Commercial/Durables

Case Study: Manufacturer of A/C & Heating Equipment

Situation
A manufacturer of air conditioners and heating equipment for the retail and industrial markets sells their HVAC products through a two-step distribution system: They sell to a distributor network, which, in turn, sells to a broad dealer/installer network, who then sells to end-users in both retail and industrial markets. This manufacturer was having quality problems in their plant and wanted to know what long-term effect this was having on their business.

Solution
We “worked back” from the end-user, concentrating on the industrial market, to determine the effect of quality problems on the manufacturer’s long-term relationship with buyers, and to help the manufacturer understand how to better serve its customers. We interviewed key players in each level of the distribution chain—starting with end-users, but also talked with marketing, sales, and manufacturing, then distributors and dealers. First round interviews raised broad issues about what end- users actually wanted and needed. The manufacturer then funded a projectable quantitative end-user study to identify user needs and issues in more detail.

Results

• Product and service bundles were tailored to meet the very different wants and needs among end- user segments
   
• Industry marketing narrowed to five industries: Building Owners, Hospitals, Travel & Lodging, Manufacturing, and Retail—which represented 70% of their business.

Contact John Hawkins for more information.