Airwide International Case

Author: John Zeiro

What is the case about?

Airwide International was one of the top suppliers of commercial and residential air conditioning systems in Europe, with a growing presence in the attractive markets of Asia. Increasing competition from Chinese and International manufacturers coupled with a sales organization built primarily by hiring (from other industries) and retraining have produced a pattern of uneven sales. At a recent national sales meeting, the performance of the Shanghai region surfaced as an area of concern for senior management. The transition from product selling to key account selling has met with obstacles; primary among them is the insufficient commitment of some area sales leaders. A review meeting with a Shanghai’s sales leader reveals some of the problems and provides the Sales VP an opportunity to go over the essence of Key Account Management.

(http://caseseries.thunderbird.edu/case/airwide-international-china-key-account-selling)

Becoming Market-Driven, Not Sales-Driven

As marketing has entered the 21st Century, a significant change is taking place in the way companies interact with customers. The traditional view of marketing as a simple exchange process—a concept known as transaction-based marketing—is being replaced by a different, longer-term approach. Traditional marketing strategies focused on identifying prospects, converting them to customers, and complete sales transactions, exactly what Airwide International was doing.

Airwide International

However, today’s marketers realize that, although it remains important, attracting new customers is truly an intermediate step in the marketing process. It is vital to establish enduring relationships with the customer, better described as the one that “comprises several individuals and internal groups within the account”, in order to better understand their needs and move consistently in the same direction of purchase.  Additionally, it is important to understand how to work harmoniously within the account and influence each of the internal areas, referred to by Mr. Carpenter as “Strategic Account Selling”.

Nonetheless, being a long-time provider for a company does not guaranty the seller that the customer will take the product. Airwide International was in a position in which they were losing their old customers to mid-size companies, who as described by Mr. Wei, were reaching the customers first and were able to accommodate and “plant their seeds” because they were not using the appropriate tools (i.e. social media and the Internet). It is important for companies to have the appropriate IT to grow and increase their power and be able to minimize the number of competitors and new entrants to the business. 

Key Issues

• Sales-Driven vs. Market-Driven
• Doubling proposals and increased incentives are not working.
• Customers say that the proposals are perfect but do not end up taking them.

Suggested Solutions

• Become a Market-Driven Company: Use market knowledge to determine the corporate strategy of an organization. A market driven organization has a customer focus, together with awareness of competitors, and an understanding of the market. (BNET)
• Use a Resonating Focus when selling, which requires knowledge of how own market offering delivers superior value to customers, compared with the next best alternative, as well as, customer value research.
• "They need rejuvenation with practical and tactical assistance" says Mr. Wei Xiuping 

Seller's Point of View

From the seller's point of view, it must be very frustrating to see that your growth in the last quarter was of only 2%, especially when you are one of the top suppliers of commercial and residential air conditioning systems in Europe and Asia. However, being in the sales representative position is even more frustrating since your a just an employee and can get fired in any minute. You are one of the top sales representative of the company with great prestige but you are not able to close a deal with any customer, not even with your 10-year old customers. Not because your skills are not good enough or the product is bad, but because the company has to take a new direction on its sales and how it approaches the customers.