Chliff, Ian, Mannah, Alya

1. Making Buildings Better

2. CHLIFF

3. Outline
1. Recognize the history and brand promise behind every Trane product
2. Understand Trane’s Unique Selling Proposition
3. Identify Trane’s market segments and market share
4. Explain why Trane leads in reliability, innovation and technology focus
5. Reasons why customers choose Trane over its competitors

5. In the Philippines
The list of buildings below use Trane systems.
•Channel Tunnel, between England and France
•Musée d'Orsay, Paris, France
•Warsaw Financial Center, Warsaw, Poland
•Australian Securities Exchange, Melbourne, Australia
•The Kremlin, Moscow, Russia
•La Scala Opera House, Milan, Italy
•McCormick Place Convention Center, Chicago, Illinois
•Athens Olympic Sports Complex, Athens, Greece
•SeaWorld, Orlando, Florida
•Rogers Centre, Toronto, Canada[21]
•Statue of Liberty, New York City, New York
•Farragut Technical Analysis Center, Washington, D.C.
•Washington Monument, Washington, D.C.
•World Trade Center, Beijing, China
•Burj Khalifa, Dubai, UAE
Notable Buildings Manufacturing
Retail
Banks
Hotels & Casinos
Hospitals
Education

6. Why Trane? https://www.youtube.com/watch?v=cfcv89VWn7w

7. Market Share

8. This target market focused on the customers under Defect Liability Period
(Warranty), under Service Agreement (under PM contract), Existing Business
Installed (with regularly PO to Trane), and No Business Installed (Seldom to no
PO).
AFTER SALES MARKET

9. AFTER SALES MARKET
755
9
104
2
173
Manila Office
Metro Manila Bicol North Luzon Palawan South Luzon
108
668
47
3
15
8 16
4
13
Cebu Office (VISMIN)
Cebu Bacolod Bohol Boracay Island
Cagayan De Oro Cotabato City Davao General Santos
Ilo-ilo Iligan City Zamboanga
USD 2,382.73k

10. Customer’s PAIN
Please enumerate
your ENERGY
savings initiatives?

11. TYPICAL BUILDING USAGE
“30% of energy consumed in commercial buildings is used unnecessarily or inefficiently” – EPA, 2012
-
50,000
100,000
150,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Power Consumption by Sector
in GWh
Residential Commercial Industrial
Other (Transport & AFF) Utilities Own Use Power Losses
28%
24%
28%
3% 8%
9%
2018 Energy Consumption by
Sector
Residential
Commercial
Industrial
Other
(Transport &
AFF) Source: DOE Key Energy
Statistics

12. TYPICAL CHILLER PLANT
CONSUMPTION
By-pass line
w/ VFD
2-way Valves
Variable Flow
(modulating)

15. Our Competitors
Operations
Carrier is a leading provider of heating, ventilating, air conditioning and refrigeration systems, building controls and automation, and fire
and security systems. It operates 51 factories and 39 research & design centers worldwide with more than 53,000 employees serving
customers in more than 180 countries. At Carrier, innovation has always been one of our core values. Research & design centers
provide our customers with the highest-performing, most efficient products and services.
Sustainability & Green Building
Our environmental commitment extends well beyond our walls to the communities we call home and the customers we support. Carrier
is committed to reducing the greenhouse gas impact of our products through energy efficiency advancements and the refrigerants we
use. Since 1994, we have led the industry in the phase-out of ozone-depleting refrigerants while introducing many of the world’s most
energy-efficient heating, air-conditioning and refrigeration systems. At the same time, we’ve reduced the environmental impact of our
operations.

16. Our Competitors
Johnson Controls: Enhancing the Intelligence of Buildings
Your buildings have a purpose.
They are places for people to live or work. Facilities for learning or healing. Venues for entertainment and shopping. Sites for the
specialized storage of tangible goods or mission-critical data. Your buildings have a huge variety of functions; they are central to your
mission.
This is where Johnson Controls comes in, helping drive the outcomes that matter most. Through a full range of systems and digital
solutions, we make your buildings smarter. A smarter building is safer, more comfortable, more efficient, and, ultimately, more
sustainable. Most important, smarter buildings let you focus more intensely on your unique mission. Better for your people. Better for
your bottom line. Better for the planet.
At Johnson Controls, we’ve been making buildings smarter since 1885, and our capabilities, depth of innovation experience, and global
reach have been growing ever since. Johnson Controls offer the world’s largest portfolio of building products, technologies, software,
and services; we put that portfolio to work to transform the environments where people live, work, learn and play.

