ACHRNEWS

Nov. 23, 2006: Frost & Sullivan Honors Braeburn's Growth in Thermostats Market

November 22, 2006

PALO ALTO, Calif. - Frost & Sullivan has selected Braeburn Systems LLC as the recipient of its 2006 Frost & Sullivan Award for Growth Strategy Leadership in the North American thermostats market.

According to Frost & Sullivan, Braeburn has overcome formidable market entry barriers to become the fastest growing supplier of electronic thermostats in North America. Between 2001 and 2006, it witnessed a compound annual growth rate (CAGR) of 105 percent, when the overall market CAGR was only 4.8 percent.

The company achieved this growth through sound financial and operational strategies, said Frost & Sullivan. For example, rather than building its own logistical infrastructure, Braeburn outsourced all its logistical needs and manufacturing operations such as warehousing, real-time delivery, and assembly. The company also realized the importance of catering to varied customer needs; it introduced 20 different models between 2001 and 2006, while simultaneously improving and refining existing products. This customer-driven approach to product development has contributed greatly to its success, stated Frost & Sullivan.

"Braeburn has also devised a unique 'pull-through' strategy that provides a strong incentive for contractors to 'pull' Braeburn's products off distributor's shelves and into the market," said David Lee, Frost & Sullivan research analyst. "This strategy is primarily based on an innovative branding program that partners contractors with Braeburn to create a unique co-brand."

Braeburn has developed a process that allows contractors to permanently laser-mark or brand its name, along with limited information, onto its thermostats. This tactic has significantly contributed to the company's revenues as many contractors have adopted this low-cost marketing and advertising platform.

"The core commitment to high value, customer focus, and product research and development has enabled Braeburn to develop and execute critical initiatives for success," noted Lee. "As Braeburn continues to develop and refine new and existing best practices, it will continue to be successful."

Braeburn products are available to professional contractors through a network of HVACR distributors throughout North America. For more information, call 866-268-5599.

Publication date: 11/20/2006