List and critically discuss Ajay's propositions for the presentation with the director.

 

Ajay Sharma was the South Zone, Sales Engineer with ATP

Consultants, a Bangalore-based company that was in the

business of selling the WATMIZER system, an ultraviolet system

used in centrally air-conditioned environments. Even after a few

months of his joining, he was unable to make a sale. There were

times when the prospects showed interest in the product, but they

either delayed the purchase decision or did not buy at all. He was

worried about his performance, or lack of it, in selling the

WATMIZER system. In fact, he had not achieved a single sale on

his own since joining the company. The only sale he had achieved

was owing to the efforts ofMr. Vijay Singh andMs. Meeta Singh,

the Directors of the company. InMarch 2016, ATP Consultants

convened a meeting to analyze Ajay's performance. During the  meeting, he had to explain why he had been unable to achieve his

sales target. Needless to say, Ajay was worried and looking for

options that could help him generate and convert leads into sales.

He wanted to discuss these options with Vijay to seek his support

and approval. He had only one week's time before that meeting

to explore his options and make his presentation for the directors.

The company AEROPURE: manufacturers of the

WATMIZER system

AEROPURE, an Indian company in operation since 2000, was

based in Pune. The company manufactured the WATMIZER

system, which was an ultraviolet system used in centrally airconditioned

environments. They had customers for their product

in the domestic market as well as overseas in countries such as

Africa, Singapore, Malaysia, US and the Middle East. In early

2000, AEROPURE was the only manufacturer of ultraviolet

(UV) lamps in India, which was a major component of the

WATMIZER system. Their manufacturing unit was located in a

four-acre plot in an export zone at Chakan, Pune. In the past,

AEROPURE and their competitors were importing ultraviolet

lamps from Terilair (USA), TUK (Canada) or the UK. These

lamps available in China and India were of inferior grade and

unsuitable for the ultraviolet germicidal irradiation (UVGI)

application required to manufacture the WATMIZER system.

AEROPURE began manufacturing its UV lamps, 80 per cent of

which they exported to the USA. The company had received

several awards including DSK Energy award 2011 for

outstanding contribution to energy saving; the ACREX award;

and the GREEN CERTIFICATION award. Besides, it has also

been awarded the ISO (International Organization for

Standardization) 9001 & 14000 certifications. AEROPURE

manufactured purification systems for effluent water and

drinking water.

ATP consultants was a Bangalore-based company with 10

years of experience in recruitment, training, marketing and sales

consultancy. In 2015, they partnered with AEROPURE Ltd to

sell their WATMIZER system. AEROPURE Ltd had similarly

partneredwith two other companies tomarket its product The WATMIZER system

The WATMIZER system was an ultraviolet system, which was

used in centrally air-conditioned environments (HVAC

Systems - heating, ventilation and air conditioning systems) to

save energy and improve indoor air quality by killing bacteria and

germs. The product worked on a principle similar to that of using

UVlamps in water purifiers to disinfect water and make it safe for

drinking. In enclosed centrally air-conditioned spaces, there were

high chances of bacteria, germs, mold and fungi settling and

growing in the coils and fins of the cooling coil block of the air

handling unit (AHU). WATMIZER was a system of UV lamps

mounted on an aluminum frame and placed within the air

handling units. The UV rays acted on the cooling coil and

destroyed germs, bacteria, mold and fungi, thus keeping it clean.

Besides reducing the level of harmful bacteria and viruses in the

environment, the system also improved energy transfer efficiency

and helped to save power. Air handling units were installed in

centrally air-conditioned premises to remove dust and cool the

used air within the premises. These AHUs sucked out used air

(normally warmer air) from work spaces through the return air ducts, releasing only 10 per cent to the atmosphere and recycling

90 per cent through the air handling units. In the air handling

unit, the air was made to pass through a filter and cooling coil.

The cooling coil was constructed of tubes carrying cold water and

fins to direct the flowing air in a way to maximize contact with the

cooling water tubes. After passing through the cooling coil, the

cooled air was pushed out with the help of a blower and returned

to the work spaces through other air ducts. Refer to Appendix 1

for an air-conditioning system and Appendix 2 for how a typical

air handling unitworks.

UV light is a component of an electromagnetic spectrum,

loosely referred to as light. UV rays are emitted between the

wavelengths of 100 and 400 nM (nanometer). At the

wavelength of 254 nM, UV rays have the unique property of

killing germs, viruses, bacteria and micro-organisms that

constitute harmful mold and fungi. This very valuable property

of the ultraviolet rays at 254 nM was discovered before the

1900s. Refer to Appendix 3 for UV lights and Appendix 4 for

"before" and "after" of cooling in an air handling unit, where

the WATMIZER system had been installed and was operative

for the last three months.

Centrally air-conditioned system

In a centrally air conditioned system, air from the work spaces

was sucked back through "return-air-ducts" and passed

through the air handling units. As the air entered the air

handling unit, larger particles were filtered out by a filter. The

air then passed through the cooling coil where cold water

flowed through the pipes. The air that flowed over these cooling

coils cooled because of heat transfer between the cold water in

the tube and the air outside. The air was then sent back to the

work spaces through a different duct by the action of a blower.

