Daikin Industries, Ltd. is leading the way in the HVAC industry with its innovative marketing strategy. With a strong focus on segmentation, targeting, and positioning, Daikin has positioned itself as a global leader in air conditioning and refrigeration systems. By implementing various marketing tactics, collaborating with influencers, and leveraging digital technologies, Daikin has successfully set itself apart from its competitors.
Key Takeaways:
- Daikin has been recognized for its digital transformation efforts by being selected as a “Digital Transformation (DX) Stock 2024” for the third time by the Ministry of Economy, Trade, and Industry and the Tokyo Stock Exchange.
- Investing 180 billion yen in digital technology over a three-year period starting in fiscal year 2023 showcases Daikin’s commitment to embracing digital advancements.
- Daikin aims to expand its digital capabilities by increasing the number of digital human resources to 2,000 people by the end of March 2026.
- The introduction of DK-CONNECT and its global expansion has played a crucial role in Daikin’s marketing strategy, allowing the company to reach customers across multiple countries.
- Establishing the Daikin Information and Communications Technology College has provided a platform for employees to enhance their digital expertise in IoT and AI, further boosting Daikin’s technological advantage.
- Daikin’s focus on wide-area energy management services demonstrates its commitment to sustainability and reducing CO2 emissions.
- Implementing an innovative marketing approach, Daikin significantly increased its brand awareness in Canada, surpassing its dealer objectives and attracting new premium dealers.
- Daikin’s inclusion in the “Innovation Momentum 2024: The Global Top 100” recognizes its innovative contributions to science and technology.
- Granting free access to patents and pledging non-assertion demonstrates Daikin’s commitment to promoting energy-efficient refrigerants globally.
- Daikin’s strategic management plan, “Fusion 25,” showcases its goals of achieving carbon neutrality and creating value through customer-centric solutions.
Daikin’s marketing strategy has been instrumental in its success in the HVAC industry. By staying at the forefront of digital transformation, expanding its global presence, and actively promoting sustainability, Daikin is setting new standards for effective marketing in the air conditioning and refrigeration sector. In the following sections, we will dive deeper into the specific marketing strategies employed by Daikin and examine their impact on the company’s growth and brand image.
About Daikin – Company Overview
Daikin Industries, Ltd. is a renowned HVAC manufacturer specializing in air conditioning solutions and refrigeration systems. Founded in Osaka in 1924, Daikin has become a leading global player in the industry, operating in over 160 countries worldwide. With a strong commitment to sustainable practices and innovation, Daikin aims to provide air conditioning with minimal environmental impact while ensuring people and space are healthier and more comfortable.
Daikin’s strategic management plan, Fusion 25, guides the company’s growth and development. Recognizing the importance of people, the environment, and an enterprising spirit, Daikin focuses on implementing People-Centered Management as a core corporate culture. The company is committed to efficient energy management at both the building and city levels, striving to reduce greenhouse gas emissions and create a more sustainable future.
With revenues of nearly $29.4 billion in 2022, Daikin employs over 96,000 people worldwide. The company’s dedication to environmental management has earned it a reputation as an industry leader. In fact, Daikin’s investments in innovation and sustainability were recognized with Frost & Sullivan’s 2019 Manufacturing Leadership Award.
Daikin Applied, a division of Daikin Industries, focuses on designing and manufacturing advanced commercial and industrial HVAC systems. The company has multiple locations across the Americas, including headquarters in various states such as Minnesota, as well as facilities in Texas and Arizona.
In alignment with its commitment to sustainability, Daikin aims to reduce greenhouse gas emissions to net zero by 2050. The company has already made significant progress, reducing emissions by 14% in fiscal 2022. Furthermore, Daikin plans to quadruple the production capacity of heat pump space and water heaters by 2025, demonstrating its dedication to providing energy-efficient solutions.
