Making Buildings Better
CHLIFF
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
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
Why Trane? https://www.youtube.com/watch?v=cfcv89VWn7w
Market Share
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
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
Customer’s PAIN
Please enumerate
your ENERGY
savings initiatives?
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
TYPICAL CHILLER PLANT
CONSUMPTION
By-pass line
w/ VFD
2-way Valves
Variable Flow
(modulating)
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.
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.
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
IAN
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
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
 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
 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
Power Saving
Unique Selling Proposition
Progressive innovation Restorative impact
on the environment
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
MANNA
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)
• 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
MACRO CONTEXT
Rising incomes and
improved standard
of living
Population Growth Hotter regions
further exacerbated
by climate change
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
VALUE PROPOSITION
• Durability and Reliability
• Increased Efficiency
• Lowest refrigerant emissions
rate in the industry
(decreased environmental
impact)
• Third party accreditation
(LEED certified)
POSITIONING MAP
PRICE
Affordable Higher Price
EFFICIENCY
Industry-leader Trane
Efficient Carrier
ALYA
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
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
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
PAIN POINTS
◼ Poor indoor air quality
◼ Increasing service costs to resolve operational
issues and maintain the aging systems
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
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

TRANE TECHNOLOGIES [Value, Segments, and Positioning

  • 1.
  • 2.
  • 3.
    Outline 1. Recognize thehistory 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 Thelist 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.
  • 7.
  • 8.
    This target marketfocused 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 ManilaOffice 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 yourENERGY 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-passline w/ VFD 2-way Valves Variable Flow (modulating)
  • 15.
    Our Competitors Operations Carrier isa 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.
  • 19.
    TRANE Technologies  Aworld 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 onindustrial 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 systemto 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 SellingProposition Progressive innovation Restorative impact on the environment
  • 24.
    Positioning Map Trane CarrierYork 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.
  • 26.
    COMPANY PROFILE • Globalleader 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 residentialor 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 incomesand improved standard of living Population Growth Hotter regions further exacerbated by climate change
  • 29.
    PAIN POINTS OFCUSTOMERS • 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 • Durabilityand Reliability • Increased Efficiency • Lowest refrigerant emissions rate in the industry (decreased environmental impact) • Third party accreditation (LEED certified)
  • 31.
    POSITIONING MAP PRICE Affordable HigherPrice EFFICIENCY Industry-leader Trane Efficient Carrier
  • 32.
  • 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® isa 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 ◼ Poorindoor air quality ◼ Increasing service costs to resolve operational issues and maintain the aging systems
  • 37.
    USP · Spend lesson 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 3Tiers: 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