OF THE
BRAND MESSAGE
Accomplish mass reach
through air cover
TV, high-impact, print, radio
COMMUNICATIONS STRATEGY
EDUCATIONAL
CONTENT
Content showing modern
applications of propane and
appliances
Paid search, microsite
MULTI-CHANNEL STORYTELLING
Create deeper funnel
engagements
Digital video, microsite,
retargeting, social
2016 CAMPAIGN JOURNEY
Paid Social and Search (Oct)
Results Report (Oct)
Consumer Launch (Jul)
Industry Introduction (Apr)
Focus Groups (Mar)
Benchmark Study (Feb)
Brand and Position (Jan)
Agency Selection (Dec)
Task Force Mandates (Sept)
CONSUMER EDUCATION BUDGET
2004
$26.6 million
2016
$9.65
million
2016 MEDIA INVESTMENTS
60%22%
9%
9%
Video
Digital
Audio
Media Total
$7 Million
(Campaign Total $9.65 Million)
2016 CONSUMER CHANNELS
Source: Summer 2015 Simmons Connect (Adults 35-64 with a household income less than $100k who own a home)
ADULTS
35-64
SOCIAL/DIGITAL
VIDEO
RADIO
CINEMA
2016 INDUSTRY OUTREACH
MARKETERS
SOCIAL AND
DIGITAL
ONE-ON-ONE
OUTREACH
PUBLICATIONS
VIDEO
ONLINE CATALOG
MILESTONES ACCOMPLISHMENTED AS PROMISED
• Researched and tested all concepts
• Launched coast to coast campaign
• Deployed an effective multichannel media approach
• Campaign work is memorable and well liked
• Established metrics and tracked performance
• Garnered industry and state engagement
• Improved customer insights and benchmarks
• On time and on budget
• Favorability is up 13 points among people who saw the ads
• Familiarity among non-users who saw the ads is up 16 points
• Propane users who saw ads are 13 points more likely to purchase propane appliances
PROPANE BRAND TRACKING STUDYCONSUMER REPORT – WAVE 2
October 2016
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BACKGROUND AND OBJECTIVES
• The primary objective of this study (Wave 2) is to assess the impact of the national advertising campaign on perceptions of propane across the country.
• The findings of Wave 2 are compared against the findings from the Baseline (Wave 1) study conducted prior to the launch of the campaign.
• 20-minute online surveys• Wave 1: December 18th, 2015 to January 19th, 2016 • Wave 2: September 9th to 29th, 2016
• Included in Wave 2 survey are before (prior to seeing the ad during the survey) and after (after seeing the ad during the survey) measures.
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METHODOLOGY
3,001 (Wave 1)
2,054 (Wave
2) InterviewsWith Homeowners
Respondents were selected basedon the following:
• Ages 18+• Involved in energy decisions• Resides in qualifying zip code• Does not live on a natural gas line• Homeowner• Does not work for an energy supplier
Results have been weighted to be representative of key population demographics.
INTERVIEWS PER PADD SCREENING CRITERIA
RegionSample Size
Wave 1Sample Size
Wave 2
PADD 1 849 613
PADD 2 1,201 802
PADD 3 448 308
PADD 4 162 98
PADD 5 341 233
PADD Region
Distribution
INTERVIEWS OF USERS VS. NON-USERS
RegionSample Size
Wave 1Sample Size
Wave 2
PROPANE USERS 1,758 (59%) 1,220 (58%)
NON-USERS 1,243 (41%) 834 (42%)
Propane users are those who use propane for any of the following appliances/applications:• Furnace or heat• Cooktop or range or oven• Traditional water heater• Tankless water heater• Fireplace• Clothes dryer
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• Perceptions of propane have improved since Wave 1; exposure to the ads increased favorability
• Favorability is up 5 pts overall from Wave 1 (+5 propane users; +4 non-users)
• After being shown the ads, favorability increases 9 pts (+5 propane users; +16 non-users)
• Among the 22% who recall seeing the ads on TV, perceptions are up significantly from Wave 1
• Familiarity among non-users is up 16 pts from Wave 1
• Favorability is up 13 pts from Wave 1 (+17 propane users; +9 non-users)
• Propane users are more likely to trust propane, advocate for propane, and purchase a propane appliance
• Key attributes communicated in the ads, including Made in America and availability, are up roughly 10 pts among propane users and non-users
SUMMARY OBSERVATIONS
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ADVERTISING RECALL
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BASE: ALL QUALIFIED RESPONDENTS (n=2054)Q34A. Have you , read, or heard any advertisements for propane or propane appliances and products over the past 12 months?BASE RECALL SEEING AD (n=486)Q37C. Where do you recall seeing, reading or hearing propane advertising?
ONE IN FOUR RECALL SEEING A PROPANE AD, WITH TELEVISION BEING THE MOST COMMON MEDIA CHANNEL
25%
50%
25%
Yes
No
Not sure
RECALL SEEING A PROPANE ADVERTISEMENT WHERE AD WAS
53%
33%
30%
19%
13%
8%
5%
2%
1%
Television advertising
Direct mail (such as flyers, brochures)
Print advertising
Newspaper inserts
Radio advertising
Online advertising
Social networking sites (such as Facebook, Google+, LinkedIn, Twitter)
Mentions or discussions in online blogs or discussion boards
Preview in a movie theater
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3% 5% 8%4% 4%
8%2%
6% 9%
Yes, many times Yes, a few times Yes, once or twice
3% 5% 8%4% 5% 7%
2% 5%9%
Yes, many times Yes, a few times Yes, once or twice
Yes (Net)Total 16%User 16%
Non-User 17%
Living Free
Yes (Net)Total 16%User 16%
Non-User 17%
Windows
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)BASE: AIDED AD RECALL TOTAL (n=427); PROPANE USERS (n=256); NON-PROPANE USERS (n=171)Q34B/C. Have you seen this ad on television, online, or in the movie theater in the past 12 months?
22% REPORTED SEEING ONE OR BOTH ADS DURING THE CAMPAIGN
■ Total ■ Propane User ■ Non-Propane User
Net RecallTotal 22%User 21%
Non-User 24%
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AFTER VIEWING THE ADS WITHIN THE SURVEY, RESPONDENTS SAY THEY STOOD OUT AND NON-USERS SAY THEY PROVIDED NEW INFORMATION ABOUT PROPANE
OUTCOMES OF ADVERTISEMENTS
The ads stood out as different from other energy advertising
I would enjoy seeing the ads again
They told me something new about propane
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)Q42. Thinking about the advertisements that you just viewed, please indicate how the advertisements made you feel.
45%
29%
25%
Total Propane Users Non-Users
45%
30%
18%
46%
27%
35%
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FAMILIARITY & FAVORABILITY
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TOTAL PROPANE USERS NON-USERS
Electricity
Propane
Natural gas
Heating oil
FAMILIARITY WITH ENERGY SOURCES
FAMILIARITY AMONG ALL ENERGY SOURCES IS UP SLIGHTLY SINCE THE FIRST WAVE
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)Q1. When thinking about energy within your home, what types of energy sources come to mind for major appliances such as cooking appliances or heating equipment?Q2. How familiar are you with the following energy sources for major home appliances such as heating, cooking or water heating?
77%
50%
35%
4%
95%
75%
46%
27%
■ Top of Mind Awareness ■ Aided Familiarity (Top 2 Box)
76%
70%
34%
3%
93%
91%
47%
27%
78%
24%
35%
6%
97%
52%
44%
28%
Change from Wave 1
+5
+1
+3
-
+6
-1
+1
+1
ALL RESPONDENTS
Change from Wave 1
+3
-1
+2
-2
+6
-4
+1
+2
Change from Wave 1
+8
+2
+7
+4
+5
+4
+2
-1
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FAMILIARITY WITH PROPANE
Recall Advertising
Propane Users
Non-Users
Does Not Recall Advertising
FAMILIARITY WITH PROPANE IS UP AMONG THOSE WHO SAW THE ADS
BASE: RECALL ADVERTISING (n=427); PROPANE USERS (n=256); NON-PROPANE USERS (n=171); DOES NOT RECALL (n=1627)Q1. When thinking about energy within your home, what types of energy sources come to mind for major appliances such as cooking appliances or heating equipment?Q2. How familiar are you with the following energy sources for major home appliances such as heating, cooking or water heating?
■ Top of Mind Awareness
■ Aided Familiarity (Top 2 Box)
55%
74%
28%
49%
81%
93%
64%
73%
Change from Wave 1
+11+6
+9-
+12+16
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TOTAL PROPANE USERS NON-USERS
Electricity
Propane
Natural gas
Heating oil
FAVORABILITY WITH ENERGY SOURCES(Top 2 Box)
PROPANE’S FAVORABILITY INCREASED MORE THAN OTHER ENERGY SOURCES
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)Q6. Now indicate how favorable you are towards the following energy sources.
