Evergy, Inc. (EVRG): Marketing Mix Analysis [11-2024 Updated]

Understanding the marketing mix of Evergy, Inc. (EVRG) reveals how this leading energy provider is adapting to the evolving landscape of electricity generation and distribution. With a strong focus on renewable energy sources and community engagement, Evergy is not just delivering power but also fostering a sustainable future. Dive deeper to explore the intricacies of their product offerings, place in the market, promotional strategies, and pricing structures that together shape their business approach in 2024.

Evergy, Inc. (EVRG) - Marketing Mix: Product

Offers electricity generation and distribution services.

Evergy, Inc. provides a range of electricity generation and distribution services across its operational territories. As of September 30, 2024, the company's total operating revenues amounted to approximately $4.59 billion, with significant contributions from retail, wholesale, and transmission services.

Focuses on renewable energy sources like solar and wind.

Evergy has made significant investments in renewable energy. It has increased its renewable generation capacity, aiming to reach 50% of its energy mix from renewable sources by 2030. As of 2024, the company has approximately 2,300 megawatts of wind capacity and over 400 megawatts of solar capacity.

Provides energy efficiency programs to customers.

Evergy offers various energy efficiency programs, targeting both residential and commercial customers. For 2024, the company has budgeted approximately $60 million for energy efficiency initiatives, which are projected to save customers over 300 GWh of electricity annually.

Engages in wholesale energy market transactions.

In the wholesale energy market, Evergy's revenues from wholesale transactions were approximately $259 million for the year to date September 30, 2024. This reflects fluctuations in market prices and demand.

Expands infrastructure with new power plants and upgrades.

Evergy is actively expanding its infrastructure, with significant capital expenditures planned for 2024. The company has allocated around $1.1 billion for infrastructure improvements, including the construction of new power plants and the upgrade of existing facilities.

Acquired a 22% interest in Dogwood Energy Center for $60 million.

In April 2024, Evergy Missouri West acquired a 22% ownership interest in the Dogwood Energy Center for approximately $60 million. This facility, a combined-cycle natural gas power plant, enhances Evergy's generation portfolio and is expected to contribute to its operational capacity.

Evergy, Inc. (EVRG) - Marketing Mix: Place

Operates Primarily in Kansas and Missouri

Evergy, Inc. primarily operates in the states of Kansas and Missouri, serving a diverse customer base across these regions. The company’s service territory covers approximately 18,000 square miles, delivering electricity to approximately 1.6 million customers.

Services Residential, Commercial, and Industrial Sectors

Evergy provides electricity to a variety of sectors, including:

• Residential: $1,746.5 million in revenues for the year to date September 30, 2024, up from $1,626.4 million in 2023.
• Commercial: $1,533.7 million in revenues for the year to date September 30, 2024, compared to $1,419.3 million in 2023.
• Industrial: $524.0 million in revenues for the year to date September 30, 2024, an increase from $475.3 million in 2023.

Overall, Evergy's total electric retail revenues reached $3,837.2 million for the year to date September 30, 2024.

Utilizes a Network of Transmission Lines for Electricity Distribution

Evergy employs an extensive network of transmission lines to deliver electricity efficiently. The company reported a transmission revenue of $360.9 million for the year to date September 30, 2024, an increase from $308.2 million in 2023. This network is crucial for maintaining reliability and meeting the energy demands of its customers.

Engages in Both Retail and Wholesale Markets

Evergy operates in both retail and wholesale electricity markets. For the year to date September 30, 2024, wholesale revenues amounted to $259.0 million, down from $301.8 million in 2023. This dual engagement allows Evergy to balance supply and demand effectively while optimizing its revenue streams.

Expanding Service Capabilities Through New Energy Facilities

In 2024, Evergy expanded its service capabilities by investing in new energy facilities. Notably, in April 2024, Evergy Missouri West acquired a 22% ownership interest in the Dogwood Energy Center for approximately $60 million. This facility enhances Evergy's operational capacity and supports its commitment to providing reliable energy to its customers.

