Assignment 2

MKT 4018 Entrepreneurship in the

Digital Sector

Module Leader Dr Stephen Donohoe

"Digital Agency Business Plan"

Contents
1. Business description........................................................................................................................4
2. The market analysis for Pavegen is as follows:...............................................................................5
The PESTEL Analysis for Pavegen is as follows................................................................................5
Political Factors:..................................................................................................................................6
Economic Factors:...............................................................................................................................6
Social Factors:......................................................................................................................................6
Technological Factors:.........................................................................................................................6
Environmental Factors:........................................................................................................................7
Legal Factors:......................................................................................................................................7
SWOT Analysis:..................................................................................................................................7
Strengths..............................................................................................................................................7
Innovative technology:........................................................................................................................7
Strong mission:....................................................................................................................................8
3. Strategic Plan.....................................................................................................................................10
3.1 Services........................................................................................................................................10
4. Marketing Plan...................................................................................................................................11
4.1 Segmentation and Branding.........................................................................................................11
4.2 Unique Selling Proposition (USP)...............................................................................................12
4.3 SMART Objectives......................................................................................................................12
5. Marketing Mix...................................................................................................................................13
5.1 Product.........................................................................................................................................13
5.2 Price.............................................................................................................................................13
5.3 Promotion.....................................................................................................................................13
5.4 Placement.....................................................................................................................................14
6. Financial Plan....................................................................................................................................14
6.1 Financial Highlights.....................................................................................................................14
6.2 Forecast Profit and Loss Account................................................................................................14
7. References......................................................................................................................................15

1. Business description

Mission: Pavegen’s CEO, Laurence Kemball-Cook, embarked on a clear mission: to

generate clean, off-grid electricity through the simple act of stepping on a kinetic floor tile.
This revolutionary technology began with over 750 prototypes, eventually leading to the
birth of the first kinetic floor tile capable of producing clean electricity in 2009 (Pavegen,
2024b).

Inspiration: While at Loughborough University, Laurence won a placement with a major

European energy company. His challenge was to explore renewable energy solutions for
street lighting. During this time, he frequented Victoria train station, which sees around 75
million visitors annually. It struck him that harnessing human kinetic energy from all those
footsteps could potentially create off-grid electricity.

Innovation: Laurence developed the first Pavegen prototype in his Brixton bedroom. Despite
having nowhere to validate his invention, he took a bold step by installing a Pavegen tile on a
building site without permission. He documented this and used social media to attract
investment, successfully pushing his revolutionary technology forward (Peachey, 2021).

Current Impact: Pavegen’s original dream was to create a floor tile capable of powering the
entire world. However, they’ve discovered an even more significant impact: incentivizing
real behaviour change. By capturing footsteps and rewarding users for contributing
positively, Pavegen inspires sustainable actions. With over 200 projects in 37 countries,
they’re already making a demonstrable difference (Insights Success, 2024).

What Pavegen Does:

Pavegen is a smart flooring technology that transforms footsteps into:

Electrical energy: The kinetic energy generated by footsteps powers engaging activations.

Data: Insights are gathered from footfall patterns.

Rewards: Users are incentivized for their positive contributions.

Their tech educates, inspires, and enables people around sustainability, creating a powerful
connection between individuals and cleaner, smarter cities.

Making Cities Smarter:

 Pavegen serves as a non-intrusive daily reminder within cities. It demonstrates a clear
commitment to citizens, emphasizing their role in contributing to a more sustainable, cleaner
urban environment.

Through participation-led experiences, Pavegen allows citizens to physically engage with a

city’s sustainability initiatives, bringing key messages to life (Peachey, 2021).

Empowering People for a Better World:

Founded in 2009, Pavegen’s mission is to make their technology accessible to all

communities. They believe in the untapped power of people, beyond just clean electricity
generation. Real human relationships and collective participation are integral to a better, more
sustainable world (Pavegen, 2024b).