69%
53%
47%
12%
74%
30%
40%
14%
Change from Wave 1
+2
+5
-1
+1
Change fromWave 1
+3
+5
-2
+1
Change from Wave 1
-
+4
+2
+1
65%
69%
52%
11%
ALL RESPONDENTS
Favorable (6/7)
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TOTAL PROPANE USERS NON-USERS Change from Wave 1
+5
+13
FAVORABILITY IS MUCH HIGHER AMONG THOSE WHO RECALL SEEING ONE ORBOTH ADS
FAVORABILITY OF PROPANE(Top 2 Box)
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)BASE: AIDED AD RECALL TOTAL (n=427); PROPANE USERS (n=256); NON-PROPANE USERS (n=171)Q6. Now indicate how favorable you are towards the following energy sources. Use the scale from 1 to 7 where “1” means that you have extremely
bad or negative feelings toward the energy source and “7” means that you have extremely positive or good feelings toward the source.
53% 69% 30%
81%35%
61%RECALL
ADVERTISING
ALLRESPONDENTS
Change from Wave 1
+5
+17
Change from Wave 1
+4
+9
WAVE 2 - BEFORE SEEING THE ADS
Favorable (6/7)
TOTAL PROPANE USERS NON-USERS
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35%
53%
TOTAL PROPANE USERS NON-USERS
Wave 1
Wave 2 – Before
Wave 2 – After
26%
30%
46%
48%
53%
62%
64%
69%
74%
AFTER VIEWING THE ADS IN THE WAVE 2 SURVEY, NON-USERS SAW THE HIGHEST INCREASE IN FAVORABILITY
CHANGE IN FAVORABILITY OF PROPANE(Top 2 Box)
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)BASE: AIDED AD RECALL TOTAL (n=427); PROPANE USERS (n=256); NON-PROPANE USERS (n=171)Q6. Now indicate how favorable you are towards the following energy sources. Q40. Please indicate how favorable you now feel towards propane as an energy source.
Wave 2 – Before
Wave 2 - After
61%
70% +18
+5
+9
ALLRESPONDENTS
81%
83% +2+9
RECALL ADVERTISING
Favorable (6/7)
+5
+5
+4
+16
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KEY CAMPAIGN ATTRIBUTES
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PROPANE PERCEPTIONS(Top 2 Box)
TOTAL PROPANE USERS NON-USERS
Allows me to live where I want and how I want
Made in America
Runs all appliances effectivelyand efficiently
Allows me to choose and usethe appliances I want most
THOSE WHO SAW THE TV ADS ARE MUCH MORE LIKELY TO ASSOCIATE KEY CAMPAIGN MESSAGES WITH PROPANE
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)BASE: AIDED AD RECALL TOTAL (n=427); PROPANE USERS (n=256); NON-PROPANE USERS (n=171)Q28. To what extent do you agree or disagree with the following statements as they apply to propane.
58%
52%
51%
50%
69%
63%
60%
60%
72%
61%
66%
63%
81%
75%
74%
74%
37%
38%
31%
32%
53%
48%
42%
42%
■ All Respondents■ Recall Advertising
+11
+11
+9
+10
+9
+14
+8
+11
+16
+10
+11
+10
Agree (6/7)
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TOTAL PROPANE USERS NON-USERS
Reliable
Available for useanywhere I live
American Made
Clean
61%
60%
48%
43%
70%
70%
60%
57%
+9
+16
+13
+14
+9
+8
+11
+13
+9
+10
+12
+14
PROPANE ATTRIBUTES(Top 2 Box)
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)BASE: AIDED AD RECALL TOTAL (n=427); PROPANE USERS (n=256); NON-PROPANE USERS (n=171)Q29 How well would you say each of the following describes propane?
76%
71%
57%
54%
85%
79%
68%
67%
39%
43%
36%
29%
48%
59%
49%
43%
■ All Respondents■ Recall Advertising
THOSE WHO SAW THE TV ADS ARE MUCH MORE LIKELY TO RECOGNIZE KEY ATTRIBUTES HIGHLIGHTED IN THE CAMPAIGN
Describes (6/7)
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KEY CAMPAIGN OUTCOMES
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TOTAL PROPANE USERS NON-USERS
Trust propane to efficiently powerappliances within your home
Speak positively about propane to others
Recommend propane to yourfamily and friends
Purchase an appliance thatrequires propane
PROPANE ACTIONS (BEFORE SEEING THE ADS)(Top 2 Box)
20%
18%
16%
13%
23%
24%
22%
18%
+3
+6
+6
+5
PROPANE USERS WHO SAW THE ADS ARE MUCH MORE LIKELY TO ENGAGE WITH AND ADVOCATE FOR PROPANE
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)BASE: AIDED AD RECALL TOTAL (n=427); PROPANE USERS (n=256); NON-PROPANE USERS (n=171)Q10a. Thinking about propane as an energy source, how likely are you to do each of the following?
46%
37%
32%
31%
55%
48%
41%
40%
■ All Respondents■ Recall Advertising
64%
50%
44%
44%
79%
65%
55%
57%
+15
+15
+11
+13
+9
+11
+9
+9
Agree (6/7)
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TOTAL PROPANE USERS NON-USERS
Trust propane to efficiently powerappliances within your home
Speak positively about propaneto others
Recommend propane to your familyand friends
Purchase an appliance that requires propane
AMONG ALL RESPONDENTS, SEEING THE ADS INCREASED THEIR LIKELIHOOD TO EMBRACE PROPANE
PROPANE ACTIONS – BEFORE/AFTER CHANGE(Top 2 Box)
BASE: ALL RESPONDENTS (n=2054); PROPANE USERS (n=1220); NON-PROPANE USERS (n=834)Q10a. Thinking about propane as an energy source, how likely are you to do each of the following?
46%
37%
32%
31%
53%
41%
37%
35%
■ Before ■ After
64%
50%
44%
44%
69%
53%
50%
49%
20%
18%
16%
13%
30%
24%
19%
16%
ALL RESPONDENTS
Before / AfterChange
+7
+3
+5
+4
Before / After Change
+5
+3
+6
+5
Before / AfterChange
+10
+6
+3
+3
Likely (6/7)
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TOTAL PROPANE USERS NON-USERS
Trust propane to efficiently powerappliances within your home
Speak positively about propaneto others
Recommend propane to your familyand friends
Purchase an appliance that requires propane
AMONG THOSE WHO RECALL SEEING THE ADS, SEEING THE ADS AGAIN INCREASED THEIR LIKELIHOOD TO EMBRACE PROPANE
PROPANE ACTIONS – BEFORE/AFTER CHANGE(Top 2 Box)
BASE: AIDED AD RECALL TOTAL (n=427); PROPANE USERS (n=256); NON-PROPANE USERS (n=171)Q10a. Thinking about propane as an energy source, how likely are you to do each of the following?
55%
48%
41%
40%
62%
50%
48%
44%
■ Before ■ After
79%
65%
55%
57%
79%
66%
66%
62%
23%
24%
22%
18%
40%
28%
25%
19%
AIDED ADVERTISING RECALL
Before / AfterChange
+7
+2
+7
+4
Before / AfterChange
-
+1
+11
+5
Before / AfterChange
+17
+4
+3
+1
Likely (6/7)
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CONCLUSION
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CONCLUSION
• The campaign generated more favorable perceptions of propane among those who recall seeing the ad on their own and within the survey.
• Those who recall seeing the ads on their own are much more likely to associate propane with key attributes promoted in the campaign and are also more likely to embrace and advocate for propane.
• The longer the campaign is off the air, the likelihood increases that some of the improvements will recede.
• Given the results, the impact of the next ad buy will largely hinge upon the size and scale of the buy. As the campaign is improving perceptions of propane, a larger buy will have a greater influence.
