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Marketing Plan

Kone has targeted MonoSpace directly at Europes largest equipment market segment: low-rise residential elevators. Put yourself in Hatalas Shoes and develop a detailed marketing plan for launching the Monospace in Germany. Set a price for the MonoSpace (to facilitate comparison with prices of existing products as given at the bottom of case page 724, price a lowrise, 4floor elevator) and specify clearly
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Product KONE MonoSpace

The product would revolutionize the elevator industry world-wide with its distinct features
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Place KONE MonoSpace

The The The

product was to be launched in Germany target segment were the low-rise residential elevators German elevator market was dominated by residential construction and hence was favorable for the launch

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Price

They should go with the differentiation strategy but also consider the price-sensitive customer base
Since the product is new and highly unique in the

industry

This uniqueness will add to the profit margins and

should help KONE to gain a higher market share in Germany

Since in Germany their market share is below 15%

(8.5%, TABLE E) they should be pricing the product at a premium but considering the price sensitivity of the customers it should not be more than 1-2% high than the hydraulic elevators that the competitors charge

The price should be launched at comparable premium over the hydraulic elevators
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Price (contd)

They have already seen the failure of their skimming strategy in UK and in Germany too its would fail
because of the price sensitive customers Market is already saturated

They should emphasize on their benefits of energy efficient, not requiring oil and therefore eliminating fire and environmental hazards, as well as its lower installation time as compared to the traditional offerings So the pricing should be not very high but at a very less premium of about 1-2%
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Promotion

KONE should target the main influencers, the contractors Among them four major contractors control about 20% of the construction These contractors can be influenced by using communication techniques like:
Cost $41,958 $350 $13986

Launch Target Option Direct Mail Architects, Investors, general contractors Sales Visit General contractors Video Property developers, architects, Contractors, Investors 4/29/12

Promotion (contd)

They should target the major contractors who have control over the 20% of the construction and charge a premium price
This will enable them to attract the attention of

major players
Demonstrate to the audience which do

understand the value offering that MonoSpace comes with

Help to launch a trend by influencing the other

contractors

Legal approval for MonoSpace to be installed in every state throughout the country can be an obstacle. 4/29/12

Promotion (contd)

Considering the advertising strategy KONE should:

Product Comparison advertising Product Benefits advertising

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