Airwide International

ByAkshay Chaphekar-32503Vaibhav Kolhatkar-32517

Introduction• Airwide is big AC producer co. in Europe• Based in York, England• Airwide was the one of the top suppliers of

commercial and resedential AC in europe• It’s also automobile systems to export oriented

OEM’s.• Product included Air conditioning chillers, Air

handlers, terminal devices and other controls• Airwide is in also Energy efficient system and

filtered air system

Contd…• Airwide had more than 3000 employees across 25

locations in 10 countries of Europe.• Airwide has 9 Manufacturing locations such as

Poland, Hungary, England, Czech Republic etc• Organisation Structure Divided into 4 Division

> United Kingdom ( England, Ireland ,Scotland) > Western Europe( Germany, Italy, Spain, Greece) > Scandinavia ( Denmark, Finland, Norway, Sweden ) > Eastern Europe ( Poland, Hungary, Romania, Bulgaria)

Airwide Product Line• Airwide has 4 product line such as Windows,

portable, split, and Multizone Split.• Windows System:- > Longest Serving Air conditioning types > Cooling capacity 5000 to 30000 BTU’s > Higher the BTU’s long area under cooling

Portable Units:- > The units are movable from one place to another > Cooling capacity 6000 to 60000 BTU’s > It comes into two types i.e. Split and tube

• Split System:- > Unit Come in two parts i.e. inside unit and outside unit > Condensid part placed outside and evaporating unit is

placed inside

Multizone Split system:- > In this unit a single outdoor unit can connect multiple

indoor units of different sizes and operated separately by remote control.

> Main market is commercial buildings and large residential units.

Competitive Environment• In Europe according to survey AC market was centered on

the warmer regions of southern Europe such as Italy, Spain, Portugal.

• Number of competitor in European market was higher in split and multisplit market.

• 75 different companies are working such industry.• Competition through aggressive pricing and breadth of

product line targeting low end system.• Now a days there are declining in growth of AC market• The big market of Italy have only 12% of homes have AC and

just 11% in Spain.

Change In Market Condition• In decade of 2000 Airwide was not market leader but was

leading competitor.• The dot com bubble had been one of the drivers of growth

during last years of 20th century.• The growth of IT enable thousand of entrepreneurs to set

up companies in Europe.• Not only IT but also restaurants, shopping malls, theatres,

etc also started use of AC .• The other factors such as increasing in Income level of

people, increasing population, changing climatic conditions affect the growth of AC industry.

• But at the end of 20th century the dot com bubble burst because of unrealistic expectation of growth from such sector.

• Due to such situation Airwide sales come down.• Airwide sales comedown by 7% in 2000 as compare

to its peak in 1998.• In Italy, Aiwide’s largest market it come down by

16%.

Distribution Model

• Distribution through broad network according to wide geographical areas

• Its supported by CSO’s, there were 45 total CSO’s through out Europe.

• CSO’s deal with property agents, or architectures or consulting persons to promote their product.

• Airwide master distributor had exclusive agreement with product lines and territories.

• He can also handle other product lines of other companies but not same product line of competitive co.

• Distributor supported by sales team and technician also.

• Sales representative helps the master distributor to increase business but not allowed to go in daily business.

• The distributor and sales force had mutual understanding that they are working for big company to improve their business.

• Multiple countries with different cultures, climate Europe is big challenge for business.

Channel Conflict

• The distribution network divided into four parts.• In each part there are Master distributor and local

dealer.• The dealer are different part in channel, they are few

in numbers and existed only in Italy, Spain, and France.

• They served in small market area’s with strong market industrial or commercial pockets.

• The dealers are very traditional in market.

• The relation between Master distributor and Dealer were not so good.

• Both want to capture all market solely• The contract between Dealer and Co on the basis of

mutual trust and relations.• The master distributors are equipped with technician,

sales force but dealer was just intermediate who had only relations with customers.

• Due to personal relation with customer dealer can able to deliver good service rather than MD.

Thank You