MEDIA CHANNELS USED
THE 2016 MEDIA PLAN
CREATIVE – TV/CINEMA
Window :30 Livin’ Free :30
CREATIVE – DIGITAL
Dog House :20 Good Boy :30
Pool :16
Running :23
Pre-Roll Digital Videos
CREATIVE – DIGITAL AD UNIT
Viant/Scripps
CREATIVE – DIGITAL NATIVE ADS
Nativo
CREATIVE – DIGITAL HIGH-IMPACT
Undertone
CREATIVE – PRINT
CREATIVE – ADDED VALUE EXAMPLES
Great American Country RFD TV
CREATIVE – ADDED VALUE EXAMPLES
Country Music Television Animal Planet
HOW MEDIA CAMPAIGN WAS MEASURED
CAMPAIGN MEASUREMENT
Video KPIs High Impact & Native KPIs Social KPIs
• Completion
• Cost per view
• Time spent
• Engagement rate
• Video completion
• Click through rate
• Cost per click
• View rate
• Engagement rate
• CPM
• Cost per engagement
• The Gold standard for overall effectiveness of the brand campaign
• Measuring specifically brand familiarity and favorability improvements
• Measure effectiveness of our media in impacting favorability on those exposed to the media
• To determine which ad types and / or creative executions are most impactful
• Gain insight to inform media planning, creative, and budget for future campaigns
• Using third party ad tracking (Sizmek) and microsite statistics, the video, high-impact, native and
social channels will be measured against the specific KPI’s below. These are the fundamental
KPI’s to help us understand the ground level performance of our various digital tactics
CAMPAIGN MEASUREMENT TOOLS
Digital Campaign Measurement
• Perceptions of propane have improved
• Exposure to the ads increased favorability
• Among those who recall seeing the ads on TV, perceptions
improved significantly
NIELSEN – KEY SUMMARY
COMSCORE AD EFFECTIVENESS STUDY
• Designed to gain insights about which media, channels, and message types produced the most impact
• Rather than surveying only the core target segment, comScore’s sampling follows the media and surveys based on exposure to the messaging
• Meant to supplement, not replace, the Nielsen study and provide deeper media insights
KEY LEARNINGS FOR 2017 PLANNING
• Maintain Radio and Print exposure in upcoming campaigns to drive key awareness/familiarity metrics among target audiences
• Most significant lifts in brand attributes result when audience is exposed to a combination of media
• Television is the strongest driver of ad recall
• Use High-Impact and Pre-Roll partners to improve attitudes toward propane, affect intent to switch, and increase brand trust
• Optimize creative by channel and experiment with alternative digital messaging
KEY RESULTS
THE DIGITAL CAMPAIGN
DIGITAL RESULTS IN 90 DAYS
July 1 – October 2, 2016
293,600
Total visits to
ProudlyPropane.com
110,643,724
Total digital
impressions
45,269,971
Online video
views
52,032
Social engagements
on Facebook
SOME KEY DIGITAL HIGHLIGHTS
• Overall traffic to propane.com increased by 79%
• Direct traffic to propane.com increased by 297%
• Percentage of new users to propane.com increased by 86%
• 72,000 entries to the Generator Facebook sweepstakes (33,000 unique entries)
• 73% Video Completion Rate on all paid (+ 3 points vs. advertising industry benchmark)
Compared with same period 2015 (July - October)
A SUMMARY OF THE KEY FINDINGS JUNE THROUGH
SEPTEMBER
SOCIAL LISTENING
SOCIAL LISTENING APPROACH
PERC and Proudly Propane
• All mentions of Proudly Propane and PERC
Specific applications
• Residential, agricultural, autogas, etc.
Propane overall conversation
Competitive conversation
• Natural gas, heating oil, and electric
MARKETERS LEVERAGE AND SUPPORT CAMPAIGN
Conversation volume up by 29% and positive sentiment up by 387% year-over-year
Campaign-related posts on PERC Facebook page had 40% higher engagement than posts with non-campaign content
REACHING THE RIGHT SOCIAL AUDIENCE
Facebook retargeting strategy helped engage passionate propane users
Proudly Propane content such as the generator giveaway performs better than benchmark because it resonates with this audience
EXPAND ROLE OF INFLUENCERS IN SOCIAL
There are valued thought leaders with top-performing content that can be leveraged further with paid support. As an example:
• Their content was top-performing among other posts and can be pushed out to consumer audiences
EXPAND ROLE OF INFLUENCERS IN SOCIAL
Opportunity for ongoing dialog with a smaller network of handles mentioning @PropaneCouncil
Elevate propane advocacy among those who are strong PERC supporters online
SEASONALITY CAN GUIDE OUR CONVERSATION WITH CONSUMERS
Propane is a part of what consumers are passionate about, particularly grilling, outdoor living, camping, and portability during the summer
• Proudly Propane can build on existing messaging for 2017 campaign content, focusing on what is unique to consumers
• Create seasonal topics around consumer pain points to help them with the advice they’re seeking
ALIGN WITH CONSUMER INTERESTS
Over 70% of consumer conversation about propane is related to residential use
• Discussions were often about consumers troubleshooting, asking for a product solution, or proudly sharing advice about specific topics
• Our current Proudly Propane messaging focuses on awareness and caters to industry priorities
ALIGN WITH CONSUMER INTEREST
Proudly Propane should recognize consumer’s interests by relating to their passions first
Then Proudly Propane can retarget those consumers with further information about propane when they’re more likely to be open to it
LEVERAGING CONSUMER INTERESTS
Develop a retargeting strategy for Proudly Propane to speak to consumer’s interests and then follow up with engaged viewers with further information about propane
• Educate consumers on broader propane facts and uses that may expand the conversation
THE 2017 PLAN
SO WHAT’S NEXT?
2017 CONSUMER BRAND CAMPAIGN
What We Want
• Maintain levels of familiarity and favorability (aided and unaided)
• Increase marketer satisfaction
What We Are Going To Do
• Deepen consumer education and drive advocacy
• Explore economies in media buying across PERC
• Assess value of a Marketing Automation platform
• Promote relevant and timely content distribution
• Promote people behind the brand
• Build on Blue
2017 COMMUNICATIONS
How We Are Going To Do It
• Deploy a platform/channel synergy, with highly entertaining and emotional content
• Encourage authentic, shareable, user-generated content
• Maintain strong brand visibility across PERC
• Execute and scale a consistent, integrated marketing message
• Provide a platform on which users can enjoy interactive content and learn
• Double down on video – test live streaming
• Leverage multi screen marketing
• Talent recalibration
MULTI-YEAR PLAN
Year One Focus
Familiarity
Favorability
Year Two Focus
Maintain Familiarity
Maintain Favorability
Year Three Focus (TBD)
Increase Familiarity
Increase Favorability
Increase trial and
additional applications
Based on what we learned and in light of available resources, our goal for 2017 will be to maintain the gains from 2016.
AVOID GOING DARK
• Millward Brown observed that brands can go dark for six months or
so with little negative effect
• But longer off-air periods are likely to
weaken brand health
• Lower-interest brands like propane
may be especially vulnerable
Source: Millward Brown Knowledge Point Report
KEY CONSIDERATIONS
• Marketers desire to cover two time periods (spring and fall)
• Budget reduction cannot accomplish brand growth, simply maintain what was achieved
• Ad industry research shows detrimental impact of long, dark, off-air periods (Millward Brown)
• Promote propane lifestyle in social content instead of propane itself
• Social sweepstakes can build brand engagement
COMMUNICATIONS PLAN
• Maintain 2016’s overall goals and strategy given success in Nielsen brand metrics and reduced budget
• Continue with optimal media target and geographic coverage
• Refine the media mix using 2016 learnings
• Hone partner selections to maximize existing Blue assets, provide positive brand association and align with topical content
• Use measurement tools to gauge campaign success as done in 2016 (Nielsen, Sizmek, social listening)
TARGET AUDIENCE REFRESHER
KEY TARGET AUDIENCES
SIMPLE LIFE
55-74 years old
HHI <$100k
Couples
Own Residence
51% own a dog
ENTRY LEVEL
35-54 years old
HHI $75-200k
Families w/ Kids
Own Residence
68% own a dog
TRANSITIONAL
<44 years old
HHI <$50k
Couples/Families
Rent Residence
48% own a dog
Honest, straightforward, reliable people who value their independence and self-sufficiency and take
pride in how they live
Adults 35-64 with limited access to natural gas
GEOGRAPHY
Efficient awareness
Cover all marketers
Maintain brand growth among
Simple Life & Entry Level
Transitional target halo reach
MAIN FOCUS
OVERLAY
NATIONAL
GEO-TARGET
Air cover
Bullseye focus
OPTIMIZED MEDIA MIX
TV saw greatest ad recall nationally and
Propane Country
0%
10%
20%
30%
40%
50%
60%
70%
Video Print Audio Digital
2016 Actual 2017 Estimated
OPTIMIZED MEDIA MIX
TV saw greatest ad recall nationally and
Propane Country
Highly effective in increasing brand
metrics
0%
10%
20%
30%
40%
50%
60%
70%
Video Print Audio Digital
2016 Actual 2017 Estimated
OPTIMIZED MEDIA MIX
TV saw greatest ad recall nationally and
Propane Country
Highly effective in increasing brand
metrics
Highly effective in increasing brand
metrics
0%
10%
20%
30%
40%
50%
60%
70%
Video Print Audio Digital
2016 Actual 2017 Estimated
OPTIMIZED MEDIA MIX
TV saw greatest ad recall nationally and
Propane Country
Highly effective in increasing brand
metrics
Highly effective in increasing brand
metrics
Cost efficient and impactful; drives engagement on
ProudlyPropane.com
0%
10%
20%
30%
40%
50%
60%
70%
Video Print Audio Digital
2016 Actual 2017 Estimated
MEDIA PARTNERS
RETURNING SNAPSHOT NEW FOR CONSIDERATION
RECOMMENDED MEDIA PLAN 2017
MEDIA MIX COMPARISON
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2016 Actual 2017 Estimated
Video Print Audio Digital
2017 CONSUMER EDUCATION CAMPAIGN
DOCKET 20995
DOCKET 20995 – 2017 CONSUMER EDUCATION CAMPAIGN
Building on the momentum of the new consumer education campaignin 2016, the 2017 campaign will be designed to maintain gains infamiliarity and favorability of propane, improve consumer perceptionsof the fuel, and make consumers more receptive to propane salesmessages.
