Kone: the Monospace Launch in Germany

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KONE: The MonoSpace Launch in Germany Executive Summary With an introduction of the business objective to pull the firm out of the commodity rut, four key issues are identified, which are pricing, positioning, marketing and consumers. Then, the target market of KONE is stated briefly, which is low-rise residential elevators. Following are the four Ps analysis of KONE’s market strategy in Netherlands, United Kingdom and France. With the launch plan in Germany, a marketing analysis containing 5Cs and SWOT is presented. Based on analysis, three alternatives are provided, which are price the MonoSpace higher than, in line with, or lower than the existing prices in Germany. Given a decision matrix, the 1st alternative is chosen. However the decision of a marketing strategy is not self-evident, it needs a comprehensive implementation plan to help solving the key issues. Thus, with a pricing strategy of DM 100,000 for MonoSpace, positioning it to consumers with better services, efforts on marketing and sales will help to successfully launch the MonoSpace in Germany in order to earn profits in elevator market for KONE. In the end, a contingency plan and conclusion is stated. Problem Identification Intro: Business Objectives In 1996, KONE, one of the leading players in elevator industry, was facing a “commodity rut”. It was said the income of KONE would be zero and worsen in the future. (See Appendix 1) To pull the firm out of this commodity rut, managers was looking at their newest product innovation – the MonoSpace. Since the size of the Germany market was very large, the launch in Germany was vital to the future of the company. Key Issues: In order to make a successful launch in Germany, the issues below should be solved.  Pricing setting for MonoSpace in Germany (Pricing)  Differentiation among products (Positioning)  Brand building in Germany (Marketing) 

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