Kone Monospace

Kone Monospace

All the questions below should be answered in the following context

a. They pertain the German market only (in 1995). You can use the insights from the various test markets to think about the answers to the following questions, but your analysis should be restricted to the German market alone.

b. As a result, please carry out your complete analysis in Deutschemarks (DM).

c. In your write-up, please focus more on questions 1, 2, and 3, relative to 4.

Questions

1. In terms of units sold, what are the sizes of the PH, PT, and PU segments in the German residential elevator market? What are Kone's current shares in each of these segments? For the sake of the analysis, you should make the assumption that the statement "48% of sales were residential. 92% PH, 6% PT, 2% PU" on page 4 (bottom) refers to unit and not revenue shares.

2. What are the key benefits of the Monospace product for elevator customers? Based on this, quantify the economic value of the product if positioned for potential a) PH customers, b) PT customers, and c) PU customers. In addition, you may want to list the non-quantifiable benefits of Monospace for these three segments.

3. Using the price-perceived quality (Value Equivalence Line) map, where would you position the Monospace product relative to the current PH/PT/PU/PS products in Germany? Why?

Note: Plot the VEL from the point of view of the consumer before and after the launch of Monospace. The y axis (price) should be cost to the customer (contractor/builder) for buying and installing the product plus cost of building the machine room. As we do not have hard numbers for the lifetime of each elevator, ignore the savings arising from operational costs for this analysis. The x axis (perceived