In addition to its environmental initiatives, Daikin supports the 10 principles of the United Nations Global Compact and joined the World Business Council for Sustainable Development in 2023.
| Key Statistics | Value |
|---|---|
| Founded | 1924 |
| Number of Countries Operated | 160+ |
| Revenue (2022) | Nearly $29.4 billion |
| Number of Employees | 96,000+ |
| Strategic Management Plan | Fusion 25 |
| Recognition | Frost & Sullivan’s 2019 Manufacturing Leadership Award |
Marketing Strategy of Daikin
Daikin, a prominent player in the air conditioning industry, has implemented a robust marketing strategy to effectively reach and engage its target audience. Through a combination of innovative approaches and a customer-centric approach, Daikin has successfully positioned itself as a leader in the market.
Segmentation, Targeting, and Positioning
Daikin understands the importance of effectively segmenting its target audience to tailor its marketing efforts. By analyzing geographical locations and demographic data, Daikin ensures that its messages are relevant and resonate with its customers. This targeted approach allows the company to effectively position its products and services in the market.
One key aspect of Daikin’s marketing strategy is the creation of a cultural movement around their products. Rather than relying solely on traditional advertising campaigns, Daikin has focused on generating interest and trust from homeowners through initiatives like the “Energy for Change” campaign. This approach has not only attracted over 216,000 visitors to their website in the first five months but also resulted in 13,382 goal completions, demonstrating a strong level of engagement.
Furthermore, Daikin’s introduction of the Sustainable Home Network has contributed to building a network of professionals aligned with the company’s renewable heat mission. This network creates a positive image for Daikin while also serving as a platform for sharing knowledge and best practices.
Daikin’s strategic expansion beyond just selling air conditioning equipment demonstrates their dedication to meeting customer needs. By developing optimized solutions for each customer, including air conditioning system solutions, air solutions, refrigeration solutions, and energy management for entire buildings, Daikin showcases its commitment to providing comprehensive solutions for a range of applications.
Service Solutions and Technological Advancements
Daikin goes beyond offering products and aims to provide exceptional service solutions utilizing air conditioning equipment data. With air conditioning equipment consuming approximately half of the energy in a building, Daikin’s focus on efficiency and safety is a significant value-add for customers. The company’s continuous drive to develop technologies for entire building carbon neutrality, using simulations for heat load and air environment optimization, underscores their commitment to sustainability.
Daikin is also leveraging digital capabilities to streamline on-site work through DX conversion. By integrating IoT and AI technologies, Daikin plans to build service networks globally, providing safe and comfortable air conditioning usage for customers.
To enhance customer support, Daikin is developing a service site support system that incorporates wearable devices and natural language processing. This system enables quick issue resolution, ensuring customers receive timely assistance.
Expansion into Refrigeration Solutions
Daikin has recognized the need to expand its offerings beyond air conditioning services and is venturing into refrigeration solutions. This strategic move allows the company to diversify its product portfolio and cater to a wider range of customers, including those in the commercial sector.
Beyond Marketing: Daikin’s Business Growth
Daikin’s marketing strategy plays a vital role in supporting the company’s overall business growth. By targeting specific segments, positioning themselves as a trusted brand, and offering tailored solutions, Daikin ensures it stays at the forefront of the air conditioning industry.
With more than 700 employees and over 2,500 partners, Daikin’s presence in Central and Eastern Europe remains strong. Their commitment to flexibility, customization, and meeting unique customer requirements positions them as a preferred choice for various applications, including hotels, retail, offices, and large commercial projects.
Daikin’s multimedia advertising campaign, including their recent “Just how you like it” brand campaign, further amplifies their visibility and reach across Central European markets. The campaign encompasses multiple platforms, such as online, social media, OOH (out-of-home), and print, ensuring a comprehensive and integrated approach to marketing.
Daikin’s exemplary marketing strategy, encompassing segmentation, targeting, positioning, and incorporating diverse approaches such as social media marketing, influencer collaborations, e-commerce, content marketing, and more, has solidified its market position and established a strong brand presence in the air conditioning industry.
Social Media Marketing
Daikin, being a global leader in the HVAC industry operating in over 150 countries, understands the importance of social media marketing in today’s digital world. The company utilizes popular platforms such as Facebook, Instagram, and YouTube to reach and engage with its target audience.
With a combined daily user percentage of 74% in the U.S., Facebook and Instagram provide Daikin with a vast reach and an opportunity to create meaningful connections with potential customers. The company leverages these platforms to share informative content, promote its products and campaigns, and actively engage with followers to build brand loyalty.
