Kone: The Monospace Launch in Germany (analysis)

KONE: The MonoSpace Launch in Germany

 This case emphasizes on

o New Product - its Positioning - Pricing Strategy -

o Target customers of MonoSpace with respect to the German Market by understanding the buying behavior (key DMUs and the Decision Making Process DMP) leveraging with the company's strengths & technologies.

 The concept of Test Market & the subsequent launch of MonoSpace in countries viz., Netherlands, France, United Kingdom helps in understanding a comparative analysis across different potential markets (in different areas though) and henceforth provide an insight & comparison about the German Market for positioning & pricing strategies. Each market (the country) has its own dynamics, changing the approach of KONE (salesperson) to the DMUs.

 Learning from the Test Market Launches - measures to be taken for German Market

o Target the major influencing group, i.e. energy suppliers.

o Target the architects and general contractors.

o Before attracting the customers, install the pilot plants.

o Price sensitive customers due to market saturation - Skimming pricing strategy would not work in Germany

o Quality, Efficiency and Service oriented customers

o Property developers consistently used bid process to allow price reduction

 How different DMU members differs in Germany

o Contractors wanted (Involvement 50%)

 Lowest possible price, design of the bid document

 Required no changes to architectural drawings

 Customers' general impression of sales person, level of service, quality

o Architect (Involvement 40%)

 Interior paneling material, color, door type - overall design

o Property developers (Involvement 10%)

 Believe in bid process

 Concerned with overall cost, construction quality, timeliness of completion

 Operating cost

 So on what Marketing Strategy (positioning and pricing) should Raimo Hatala ultimately stick to? Recommendation

o As there different elevators already present in the market it's always a relative strategy on the present product line i.e. PH, PT, PU.

o Fix a low price

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