8/9/2019 b2b Kone case study

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Case study analysis

KONE

IMT Dubai - Semester IV - Business Marketing

Reprt Submitted by - !rup "

#md #pastamb SMB#"$%"%

Nitis& Sirsamkar SMB#"$%$'

Sart&ak Sa&ni SMB#"$%'(

Sus&ant #la)ala SMB#"$%*%

INTRODUCTION

KONE is an elevator company with a new and innovative product to entering the

market This company is !aced with the pro"lem o! what they want to charge and how

they are going to position this newest product without canni"ali#ing their e$isting

product lines %nother pro"lem the company !aces is how and to whom they should

market this new elevator application The company can rule out marketing to the high

rise gearless traction market "ecause their technology doesn&t apply to this market' as

o! now %lthough they are not a"le to market to this group the "ene!its o! gearless

traction can "e used in comparison to the geared and hydraulic elevator systems One

pro"lem that was learned !rom the preliminary markets was that customers worriedthat KONE would "e a"le to price gauge them since they were the only ones with this

sort o! technology

The e$isting products o!!er the customer a num"er o! options Depending on who is

making the "uying decision they can "ase the purchase on up(!ront costs' li!etime

savings' or )uality o! the e)uipment

*trengths+

No machine room that creates greater architectural !reedom and more usa"le

revenue(generating space

Compare to gearless technology+ controlled speed' ride com!ort' lower

maintenance Cost savings+ energy e!!icient' less e$pensive electrical wiring and !used' and

no oil is used

,ower overall construction time

-eaknesses+

Only can "e used on . to /0 person elevator

Used !or /1 !loors or less 2i! machine room is to "e omitted3

4ailure to match demand and supply

Unanticipated consumer worries in connection with 5ono*pace

No provision !or ventilation

,ack o! approval !or the 5ono*pace

8/9/2019 b2b Kone case study

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Cannot "e installed in 6enthouse 7uildings

Not suited !or outdoor use Opportunities

89: o! low(rise residential "uildings are not e$pected to !all

E$tend capa"ilities o! the EcoDisc

5%RKET TREND*

KONE should !ocus on di!!erentiating itsel! !rom the other competitors "y

launching the 5ono*pace as an environment(!riendly 2energy(saving3

elevator' which does not need oil 5oreover they should !ocus on making

cosmetic options !or architects and make more modernised design elevators

%lso' they should !ocus on "uilding long(term partnerships and "uild up a

good reputation

;eneral contractors < looking !or pri#e reductions 2competitive "idding3 =

%rchitects < looking !or cosmetic options 6roperty Developers < looking !or price reductions when they purchase

elevators as they are concerned with the overall cost when developing or

renovating new "uildings

5%RKETIN; *TR%TE;> 4OR KONE 5ONO*6%CE 5%RKETIN;

O7?ECTI@E*

*uccess!ully enter the ;erman market

Develop an integrated marketing approach "y using the right pricing strategy'

moderni#ed design o! the product and strategic di!!erentiation strategies

4IN%NCI%, O7?ECTI@E* = Increase revenues o! the @/ "usiness o! KONE

%ssure the steady growth o! the @1 "usiness o! KONE

6O*ITIONIN; %ND *TR%TE;> KONE

5ono*pace will "e positioned to demonstrate the key "eneAts o! the EcoDisc' which

include energy e!AciencyB small moderni#ed motor' smaller !use' oil(!ree' ultra

lightweight' !ast speed' and no more need !or a machine room -ith no more machine

room re)uired' space is !reed to property owners and developers' which ena"les an

increase in revenue generating space in "uildings It will also "e positioned as a low(

priced elevator with modern designs that come up with relia"le high(per!ormance

services -e will position the product and service mi$ to steal the market share o! the

mid(market players and the small local companies