Daikin recognizes that YouTube is not just a video-sharing platform but also the second largest search engine globally. With over 1 billion hours of video watched daily, YouTube provides a valuable opportunity for Daikin to showcase its products, demonstrate their features, and educate customers about the benefits of energy-efficient HVAC solutions.
Daikin’s social media marketing strategy focuses on creating visually appealing and engaging content that resonates with its target audience. By investing in quality video production, Daikin ensures that its YouTube channel provides valuable information and entertainment while establishing the brand as an authority in the industry.
In addition to reaching a wide audience, social media marketing allows Daikin to interact with customers directly, addressing their queries, providing support, and enhancing their overall experience. By emphasizing after-sales service and maintaining an extensive network of service centers and trained technicians, Daikin further strengthens its commitment to customer satisfaction.
Daikin’s social media activities also contribute to its corporate social responsibility initiatives. The company engages in community development programs and educational initiatives to create a positive impact on society. By sharing stories and updates about these initiatives on social media, Daikin inspires and encourages others to contribute to the betterment of the community.
Daikin’s social media marketing efforts align with its position as a premium brand offering superior quality, innovative technology, and sustainable solutions. By leveraging social media platforms, Daikin not only enhances brand visibility but also fosters engagement and builds lasting relationships with its customers.
Influencer Marketing
Daikin understands the importance of leveraging influential figures to expand its brand visibility and reach a vast audience. One of its strategic approaches is through influencer marketing, where the company collaborates with Indian Premier League (IPL) teams. By partnering with popular sports teams, Daikin is able to tap into the passion of cricket enthusiasts and create a strong association between its brand and the excitement of the IPL.
Through this collaboration, Daikin not only increases its brand visibility but also builds credibility and trust among consumers. The influence of IPL teams and players helps Daikin connect with a wide range of individuals who are passionate about cricket, creating a powerful marketing channel. The partnership allows Daikin to reach a diverse audience, including both urban and rural communities across India.
In addition to IPL teams, Daikin carefully selects other influential figures who align with its brand values and target audience. This strategic approach ensures that Daikin’s influencer marketing campaigns are impactful and resonate with consumers. By partnering with these influencers, Daikin is able to effectively communicate the benefits of its products and engage with its target market.
Through influencer marketing, Daikin enhances its brand visibility and creates a strong presence in the market. By collaborating with influential figures, the company not only expands its reach but also builds trust and credibility among consumers. Daikin’s partnership with IPL teams is just one example of how the company effectively utilizes influencer marketing to connect with its target audience and drive brand engagement.
| Benefits of Daikin’s Influencer Marketing | Statistics |
|---|---|
| Increased brand visibility | Influencer marketing enables Daikin to reach a wider audience and increase its brand visibility. |
| Enhanced credibility and trust | Collaborating with influential figures like IPL teams helps Daikin build trust and credibility among consumers. |
| Targeted marketing | Daikin strategically selects influencers who align with its brand values and target audience, ensuring effective communication with its target market. |
| Expanded reach | By partnering with influencers, Daikin is able to reach a diverse audience, including both urban and rural communities across India. |
| Increased brand engagement | Influencer marketing campaigns drive brand engagement by effectively communicating the benefits of Daikin’s products. |
E-commerce Strategies
Daikin understands the growing importance of e-commerce in today’s digital age. To ensure their products are easily accessible to customers, Daikin has established partnerships with renowned online platforms such as Amazon, Flipkart, and TataCLiQ. This strategic move allows Daikin to reach a wider customer base and provide convenient shopping experiences.
By leveraging these online platforms, Daikin enables customers to browse and purchase their products from the comfort of their homes. Whether it’s residential air conditioners, commercial HVAC systems, air purifiers, or refrigeration equipment, customers can find a comprehensive range of Daikin products on these e-commerce platforms.
Daikin’s presence on these online platforms not only offers convenience but also ensures that customers have access to detailed product information, specifications, and user reviews. This transparency builds trust and confidence in customers, allowing them to make informed purchasing decisions.
