COMMERCIAL SERVICE SALES
Competitor Profiles
YOU WILL LEARN…
This segment, Competitor Profiles, will help you to:
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Understand why it is important to know your competitor’s market position.
Understand how to use competitor weaknesses to differentiate your offerings.
Understand how to develop and maintain current competitor profiles.
The Importance of Knowing Your Competitors
Having an understanding of customers is not enough today. Most of your market gain will
come by wresting share away from competitors. As a result, today’s HVAC/R companies
are starting to pay as much attention to tracking competitors as to understanding their
target markets.
This is why we hear so much talk about “marketing warfare,” “Competitive Intelligence
Systems,” and similar themes. To help you with this session we have developed simple yet
highly effective forms for collecting competitive intelligence in the next sections of this
training module. Most data you will use to populate these forms will be gained during the
normal course of competing against your competitors.
Knowing how your competitor delivers its products/services, prices and promotions, will
allow you to launch precise attacks as well as defend against them. Five things that you
need to know about your competitors are:
1.
2.
3.
4.
5.
Who are your competitors?
What are their strategies?
What are their strengths?
What are their weaknesses?
What are their primary markets?
Using Competitor Profiles to Differentiate Your Offerings
You need to know what your competitor’s strengths are so you can develop your internal
capabilities to meet or exceed theirs. More importantly, you need to know their
weaknesses so you can differentiate yourself and your offerings from those of the
competition. Knowing your competitors weaknesses allows you to probe more effectively
for areas where you can add value by better matching your offering to the customers needs.
Also, if you find a weak competitor in one or more of your target markets you can then use
this information to develop promotional strategies to gain new business opportunities.
Competitor Profiles
Contractor Support System
1
COMMERCIAL SERVICE SALES
Competitor Profiles
Developing Competitor Profiles
Competitors can be classified as any entity that can influence the customer to use their
products/services instead of yours. This definition also includes those firms who specify
and arrange or subcontract your products/services. In some cases, you may actually
develop strategic alliance partnerships with potential competitors who fall in this category
(e.g. Energy Services Companies).
Below are several national competitors to the HVAC/R contractors that you can use and or
expand upon.
Competition Category
Consolidated Mechanical Contractors
Sample Firms
Emcor Group
Linc Service
Aire-Serv
Comfort Systems USA
Equipment retrofits, mechanical equipment installers,
maintenance contracts, mechanical construction
Complete turnkey solutions including engineering,
construction, installation, operations, (mechanical)
maintenance, warranty, performance contracts,
financing, (comparable to ESCO’s)
Commercial, institutions, government, residential
Customer base
Maintenance contract base
Capable of performing work in most areas
Purchasing power
Capable sales force
Financially sound
Marketing expertise
Traditional Products/Services
New Product Direction
Target Markets
Strengths
Weaknesses
High overheads
No standardized performance standards across all
geographic areas.
Strategies
Revenue growth strategy through mergers and
acquisition
Commercial, Government, Education
Successful Target Market
Competitor Profiles
Contractor Support System
2
COMMERCIAL SERVICE SALES
Competitor Profiles
Competition Category
Engineering/Consulting Firms
Sample Firms
Regional/National Companies in most Metro areas.
Traditional Products/Services Offered
Energy studies (savings-based), design and
engineering services, design-to-build opportunities,
general contracting
Complete turnkey solutions including engineering,
construction, installation, operations, (mechanical)
maintenance, warranty, performance contracts,
financing, (comparable to ESCO’s)
Industrial, manufacturing, commercial, government,
institutions, health care, property managers (80-100K
sq. ft. +)
Engineering expertise and comprehensiveness
Knowledge of engineering service market
High level contacts and relationships
Strong customer base
Understanding of property management issues
Satellite offices across USA
National customer accounts across USA
Insight to future customer needs via Master Plan
Understand application of current and future products
Strong allegiance with manufacturers and products
Sales/marketing resources.
Pricing (occasionally high due to rough estimating).
Understanding of mechanical maintenance
requirements.
Total comprehensive package
Engineering expertise
“Added-Value” supplier (expertise, track record, etc.)
Hospitals, State, Government
New Product Direction
Target Markets
Strengths
Weaknesses
Strategies
Successful Target Market
Competitor Profiles
Contractor Support System
3
COMMERCIAL SERVICE SALES
Competitor Profiles
Competition Category
HVAC/R Manufacturers
Sample Firms
Trane Corporation
Carrier Corporation
York Corporation
McQuay Corporation
Heating/cooling systems including design,
engineering, mechanical maintenance, warranty
services, equipment financing, leasing, etc.