The air, which was recycled (90 per cent), contained microdust

and micro-moisture. This micro-dust and micro-moisture

settled on the pipes and fins of the cooling coil because they

were a few degrees cooler than the ambient air. Viruses,

bacteria, germs, fungi and mold settled on this surface and

formed colonies on this layer of dust. The "dust", which was

actually a mixture ofmicro-dust, micro-moisture and billions of

bacteria, fungi, virus, formed a covering on the fins and tubes in

the cooling coil and reduced the efficiency of heat transfer

between air and the cooling water. As a result, extra power was

consumed to achieve the required level of cooling. These

viruses, bacteria, molds, spores, fungus, etc. settled and grew

exponentially inside the damp and dark areas of the cooling coil

and then spread all over the buildings through the air

conditioning systems, thus making the indoor environment

infectious, unhealthy and unsafe to breathe.[1] This constantly

increased the total bacterial and fungal count.

How the WATMIZER system works

The WATMIZER system was an assembly of an aluminum

frame with reflector profiles across the vertical arms of the

frame, which was fixed to the floor of the air handling unit. UV

lamps were fitted on the reflectors. The WATMIZER system

faced the cooling coil and was about 6 to 8 inches away from it.

The ultraviolet beam, which was directed at the face of the

cooling coil, destroyed the sticky germs, viruses, bacteria, fungi

and mold. Thus, the sticky matter, which bound the dust, moisture and germs, got destroyed and the whole integral mass

collapsed into the drain pan for clearance. In a few weeks, the

entire cooling coil sparkled and became shiny. As a result of this

cleaning, two things happened. The obstruction in the coils and

fins was removed, thereby improving the efficiency of the heat

transfer and resulting in the saving of energy. The virus and

bacteria were destroyed at the deoxyribonucleic acid (DNA)

level, and had no place to settle and grow. Thereby, there was

significant improvement in the indoor air quality (refer to

Appendix 5).

Need for the WATMIZER system

In traditional set-ups, as part of regular maintenance, the

cooling coil blocks were supposed to be cleaned periodically.

The normal interval for cleaning was fixed for every three

months. This cleaning was done using a forced jet of water and

chemicals to dissolve the "dust". This procedure had several

shortcomings. It was a cumbersome process as it required a

shutdown of the system, hence it was usually skipped. The

maintenance team just cleaned the filter and ignored the

cooling coil, as a result got more contaminated. When cleaning

was sporadically attempted, the customary methods of water jet

and chemicals could only clean to some extent from the surface

while most of the coil and fins remained contaminated. Most of

the cooling coils continued to be in a state of sub-optimal

performance. The WATMIZER system was a superior and

effective method for coil cleaning and thus resulted in saving

energy and improving indoor air quality. UVC rays were a

highly effective method of killing germs without the use of any

harsh methods like chemical cleaning or steam injections. The

use of UV rays was a safe, environment-friendly and the most

efficient method for removing mold and bacteria from coils and

the drain pan surface.[2] The system had several benefits. It

eliminated the growth of mold and mildew on cooling coils

resulting in improved heat transfer between the chilled water in

coils and air. It improved air flow through coils and eliminated

further depositions of dust on them. This reduced the amount

of energy consumed in a building by 10-15 per cent and

improved indoor air quality by up to 70 per cent. It prevented

periodic cleaning of coils, thus significantly reducing annual

maintenance costs (AMC) by over 50 per cent and extending

the life of the equipment by 25 per cent. The initial set-up cost

was low with payback as low as 15 months. The system was

compatible with any new and existing heating ventilation and Customer

The typical customers of the WATMIZER system were

hospitals, pharmaceutical manufacturers, hotels and large

companies that had the facility of a centrally air-conditioned

system. Customers were segmented depending on their

concern for environment, health and safety (EHS) and interest

to provide their employees a clean working environment.

Progressive companies and multinationals belonged to this

segment as compared to smaller still-to-evolve companies.

Customers were also segmented based on the time when they

purchased theWATMIZER system, either at the initial stage of

the construction, wherein the WATMIZER system was a part

of the original air handling unit equipment or at a later date,

which was technically referred to as a retrofit.

Buying process

The product was meant for business and commercial setups.

The purchase of the product was perceived to be a complex

decision; hence, several departments of a company were

involved in the decision-making process. A typical decisionmaking

unit (DMU)involved the following departments:

 Facilities: This department took care of running of the

buildings including heating, ventilation and air

conditioning systems in which the WATMIZER system

was fitted. This department was either staffed with

company personnel or outsourced to a facilities company

such as Jones Lang Lasalle or Cushman & Wakefield. The

department was mostly managed by engineers who were

responsible for heating, ventilation and air-conditioning

equipment, electricals, etc.

 Project: This department was involved in the setting up of

buildings. Once it was set-up, the facilities department

took care of the day-to-day operation and maintenance.