The partnership between Daikin and these e-commerce platforms also enables efficient logistics and delivery. Customers can expect prompt and reliable delivery of their purchased products, further enhancing their overall shopping experience.
Daikin’s commitment to e-commerce goes hand in hand with its dedication to customer-centricity. By embracing online platforms, Daikin ensures that customers have the flexibility to explore and purchase their products at their convenience, anytime and anywhere.
In summary, Daikin’s e-commerce strategies focus on partnering with reputable online platforms to provide customers with a convenient and seamless shopping experience. By leveraging the power of e-commerce, Daikin expands its reach and reinforces its commitment to customer satisfaction.
Content Marketing
Daikin Airconditioning Central Europe, founded in 1999, has established itself as a thought leader in the HVAC industry through its strategic implementation of content marketing. With a comprehensive portfolio of products and solutions for heating, cooling, ventilation, air purification, and refrigeration, Daikin utilizes content marketing to share valuable insights, industry trends, and product-related information. This approach positions Daikin as a trusted source of information and showcases its expertise in the field.
Daikin’s content marketing efforts focus on providing informative content such as blogs, case studies, and articles that address the needs and interests of its target audience. By sharing in-depth knowledge and thought leadership, Daikin establishes credibility and builds trust among customers and industry professionals alike.
Through its “Just how you like it” campaign, Daikin emphasizes individual preferences and comfort in the home environment. This campaign, which will be rolled out across Central European markets through various channels including online, social media, OOH, and print, not only highlights Daikin’s commitment to customer satisfaction but also showcases the company’s high-quality solutions.
Daikin’s content marketing strategy goes beyond promoting its products and services. The company positions itself as a total solutions provider for every home and building, offering a comprehensive portfolio of products, maintenance services, and turnkey solutions for residential, commercial, and industrial purposes. This approach allows Daikin to cater to the diverse needs of its customers and provide end-to-end solutions throughout the air conditioning value chain.
Daikin’s content marketing efforts are driven by a strong focus on industry trends and the development of solutions optimized for each customer based on application and market needs. By staying ahead of emerging trends and tailoring its solutions to specific requirements, Daikin remains competitive and ensures customer satisfaction.
| Daikin Content Marketing Highlights |
|---|
| Emphasis on individual preferences and comfort in the home environment |
| Rollout of the “Just how you like it” campaign across Central European markets |
| Showcasing high-quality solutions and commitment to customer satisfaction |
| Total solutions provider for every home and building |
| Comprehensive portfolio of products, maintenance services, and turnkey solutions |
| Focus on industry trends and tailor-made solutions |
Daikin’s content marketing strategy is reinforced by its dedication to innovation and sustainability. The company utilizes cloud technology to collect and analyze internal data of air conditioning systems, ensuring safe and reliable environments. Daikin also leverages AI technology to quickly detect refrigerant leaks and predict operation failures, minimizing downtime. With a focus on achieving carbon neutrality and optimizing energy usage, Daikin develops technologies that contribute to energy savings and the creation of safe and reliable buildings.
By integrating digital capabilities with human expertise, Daikin promotes the conversion of on-site work to digital experiences. The company utilizes IoT and AI technologies to build a global service network, ensuring efficient support for customers. Daikin’s commitment to customer satisfaction is further demonstrated through its service site support system, which includes wearable devices, natural language processing technology, and remote support from experienced engineers.
Through its content marketing efforts, Daikin positions itself as a premium brand, offering superior quality, innovative technology, and sustainable solutions. With a strong focus on research and development, Daikin continues to drive innovation in climate control solutions, maintaining its competitive edge in the market.
Daikin’s Cool A School Campaign
Daikin believes that every child deserves a comfortable and conducive learning environment, especially in hot regions. To address this need, Daikin Air-conditioning India Pvt. Ltd., a subsidiary of Daikin Industries Ltd., Japan, launched the ‘Cool a School’ campaign. This initiative aims to adopt schools in India’s hottest regions and provide efficient cooling solutions to promote student attendance and academic excellence.
In the first phase of the campaign, Daikin donated five air conditioners to Government Senior Secondary School in Neemrana. They covered the installation costs and will also provide maintenance support. By installing air conditioning systems, Daikin ensures that students can focus on their studies without discomfort caused by scorching heat.
