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Kone Case Analysis
B2B MARKETING

CASE ANALYSIS ON KONE: THE MONOSPACE LAUNCH IN GERMANY

Submitted By:

Ajay Yadav (09PGDM065) Bhoopendra Singh (09PGDM078) Sampreeth Kumar (09PGDM105) Shivendu Kumar Singh (09PGDM110)

In order to enhance its financial position in a saturated elevator market and intense global competition, KONE developed the Monospace elevator that uses revolutionary technologies. It has various benefits, such as being the most energy efficient, not requiring oil and therefore eliminating fire and environmental hazards and its lower installation time. 1. Importance of Monospace launch for KONE and implications of success or failure y By 1996, the financial situation of KONE elevator business in Germany had worsened as compared to previous years.

y

Global construction slumps ± Elevator industry has a derived demand and mainly depends upon construction business

y y y

Saturated elevator market - low product differentiation in the elevator industry Intense global competition ± price competition and hence margin erosion Price-sensitive consumers

If Monospace launch is successful, company¶s worsening financial position will improve and its market share in residential elevator market will improve. If it fails, company will further incur financial losses and hence company¶s future growth strategy will get affected.The pricing and product positioning strategies set for Monospace in Germany would have a significant impact on the long-term success prospects for KONE. 2. Learning from the test market launches y y y

Target the major influencing group, i.e. energy suppliers. Target the architects and general contractors. Communicate the benefits of the new technology by print, electronic media and personal meetings.

y y y

Before attracting the customers, install the pilot plants. Focus on the activities of competitors and work accordingly. With the low rise builders rarely using scaffolding and use cranes, we need to focus on which segment to
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