The campaign will continue using paid media, earned media, andowned media to promote the propane brand and will continue offeringmaterials that marketers can use to boost their own outreach programswhile extending penetration of the national campaign into localmarkets.
CONSUMER EDUCATION ($8,240,000)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Consumer
Education Campaign$8,240,000 $8,240,000 $0
2017 CORPORATE COMMUNICATIONS
DOCKET 20997
DOCKET 20997 – 2017 CORPORATE COMMUNICATIONS
• Coordinate PERC’s corporate media relations.
• Operate PERC’s corporate social media programs.
• Communicate with marketers through video, email, and social media.
• Oversee development of consumer-facing content on propane.com and marketer-facing content on propanecouncil.org.
• Persuade would-be do-it-yourselfers to have trained technicians install and service propane systems and appliances.
• Promote the Grilling for Heroes program, which marketers can use to promote their product, their companies, and their support for America’s armed forces.
INDUSTRY PROGRAMS ($4,770,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Partnership
Agreement$1,394,500 $1,394,500 $3,376,000
2017 Industry Outreach $340,000 $340,000 $3,036,000
2017 Corporate
Communications$1,085,000* $1,085,000 $2,426,000
* $610,000 Industry Programs; $400,000 Program Support Initiatives; $75,000 Safety & Training
2017 MTST $700,000 $700,000 $1,726,000
2017 Partnership with
States$1,500,000 $1,500,000 $226,000
PROPANE MARKET ASSESSMENT AND HOUSING MARKET REVIEW
Mike Sloan, ICF International
November 2, 2016
Prepared for the Propane Education
Research Council
Michael Sloan
ICF
9300 Lee Hwy
Fairfax, VA 22031
Propane Market Assessment and Housing Market Outlook
Disclaimer
This presentation presents views of ICF International. The
presentation includes forward-looking statements and projections.
ICF has made every reasonable effort to ensure that the
information and assumptions on which these statements and
projections are based are current, reasonable, and complete.
However, a variety of factors could cause actual market results to
differ materially from the projections, anticipated results, or other
expectations expressed in this report.
2017 Propane Market Conditions for Propane Retailers
1. General market conditions plus lower propane prices create opportunity
for growth, particularly for markets competing against electricity.
Residential and commercial sectors & forklift markets.
2. The housing market continues to recover and will support an expanding
base of new propane heated households.
3. The largest growth opportunities remain in internal combustion engine
markets.
However, lower gasoline and diesel prices mean the propane industry will have to work
harder to develop these markets.
4. The propane supply balance is shifting, potentially slowing future
opportunities.
From an over supplied market with propane resource prices below sustainable levels to
a market with potentially tighter supplies and higher, more volatile prices.
14
9
Propane Price Outlook
ICF forecast propane prices to
rise as Oil Prices slowly to
$75/bbl by 2025.
Increased propane exports will
result in U.S. propane prices trading
closer to international prices.
U.S. prices will fall relative to
oil as exports must go further
to find markets.
Prices are likely to become
more volatile
Propane marketers may need to bid
higher prices to keep inventories at
home during colder than normal
winters.
Sources: ICF, Bloomberg
-
10
20
30
40
50
60
70
-
20
40
60
80
100
120
140
160
180
Ja
n-1
3
Dec-1
3
Nov-1
4
Oct-
15
Sep
-16
Aug
-17
Ju
l-1
8
Ju
n-1
9
Ma
y-2
0
Apr-
21
Ma
r-22
Fe
b-2
3
Ja
n-2
4
Dec-2
4
Nov-2
5
$/b
bl
Cen
ts p
er
ga
llon
Mont Belvieu Propane Price Forecast(Nominal)
Historical Base Low
150
2016/17 Winter Outlook
0
20,000
40,000
60,000
80,000
100,000
120,000
1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/111/112/1
Mbbls
Weekly Propane Storage Levels
5 Year Average 2015 2016 (weekly)Source: EIA
151
Propane inventories at 5-
year highs entering the
winter
Weather outlook is mixed
Some possibility for colder
than normal weather
A cold winter in the U.S.,
combined with growth in
exports could lead to
rapid inventory drawdown,
and tight end of season
markets
However, Propane Production Growth has Stalled Propane Exports & Supply show Tightening Impacts Heading into Winter
Sources: ICF, EIA
152
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
200
400
600
800
1,000
1,200
1,400
1,600
Export
Capacity U
tiliz
ation (
%)
000's
B/D
U.S. Propane Export Capacity
Export Capacity 50% Capacity
60% Capacity 80% Capacity
Historical Exports Historical Utilization
0
200
400
600
800
1000
1200
1400
-
50
100
150
200
250
Jan
-201
3
Ap
r-20
13
Jul-
201
3
Oct-
20
13
Jan
-201
4
Ap
r-20
14
Jul-
201
4
Oct-
20
14
Jan
-201
5
Ap
r-20
15
Jul-
201
5
Oct-
20
15
Jan
-201
6
Ap
r-20
16
Pro
duction 0
00's
B/D
Year-
on-Y
ear
Change 0
00's
B/D
U.S. Propane Production
2015 Residential Propane Market Review
153
2015 Housing Market Growth – Space Heating
Moderate increase in
propane home heating
from the initial 2015
housing estimates.
Growth in electric home
heated housing focused in
Southern States and
California.
Fuel Oil households
declined primarily in the
Northeast where propane
housing growth was
strongest.Sources: ICF, US Census American Community Survey
72,085 1,325
1,208,519
(222,986)
(128,853)
18,733
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Hou
se
ho
lds
Change in U.S. Households by Home Heating Fuel Type (2014 to 2015)
Natural Gas Propane
Electricity Fuel Oil
Wood Coal/Other/No Fuel/Solar
154
State Level Change in Propane Home Heated Households from 2014 to 2015
Three census
regions experienced
growth in Propane
Home Heated
Households in 2015.
New England added
12,300 households.
East North Central
added 10,105
households.
Mid-Atlantic added
7,593 households.
The other five
census regions
experienced modest
declines.
Sources: ICF, US Census American Community Survey
155
Change in Total and Propane Home Heated Households by Census Region from 2014 to 2015
Sources: ICF, US Census American Community Survey
-100,000
-50,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
East NorthCentral
East SouthCentral
Mid-Atlantic Mountain NewEngland
Pacific SouthAtlantic
West NorthCentral
West SouthCentral
Hou
se
ho
lds
Change in Total Households
Change in Propane Home Heated Households
156
Key New Construction Market Trends from the 2015 Survey of Construction Data
From 2014 to 2015, the number of homes built by owner or contractor (more favorable for propane) increased
while the number of homes built for sale (less favorable for propane) decreased modestly.
Total single family detached housing starts on lots larger than 1 acre (favorable to propane) continued to
increase by over 10,000 new homes, while homes on lots smaller than 1 acre (less favorable to propane)
increased by over 38,000.
Total detached housing starts outside of Metropolitan Statistical Areas (MSA’s) (favorable to propane)
increased by 8.3% to 62,800, but declined to only 9.6% of all New Housing starts.
Market share was impacted by several areas more favorable to propane home heating in new construction that
declined:
–Larger Lot Sizes Declined
–Construction Outside of Metropolitan Statistical Areas Declined
–Distribution of New Construction
157
Propane Space Heating Market Share in New Residential Construction declined in 2015
Propane’s
National Average:
6.0% in 2014.
4.7% in 2015.
High market
share propane
markets (Lot size
above ½ acre)
73% of new
propane residential
construction.
15.3% in 2014.
12.7% in 2015.