However, the ‘Cool A School’ campaign goes beyond just providing air conditioning systems. Daikin incorporates sustainable measures such as reflective banners, green roofs, and landscaping to enhance the cooling solutions in schools. These measures not only help in maintaining a pleasant temperature but also contribute to the overall sustainability of the school environment.
To create awareness and garner support for the initiative, Daikin launched a social media campaign. This campaign includes a compelling ‘Cool-a-School’ video on YouTube, highlighting the importance of a cool learning environment. Daikin aims to adopt a new school for every 1 million likes received on the video, further expanding the impact of the campaign.
Social Media Engagement
Daikin understands the power of social media engagement in spreading the message of its Cool A School campaign. By leveraging platforms like YouTube, they can reach a wider audience and inspire more people to contribute to this noble cause. Through the use of captivating visuals and persuasive storytelling, Daikin encourages social media users to support the campaign and make a difference in the lives of rural school children.
Kanwal Jeet Jawa, Managing Director of Daikin Air-conditioning India Pvt. Ltd., emphasizes the company’s commitment to corporate social responsibility. He believes in giving back to society and recognizes the importance of supporting children for a brighter future. Through the ‘Cool A School’ campaign, Daikin not only improves educational infrastructure but also contributes to the overall well-being of the community.
Daikin’s CSR initiatives extend beyond the Cool A School campaign. The company actively engages in environmental contributions, with a dedicated manufacturing facility in Neemrana that focuses on recycling water, maintaining green areas, and implementing an Environmental Management System. By prioritizing resource conservation and waste management, Daikin sets an example of sustainability and responsibility.
| Daikin Europe N.V. Statistics (2020) | Daikin Cool A School Campaign |
|---|---|
| Employees: 10,637 | Target: Rural schools in hot regions of India |
| Consolidated Turnover: 3,464.7 million EUR | Donation: Five air conditioners |
| Consolidated Operating Profit: 413.8 million EUR | Inclusive: Installation and maintenance costs |
| Net Sales: 3,455 million EUR | Sustainable Measures: Reflective banners, green roofs, landscaping |
| Total Assets: 3,110 million EUR | Social Media Campaign: ‘Cool-a-School’ video on YouTube |
| Total Equity: 1,502 million EUR | Objective: Adopt a new school for every 1 million likes received |
Daikin’s Digital Transformation Recognition
Daikin’s commitment to digital transformation (DX) and technology investment has been recognized globally. In 2023, Daikin Industries, Ltd. received the prestigious “Plant of the Year 2023” award from the FieldComm Group, an organization comprising approximately 380 member companies in the process industry. This recognition celebrates companies that excel in advancing digital transformation through innovative processes and measurement instruments.
Daikin’s achievement as one of the “DX Stocks 2024” by the Ministry of Economy, Trade, and Industry and the Tokyo Stock Exchange further highlights its digital transformation success. The company’s strategic focus on DX Stocks demonstrates its dedication to leveraging digital technology for continuous improvement and enhanced corporate value.
Daikin’s digital transformation journey has involved implementing cutting-edge AI technology to optimize its operations. At the Kashima plant, Daikin has successfully integrated AI technology for real-time wear and tear detection and corrosion monitoring on control valves and instrument lines. This AI system relies on accurate data, which is facilitated by HART devices. Masumi Yoshida, from Daikin’s engineering department, emphasizes the invaluable insights obtained from HART signals for optimizing the AI learning processes.
The new AI system at Daikin focuses on detecting abnormal conditions in HART-compatible devices such as valve positioners, pressure transmitters, and Coriolis flowmeters. This real-time anomaly detection capability combined with continuous monitoring has significantly improved maintenance scheduling and anomaly detection at the Kashima plant.
Daikin’s commitment to digital transformation extends beyond its AI implementation. The company plans to expand its anomaly detection system to other plants globally, demonstrating its dedication to leveraging technology for operational efficiency and reliability. Additionally, Daikin’s efforts to achieve net-zero CO2 emissions by 2030 align with its environmental sustainability goals and contribute to a greener future.
