Empowering a Global Heating & Cooling Manufacturer with Actionable Market Segmentation

Summary

In 2023, a leading global manufacturer of heating and cooling solutions sought to refine its marketing and sales strategy across Europe. Despite its status among the top five in the HVAC (Heating, Ventilation, and Air Conditioning) industry worldwide, the company’s knowledge of local buyer behaviors and market differences was limited. To tackle this, they engaged USP Marketing Consultancy to design an international segmentation study, originally intended to include several representative countries spanning Europe.

Due to budget restrictions, the final proposal focused on piloting the research in two key markets—Spain and the United Kingdom—targeting both installers and homeowners. Through an extensive blend of quantitative and qualitative methods, we conducted factor and cluster analyses to uncover distinct market segments and developed buyer personas for each. The result was a clear, data-driven framework for understanding end-user and installer behaviors, attitudes toward technology, and brand perceptions. Although unforeseen internal shifts led the client to pause broader implementation, the project earned top marks—NPS and Client Satisfaction scores of 10—for the depth of insight and the practicality of the findings.

Key Points

• Challenge: Limited local market insights for an effective pan-European strategy
• USP’s Solution: International segmentation and buyer persona creation using factor and cluster analyses
• Outcome: Clear segment definitions for two key pilot markets, high client satisfaction (CSS 10, NPS 10)

About the client

• Global Consumer Heating & Cooling Solutions Manufacturer
  • Among the top five in the HVAC (Heating, Ventilation, and Air Conditioning) industry worldwide, with a wide portfolio from mainstream to premium HVAC solutions.
  • Strong focus on consumer-centric innovations, smart home integration, and modern design.
• Industry & Scope
  • Operating in numerous markets across Europe and beyond.
    Known for blending technological advancements with sustainable climate solutions.
• Reason for Engagement
  • Need to optimize marketing and sales strategies in key European markets through a robust, data-driven segmentation.
  • Desire to harmonize brand and product positioning amid growing competition and evolving consumer demands.

Issue

Despite a formidable global reputation, the client faced critical gaps when tailoring strategies to Europe’s complex HVAC landscape:

1. Limited Local Market Understanding
   • Although the brand had a long-standing global presence, it lacked comprehensive insights into consumer needs and decision-making processes specific to Europe—particularly in markets like the UK and Spain.
2. Broad Target Groups Without Clear Segmentation
   • The client aimed to address both professional installers and residential homeowners, but without a data-backed segmentation, marketing messages needed a refreshment given the changing needs and trends of each target group.
3. Budget Constraints for a Pan-European Study
   • Initially envisioned as a broad study covering multiple European regions, the project’s scope had to be scaled down due to cost limitations. The pilot eventually centered on two countries.

Solution

Methodology

USP Marketing Consultancy proposed a dual quantitative approach with two distinct streams—one for installers and one for end-consumers—underpinned by factor and cluster analyses to reveal meaningful segments in each target group. Key elements included:

• Questionnaire Development: Collaborated with the client to finalize survey questions targeting demographics, behavior, needs, and brand attitudes.
• Data Collection:
  • CATI/Phone Surveys for Installers (N=100 per country, UK & ES).
  • Online Surveys (CAWI) for Homeowners (N=200 per country, UK & ES).
• Factor Analysis:
  • Identified the most relevant drivers (e.g., technology affinity, brand perceptions, purchasing behaviors).
  • Explored multiple factor-reduction possibilities, ensuring that final factors effectively differentiated among participants.
• Cluster Analysis:
  • Tested 30+ different clustering solutions to determine the optimal number and composition of segments per target group.
  • Evaluated segments at both international (aggregated) and country levels to ensure cross-market applicability.

Steps Taken

After conducing the interviews among the installers and homeowners and the basic data-tables was prepared, the following segmentation steps were taken:

Preliminary Validation

• Identified potential segmentation models ranging from 3 to 6 segments for installers, and 4 to 6 for homeowners, by iterating different factor/cluster combinations.
• Validated each model for internal consistency, market size, and business relevance.

