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...
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