B2B Marketing Case Monospace

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“Hätälä wondered, what was the size of the MonoSpace opportunity in Germany? How should he price and position MonoSpace? To what extend might MonoSpace cannibalize sales of KONE’s existing low-rise elevators? What would be needed to ensure a successful launch? With more questions than answers before him, Hätälä began to review its options.” “Hätälä wondered, what was the size of the MonoSpace opportunity in Germany? How should he price and position MonoSpace? To what extend might MonoSpace cannibalize sales of KONE’s existing low-rise elevators? What would be needed to ensure a successful launch? With more questions than answers before him, Hätälä began to review its options.” B2B-MARKETING B2B-MARKETING PART A BEFORE ANSWERING THE QUESTIONS Company profile. KONE, founded in 1910, is one of the global leaders in the elevator and escalator industry. It is wold’s third largest elevator company, behind Schindler and Otis. KONE organization is divided into two business lines: * New Equipment Business, also known as V1: innovative products including elevators, escalators, auto walks, automatic doors, monitoring and access control systems. * Service Business, also known as V2: design, construction, maintenance and modernization. N.B.: 80% of service contracts still flowed automatically from New Equipment Sales. Where is this case really about? KONE is currently facing a precarious financial situation in an industry that competes on price rather than differentiation. Should the situation persist, losses for 1996 will be imminent. With the launch of KONE MonoSpace in Germany, however, the company hopes to make profits as it expands its product line in this very critical market. Germany’s elevator market is the largest in continental Europe and with a market size of 15,500 units in 1995, it is more than the market sizes of the
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