Source: US Census Survey of Construction
10%
20%
30%
40%
50%
60%
70%
Mar
ket
Shar
e
National Market Share by Home Heating Fuel
Electricity Natural gas Propane Oil Other or no heat
*Natural Gas & Propane data for 2008 & 2009 has been estimated
6.7%
6.0% 5.8%
6.6%6.9%
6.3% 6.2%
7.1%
6.2%
4.9%
5.8% 5.6%5.2%
5.8% 6.0%
4.7%
0%
2%
4%
6%
8%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
158
New England & East North Central account for the largest markets and highest market shares
53.7%
5.8%
13.4%
4.5%2.7%
0.9% 1.5% 1.5%2.9%
0%
10%
20%
30%
40%
50%
60%
-
2,000
4,000
6,000
8,000
10,000
NewEngland
MiddleAtlantic
East NorthCentral
WestNorth
Central
SouthAtlantic
EastSouth
Central
WestSouth
Central
Mountain Pacific
Mark
et S
ha
re
Hou
sin
g S
tart
s
2015 Propane Housing Starts & Market Share
Propane Heated Housing Starts Propane Market Share
Source: US Census Survey of Construction
159
Residential New Construction Market Trends by Region
In 2015, U.S. propane market share of detached single family housing
starts decreased slightly to 4.7%, from 6.01 % in 2014.
Likely due to the impact of the 2013/14 winter on propane prices during the planning
phase for many 2015 new construction projects
Also caused in part by faster growth in regions with low/declining propane market share.
Propane new construction market share increased in New England, West
North Central, and West South Central.
Source: US Census Survey of Construction
Propane’s Share of New Construction Activity
160
New
England
Middle
Atlantic
East North
Central
West
North
Central
South
Atlantic
East
South
Central
West
South
Central
Mountain Pacific US Total
2013 49.87% 10.63% 12.93% 4.94% 5.23% 0.65% 1.15% 1.16% 2.86% 5.82%
2014 48.20% 9.47% 15.80% 4.02% 4.84% 1.48% 1.35% 2.73% 3.88% 6.01%
2015 53.67% 5.84% 13.37% 4.51% 2.70% 0.92% 1.52% 1.47% 2.93% 4.70%
Change from
2014 – 155.47% -3.63% -2.43% 0.49% -2.14% -0.57% 0.17% -1.26% -0.94% -1.32%
2015 Propane Appliance and Space Heating Unit Installations (New + Replacement)
161
Sources: PERC, 2016 Home Innovation Research Labs
Note the above numbers exclude Fireplaces, Self Standing
Stoves, Or Space / Room Heaters (Permanently Mounted)
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Total:Appliances*
Total: HVAC
Num
ber
of
Units
Comparison of Propane Installations
*Appliances include: Water Heaters, Generators, Ranges,
Cooktops, Ovens, and Clothes Dryers.
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Num
ber
of
Units
Appliance vs. Home Heating System Comparison of Installed Propane Units
Tankless
With Tank Furnaces
Boilers
Ranges
Cooktops
Ovens
0%
2%
4%
6%
8%
10%
12%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Pro
pane a
s a
% o
f T
ota
l S
ale
s
Num
ber
of
Units
Propane Cooktop/Ranges/Ovens Sales by Region
Propane Cooktops/Ranges/Ovens % Propane
Propane Appliances Installations by Census Region
162
0%
2%
4%
6%
8%
10%
12%
14%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Pro
pane a
s a
% o
f T
ota
l S
ale
s
Num
ber
of
Units
Propane Water Heater* Sales by Region
Propane Water Heaters % Propane
Sources: PERC, 2016 Home Innovation Research Labs
Residential Market Outlook
163
New Home Permitting has Continued to Increase in 2016
New residential
housing permits have
increased 9% over the
past year.
Permits for single unit
housing accounted for
68% of all permits in
2016.
Source: US Census Annual Building Permits Survey
(Z)
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Perm
its
Quarterly Permits for New Residential Housing
Single Unit
Multi-Units
164
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Northeast Midwest SouthAtlantic
East SouthCentral
West SouthCentral
Mountain Pacific
Perm
its
Residential New Construction Permits (2015)
New Housing Construction Markets to Continue their Slow Recovery
New housing
construction
markets continue
to recover.
Forecast for
additional growth
in housing starts in
2017 & 2018.
ICF forecast is for
new housing
construction
continues to grow
through 2020 and
then level off.
Sources: ICF, NAHB, MBA, Fannie Mae, Wells Fargo*Includes single and multi-family housing starts
-
200
400
600
800
1,000
1,200
1,400
1,600
2010 2011 2012 2013 2014 2015 2016 2017 2018
Site
-Bu
ilt H
ou
sin
g S
tart
s (
tho
usa
nd
s)
Forecast of New U.S. Residential Housing Starts
Mortgage Bankers AssociationNational Association of Home BuildersFannie MaeWells Fargo Securities
165
2017 Propane Market Outlook – New Propane Housing Starts
Residential housing markets are
improving.
Growth in new construction markets.
More competitive market.
Continued weakness in select regional
markets, such as the Middle Atlantic,
South Atlantic, and Western U.S.
Conversions away from propane
remain relatively low due to
lower prices relative to
electricity.
Fuel oil conversions will
continue to slow
Lower fuel oil prices
The number of fuel oil households is
declining.
0
20,000
40,000
60,000
80,000
100,000
120,000
Ne
w H
ou
sin
g S
tart
s
New Propane Space Heating Households by Type
Manufactured Homes
Fuel Oil Conversions
Site-Built New Housing Construction
Source: ICF Propane Demand Forecast Model
166
Contact Information
Michael Sloan
[email protected]+1.703.218.2758
ICF
9300 Lee Hwy
Fairfax, VA 22031
PROPANE EDUCATION & RESEARCH COUNCILNAPLES, FLORIDA
November 2 – 3, 2016
INDUSTRY PROGRAMS
Kay Howell, CIO
INDUSTRY ENGAGEMENT
INDUSTRY ENGAGEMENT
Marketers
PERC staff
Technical
expertise
States
Encourage marketers to
provide input, support, and
achieve industry goals
Increase marketers’
awareness and access to
resources and programs
Increase linkages between
PERC and state programs
Efforts that lead to greater
market and sales knowledge
Development of assessment
and reporting
Participating in the AC,
provide input to guide
programs and resources
Increased marketer access
to resources and programs
Alignment of PERC & state
programs
Increased awareness and
access to research and
training resources
Assessment and reporting
tools in place
Participation in
program development
and evaluation
Increased use of
resources and
programs
States use PERC
resources
Increased use of
market research and
marketing and sales
resources
Information provided
by tools used for
accountability and
improvement of future
efforts
Inclusive industry
decision-making
Increased value of
PERC resources
and
programs
Marketer
participation in new
markets
Our work Our intended results
Resources Activities Outputs Outcomes Impact
ENGAGEMENT ACTIVITIES
MTST, Webinars, and
Conference Calls
State and Local Events Participation
Advisory Committee
Meetings and Project Teams
Phone Support and Calls
Trade Publications and State Newsletters and Communications
Digital: Email, Catalog, Websites,
Facebook, Blog, Videos
Industry Trade Shows: Exhibits,
Educational Sessions
STATE / LOCAL EVENTS PARTICIPATION
Meetings attended (39 out of 45 state entities;
17 PERC staff / contractors attended)
Industry trade shows supported/attended
State or company webinars/conference calls
State or company one-on-one customization assistance
Presented at marketer events:
Michigan Summer Conference Southeast Convention CHS Summer Meetings Irrigation MTST for Missouri PGA
Supported and attended:
World Ag Expo with Western PGA Husker Harvest Days with Nebraska PGA Sunbelt Ag Expo with Georgia PGA
Supported:
Farm Science Review with Ohio PGA The Almond Conference with Western PGA Southern Peanut Growers and Georgia Peanut Show with Conger LP Gas Irrigation customer education events with Allied Propane in CA
STATE / LOCAL EVENTS PARTICIPATION –AG TEAM
STATE / LOCAL EVENTS –RESIDENTIAL & COMMERCIAL
Presented at these marketer events:
• Paraco Gas Sales Meeting
• Conger LP Gas Event
• NCPGA Summer Convention
• TNPGA Summer Convention
• 2016 Energy, Sustainability & Resiliency Conference with VAPGA
INDUSTRY EVENTS
Supported/presented at these Industry Tradeshows:
• Southeast Expo
• Western Trade Show & Convention
• Northeast Show
• North Central Convention
• Mid-States Expo
• Crossroads Expo
• MPACT
• Bergquist Open House
SOUTHEASTERN PROPANE CONVENTION
• Educational sessions led: 5
• Marketers attending PERC educational sessions: 600
• Marketers attending Roy’s PERC Update presentation: 600+
• New contacts added to our database: 658
• Number of iPad surveys completed in booth : 115
• Industry ambassadors promoting PERC events and booth: 9
• Marketers offering positive testimonials: 29
• Secured LP Gas, BPN ,Texas PGA magazines cover stories
SOUTHEASTERN EXPO – PERC WEBSITE
WEBSITE (propanecouncil.org/Nashville-2016/)
• Total Page views: 2,923
Videos Views:
• 1,056 plays – Introduction to Blue
• 245 plays – Gregg’s video on how we expect to meet consumer needs with the campaign
• 89 plays – Stuart’s video about safety and training activities at the expo
• 66 plays – Bridget’s Residential Opportunity Insights Educational Session
SOUTHEASTERN EXPO – COMMUNICATIONS
• Meet Your New Partner: 5,800 reads; 10.4 click rate
• PERC Is About To Transform How You Grow Gallons: 3,000 reads
• Take A Peek: 4,600 reads
• Periscope broadcasts: 15 during the event, with 1,800+ reached
• 67 total posts altogether on Facebook, Twitter, and Roy’s Twitter,
compared to 30 last year
MTST / WEBINARS / CONFERENCE CALLS
Propane as a Solution to Code & Above Code
Programs Webinar — 71 attended
16
15
9
32
39
18 26 105
24
141
754034
32
75
56
33
ROI Quarterly Webinar — 104 attended
2016 to-date64 sessions taught (70 scheduled)
820 marketers trained
169 companies participated
CONFERENCE CALLS/ONE-ON-ONE SUPPORT
EMAIL OUTREACH
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Mowers Promo
Holiday Wishes
New Gas Check
Blue Campaign
ROI Pre-SE Expo Promo
ROI SE Expo Followup
ROI Promo
Autogas Promo
ROI Promo Followup
Safety Minutes
Plumber/HVAC Course Promo
Water Heater Code Webinar Promo 2
ROI Webinar Promo
Pull th Plug Promo
Plumber / HVAC Course Contest
PERC Update: Training Award
PERC Update: Free Guide for Homeowners
Total Opens
Pull the Plug Promo
WHAT’S A GOOD OPEN RATE?