Some offer EMS systems
Some partner with utilities or mechanical contractors
to provide more complete solutions
Industrial, manufacturing, commercial, institutions,
health care, government (80-100K sq. ft. +)
Equipment sales for small/mid size firms through
small contractor channels
Product technology
Customer base
Database of all equipment in customer facility
Engineering expertise
Replacement expertise
Knowledge of total building systems
Strong influence with consulting engineers/specifiers
Global companies
National account status
High overheads
Seek product driven opportunities.
Limited scope of services.
Features, functions, and benefits of equipment
Installations
No concentrated success to-date
Traditional Products/Services Offered
New Product Direction
Target Markets
Strengths
Weaknesses
Strategies
Successful Target Market
Competitor Profiles
Contractor Support System
4
COMMERCIAL SERVICE SALES
Competitor Profiles
Competition Category
Control Systems Manufacturers
Sample Firms
Honeywell Corporation
Johnson Controls
Siemens
Energy management systems, mechanical
maintenance, consulting, warranty
Complete turnkey solutions including engineering,
design, construction, installation, operations,
(mechanical) maintenance, warranty, performance
contracts, financing, (comparable to ESCO’s)
Industrial, manufacturing, commercial, institutions,
health care, government (80-100K sq. ft. +)
Equipment sales for small/mid size firms through
small contractor channels
Brand awareness in market
Nationwide coverage
Equipment technology
Product depth and variety
Massive customer base
Capable sales force
Bundled projects
Knowledge of market
Financially sound
Made acquisitions to expand product offering
Customer references
Aggressive advertising
Perceived as control companies, not mechanical
contractors; installers. Focus on opportunities that
include their products.
Leaders in the industry in total energy solutions
Provide “Total Performance Solutions”
Health Care, Education, Local Government
Traditional Products/Services Offered
New Product Direction
Target Markets
Strengths
Weaknesses
Strategies
Successful Target Market
Competitor Profiles
Contractor Support System
5
COMMERCIAL SERVICE SALES
Competitor Profiles
Competition Category
Energy Service Companies (ESCO’s)
Sample Firms
Duke Energy
AECO (Alabama Electric Company)
CON Edison
Complete turnkey solutions including engineering,
design, construction, installation, operations,
(mechanical) maintenance, warranty, performance
contracts, financing. All fuel types supported and all
building systems.
Energy offerings (electricity, gas)
Co-generation (turnkey) solutions
Power/steam plant (turnkey) solutions
Industrial, manufacturing, commercial, institutions,
health care, government (80-100K sq. ft. +)
Understand all energy applications
Total building solution experience
Knowledge of operational and maintenance issues
Powerful and capable sales force
Knowledge of market
Ability to penetrate facilities and expand initial
contract offerings
Access to finance
No affiliation to equipment manufacturers
Take some projects at cost to get future business
Offer bundled services. Not perceived as installers of
mechanical/electrical systems. Utilize traditional
sales/marketing approach to target easier conservation
targets.
Total energy/energy service providers
Industry specific solutions (e.g. hospital, education)
Health Care, Education Facilities
Traditional Products/Services Offered
New Product Direction
Target Markets
Strengths
Weaknesses
Strategies
Successful Target Market
Competitor Profiles
Contractor Support System
6
COMMERCIAL SERVICE SALES
Competitor Profiles
Competition Category
Unregulated Retail Co’s
Sample Firms
AEP Retail Energy Partners - Chicago, IL
First Energy - Akron, OH
Peoples Power & Gas - Cape Coral, FL
Dominion Energy Solutions - Richmond, VA
Broad Street Energy - Columbus, OH
Wildan Energy Solutions - Pleasanton, CA
Energy Vision - Jonesville, FL
Energy and power systems services
Complete ESCO services
Energy offerings (electricity, gas)
Cogeneration solutions
Energy systems services
Power plants solutions
Complete ESCO services (see ESCO offering)
Product packaging (maintenance, warranty, etc.)
Residential (Security)
Industrial, manufacturing, commercial, government,
institutions, health care
Some small business, residential
Knowledge of market
Understanding of energy supply
Provide all fuel solutions
Access to finance
Limited electric offerings (waiting for deregulation)
Experience in (complete) energy service market, most
use third party development for ESCO type work,
which costs more to the customer.
Lack mechanical maintenance contracting experience.
Position themselves as offering everything related to
energy…one stop shopping, single point of contact
Low cost energy supplier
Commercial, Health Care, Government, Education
Traditional Products/Services Offered
New Product Direction
Target Markets
Strengths
Weaknesses
Strategies
Successful Target Market
Competitor Profiles
Contractor Support System
7
COMMERCIAL SERVICE SALES
Competitor Profiles
COMPETITOR PROFILE
Your Competitor:
Competition Category
Sample Firms
Traditional Products/Services Offered
New Product Direction
Target Markets
Strengths
Weaknesses
Strategies
Successful Target Market
Competitor Profiles
Contractor Support System
8