Natural Gas Marketing Program

1. Natural Gas Marketing Program Peter Harcus Manager Gas Network Development, Jemena March 2009

2. The need for gas marketing Reliance on two main gas products Space heating and water heating These two products represent over 90% of residential volume Both products under pressure shift in market preferences environmental factors impact of government policies Retailer driven growth strategies have not delivered for network business lack of priority and focus on network market development needs Continued decline of these products could threaten economic viability of network

3. Marketing Strategy Review July 2007, Alinta/Jemena initiated a Network Marketing Strategy review NSW. Pulse Marketing Group were commissioned to execute an audit and review of the NSW and ACT markets. Research was implemented to identify what a high value Natural Gas customer looks like, which allowed us to develop a Natural Gas brand, creative strategy and media strategy to target these customers.

4. Brand Strategy There was clearly a need to establish Natural Gas as a separate brand/product that consumers can have emotional feelings towards. There was no need or desire to link it to our company or another network company, so the Natural Gas brand can be used across different networks. To build on this platform, we needed to illustrate that Natural Gas is a lifestyle investment, and position it as an innovative, progressive and environmentally-friendly choice. Creating these positive feelings towards the promotion of Natural Gas was critical in growing gas consumption and connections within the market.

5. The Brand

6. Brand Strategy WORD - Natural Gas: Natural Gas it says it all. It is a natural resource that is perceived as a more environmentally conscious decision than other energy sources. IMAGE – The Flame: Natural Gas owns the flame - no other energy source can make a claim to it. The flame can also be viewed as a leaf, which reiterates the natural and environmental message. PROPOSITION – The Natural Choice: Chosen for two specific reasons: 1. The environmental positives that comes from the word ‘natural’ and the fact that it is a greener source of energy. 2. Natural Gas being a common sense decision, it’s a natural choice that you make.This works well across markets, I&C it’s the right business decision.

7. 2008 Marketing Program Review Integrated program targeting key consumer value segments across a range of media TV Print Online In-store merchandising Home Show promotions The program cover all NSW and ACT Natural Gas areas, key network partners ActewAGL Country Energy Tamworth Natural Gas Company

8. TV Campaign

9. Print Campaign

10. In-Store Merchandising Support 10

11. In-Store Merchandising Support 11

12. Home Shows 12

13. 2008 Campaign Results • Unprompted 1 in 3 people recall seeing a Natural Gas advertisement in the last 3 months • Prompted 78% had seen The Natural Choice TV or print campaign • More than 80% of consumers liked the ads • Significant positive impacts on consumers perception of the benefits of Natural Gas

14. Attitudes toward Natural Gas vs. Other Sources: 2008 ACT vs. 2007 ACT Base: ACT participant (n=216, 2008; n=144, 2007) *= “better choice” comparisons to electricity

15. Focus for 2009 Increasing the desire for consumers to want to use gas appliances HOWEVER, WE NEED TO Make it easier for consumers to identify the right appliance for them Inform them of any offers or hot deals available Show them where the nearest gas showroom is Make www.thenaturalchoice.com.au transactional rather than purely informational. Develop and implement Buying an Appliance Increase the intensity of advertising

16. Evolution of Creative Strategy Stan is not telling consumers anything new about gas Functional benefits well known,need to emphasise emotions and feelings of gas Humour well liked Need to become more appliance focus, the gas appliances become the heroes Build on same elements – website, family, division through product use Develop Natural Gas brand ad + Barry/Appliance focused ads 60sec and 30sec, ad executions New End-frame line

17. Proposed 2009 Media Strategy • Better understanding of our core audience allows us to redefine segment and time/type of media • Value segments + 25 – 54 yrs: • 2.2m in NSW • Increase on-air activity TV activity from 11 to 21 weeks • Increase Print advertising from 43 to 52 executions in 2009 • Introduce additional high usage mediums to media mix such as Radio

18. Website Development Transform website from purely informational to transactional Develop Buying an Appliance portal to allow consumers to Review the extensive range of gas appliances available Find where to view and buy the appliances Find out how to arrange installation Review any current hot deals being offered by manufacturers, appliance retailers or installers Structure the Buying an Appliance portal to different regions/markets, in case there are different offers in these locations

19. Natural Gas Appliances - Homepage

20. 2009 Program Outline New 60 sec and 30 sec Natural Gas branded ads focusing strongly on the emotional attraction of a Natural Gas lifestyle One new 30sec appliance ad and updated ad from last year focusing on the appliances and driving consumers to visit the website. Upgraded website with updated look, new ads and Buying an Appliance section to be launched on Friday 26 February Print executions running across the year TV advertising commencing 1 March Burst 1 5 weeks Burst 2 24 May for 6 weeks Burst 3 12 July for 5 weeks Burst 4 6 September for 5 weeks Trade and consumer shows including Sydney Home Show and Design Ex