ingersoll rand group1
TRANSCRIPT
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Presented By Group 1
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BACKGROUND
Deals in Stationary Air Compressors
Market share 30%
Manufactures 3 main products y Reciprocating compressors
y Rotary compressors
y Centrifugal compressors
Introduction of a new 200Hp Centrifugal model CENTAC 200
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STATIONARY AIR COMPRESSOR MARKET
Classification of Products by sizey Small - less than 25 Hpy Medium 25 300 Hpy Large greater than 300 Hp
Market size in 1985 - $660 million Ingersoll Rand leading supplier in the US
capturing 30% of the market Major players
y Joy (Centrifugal Compressors)y Sullair (Rotary Compressors)y Atlas Copco ( Stationary Compressors)
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STATIONARY AIR COMPRESSOR
DIVISION
Ingersoll Rand Sales in 1985- $2.64billion
Manufacturing operations 16 countries Sales office- 40 countries
Distribution Arrangement 80 countries
Very good network of distribution
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DISTRIBUTION SYSTEM
Four types ofDistribution Channels-y Direct Sales Forcey Independent Distributorsy Air Centres
y Merchandising Teams Direct Sales 26 Territories
y Sales of >250 Hp Recips & 450 Hp Rotaries and allCentrifugals
Distributors & Air Centresy Sales of
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BUYING BEHAVIOUR
Direct Sales -y Large Compressors (>300Hp) purchased by Contractors like
Bechtel, General Motors. Used in custom designed products.y Quotations contained detailed specificationsy High degree of technical expertisey Service requirements are complexy Eqpt being costly buying decision taken by the group.y Lead time of 6 8 weeks acceptable to user.
Distributors & Air Centresy Selling of medium & Small compressors
y Off-the-shelf availabilityy Lead time of 1 weeks
Merchandising Teamsy Selling of less than 5 hp compressors.y A different set of customers, plumbers, Small contractors etc.
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PROBLEM - INTRODUCTION OF
NEW PRODUCT IN MKT
Product - Centrifugal compressor (200 Hp)
Model - CANTAC 200
Spare parts reqmt - Less 2 3% of initial
cost per annum.
Operates @ very - 50000rpm
high speeds
Repairs - Regularly required 7
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PROPOSE A CHANNEL
OF DISTRIBUTION
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OPTION 1 - DIRECTSALES
Advantages
y Availability of trained manpower
y It has well established Service Capabilities
y Availability of Spare parts as and when required Disadvantages
y Not a lucrative offer as the Sales reps are Elephant hunters,they go for Large orders
y The product would be a lower category product which wouldnot interest the Sales rep
y Existing set of customers Do not fall in 200 Hp category
y Difficult to get new customers considering Network
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OPTION 2 - DISTRIBUTORS
& AIR CENTRE
Advantages
y Willingness to upgrade their product range from Small &Medium to LARGE.
y Well established Networky The product is consistent with existing Hp assignment
y Good reward for the Distributor IR would bemotivating them to sell the new product.
y Increase in Loyalty quotient with IRy The product requires less spare parts, while distributors
face a problem of supplying spare parts.
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OPTION 2 - DISTRIBUTORS
& AIR CENTRE
Disadvantages
y Deviate attention to Large compressor
y Intense Technical Training required to provide requiredservices
y Risk of being dependent on a particular channel
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GROUP RECOMMENDED OPTION
Option 2 - Distributors recommended
Provide necessary trainings
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ROTARYSCREW
Oil Flooded- Single Stage
Advantages
y
Low 1st cost; Low maintenance $y Simple packaged design
y Adaptable to variable speed drive
Disadvantages
y Somewhat lower efficiency
y Moderate durability - 10 15 years onaverage
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CENTRIFUGAL COMPRESSORS
Advantagesy Only real option over 600+ Hp
y High air quality- 0 PPM oil carryover
y Moderate to high efficiencyy Longer design life than Rotaries
Disadvantagesy Higher initial cost
y Fluid cooled only
y Power reduction down to 70% flow
y Constant speed operation
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QUESTIONS IF ANY ???...
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THANK YOU
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