2. The market analysis for Pavegen is as follows:

The PESTEL Analysis for Pavegen is as follows (Aguilar, 1967, cited in Song, Sun, and
Jin, 2017):

Political Factors: Pavegen operates in a global context, so political stability, regulations, and
government policies significantly impact their business. For instance, favourable policies
promoting renewable energy adoption can boost Pavegen’s growth. In the UK, where
Pavegen is headquartered, government initiatives like the Clean Growth Strategy play a
crucial role in shaping the renewable energy landscape.

Economic Factors: Economic conditions influence Pavegen’s market reach. Economic

downturns may affect investment in sustainable technologies, while economic growth can
create opportunities. For example, during a recession, companies might prioritize cost-cutting
over investing in innovative solutions like Pavegen’s kinetic flooring.

Social Factors: Pavegen’s success hinges on societal awareness and willingness to adopt
sustainable practices. Social trends toward environmental consciousness play a pivotal role.
As consumers become more environmentally conscious, demand for clean energy solutions
like Pavegen’s could rise.

Technological Factors: Pavegen thrives on innovation. Advancements in energy storage,

data analytics, and smart cities directly impact their business model. For instance,
improvements in battery technology could enhance the efficiency of storing energy generated
by Pavegen tiles.

Environmental Factors: Pavegen’s raison d’être is environmental sustainability. Their

success aligns with global efforts to combat climate change. As governments and
organizations prioritize sustainability, Pavegen’s technology gains relevance. However, any
adverse environmental events (such as natural disasters) could impact their installations.

Legal Factors: Compliance with environmental regulations, intellectual property protection,

and contracts with clients are crucial legal aspects for Pavegen. For instance, adhering to
health and safety regulations when installing kinetic tiles in public spaces is essential.

SWOT Analysis:
 1.

Strengths

Innovative technology: Pavegen’s kinetic flooring is groundbreaking. Its ability to

convert footsteps into electricity sets it apart.

Strong mission: Their commitment to sustainability resonates. Pavegen’s mission goes

beyond energy generation it’s about inspiring behavioural change.

Global presence: With over 200 projects in 37 countries, Pavegen has established a
significant footprint.
Weaknesses

High initial costs: Implementing Pavegen tiles can be expensive. Convincing clients to
invest upfront can be challenging.

Limited scalability: Foot traffic determines energy generation. Pavegen’s impact is

directly tied to the number of people walking on their tiles.

Niche market: Adoption may be slow in some regions due to the novelty of kinetic
flooring technology.

Opportunities
Urbanization: Growing cities need sustainable solutions. Pavegen can play a vital role in
smart city infrastructure.

Partnerships: Collaborating with municipalities, businesses, and educational institutions

can expand Pavegen’s reach.

Technological advancements: Evolving energy storage and IoT can enhance Pavegen’s
capabilities.

Threats

Competition: Rival companies in the clean energy sector pose a threat. Pavegen must stay
ahead in innovation.

Economic downturns: Economic instability affects investment decisions. Pavegen’s

growth could be impacted during recessions.

Regulatory changes: Policies affecting renewable energy, subsidies, and incentives can
impact Pavegen’s business model.

2. Critical Success Factors:

User Engagement: Encouraging people to step on Pavegen tiles and participate

actively. The more engagement, the greater the energy generated.

Collaborations: Partnering with municipalities, businesses, and educational

institutions. Collaborations can lead to more installations.

Innovation: Continuously improving technology and expanding applications.

Pavegen should stay at the forefront of kinetic energy solutions.
 Marketing: Creating awareness and showcasing real-world impact. Success
stories and case studies can attract more clients.

Scalability: Finding ways to deploy Pavegen on a larger scale. This involves

addressing scalability challenges.

3. Competitors:

Pavegen faces competition from other renewable energy solutions, such as solar panels, wind
turbines, and piezoelectric systems. Companies like EnOcean, Kinetic Tiles, and Solar
Roadways are potential rivals. Understanding their strategies and differentiating Pavegen’s
offerings is crucial (Craft, 2024).

