Marketing Ethanol to the Consumer

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Marketing Ethanol to the Consumer
Expansion of Ethanol-Enriched Fuel in the
Sunshine State July 2007
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• EPICs Mission
• The Ethanol Promotion and Information Council
  (EPIC) is a non-profit alliance of industry
  leaders that have come together to grow consumer
  demand for ethanol energy through targeted
  marketing.
• EPICs Vision
• Establish and grow ethanols place in the global
  renewable energy market.

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The big hurdles

• Big Oil will continue to emphasize their domestic
  sources for oil (oil sands, Gulf of Mexico,
  ANWAR) and deemphasize foreign supply.
• Global Oil Retailers will highlight steps they
  are taking to push renewable fuels.
• Impact of global energy prices will drive
  actions.
• Blockage of ethanols infrastructure progress.

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The big hurdles

• Some retailers (mostly independents) will stake
  out a pro-renewable fuels position.
• Anti E85 movement equipment UL approval
  (retailers) MPG hit (media/consumers).
• Anti-ethanol campaign (food vs. fuel, not as
  enviro-friendly as advertised, small supply).
• Big Oil will spend megabucks to defend their turf
  and marginalize the e and ethanol.

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National Branding Program

• Goal Create a clear and consistent brand image

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E10 Pump Branding
12 States Approved

• Goal 25 States by the end of 2007

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E85 Pump Branding
New image that incorporates the national branding
program. Goal of several hundred existing and
new stations to be branded in the next year.
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Our approach
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Research a little education goes a long way
Change in Likelihood to Purchase
PRE
POST
INFORMATION EXPOSURE
Aware AND Very likely/ Likely to purchase
Aware AND Very likely/ Likely to purchase
Unlikely/ Undecided/ Unaware
Unlikely/ Undecided
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Positioning Ethanol
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Develop New Markets with Ethanol Marketers
Fuel Retailers Pump Branding and Promo
Accelerate development of B-to-B relationships
to extend reach and depth of corporate
commitment to ethanol
Auto Parts - Service Centers Education
Continue Auto Manufacturer Efforts
Auto and Trip-Related Tie-In Partnerships
Objective Grow demand for ethanol by
promoting benefits and developing new
markets Goal Keep demand ahead of supply
Recruit Volunteers to Promote Ethanol
Greatly increase outreach and promotions aimed
at mainstream environmentalists
Enviro Org. Partnerships Joint Promos
Targeted Messaging, Materials, Media
Tie Enviro Benefits to Transportation
Environmental Festivals
Seek high-profile ways to utilize media for
high-impact ethanol messaging to targeted
demographics
Produce and Air TV Spots
Key Influencer Messaging - VIPs
Fields of Fuel Feature Film
Stunt Marketing to Increase Buzz

• Optimize motor sports / performance team
  participation to demonstrate performance to
  target consumers and influencers

IndyCar Series / Rahal Letterman
Sanctioning Bodies / Contingency Awards
Team Ethanol Activation
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Florida Outreach
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Florida Outreach
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Florida Campaign - Objective

• To educate Floridians about ethanol and its
• benefits prior to market entry of ethanol into
  the
• state, thus driving up the demand for the
  product,
• thereby encouraging retailers to add E10 and E85
• to their pump mix.

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Florida Campaign - Strategy

• For a 3-month campaign, use consumer media
  outlets to
• drive Floridians to the FNE website to learn more
  about
• the benefits of e10 and e85 for America, the
  environment
• and for their cars. Messaging will be short, and
  the website
• will prominent in the call-o-action. Trade ads
  created to
• market directly to the retailers will be more
  text heavy with
• information.

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Florida Campaign - Target

• Florida Adults 18, skewing slightly more female,
  than male
• Florida Independent gas station retailers

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Florida Campaign - Geography

• State of Florida, with specific emphasis of major
• metropolitan areas including Tampa Bay,
• Jacksonville, and Miami.

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Florida Campaign - Messaging

• Based on the findings from our most recent
  consumer research study, consumer education and
  marketing in Florida needs to focus on educating
  consumers the differences between E10 and E85
  with an emphasis on key benefits of environmental
  impact as renewable energy and the ability to
  reduce Florida and Americas dependence on
  foreign oil.
• Copy headlines will focus on ethanols benefits
  to the state of Floridas environment and
  economy. Body copy will encourage Floridians to
  get educated on ethanol by logging onto the FNE
  web site.

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Florida Campaign - Messaging

• Key Benefits / Copy Points
• Good for your car
• Good for the environment
• Good For Florida and America
• Call to Action
• Log on to www.Floridaneedsethanol.com to find
• out why Florida needs ethanol.

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Florida Campaign - Tactics

• Outdoor
• Newspapers
• Online
• Radio
• Trade Publications

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Mobile Education Units
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IndyCar Series
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IndyCar Series

• Multi-million dollar team sponsorship of the Team
  Ethanol 17 Car, and driver Ryan Hunt Ray.
• Team sponsorship paid for by ICM, Poet and Fagen.
• Renova Energy provides the ethanol.
• EPIC provides the transportation for the fuel to
  Indianapolis.
• EPIC leverages another 2M to promote the series
  and ethanols involvement.

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IndyCar Series

• Why are we in the IndyCar Series?
• Research
• Opportunity
• Millions of Fans
• Create Peer Pressure

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IndyCar Series

• Has this been successful?
• Fuel switch was seamless
• Smaller Fuel Cells
• New track records
• New leagues
• American Le Mans
• NHRA/IHRA
• Monster Jam
• Various Other Leagues

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Motorsports Success in 06

• IndyCar increasing viewership, over 4M measured
• logo exposure Series attendance 1M,
• Ethanol Day and Ethanol Forum at Indy
• 100 Ethanol Press Conference in Chicago
• Billboards, program ads, IndyCar Magazine Ads,
  USA Today and Indianapolis Star print ads
• Handouts of materials t-shirts and brochures
• Hospitality Indy 500, Kansas City, Michigan,
  Chicago
• Pump promotions or fan events near 6 race venues
• Enhanced awareness of ethanol among motorsports
  fans
• Vehicles used at events, trade shows, show car
  program

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Questions?