Our Average
Open Rate:
38%
EMAIL NEWSLETTERS
News every business day
• 5,592 subscribers
• Average 1,330 opens (24 percent)
• Average 276 clicks (21 percent)
PERC news every Friday
• 15,100 subscribers
• Avg. 4,192 opens (28 percent)
• Avg. 506 clicks (12 percent)
WEBSITES, EMAIL, FACEBOOK…
Residential Opportunities Insight Website
residentialmarketgrowth.com
Metrics to date (April to present):
• 517 registered users.
• 8,500 visits to website.
• 1,320 reports downloaded.
• 677 templates downloaded.
Council Website and Online Catalog
propanecouncil.org
Metrics through Jan – Sep 2016:
• 72,559 visits to website.
• 22,365 product downloads.
• 9,628 product orders.
CATALOG
Number of companies that downloaded or
ordered …
3,300 — 1 or more products.
1,028 — 2 or more products.
636 — 5 or more products.
288 — 12 or more products.
2,672
3,059
3,514
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2014 2015 2016
Average Monthly Downloads and Orders
January - September
2016 CATALOG ACTIVITY BY STATE
Number of Orders and Downloads
649
1,674
1,628
910
1,109
1,137
735
471341178
202977
138
712
748 403854
312
324
777479
286
962
252
350
247
170
271
102
440
58
168
219
131142
1,503
156
121 723
843
562
VIDEO
Forty videos aimed at propane marketers earned 22,000 views on PERC Facebook
2017 PLANNED ACTIVITIES
Establish an AC Industry Engagement Project Team to develop
engagement program and evaluate progress
Align with states to support implementation of PERC programs
Call marketers to assist with FPR registration & survey marketers
Establish a forum for marketing, sales, and operations managers
Increase MTST Online Resources offerings
2017 PLANNED ACTIVITIES
Use S&T online training to support blended learning adoption
Add personalized recommendations feature to propanecountil.org
to help marketers find the right resources in the product catalog
Use a marketer leads nurturing program to increase awareness
and use of resources
Survey marketers to solicit industry feedback and assess
engagement
OUTCOMES / MEASUREMENT
• Active participation in program development and evaluation among AC members
• Increased numbers of marketers utilizing resources & programs
• Increased use of market research and marketing/sales training resources by sales/marketing/operations managers
• Increased utilization of PERC resources and programs by states
• Information provided by tools used for accountability and improvement of future efforts
MARKETER TECHNOLOGY & SALES TRAINING
DOCKET 20973
INDUSTRY PROGRAMS ($4,770,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Industry Outreach $340,000 $340,000 $4,430,500
2017 Partnership
Agreement$1,394,500 $1,394,500 $3,036,000
2017 Corporate
Communications$610,000* $610,000 $2,426,000
2017 MTST $700,000 $700,000 $1,726,000
2017 Partnership with
States$1,500,000 $1,500,000 $226,000
* Additional $400,000 Program Support
Initiatives, $75,000 Safety & Training
ONLINE TRAINING APPROACH – DEVELOPMENT
• MTST Digital Task Force• Dave Bertelson
• Brian Brooks
• Chris Kowalski
• Paula Laney
• Bryan Lewis
• Brian Mater
• Mike Walters
• GP Strategies
• PERC
PILOT TESTING
• 12 industry volunteers
• 4.75/5.0 stars for water heater module
• 4.5/5.0 stars for school bus
• Feedback
• “Very professionally done! Excellent!!!”
• “Everything seemed to flow nicely.”
• “Some very good information for beginners into the water heater propane sales area.”
• “I thought the program covered all bases to get into the school bus autogas market.”
MTST DIGITAL – NEXT STEPS
• LMS Set-up
• Development of next modules
• Energy Pod
• Forklift
• Autogas
ABOUT THE PROGRAM
• 2017 Budget: $700,000 – based on est. 60 classes
• Keep 7 existing modules:• Residential (2 courses), Commercial, Irrigation Engines, Mowers,
Autogas, Customer Service Representatives (CSR)
• Add 1 additional module
• Includes digital training
ABOUT THE PROGRAM
• 2016 Budget: $665,000 for 60 classes• Included costs for selecting and onboarding new
vendor
• History of program• 70 classes scheduled in 2017
• To date, trained 3000+ attendees, 600+ companies
• Held classes in 44 states
DOCKET 20973: 2017 MARKETER TECHNOLOGY & SALES TRAINING
Marketer Technology and Sales Training transfers marketplace knowledge,data, and benefits associated with new applications to the propane marketer.Combined with customized sales tactics by market, this program enables themarketer to increase gallons and market share by offering new technologiesand services to their customer base. The addition of the Customer Servicemodule in 2015 has greatly expanded the reach of the program.
INDUSTRY PROGRAMS ($4,770,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Industry Outreach $340,000 $340,000 $4,430,500
2017 Partnership
Agreement$1,394,500 $1,394,500 $3,036,000
2017 Corporate
Communications$610,000* $610,000 $2,426,000
2017 MTST $700,000 $700,000 $1,726,000
2017 Partnership with
States$1,500,000 $1,500,000 $226,000
* Additional $400,000 Program Support
Initiatives, $75,000 Safety & Training
PARTNERSHIP WITH STATES
DOCKET 20977
INDUSTRY PROGRAMS ($4,770,500)
DOCKET BUDGET REQUESTED TOTAL REMAINING
2017 Industry Outreach $340,000 $340,000 $4,430,500
2017 Partnership
Agreement$1,394,500 $1,394,500 $3,036,000
2017 Corporate
Communications$610,000* $610,000 $2,426,000
2017 MTST $700,000 $700,000 $1,726,000
2017 Partnership with
States$1,500,000 $1,500,000 $226,000
* Additional $400,000 Program Support
Initiatives, $75,000 Safety & Training
ABOUT THE 2016 PROGRAM
• All program funds are allocated to States based on most recent API report
• Maintain dollar-for-dollar match with State Rebate funds
• Awarded 100% of 2015 Program Funds
• Awarded 76% of 2016 Program Funds (as of 10/20/16)
2016 FUNDS AWARDED, BY ACTIVITY
Consumer Safety Messaging
8%
Demonstration Vehicle Data Collection
4%
External Professional Training
3%
Off-Road Incentives3%
On-Road Incentives2%
Propane Emergencies5%
Safe Installation of Appliances
48%
Technology Demonstrations
3%
UNUSED24%
As of October 20, 2016
DOCKET 20977
• The Partnership with States program supports joint efforts with the
states by providing funding for consumer education, consumer safety,
end user training, and market development projects.
• The program’s activities are designed to maximize the reach and
introduction of PERC’s national consumer education campaign, new
technologies and materials to potential end-users at the state level.
• Partnership activities target external audiences such as residential
consumers, builders, farmers, landscapers, fleet managers and fire
service personnel.
DOCKET 20977
• Primary objective is to increase industry engagement with PERC
programs and resources by informing, educating, promoting, and
collaborating with state associations.
• Partnership with States funds will match, dollar-for-dollar, state rebate
funds requested for an activity.
• Funds will be dispersed among states based on the most recent API
Sales Survey, which is also used to allocate state rebate funds.
• Unused funds will be de-obligated at the end of the program.