Through its achievements in digital transformation and sustainability, Daikin continues to pave the way for innovative and responsible practices within the industry. By investing in technology and nurturing talent through its Information and Communications Technology College, Daikin remains at the forefront of digital innovation and sets an example for other companies to follow.
Umeda Center Building Case Study
The Umeda Center Building, located in Osaka, Japan, serves as a prime example of Daikin’s commitment to innovation and energy efficiency in the HVAC industry. This iconic building was the first to adopt Daikin’s revolutionary VRV (Variable Refrigerant Volume) system, showcasing the company’s cutting-edge technology and dedication to sustainability.
The VRV system provides exceptional comfort while significantly reducing energy consumption. With its ability to precisely control temperature and airflow in different zones, the Umeda Center Building ensures a comfortable environment for occupants while minimizing wastage. The VRV system’s flexibility and efficiency have made it a preferred choice for commercial buildings around the world.
In recognition of the Umeda Center Building’s outstanding sustainability efforts, it was honored with the SHASE (Society of Heating, Air-Conditioning and Sanitary Engineers of Japan) Special Award in 2013. This prestigious accolade validates Daikin’s commitment to creating environmentally-friendly solutions that contribute to building a greener future.
Daikin’s Leadership in Sustainable Technology
The Umeda Center Building case study highlights Daikin’s leadership in the HVAC industry. As the world’s largest supplier of HVAC systems, Daikin continues to drive innovation and set new benchmarks in energy efficiency and environmental sustainability.
| Key Achievements | Statistics |
|---|---|
| Daikin provides access to real-time data | 150 data points on rooftop units or air-cooled chillers |
| Daikin’s Intelligent Equipment | Connects directly to HVAC units for performance measurement |
| Utilizes weather forecast data | For proactive adjustments to HVAC systems |
| Intel IoT Gateway | Enables information collection from HVAC sensors and actuators |
| Fault detection and predictive maintenance | Possible with the Intel IoT Gateway |
| Real-time IoT capabilities | Enable remote monitoring and control using mobile devices |
| Daikin’s proactive model | Helps adjust ineffective systems quickly and maintain equipment efficiently |
| Unlocking data for better decision-making | Intelligent Equipment facilitates better business decisions |
| Competing with large tech firms and utilities | Daikin offers intelligent energy management solutions |
| Daikin’s investment in global startup companies | $100 million USD (11 billion yen) over a five-year period |
| Employees |
Daikin Industries: 7,499 Daikin Group: 80,369 WASSHA Inc.: 223 |
Through constant innovation and a focus on sustainability, Daikin continues to revolutionize the HVAC industry, providing businesses and individuals with state-of-the-art solutions that combine comfort, efficiency, and environmental responsibility.
Conclusion
Daikin’s Marketing Strategy 2024 has solidified its position as a global leader in the HVAC industry. Through innovative tactics and a strong commitment to sustainability, Daikin has successfully expanded its operations and strengthened its market value, which increased from USD 30 billion to USD 65 billion. With a presence in 150 countries and employing 80,000 people globally, Daikin continues to drive growth and make significant contributions to society and the environment.
One of the key aspects of Daikin’s marketing strategy is its focus on technology and innovation. By introducing new products and solutions that prioritize indoor air quality and purification, Daikin has successfully met the evolving needs of its target audience. This commitment to innovation is further emphasized in Daikin’s annual Integrated Reports, which highlight the company’s growth strategies and financial investments for future expansion and profitability improvements.
Furthermore, Daikin has utilized various marketing tactics to engage its target audience effectively. Through social media marketing, influencer collaborations, e-commerce strategies, and content marketing, Daikin has been able to connect with customers and build brand loyalty. These efforts have enabled Daikin to expand its refrigeration business foundation in Europe, with the recent acquisition of AHT Group, and pave the way for full-scale expansion in the United States and Asia.
In conclusion, Daikin’s Marketing Strategy 2024 exemplifies its commitment to excellence in the HVAC industry. By prioritizing innovation, sustainability, and effective marketing techniques, Daikin has established itself as a global leader, driving growth and catering to the evolving needs of its customers. As Daikin continues to expand and create new value through service solutions, it remains at the forefront of the HVAC industry, shaping the future of indoor air quality and comfort.
