Texas HVAC Insider News

Daikin AC 2011 Sales Meeting Reveals Aggressive Training, Sales Goals.

The Daikin AC (Americas), Inc 4th Annual Sales Meeting, held September 14 – 16 at the Eden Roc Hotel in Miami Beach, revealed the aggressive sales and training goals planned by the company to the distributors in attendance.

The meeting, themed “Daikin on the Move”, was kicked off by an opening session, dinner and tradeshow on Wednesday evening. Thursday’s schedule was filled with workshop sessions covering topics including “Product Marketing:

Tools to advance you and your contractors”, commercial and residential solutions, technical service and “Daikin University: developing Daikin Heroes”. A lively, informal poolside reception and buffet dinner rounded out Thursday’s agenda. The workshops continued on Friday morning, and an Awards luncheon concluded the business portions of the spirited meeting. Friday afternoon, distributors chose between golf and deep sea fishing to unwind from the event’s activities.

Daikin AC (Americas), Inc President Akinori “Andy” Atarashi welcomed the attendees on Friday evening, announcing that the Daikin Group had achieved the distinction of being number one in global HVAC sales (excluding refrigeration) in 2010 by reaching the $10.8 billion mark. Mr. Atarashi also reviewed the rapid growth history of Daikin AC (Americas) from its establishment here in the U.S.

A second stage of growth set by the global “Fusion 15” initiative will propel Daikin AC to a position of leadership in the North American Ductless and Unitary market. To achieve that growth, Daikin AC has undergone some restructuring, establishing a new senior management team and new sales organization, fine tuned the customer service division, established a new Product Marketing Division and enhanced their technical service support.

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Among the key new hires are Doug Widenmann, Senior Vice President, Sales and Dave Lucas, Vice President, Distribution Sales. The Product Marketing Division is an integration of the existing marketing and product engineering teams into one to maximize support for new product launches, new dealer programs and provide more competitive product information and tools. Technical service enhancements include stronger call center support, dramatic spare parts supply and operation improvements, an extended warranty launch and expansion of Daikin University courses, including web training, for distributors and contractors.

Mr. Atarashi introduced Senior Vice President of Sales Doug Widenmann, who brings 26 years of relevant industry experience including positions with York International/Johnson Controls, Rheem Manufacturing and the Trane Company to his new position. Mr. Widenmann stressed the importance of working together to achieve success. “It’s not just about selling boxes, we have to meet the needs of our distributors, who have to meet the needs of their customers,” he stated. “It’s about process and execution and involves understanding what is communicated, commitment, accountability and hard work.”

Dave Lucas, Vice President for Distribution Sales, presented Daikin AC’s distribution development plans, beginning with an overview of the current HVAC market in the United States and the state of VRV/VRF acceptance in the market. “There is an $11 billion AHRI market in this country which has reached a mature state,” Mr. Lucas said. “Conventional system manufacturers have passed the point of introducing innovative changes to their products and are relying on increases in efficiency and add-on products such as controls to differentiate themselves.

Meanwhile, VRV/VRF technology has reshaped every market it is in and is beginning to make inroads here. In the next 3 to 5 years, 45% of the AHRI market will shift to VRV/VRF systems. That market has been primarily driven by engineers and applied systems (30%), light commercial/home dealer sales (40%) and spec to semi-custom homes (30%).” Daikin is pursuing opportunities through the following sales channels: applied systems representatives, plumbing/hydronic systems representatives, wholesale distributors and national accounts. In the distribution chain, Mr. Lucas identified two types whose specific needs have to be met: 1) Full service distributors that focus on mechanicals and residential dealers; with an emphasis on dealer plans and programs; and 2) Supply houses whose base is HVAC service contractors, maintenance departments, institutional/industrial and military facilities.

In order to meet the Fusion 15 goals, Daikin AC is emphasizing training and the development of “Daikin Champions” at the distributor level. While classroom and web-based training is available for contractors, Daikin AC recognizes that many contractors will need local assistance in learning sales, installation and service techniques for their products. Daikin Champions will be the best connection to Daikin AC’s capabilities, acting as local experts in applying the technology, selling the products and overseeing local strategies for dealer development, promotions and advertising. “Successful distributors will be those that embrace the Daikin Champions concept,” Mr. Lucas concluded.

Friday’s Awards Luncheon featured Mr. Atarashi and Mr. Widenmann recognizing distributors for their accomplishments in three categories: Best Sales Increase Award for the greatest percentage increase in overall sales from 2009 to 2010, Lion Award for outstanding longevity 5 year recognition and the Pinnacle Award to the distributor with the best combination of market share leadership, best sales increase, high dealer sales and outstanding technical support, loyalty and making an investment in the future.

The winners were: Best Sales Increase: Mar-Hy Distributors of the Pacific Northwest; Comfort Connections of Ontario; EMCO Corporation of Canada; East Coast Metal Distributors LLC serving Virginia, the Carolinas, Georgia and East Tennessee; Johnstone Supply Puget S o u n d G r o u p ; B a k e r Distributing Company with over 200 Service Centers throughout the U.S. and Geary Pacific Supply. Lion Award: F.W. Webb Company serving New England and New York; the Wallwork Group of New Jersey and New York and Coastline Distribution of Florida.

The Pinnacle Award was presented to EMCO Corporation, one of Canada’s largest integrated distributors of products for plumbing and heating, waterworks, industrial, oilfield supply and HVAC contractors.

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