Name of the business: Comfort Zone
Nature of the business: Distributor of heating, air conditioning and refrigeration
+equipment, parts and supplies.
Marketing Analysis
It was found that in 1961 Comfort Zone was incorporated in Jacksonville, Florida.
Comfort Zone is a distributor of heating, air conditioning and refrigeration equipment,
parts and supplies with 45 outlets in Southeastern area. The company distributes new and
replacement and repair parts for HVAC and refrigeration products to contractors and other
kinds of entities which service and sell such devices. Demand for these products is
predominantly driven by seasonal effects and economy. According to “Construction
Review (Exhibit 7)”, residential construction approvals typically increase from March
through August each year. Growth in the economy creates greater demand for these
products and the nature of the distribution; as consumers experience good economic time
new constructions in commercial and residential increase. Thus, sales of Comfort Zone are
seasonal, as typically a building or a house happens in the months which the outside
weather is comfortable.
Comfort Zone provides a more advanced concept of service with full line of 20,000
climate control and various refrigeration products through sales outlet or store operated by
it. Comfort Zone also expands sales outlets and broadens its product line, so the company
increased sales in the amount of $23 million within 3 years; sales growth by 40% in 1989,
33% in 1990, and 26% in 1991. Mr. Cousins, the president of Comfort Zone, predicted to
continue for the next years because the southeast region continues to be the nation’s
premier growth area.
Comfort Zone distributes products to about 8,000 customers consisting of mechanical,
heating, air conditioning and refrigeration contractors, institutions, governmental units and
a variety of commercial users such as supermarket chains. The company promotes sales in
both the replacement and repair market. New promotions have been heavy in regards to
contractors building out new construction. Forty five sales outlets are scattered across
states in counties, and these stores service a fractured market of HVAC and refrigeration
contractors. Thus, strong position of the company is the effectiveness of store penetration
within the regional market compared to other competitive companies. Strategies currently
employed to take market share from competitors are stocking of inventory, purchases on
open account and store manager controlled credit policies.
Operating Analysis
Comfort Zone purchases its supplies on a regular basis from approximately 250
manufacturers and suppliers. There are an additional 400 vendors for special order items.
The largest single supplier of new air conditioning equipment and parts to the company
