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Kone Case Study Essay Example

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Kone Case Study Essay Example
1) Market opportunity in Germany:
- forecasting methods – anology
Analogy: use similar situations: the launch in Holland, France and England.
Total german elevator market:
Target sales: 70 per cent of all sales:
70 per cent of 86,9 mill. Is 60,83 mill. DM. Perhaps a bit more if they gain in market share due to monospace.
Low rise market is 74 percent of total market – 74 per cent of 1,022 mill= 756,28 mill.
If KONE has the same market share in low rise as general: 64,28 mill if monospace is 100 percent of new low rise elevators sold.

2) Price and position in Germany
Price: how should we price in comparison to Holland and England.
Should be priced in line with geared traction elevators. Priced slightly above because of market share less than 15%. 86,000 DM
A relatively high price because of the differentiation and brand building purpose
Position: position monospace on its differentiated value.

- No machine room
- saves energy
Perceptual map: decided to position ourselves on energy-saving and space-saving.
‘A space- and energysaving elevator with low operating costs.

3) To what extend might monospace cannibalize sales of KONE’s existing low-rise elevators
In Netherlands, goal was for Monospace to account for 100 percent of low-rise elevators within three years – has that been attained??
That means that

4) What would be needed to ensure a successful launch?
Marketing Plan:
Executive summary:
Current situation and trends:
Key issues
Goals: 70 per cent of all sold units are MonoSpace within a year.
MonoSpace is 100 per cent of sold low-rise units within three years.
Furthermore, a rise in market share from 6,7 per cent to 11 per cent within one year. Not as much as in Netherlands because we have a smaller market share in Germany.
Within low-rise we expect to have a larger increase in market share.

Product: Monospace – is defined by KONE
Price: a price premium due to the differentiation and brand building efforts. 86,000 DM

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