17. Parity & Differentiation
1. Local Support
2. Dealer Network
3. Product Lineup
4. Testing Procedures
5. Innovation
6. Home Automation
7. Environmental
8. Brand Recognition
9. Robust Marketing
10. Product Reliability

18. IAN

19. TRANE Technologies
 A world leader in air conditioning systems, services and solutions.
 They provide products, systems, and services that has been engineered
for customers’ need.
 Focus on environmental technology and energy conservation to make a
difference in energy efficiency around the globe.
 Ingersoll Rand (IR) acquired Trane, to further transform into a multi-
brand commercial products manufacturer serving customers in diverse global
markets.
 Founded in 1994
COMPANY PROFILE

20. SEGMENT MARKET
• Industrial: warehouses,
stadiums, malls, hospitals, etc
• Increasing demand of high
efficient system; expensive but
has low utility cost
• Commercial: banks,
restaurants, office buildings
• Fast-paced product
innovation; expensive
• Window and split type units

21.  Focus on industrial units with a
minimum cooling capacity of 120TR
(Ton of Refrigeration) & above
 38% Market share with market estimate
of Php505M
 Major competitor – Carrier & York
 Products focus on energy efficiency
and improved installation
SEGMENT MARKET

22.  HVAC system to provide comfort to its
extended customers, reduce utility bills
and increase efficiency.
 Equipment that will work in full
condition, longer and better
performance – preventive maintenance
 HVAC system that will suite on
changing climate condition.
 Operational and energy efficiency –
reduce environmental impact
PAIN POINTS OF CUSTOMERS

23. Power Saving
Unique Selling Proposition
Progressive innovation Restorative impact
on the environment

24. Positioning Map
Trane Carrier York others
Durable, less environmental impact
not durable, huge environmental impact
cheap, high utility cost expensive, low utility cost
 Reached the 2020 target of 50%
reduction of the GHG refrigerant
footprint on all products
 Reached 10% absolute reduction in
energy consumption
POSITIONING MAP

25. MANNA

26. COMPANY PROFILE
• Global leader in air conditioning
systems, services and solutions
• Providing innovative solutions that
optimize indoor environments
• Energy-efficient heating, ventilation
and air conditioning systems
• Notable landmarks include the
Kremlin (Moscow), Grand Central
Station (New York), Burj Khalifa
(Dubai)

27. • The residential or retail market is the
smallest market segment that Trane
has a share in (1%)
• Market estimate is P33 M
• Market captured by more
mainstream brands such as
Samsung & Panasonic
• Main focus is on efficient cooling
systems for industrial scale
structures, complexes and buildings

28. MACRO CONTEXT
Rising incomes and
improved standard
of living
Population Growth Hotter regions
further exacerbated
by climate change

29. PAIN POINTS OF CUSTOMERS
• Need for more efficient HVAC
systems that reduce operational
costs in the long-term
• HVAC systems that optimize the
internal environments to increase
productivity
• Reduce the environmental impact of
their operations

30. VALUE PROPOSITION
• Durability and Reliability
• Increased Efficiency
• Lowest refrigerant emissions
rate in the industry
(decreased environmental
impact)
• Third party accreditation
(LEED certified)

31. POSITIONING MAP
PRICE
Affordable Higher Price
EFFICIENCY
Industry-leader Trane
Efficient Carrier

32. ALYA

33. COMPANY BACKGROUND
1885 - James Trane and his son Reuben developed an innovative low-pressure steam heating
system
1913 - the family had incorporated as The Trane Company
1931 - the company patented its first air conditioner
1938 - Trane launched Turbovac
Late 1970s - Acquisition of Sentinel Electronics
1982 - Acquisition of General Electric’s Central Air Conditioning Division
1984 - the American Standard Companies, Inc. acquired the Trane Company, and four years
later, launched the American Standard Heating & Air Conditioning Brand
2007 - American Standard Companies divided, allowing Trane to renew its business focus and
leadership in integrated HVAC services and solutions

34. COMPANY BACKGROUND
Trane® is a world leader in air conditioning systems, services and solutions:
◼ provide innovative solutions that optimize indoor environments through a broad portfolio
of energy-efficient heating, ventilating and air conditioning systems, building, contracting
and energy services, parts support and advanced controls for homes and commercial
buildings
◼ reputation for reliability, high quality and advanced innovation

35. TARGET SEGMENT - COMMERCIAL
◼ The Commercial Line is the 2nd largest market segment Trane has
a share in (32%)
◼ Products for Commercial:
· Rooftop System
· Split System
· Self-Contained System
· Water Source-Heat Pumps
· TVR

36. PAIN POINTS
◼ Poor indoor air quality
◼ Increasing service costs to resolve operational
issues and maintain the aging systems

37. USP
· Spend less on energy and more on amenities
· Make technology work for you now and in the future
· Get the big picture with single-point access
· Take sustainable buildings to the next level

38. Trane Carrier
Tiers 3 Tiers: basic, mid-range as well as top-line
Energy efficiency All the models belonging to the three tiers produced by Trane are more
energy-efficient than that in Carrier. Trane is the innovator for ____
Maintenance
requirements
Several parts of a Trane air conditioner might cost you a little extra when
you compare them to that of Carrier. Besides, Carrier parts are available
more widely and aren’t too expensive either.
Price All the air conditioners belonging to the three tiers are similar in terms of price. Both these brands sell their units by the way of authorized dealers.
Installation The customer has the option for supply or supply and install. Trane has
its own in-house installation team.
Carrier entertains a higher minimum certification requirement of 3rd party
installation team.
Warranties Trane has better warranty on their compressors.
POSITIONING