Develop a Marketing Plan for Launching Monospace in Germany Essay
KONE:The Monospace Launch in Germany
International Management Institute, New Delhi
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
The launch of Monospace is very important for Kone. The reasons can be summarized as following –
• Value addition – The launch of Monospace will add value to Kone in …show more content…
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. Test Market Launches:
Unit sales and Market share Units KONE Otis Schindler Thyssen
France 7000 14 41 20 18
UK 3300 20 30 10 10
Netherland 2100 40 19 13 6
Learning from the test market launches
• 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.
• 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 target.
Comparison of German market with respect to other markets
• Saturated market and construction slumping Germany led to fall in demand for elevator equipment by 15 percent
• Price sensitive customers due to market saturation