3. Strategic Plan
3.1 Services

3.1.1 SEO/SEM (Search Engine Optimization/Search Engine Marketing)

Pavegen recognizes the critical role of digital visibility in today’s competitive landscape.
Their SEO and SEM services aim to elevate brands’ online presence. By optimizing websites
for search engines, Pavegen ensures that their clients’ content ranks higher in search results.
This strategic approach enhances brand visibility, drives organic traffic, and ultimately
fosters meaningful connections with stakeholders.

3.1.2 Web Design

Pavegen understands that a well-designed website is more than aesthetics it’s a powerful tool
for engagement. Their web design services focus on creating user-friendly, visually appealing
interfaces. By combining form and function, Pavegen ensures that visitors have a seamless
experience while interacting with their clients’ websites. Effective web design contributes to
brand credibility and user satisfaction.

3.1.3 Design & Copywriting

Compelling design and persuasive copy are essential for effective communication. Pavegen’s
design and copywriting services work in tandem to convey brand messages authentically.
Whether it’s crafting impactful headlines, creating engaging visuals, or developing persuasive
narratives, Pavegen ensures that their clients’ content resonates with their target audience.
Well-crafted design and copy contribute to brand consistency and memorable experiences.

3.1.4 Social Advertising

In the digital age, social media platforms play a pivotal role in brand communication.
Pavegen’s social advertising services leverage these platforms to connect brands with their
customers and stakeholders. By curating tailored content and running targeted ad campaigns,
Pavegen helps clients build trust, loyalty, and engagement. Social advertising amplifies brand
reach, encourages conversations, and fosters lasting relationships.

In summary, Pavegen’s strategic plan revolves around harnessing kinetic energy while also
providing comprehensive digital services. By integrating sustainability with effective
marketing practices, they create a more profitable and sustainable future for all. Step. Power.
Connect.

4. Marketing Plan
4.1 Segmentation and Branding

Pavegen, as a smart flooring technology company, recognizes the importance of

segmentation in effectively reaching their diverse audience. The Segmentation, Targeting,
Positioning (STP) model serves as a strategic approach for Pavegen’s marketing
communications. Here’s how it works:

1. Market Segmentation: Pavegen identifies distinct customer segments based on

relevant characteristics. These segments could be defined by demographics,
behaviour, or needs. For instance, they might target environmentally conscious
consumers, urban planners, or sustainability-focused businesses.
2. Market Targeting: After segmentation, Pavegen evaluates the potential and
commercial attractiveness of each segment. They prioritize the most valuable ones.
For example, they might focus on cities with high foot traffic or brands committed to
sustainability.
3. Product Positioning: Pavegen tailors their marketing mix (product features, pricing,
promotion, and distribution) for each selected segment. They position their kinetic
 technology as a solution for sustainable energy generation, engagement, and positive
change.

Pavegen’s branding revolves around creating a powerful connection with stakeholders. Their
kinetic energy solutions inspire brands worldwide to engage meaningfully around
sustainability and Environmental, Social, and Governance (ESG) practices. By transforming
footsteps into renewable energy, Pavegen educates, inspires, and strengthens relationships.
Their brand promise lies in creating a more profitable and sustainable future for all.

4.2 Unique Selling Proposition (USP)

Pavegen’s USP lies in their award-winning kinetic technology. Unlike traditional flooring,
their smart tiles generate electricity from footsteps. This uniqueness captivates modern
visitors, increasing dwell time. Pavegen’s USP is twofold:

1. Renewable Energy: Pavegen’s flooring converts kinetic energy into electricity.

Brands can showcase their commitment to sustainability by incorporating Pavegen’s
technology into their spaces.
2. Engaging Experiences: Pavegen’s installations go beyond energy generation. LED
displays, gamification, and data insights create immersive brand experiences. Users
become part of the solution, fostering lasting loyalty through sustainability.

4.3 SMART Objectives

Pavegen’s objectives follow the SMART framework:

1. Specific: Pavegen aims to install their kinetic flooring in 50 new smart city projects
within the next year.
2. Measurable: They plan to track foot traffic, energy generated, and user engagement
in each installation.
3. Achievable: Given their existing global presence, expanding to 50 new projects is
feasible.
4. Relevant: Aligning with their mission, these installations contribute to sustainable
urban development.
5. Time-bound: Achieving this goal within a year ensures timely progress.
In summary, Pavegen’s marketing plan focuses on targeted segmentation, leveraging their
unique technology, and setting SMART objectives. Their brand promise resonates with
stakeholders, emphasizing a greener, more connected future. Step. Power. Connect.

