Research On The Marketing Strategy Of Tiered Electricity Pricing Policy For Wuxi Power Supply Company

Since 1990s, China has seen our economy rapidly grow along with the standard of living enjoyed by our people, which results in a reversal of the boom in the residential electricity consumption. However, thanks to the cross-subsidy contributed by the higher commercial electricity price, China’s residential electricity price has long stayed at a low level. The magnitude and frequency of the later adjustment is far below the former, despite of both energy supply shortage and environment problem which account for the rising price of unsustainable resource such as coal.Currently, the point what research about household tiered electricity pricing policy mostly focus on is how to decide the rational level of the price and to make a scientific determination about electricity consumption of each tiers, rather than the influence of the policy on a power supply company. In this paper, WX power supply company will be used as an example to explore how could power business avoid negative impacts after the current implementation of tiered elctricity pricing policy, and which marketing strategy would be more appropriate. It may not only help the residents to fully understand the related concept and principle of the price ladder which eliminates their incorrect understanding, but also force the power company to enhance its service awareness and to refine its business process in order to boost its competitive edge. This paper has six chapters. Chapter One is introduction. Chapter Two is a thorough survey and analysis of relative theories. This chapter reviews price leverage theory, elastic demand theory and the core concept of marketing management. This chapter tries to find a research gap, which turns out to be exploring the specific marketing strategy for WX company. Chapter Three is a study on how tiered electricity pricing policy influences the living standard of local residents, and tries to find the precise implication according to the price of alternative fuels, disposable household income and so on. Chapter Four presents possible impacts of the policy on the power supply company in terms of the metering system, metering reading management, accounting management, system operation and business operation management. The implementation of tiered elctricity pricing policy has taken a toll on the company, which should be received prominent attention. Chapter Five is a case study, in which some technical and managerial measures are put forward for WX power supply company as an example to respond to the current changes. Chapter Six is the conclusion.