Kone: The Monospace Launch in Germany (analysis)
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KONE: The MonoSpace Launch in Germany
This case emphasizes on
New Product – its Positioning – Pricing Strategy –
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 companys 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
Target the major influencing group, i.e. energy suppliers.
Target the architects and general contractors.
Before attracting the customers, install the pilot plants.
Price sensitive customers due to market saturation – Skimming pricing strategy would not work in Germany
Quality, Efficiency and Service oriented customers
Property developers consistently used bid process to allow price reduction
How different DMU members differs in Germany
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
Architect (Involvement 40%)
Interior paneling material, color, door type – overall design
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
As there different elevators already present in the market its always a relative strategy on the present product line i.e. PH, PT, PU.
Fix a low price