Case study analysis

KONE
IMT Dubai - Semester IV - Business Marketing
Report Submitted by - Group 1
Amod Apastamb SMBA13010
Nitish Sirsamkar SMBA13034
Sarthak Sahni SMBA13049
Sushant Alavala SMBA13060
INTRODUCTION
KONE is an elevator company with a new and innovative product to entering the
market. This company is faced with the problem of what they want to charge and how
they are going to position this newest product without cannibalizing their existing
product lines. Another problem the company faces 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 because their technology doesnt apply to this market, as
of now. Although they are not able to market to this group the benefits of gearless
traction can be used in comparison to the geared and hydraulic elevator systems. One
problem that was learned from the preliminary markets was that customers worried
that KONE would be able to price gauge them since they were the only ones with this
sort of technology.
The existing products offer the customer a number of options. Depending on who is
making the buying decision they can base the purchase on up-front costs, lifetime
savings, or quality of the equipment.
Strengths:
No machine room that creates greater architectural freedom and more usable
revenue-generating space
Compare to gearless technology: controlled speed, ride comfort, lower
maintenance
Cost savings: energy efficient, less expensive electrical wiring and fused, and
no oil is used
Lower overall construction time
Weaknesses:
Only can be used on 8 to 13 person elevator
Used for 12 floors or less (if machine room is to be omitted)
Failure to match demand and supply
Unanticipated consumer worries in connection with MonoSpace
No provision for ventilation
Lack of approval for the MonoSpace

Cannot be installed in Penthouse Buildings

Not suited for outdoor use Opportunities
74% of low-rise residential buildings are not expected to fall
Extend capabilities of the EcoDisc

MARKET TRENDS
KONE should focus on differentiating itself from the other competitors by
launching the MonoSpace as an environment-friendly (energy-saving)
elevator, which does not need oil. Moreover they should focus on making
cosmetic options for architects and make more modernised design elevators.
Also, they should focus on building long-term partnerships and build up a
good reputation.
General contractors looking for prize reductions (competitive bidding)
Architects looking for cosmetic options

Property Developers looking for price reductions when they purchase

elevators as they are concerned with the overall cost when developing or
renovating new buildings
MARKETING STRATEGY FOR KONE MONOSPACE MARKETING
OBJECTIVES
Successfully enter the German market.
Develop an integrated marketing approach by using the right pricing strategy,
modernized design of the product and strategic differentiation strategies.
FINANCIAL OBJECTIVES
Increase revenues of the V1 business of KONE
Assure the steady growth of the V2 business of KONE
POSITIONING AND STRATEGY KONE
MonoSpace will be positioned to demonstrate the key benets of the EcoDisc, which
include energy efciency; small modernized motor, smaller fuse, oil-free, ultra
lightweight, fast speed, and no more need for a machine room. With no more machine
room required, space is freed to property owners and developers, which enables an
increase in revenue generating space in buildings. It will also be positioned as a lowpriced elevator with modern designs that come up with reliable high-performance
services. We will position the product and service mix to steal the market share of the
mid-market players and the small local companies.