 Environment, health and safety: This department,

particularly in large multinationals, ensured a healthy

environment for their employees by providing a pollutionfree

work environment.

 Finance: This department was responsible for the viability

of an investment.

 Procurement: This department was responsible to audit the

quotations, negotiate and select the vendor based on the

buying decision.

 Chief operating officer: The final person responsible for

approving and signing the contract.

 Heating, ventilation and air conditioning consultant: In the

project stage when the facility was constructed, a client

would employ a heating, ventilation and air conditioning

consultant firm to design the heating, ventilation and air

conditioning system and recommend the vendors for

different components like chillers, air handling units,

ducting systems, electrical, etc.

 Air handling unit manufacturer: Vendor who manufactured

the air handling unit and sold to the client.

Competition

Terilair (USA) and TUK (Canada) were the two companies

that manufactured UV lamps of the required grade. Terilair

had business association with Redman, and TUK with

Tapman for selling UGI systems in India. Redman and

Tapman had stopped promoting UGI systems as they had

broken off their relations with the supplier companies. The

reason was that Redman and Tapman were huge companies

with multiple divisions and they found the potential of UGI

system too small to justify their efforts or return. Dustman, a

big player in water purification till now was not very much

interested in the use of UV lamps for air purification though

they did supply a WATMIZER-equivalent system imported

from a British manufacturer of UV lamps to few customers.

Refer to Appendix 6 for price of the system and that of the

competitors system that was imported. By 2016, there were no companies in India aggressively selling an UGI system for

heating, ventilation and air conditioning systems. Until now,

Dustman was not interested; however, seeing the future

business potential, it changed its perspective and became a

competitor to AEROPURE.

Client's satisfaction to date

Till date, client satisfaction has been impressive. For Sonora

Software, for instance, the payback was 11 months and indoor

air quality improvement over 90 per cent. For Shalaka

Constructions, the payback was 15 months and indoor air

quality improvement 83 per cent. Absenteeism at PELL

Systems dropped by 50 per cent. Savings were accrued through

reduced downtime during maintenance and reduced annual

maintenance costs as the cooling coil did not require any

cleaning. ATP Consultants conducted proof of concept (PoC)

tests in many companies to establish the evidence of savings

and improvement in indoor air quality between 11 and 29 per

cent. The drop in total bacterial count and fungal count was in

excess of 70 per cent and more than 50 per cent, respectively. In

most places, the payback on investment was around 15 to 24

months. Refer to Appendix 7 for PoC test, and Appendices 8, 9

and 10.

Ajay Sharma, the sales person

Ajay was an engineer and had previous experience of working in

a company, which dealt with the assembling and selling of air

handling units. Earlier, he had worked for five years in another

company that sold air conditioning systems. ATP Consultants

had found him suitable for their job profile and appointed him

with a salary package 25 per cent higher than his

contemporaries in the market. Ajay joined ATP Consultants in

April 2015. He reported to Business Development Director,

Sharmishta Dey. His job responsibilities included identifying

prospects, developing business presentations, managing

objections and closing sales. He went through an intense

product and sales training for theWATMIZER business.

Dilemma

The client's officials of facilities and the finance departments

were excited by the WATMIZER system; yet, they were

reluctant to make an investment in those cases, where the PoC

had demonstrated energy savings and indoor air quality

improvement. In March 2016, Mr. Vijay, Director, ATP

Consultants, convened a meeting to analyze Ajay's sales

performance. He was asked to explain the reason for not being

able to achieve his sales target. Ajay wanted to explore a few

options that would help him generate demands and convert

sales. He wanted to discuss those options with Vijay to seek his

support and approval. Ajay was left with only one week's time

formaking his presentation before the directors of ATP.

First, ATP consultants focused on retrofit prospects because

it seemed easier to prove energy savings and improvement of

indoor air quality through PoC tests. Some customers, who

were progressive and able to afford the system, allotted certain

amount of their capital expenditure for such novel technology.

Others, who were strapped for capital expenditure (CAPEX),

preferred the leasing option. Hence Ajay felt the need to

identify and approach the right prospects to develop a thorough

understanding on customer management to achieve both

customer acquisition and retention.

Second, few prospective clients wanted a PoC test that was a

pilot execution of the system to prove energy saving and indoor

air quality improvement at their own premises. This was

because they were unwilling to rely on testimonies of other

customers. While few customers were ready to invest in the

PoC test but were reluctant to make the CAPEX investment

required for the test. Ajay felt the need to assess the value worth

of the client and came up with options like arrange for a PoC

demo at the clients' premises at a 50 per cent discount or a free

demonstration offer based on the agreement of some assured

sales order from the clients or facilitate visits of interested

clients to the company, in which the PoC test demo was to be

carried out. Alternatively, he proposed the use of a digital

platform as a cost-effective method to project the value

proposition of products/services to clients.

Third, each member of the decision-making unit had their

own unique needs and concerns. Hence, the sales pitch had to,

accordingly, address and convince each member by offering

unique selling proposition (USP).

Ajay was sure that Vijay would be convinced of the abovestated

options to help generate demand for sales conversion.