Evergy, Inc. (EVRG) - Marketing Mix: Promotion

Communicates sustainability initiatives to enhance brand image.

Evergy focuses on sustainability as a core component of its brand strategy. In 2024, the company committed to achieving net-zero carbon emissions by 2045. This initiative is supported by investments in renewable energy sources, which accounted for approximately 30% of the company's total energy generation as of September 2024. In its recent sustainability report, Evergy highlighted a $500 million investment in solar and wind projects over the next five years.

Implements energy efficiency campaigns for residential customers.

Evergy launched the 'Save More, Save Power' campaign, targeting residential customers to promote energy-saving practices. The campaign aims to reduce energy consumption by 10% among participating households. As part of this initiative, Evergy provided rebates totaling $15 million for energy-efficient appliances in 2024, resulting in an estimated reduction of 200,000 MWh in energy usage.

Engages in community outreach to educate on renewable energy.

Evergy has increased its community outreach efforts by conducting over 100 workshops and seminars in 2024, educating the public about renewable energy options and the benefits of transitioning to clean energy. These initiatives have reached approximately 10,000 participants across its service areas. Furthermore, Evergy partnered with local schools for educational programs that emphasize renewable energy, impacting around 5,000 students this year.

Offers incentives for customers to participate in renewable programs.

To encourage customer participation in renewable energy programs, Evergy introduced several incentives, including a $500 rebate for customers who install solar panels. As of September 2024, over 1,200 customers have taken advantage of this program. Additionally, Evergy's Wind Energy Program offers a 10% discount on energy bills for customers who opt into wind energy sourcing, with approximately 15,000 customers enrolled as of the latest report.

Utilizes digital platforms for customer engagement and service information.

Evergy has invested in enhancing its digital platforms to improve customer engagement. The company reported a 25% increase in the use of its mobile app, which provides customers with real-time energy consumption data and personalized recommendations for energy savings. In 2024, Evergy's website received over 3 million visits, with 40% of these visits related to renewable energy information and customer service inquiries.

Evergy, Inc. (EVRG) - Marketing Mix: Price

Adjusted retail rates effective December 2023 to reflect operational costs

As of December 2023, Evergy implemented new retail rates that resulted in a net increase of approximately $43.1 million in revenues for Evergy Kansas Central. This change comprised $51.1 million from increased rates, partially offset by $8.0 million from decreased rates in Evergy Metro.

Competitive pricing strategy for residential and commercial segments

For the three months ended September 30, 2024, Evergy reported residential revenues of $730.8 million, up from $675.1 million in the same period of 2023. Commercial revenues also increased to $615.2 million from $528.6 million.

Utilizes regulatory mechanisms for cost recovery from customers

Evergy employs regulatory mechanisms that allow for cost recovery through adjustments in customer rates. This includes the recovery of extraordinary fuel and purchased power costs incurred during the February 2021 winter weather event, which is being managed through a securitized utility tariff charge effective from February 2024.

Offers various pricing plans and incentives for energy conservation

Evergy provides a variety of pricing plans tailored to encourage energy conservation. These include time-of-use rates and demand response programs, which aim to reduce peak load and incentivize customers to shift energy consumption to off-peak hours.

Monitors market trends to adjust pricing strategies accordingly

Evergy continuously analyzes market trends to adapt its pricing strategies. For instance, the utility has adjusted its rates based on fluctuations in demand and operational costs, reflecting a proactive approach in maintaining competitive pricing while ensuring service reliability.

In conclusion, Evergy, Inc. (EVRG) effectively leverages its marketing mix to navigate the evolving energy landscape, emphasizing renewable energy and sustainability across its product offerings. With a strong presence in Kansas and Missouri, the company utilizes innovative promotional strategies to engage customers while maintaining competitive pricing to ensure affordability. As Evergy continues to expand its infrastructure and enhance customer services, it positions itself as a leader in the transition to a cleaner energy future.

Updated on 16 Nov 2024

Resources:

1. Evergy, Inc. (EVRG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Evergy, Inc. (EVRG)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Evergy, Inc. (EVRG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.