1. Preliminary results presentation/meeting with the Client where “winning” segment solutions were explained.
   • Discussed how final segments would translate into international strategy and localized buyer personas in both Spain and the UK.
2. Buyer Persona Development
   • Crafted clear, narrative-driven profiles illustrating each segment’s attitudes, motivations, pains/gains, and demographic traits.
   • Highlighted unique triggers like technology affinity, brand preference, and purchasing journeys for each segment.
3. Final Reporting & Recommendations
   • Delivered a comprehensive international and country-level reports detailing segment sizes, defining characteristics, and strategic implications.
   • Advised on communication strategies and product positioning for each segment to enhance brand relevance and market share.

Implementation Details

While the original plan included a pan-European segmentation, final implementation was scaled to:

• Pilot Markets: UK and Spain, representing different HVAC demands (cooling-focused vs. heating-focused).
• Phased Rollout:
  1. Initial Analytics & Segmentation: Focused on ensuring that segments resonated in both pilot markets.
  2. Persona Localization: Adapted persona profiles to each country’s cultural and market nuances (e.g., technology adoption rates, climate preferences).
  3. Stakeholder Engagement: Held a high-level presentation with over 20 participants from the client’s European team, generating strong enthusiasm for immediate local marketing strategies.

Challenges:

• Shifting Client Priorities: Market disruptions and short-term sales pressures shifted focus away from validating segmentation for other countries and hence implementing the new segments across all European markets.
• Internal Buy-In for Other Markets: Given the shifted business focus and market challenges, some local markets hesitated to adopt findings derived only from the UK and Spanish data. 

Despite these hurdles, the pilot survey in the UK and Spain showcased how data-driven segmentation could clarify potential international and local brand opportunities and marketing tactics.

Result/Insights

Even though a full-scale international rollout was postponed, the segmentation study yielded several critical benefits:

1. Highly Engaged European Leadership
   • A successful final presentation saw over 20 European team members attend.
   • The project team received a Client Satisfaction Score (CSS) of 10 and NPS of 10.
2. Clearer Marketing Roadmap
   • Each identified segment was accompanied by localized buyer personas, providing actionable insights into motivations, pain points, and decision-making.
   • The client’s marketing team gained a targeted lens through which to approach consumer communication, especially in the pilot markets.
3. Strategic Alignment on Product & Brand
   • By pinpointing the brand perceptions and technology preferences of distinct segments, the manufacturer could refine its product messaging and innovation pipeline.
   • The approach helped unify discussions between local and central European teams about how best to coordinate brand strategies.
4. Increased Enthusiasm & Knowledge Transfer
   • Regular, weekly interactions and meeting sessions highlighted the potential of advanced analytics (factor and cluster analyses) to the client’s team.
   • The methodology and insights set a precedent for future research projects, even if they have yet to be fully implemented across all markets.

Looking Ahead

Although the client’s evolving business priorities delayed a broader European rollout, the segmentation and persona framework remains a valuable reference for:

• Future Market Expansions
  • The pilot approach can be replicated in additional countries like France, Italy, Nordics and broader when resources become available.
• Enhanced Brand Positioning
  • Insights into consumer segments and installer behaviors set the stage for tailored marketing campaigns and product strategies, especially around premium and innovative HVAC solutions.
• Ongoing Data-Driven Culture
  • The enthusiasm of the client’s strategic marketing team related to the pilot insights underscores the importance of continuous market listening and segmentation to adapt to Europe’s diverse climate solution needs.

Ready to Transform Your Market Approach?

Our consulting services blend rigorous data analysis with hands-on strategic execution—enabling firms to act on the insights that truly drive growth. Contact USP Marketing Consultancy to see how our tailored segmentation frameworks and persona development can help your organization thrive in dynamic markets.