PROGRAMMATIC CHANGES FOR COUNCIL CONSIDERATION
Amend the 2017 eligible programs to include:
• Forklift projects in the off-road program
• Emphasize on HVAC and plumbing professionals in construction professional education program
• Support services related to low emissions technical expertise
FINANCIAL CHANGES FOR COUNCIL CONSIDERATION
• Eliminate matching funds requirement
• Consumer Education Campaign Support
• Safe Appliance Rebates
• Use of PWS funds with no matching funds requirement for state staff travel expenses
• Allocate State Rebate funds and Partnership Program funds October 1 of each year
INDUSTRY PROGRAMS ($4,770,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Industry Outreach $340,000 $340,000 $4,430,500
2017 Partnership
Agreement$1,394,500 $1,394,500 $3,036,000
2017 Corporate
Communications$610,000* $610,000 $2,426,000
2017 MTST $700,000 $700,000 $1,726,000
2017 Partnership with
States$1,500,000 $1,500,000 $226,000
* Additional $400,000 Program Support
Initiatives, $75,000 Safety & Training
MARKET REPORTS
Tucker Perkins, CBDO
RESIDENTIAL AND COMMERCIAL MARKET
RESIDENTIAL & COMMERCIAL ($2,394,800)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2107 Residential &
Commercial Market
Outreach$1,809,800 $1,809,800 $585,000
2017 CAMPAIGNS
• Pull the Plug on Electric Water Heaters
• Propane Energy Pod Builder Incentive Program
• Geothermal’s Dirty Secret
• Plumber/HVAC Outreach
• Commercial Propane Applications eBook
• Commercial Standby Power
• Modular/Manufactured Homes
COMMERCIAL ASSOCIATION OUTREACH
• Building Owners & Managers Association
• American Hotel & Lodging Association
• Association for Learning Environments
• Associated General Contractors of America
• American Society for Healthcare Engineering
Residential Opportunity Insights
www.residentialmarketgrowth.com
Audience Acquisition and Nurture Program
Digital Advertising
International Builder Show
KEY TACTICS
KEY TACTICS
Social Media
Propane Energy Update eNewsletter
Training Programs
Resource & Content Promotion
WHAT’S DIFFERENT FROM 2016?
• 2016 Budget – $2,166,000
• 2017 Budget – $1,809,800
• Difference – $356,200
• Eliminated:
• Heating Oil Campaign• Residential Standby Power
Campaign• Rental Market Outreach• Greenbuild Expo• The Rental Show
DOCKET 20988 – 2017 RESIDENTIAL & COMMERCIAL MARKET OUTREACH
The 2017 Residential & Commercial Market Outreach program will continue to
target individuals and organizations that are critical to the specification of
propane and propane applications in homes, commercial facilities, and on
jobsites. The individuals and organizations include builders, general
contractors, architects, engineers, and building owners. This program will have
a small amount of dedicated funding for targeted outreach to modular and
manufactured home builders, and a separate program and funding for plumber,
HVAC, and votech schools to include training in their curriculum.
RESIDENTIAL & COMMERCIAL ($2,394,800)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2107 Residential &
Commercial Market
Outreach$1,809,800 $1,809,800 $585,000
AUTOGAS MARKET
ENGINE FUEL ($5,940,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Propane Autogas
Technician Training$101,296 $101,296 $5,839,204
2017 Material Handling
Outreach$470,000 $470,000 $5,369,204
2017 Propane Autogas
Market Outreach$1,303,000 $1,303,000 $4,066,204
2017 Outdoor Power
Equipment Outreach$1,032,500 $1,032,500 $3,033,704
PROGRAM OBJECTIVES
• Target school transportation market.
• Target medium duty fleets in key vertical market segments.
• Support the propane autogas-fueled vehicle aftermarket.
• Elevate the propane autogas brand through public relations.
• Use tradeshows as opportunity to promote propane autogas’ advantages and support manufacturing partners.
PROGRAM OBJECTIVES
• Engage propane marketers selling into the propane autogas market.
• Engage propane retailer’s fleet managers to support adoption of more propane autogas fueled vehicles in the propane fleet.
• Engage key stakeholders – such as Clean Cities Coalitions and National Labs – in market development activities.
• Support OEM dealer training and open house events.
WHAT’S DIFFERENT FROM 2016?
• Back to School Campaign
• No celebrity spokesperson in 2017
• PR
• Added national PR outreach
• Scaled back tradeshow presence
• National Lab Outreach
• Added Propane Autogas Vehicle Technology Forum
• Dealer & Distributor Open House Event Support
DOCKET 20969 – 2017 AUTOGAS MARKETING & OUTREACH
This project is a comprehensive outreach & communications project for theautogas market. The strategic objective of this program is to engage originalequipment manufacturers, support dealers & distributors actively selling orinterested in selling propane autogas fueled vehicles, end users, propanemarketers and other stakeholders to in expanding the use of propane throughincreased adoption of autogas.
ENGINE FUEL ($5,940,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Propane Autogas
Technician Training$101,296 $101,296 $5,839,204
2017 Material Handling
Outreach$470,000 $470,000 $5,369,204
2017 Propane Autogas
Market Outreach$1,303,000 $1,303,000 $4,066,204
2017 Outdoor Power
Equipment Outreach$1,032,500 $1,032,500 $3,033,704
OUTDOOR POWER EQUIPMENT MARKET
ENGINE FUEL ($5,940,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Propane Autogas
Technician Training$101,296 $101,296 $5,839,204
2017 Material Handling
Outreach$470,000 $470,000 $5,369,204
2017 Propane Autogas
Market Outreach$1,303,000 $1,303,000 $4,066,204
2017 Outdoor Power
Equipment Outreach$1,032,500 $1,032,500 $3,033,704
2017 PROGRAM OBJECTIVES
• Target commercial landscapers in markets where several triggers are driving consideration for propane-powered equipment.
• Provide opportunities for commercial landscapers to experience the performance of propane and resolve concerns they may have about the fuel.
• Provide support for manufacturer-sponsored dealer open houses in key green markets where there is a high density of landscapers, high gasoline fuel costs, and readily available propane.
• Raise awareness of both OEM and conversion equipment options for landscapers.
• Engage more equipment dealers and add them to the new Dealer Point program on propane.com.
• Leverage the Propane Mower Incentive Program with state incentives and/or available OEM rebates.
2017 Program Objectives
• Attract potential customers, engage with the customer and the equipment dealer, activate the sales/purchase cycle (moving from interest to adoption), and turn the adopters into key advocates.
• Promote and market the advantages propane offers in golf and turf markets through participation in key market leadership groups, the industry tradeshow, and PR. Continue to leverage the results and testimonials from the Golf and Turf Demonstration program.
• Target allied industries and vertical markets which share the same engine architecture and platforms by promoting the advantages propane offers those customers -- floor polishers/floor care, concrete finishing, light-duty material movers, forestry, engine driven welders, blowers, and industrial vacuums. Capitalize on the organic growth already taking place in these markets.
2017 TACTICS
• Trade PR
• Tradeshows
• Paid Media
• Dealer & Distributor Engagement
• Propane Marketer Communication & Engagement
WHAT’S DIFFERENT FROM 2016?
• Added allied industries and vertical markets which share the same engine architecture and platforms to promote the advantages propane offers those customers.
• Floor polishers/floor care, concrete finishing, light-duty material movers, forestry, engine driven welders, blowers, and industrial vacuums.
• Scaled back golf strategic partnerships.
• Slightly scaled back landscaper outreach; stronger dealer engagement program.
DOCKET 20970 – 2017 OUTDOOR POWER EQUIPMENT OUTREACH & MARKETING
This project is a comprehensive marketing & communications program for theprofessional landscape, golf and turf, and outdoor power equipment/light-dutyconstruction market. This program will engage original equipmentmanufacturers, equipment dealers & distributors, end users, propanemarketers and other stakeholders to expand the use of propane throughincreased adoption of propane-powered equipment.
ENGINE FUEL ($5,940,500)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Propane Autogas
Technician Training$101,296 $101,296 $5,839,204
2017 Material Handling
Outreach$470,000 $470,000 $5,369,204
2017 Propane Autogas
Market Outreach$1,303,000 $1,303,000 $4,066,204
2017 Outdoor Power
Equipment Outreach$1,032,500 $1,032,500 $3,033,704
MATERIAL HANDLING MARKET
2017 PROGRAM OBJECTIVES
• Clarify the competitive market situation for propane-fueled forklifts.
• Update the positioning and messaging for propane in forklift applications.
• Re-energize propane marketers by equipping them with compelling tools to reestablish their market share.
• Build renewed awareness of the advantages of propane-fueled forklifts among top end user audiences.
• Support dealer and distributor networks in the sale of propane-fueled equipment.
