Business to Business Marketing
Case: Kunst Vacuum Pumps
Commercializing the Kunst 1600 Dry Piston Vacuum Pump
22nd April, 2013
Kunst Vacuum Pumps Summary: The case started with the introduction of Kunst Vacuum Pumps which is recently acquired company of company Atler GmbH. Kunst Vaccum Pumps is into manufacturing of high end vacuum pumps mainly used in highly demanding laboratory, health care and industrial applications. Basis its quality and reliability factor, company had 60% market share in this segments. Atler GmbH whose headquarter in Germany have acquired Kunst in view of complementing its product which are also in similar lines. Company has recently launched its new product “The Kunst 1600 Dry Piston Vacuum Pump” which has been launched by its parent company Atler under its name within US markets whereas Kunst would sell the product as a derivative product in other untapped markets. Evan Stone a Senior product manager at Kunst Vacuum Pumps had great enthusiasm to launch this product as he knew with successful launch of this product, will bring recognition from Atler’s senior management. Product had following specification: 1. Fractional horsepower, injection moulded aluminum pump 2. Pumping speed of 1.6 cubic feet per minute with weight of 16.5 pounds. 3. Reconfigured compressor outfitted with a screen over its input nozzle to catch contaminants and can run longer and cooler than conventional vacuum pumps 4. Function more efficiently at lower pressure 5. Fewer working parts and it is Oil free 6. Durability of 6 years 7. 5-19 pounds lighter than traditional pumps 8. Price of $400 to wholesalers and suggested resale price of $500 9. Brand name of Kunst Market potential for each segment: 1. Home refrigerator repair – 60000 units 2. Light commercial refrigerator – 40000 units 3. Residential AC repair – 125000 units Competition: Around 15 small companies with Annual turnover of $50mn with efforts to target 1 or 2 markets...