ANALYSIS OF ENVIRONMENTAL RETURN ON INVESTMENT (EROI) IN ENERGY INDUSTRY AS WATER TREATMENT COMPANY MARKETING STRATEGY

• Main Author: Destyawan Anwar, Dany
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79715
• Institution: Institut Teknologi Bandung

Water's importance in the energy sector has grown, going beyond its necessity as a food source for life to include being an integral part of many industrial operations, including cooling and serving as a process fluid. Water is essential to the operations of many industries, including gas processing plants and fertilizer manufacturers. As a result, international water treatment firms confront formidable market competition due to the growing demand. The pandemic had a significant detrimental effect on Ecolab, and in 2020, the firm reported its first-ever negative profit. Ecolab is actively creating and executing a marketing plan to increase profitability in the face of changing market and industry dynamics in response to these difficulties. Environmental Return on Investment (eROI) is one of their marketing campaigns to resolve these issues by delivering value to customers. However, the marketing campaign still doesn’t have a positive profit impact on Ecolab. The study was carried out utilizing the qualitative research approach, which involved gathering data from direct observation, in-depth interviews with respondents, data from internal papers and other reports used as references. Analysis, both internal (STP & VRIO) and external (PESTEL, Porter’s 5 forces, Competitor analysis and Consumer Analysis) was done to determine the company's potential for difference and how it may be leveraged to its benefit. The findings demonstrated that eROI is still a powerful marketing strategy that fits business resources and market demand. The total activities and executions are still not working as a whole; hence, the marketing campaign had less impact on the organization. Based on this consideration, Ecolab should leverage eROI in their marketing campaign to deliver both value to customers and profit impact to the company. The company should also bring backbone activities such as technical training, supply chain alignment, and marketing support deployment.