2017 TACTICS
• PR
• Dealer & Distributor Engagement
• Co-Marketing
• Propane Marketer Engagement
• Paid Media
• Content Development
DOCKET 20971 – 2017 MATERIAL HANDLING OUTREACH & MARKETING
This project is a comprehensive outreach & marketing project for the materialhandling market. The objective of this program is to engage original equipmentmanufacturers, equipment dealers & distributors, end users, propanemarketers and other stakeholders in expanding the use of propane throughincreased adoption of propane-powered equipment anywhere materialhandling equipment is used.
AGRICULTURE MARKET
AGRICULTURE ($1,985,535)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Farm Incentive
Program$300,000 $300,000 $1,685,535
2017 Agricultural Market
Outreach Program$896,000 $896,000 $789,535
2017 OBJECTIVES
• Continued emphasis on communicating with market
influencers.
• Streamlining large event support so can put additional
resources to local events, regional events, and consumer
education.
• Developing a new ag campaign to highlight the advances in
propane technologies and the benefits these provide to ag
operations. Messaging will reach both partners and customers,
and build a foundation for future product launches.
• Utilize market research to improve messaging.
2017 TACTICS
• Content Development
• PR
• Trade Shows and Events• Focus on priority shows, support additional regional and local shows.
• Outreach to Influencers & Consumers
• Market Research
WHAT’S DIFFERENT FROM 2016?
• New universal ag campaign to make it less costly and less time consuming to promote regional and time sensitive market opportunities. This will allow us to support the commercialization of new products more effectively and efficiently.
• More frequent communications with the ag equipment sales channel and the propane industry through SalesLink and an ag market editorial calendar.
• Market research and refined messaging based on research findings.
• Additional outreach in growth markets and additional consumer education as the ag market shows signs of improving revenues.
• More website updates to improve sales conversions.
• Fewer print case studies. Additional video testimonials.
DOCKET 20983 – 2017 AGRICULTURE MARKET OUTREACH PROGRAM
The agriculture outreach program communicates the advantages of propaneand propane equipment with ag market stakeholders, including propanemarketers, agriculture customers, equipment manufacturers, distributors,dealers, and other market participants.
The agriculture market is an important market for the propane industry,accounting for approximately 10 percent of propane demand. This outreachprogram will support PERC’s agriculture strategy to grow propane demand inthe agriculture market by facilitating communication among customers andinfluencers in the agriculture and propane industries.
AGRICULTURE ($1,985,535)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Farm Incentive
Program$300,000 $300,000 $1,685,535
2017 Agricultural Market
Outreach Program$896,000 $896,000 $789,535
CHIEF FINANCIAL OFFICER’S REPORT
Jim Harris
2016 API SURVEY & REPORT
DOCKET 21037
PROGRAM SUPPORT INITATIVES ($1,790,000)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Corporate
Communications$400,000 $400,000 $1,390,000
2016 API Survey
& Report$186,080 $186,080 $1,203,920
2017 Advisory Committee
& Program Support$490,000 $490,000 $713,920
2017 Market Research
Initiative$344,580 $344,580 $369,340
* Additional $610,000 Industry Programs,
$75,000 Safety & Training
DOCKET 21037: 2016 API SURVEY & REPORT
2016 BUDGET: $186,080
Overview: this docket covers the expense to conduct a 2016
sales of propane survey in 2017.
Purpose: to provide an equitable statistical methodology to
distribute State Rebates and Partnership with States funding;
and to determine the % of the 2018 annual assessments that
can be applied to on-road engine projects and activities.
Budget Itemization
API: $176,080
ICF International: $10,000
TOTAL: $186,080
DOCKET 21037:2016 API SURVEY & REPORT
2017 BUDGET: $186,080
Three Year Historical Funding
2016 Funding: $179,850
2015 Funding: $174,951
2014 Funding: $177,782
DOCKET 21037: 2016 API SURVEY & REPORT
PROGRAM SUPPORT INITATIVES ($1,790,000)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Corporate
Communications$400,000 $400,000 $1,390,000
2016 API Survey
& Report$186,080 $186,080 $1,203,920
2017 Advisory Committee
& Program Support$490,000 $490,000 $713,920
2017 Market Research
Initiative$344,580 $344,580 $369,340
* Additional $610,000 Industry Programs,
$75,000 Safety & Training
2017 ADVISORY COMMITTEE & PROGRAM SUPPORT
DOCKET 21036
PROGRAM SUPPORT INITATIVES ($1,790,000)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Corporate
Communications$400,000 $400,000 $1,390,000
2016 API Survey
& Report$186,080 $186,080 $1,203,920
2017 Advisory Committee
& Program Support$490,000 $490,000 $713,920
2017 Market Research
Initiative$344,580 $344,580 $369,340
* Additional $610,000 Industry Programs,
$75,000 Safety & Training
DOCKET 21036: 2017 ADVISORY COMMITTEE & PROGRAM SUPPORT
2017 BUDGET: $490,000
Overview: cost associated with all advisory committee
functions as well as the project administration of PERC’s
programs.
Purpose: logistical support for advisory committee meetings,
travel expenses to support business development and product
commercialization, insurance, travel costs associated with
program staff attending Council meetings.
Budget Itemization
Meeting Expenses: $171,000
Staff Travel: $215,000
Consulting Fees: $18,000
Insurance: $47,000
Various: $39,000 (e.g. association dues, conferencing, supplies, printing)
TOTAL: $490,000
DOCKET 21036: 2017 ADVISORY COMMITTEE & PROGRAM SUPPORT
2017 BUDGET: $490,000
Three Year Historical Funding
2016 Funding: $460,000
2015 Funding: $490,000
2014 Funding: $459,000
DOCKET 20136: 2017 ADVISORY COMMITTEE & PROGRAM SUPPORT
PROGRAM SUPPORT INITATIVES ($1,790,000)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Corporate
Communications$400,000 $400,000 $1,390,000
2016 API Survey
& Report$186,080 $186,080 $1,203,920
2017 Advisory Committee
& Program Support$490,000 $490,000 $713,920
2017 Market Research
Initiative$344,580 $344,580 $369,340
* Additional $610,000 Industry Programs,
$75,000 Safety & Training
2017 PROPANE MARKET RESEARCH INITIATIVE
DOCKET 21038
PROGRAM SUPPORT INITATIVES ($1,790,000)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Corporate
Communications$400,000 $400,000 $1,390,000
2016 API Survey
& Report$186,080 $186,080 $1,203,920
2017 Advisory Committee
& Program Support$490,000 $490,000 $713,920
2017 Market Research
Initiative$344,580 $344,580 $369,340
* Additional $610,000 Industry Programs,
$75,000 Safety & Training
DOCKET 21038: 2017 PROPANE MARKET RESEARCH INITIATIVE
2017 BUDGET: $344,580
Deliverable: collection of market intelligence, forecast
modeling & analysis highlighted by market segmentation and
propane gallon sales
Purpose: support mapping PERC’s strategic direction and
ultimately evaluate the market impact of PERC programs
Contractor: ICF International
DOCKET 21038: 2017 PROPANE MARKET RESEARCH INITIATIVE
Task 1) Propane Market Data Analysis and Forecasting :
Budget $231,120
- Develop and maintain propane market databases and
forecasting models
- Forecast propane market demand and supply trends
DOCKET 21038: 2017 PROPANE MARKET RESEARCH INITIATIVE
Task 2) Market Analysis: Budget $87,800
- Assist PERC in the development of forecasting gallons by
program.
- Used to identify our actual gallon results compared to our plan.
- Used in part for our consideration in developing our program
budget priorities.
- Integrate the market information into the Propel process.
DOCKET 21038: 2017 PROPANE MARKET RESEARCH INITIATIVE
Task 3) Industry Outreach and Support : Budget $25,660
- Presentations on propane market issues at PERC Council and
propane industry meetings
- Respond to industry support
- Respond to industry member requests for market information
DOCKET 21038: 2017 PROPANE MARKET RESEARCH INITIATIVE
2017 BUDGET: $344,580
Three Year Historical Funding
Docket 20692: 2016 Propane Market Research Initiative: $394,580
Docket 20272: 2015 Propane Market Research Initiative: $394,580
Docket 18299: 2014 Propane Market Research Initiative: $399,580
PROGRAM SUPPORT INITATIVES ($1,790,000)
DOCKET BUDGETED REQUESTED TOTAL REMAINING
2017 Corporate
Communications$400,000 $400,000 $1,390,000
2016 API Survey
& Report$186,080 $186,080 $1,203,920
2017 Advisory Committee
& Program Support$490,000 $490,000 $713,920
2017 Market Research
Initiative$344,580 $344,580 $369,340
* Additional $610,000 Industry Programs,
$75,000 Safety & Training
INDUSTRY & PUBLIC COMMENTS
OLD BUSINESS
NEW BUSINESS