5. Marketing Mix
5.1 Product

Pavegen specializes in innovative flooring tiles equipped with kinetic energy harvesting
systems, converting footsteps into renewable electricity for urban environments,
transportation hubs, retail spaces, and events. Their products not only generate electricity but
also engage users and promote sustainability through interactive installations. Pavegen offers
a variety of kinetic tiles tailored to different applications, engineered for durability, energy
efficiency, and seamless integration into urban spaces. Their brand reputation as a
sustainability pioneer enhances their value, while eco-friendly packaging highlights the
uniqueness of their technology (Pavegen, 2024b).
5.2 Price

Pricing strategy is pivotal for Pavegen's success, encompassing competitive list prices for
their kinetic tiles, potential volume discounts, and tailored payment terms to align with
project timelines. Their approach is rooted in a value-based pricing model, considering
factors like production costs, market demand, and perceived value. Leveraging the innovative
nature of their technology and the long-term cost savings of renewable energy, Pavegen sets
prices reflecting the unique benefits and environmental impact of their products, while
ensuring competitiveness in the market (Bouazza, et al., 2011).

5.3 Promotion

Promotion is key for Pavegen to connect with its audience and drive demand for its products.
They employ a mix of digital marketing, utilizing platforms like social media and email, to
convey the benefits of their kinetic flooring technology. Content marketing efforts, including
blog posts and case studies, educate and inspire potential customers about Pavegen's value
proposition. Additionally, participation in industry events and sponsorships not only
showcases their technology but also establishes thought leadership in the renewable energy
sector (Pavegen, 2024a).

5.4 Placement

Pavegen partners with architects, urban planners, and construction firms to embed their
innovative tiles in public spaces, targeting cities and regions with significant foot traffic.
They provide a range of tile sizes and designs to accommodate diverse locations such as train
stations, airports, and public squares. Efficient logistics guarantee prompt delivery and
installation, facilitating seamless integration into these high-traffic areas (Pavegen, 2024b).

6. Financial Plan
6.1 Financial Highlights

Pavegen's financial performance is assessed through multiple key metrics: revenue growth
showcases year-over-year increases in sales of products, services, and other income sources
(Clark & Green, 2019). Their profitability reflects efficient cost management and revenue
optimization strategies, indicating the company's ability to generate profits (Smith & Jones,
2020). Evaluating cash flow examines Pavegen's liquidity position, ensuring they can meet
short-term financial obligations and fund growth initiatives (Taylor et al., 2020). Additionally,
return on investment (ROI) measures the effectiveness of capital investments, affirming the
delivery of returns to shareholders and stakeholders (Brown et al., 2018). These metrics
collectively provide insights into Pavegen's financial health and performance.

6.2 Forecast Profit and Loss Account

Pavegen's financial performance is influenced by various factors, including gross profit,

operating expenses, EBITDA, EBIT, pre-tax profit, and net income. The company's focus on
sustainability and innovation impacts their gross profit, which has shown fluctuations over
time, reflecting both positive and negative figures. Managing operating expenses is crucial
for profitability, with Pavegen closely monitoring costs to ensure sustainable growth. Metrics
like EBITDA and EBIT reflect operational efficiency, guiding Pavegen's efforts to improve
margins through process optimization and expanding installations. Achieving positive figures
in pre-tax profit and net income is essential for Pavegen's financial health, driven by their
commitment to sustainable solutions that stimulate revenue growth. Additionally, revenue
forecasts anticipate sales revenue from various sources, while the cost of goods sold estimates
direct production costs, and operating expenses project other overhead costs necessary for
business operations (Clark & White, 2017; Smith & Brown, 2019; Johnson & Davies, 2021;
Taylor et al., 2020). These metrics collectively inform Pavegen's financial strategy and
performance outlook.
7. References