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Delta Air Conditioners
The Industrial Central Air conditioning (AC) market in India presents a fragmented scenario with more than 9 players from all over the world. Delta Air Conditioners of UK entered the market 8 years back with innovative high performance product range and quickly grew to be the 6th largest player.
The central AC market has major application in Malls, theatres, hospitals and office complexes and the industry was growing at around 12% annually from 2010 to 2015.
Performance of Delta Air Conditioners in Q1 of fy2016
Though Industry grew by 15% but the sales of Delta AC dipped by 2% in this period, despite introducing 2 new products. The alarming figures of the quarter led Mr Bakshi, National Head Sales and Marketing asking each zonal Sales Head to identify reasons for this decline. At the Q1 Review Meeting held in end July, most Zonal Heads attributed it to customer dissatisfaction due to poor after sales service covering poor dealer workshop infrastructure, non availability and high prices of spares. North & East Zone Sales heads also attributed it to long delays in repairs of as well as rude and unresponsive service staff.
Mr Bakshi had 2 concerns – reconfirm feedback of Zonal Sales Heads and review of Service strategy. Mr Rajat Gupta, National Service Head, disagreed in the review meeting and said that it was customer’s wrong perception, considering the sophisticated service workshops developed and good training imparted to tech as well as non tech staff and were far better than competitors. However he added that Delta’s manpower was in great demand from competitors leading to high manpower turnover. High breakdown rate of portable testers and repair equipment was also a concern. As most repairs were on site, portable testers and equipment were very vital to provide prompt service. Many spares which came from UK were also delayed due to strike in Dover plant.
Soon after Qtr1 review, Mr Bakshi asked Mr Rajat Gupta to to present a detailed evaluation of Service Quality.
Questions:
A. Are services in B2B more complex than in B2C? Justify your answer.
B. How service quality is evaluated and use these parameters to evaluate Delta’s service quality, rating good, fair and poor.
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