Case Analysis Kunst 1600

B2B Marketing
Prepared By: Name Roll Number
Karan Sangar Nitin Gupta Ashwani Sharma EPGP-04C055 EPGP-04C064 EPGP-04C019

Organizatio n
Dell Aircel Messeduesseld orf

Designat ion
Sr. Advisor Sr. Manager Manager

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Quantifiable Highlights of Kunst 1600

Kunst product weighted around 16.5 pounds, was made up of Aluminum body that makes it light weight. Due to light weight, it functions efficiently at lower pressure levels. This product is highly durable as there are fewer working parts than traditional models. Oil change is not required frequently and it saves money as well as time. This product has a life span of 6 years which is highest in the market and its whole sale price is $400 and retail price $500.

Non-Quantifiable highlights of Kunst 1600

It eliminates water droplets than could freeze into ice crystals. The accumulation of ice retards the flow of refrigerants, ultimately slowing and stopping the cooling process. Moisture over time combines with refrigerants to form hydrochloric and hydrofluoric acids, which corrode copper coils, valves and motors. The vacuuming supposed to vaporize these acids by in traditional vacuum pump, system oil traps the acids. And while changing the oil the technician removes it. Kunst 1600 being oil free, the acids vapors are directly exhausted into the air.

Marketing Study & Results

Points of Parity and Differentiation, after extensive study, we established the product points of parity to be the Kunst 1600s size, weight, and performance (CFM). With regards to wholesalers, our company stability, product quality, and equivalent technical services are on par with competitors. Points of differentiation with competitors are longevity, increased durability (due to less moving parts and a solid aluminum frame), oil-free use, increased profit due to decreased pump time, the ability to detect leaks (the most common cause of refrigeration system failure), and greatly increased savings, for a total value in use of almost $1000 (Exhibit 4). Direct benefits to the wholesalers are increased profits relative to selling competitors products ($100 in profit if the Kunst 1600 is sold at MSRP).

Customer Value Model

Home Air-condition Segments
Reduce $30/ hr labor charge Reduce overall time taken/ job Reducing weight of the pump so it can be moved around easily.

Home Refrigerator Segment

Reduction of job time taken to increase job per week form current number 5. Oil change is hassle as its annoying for technicians. This can eliminate that issue. Oil change and illegal dumping of oil/waste can be eliminated avoid heavy fines of $2000 for firm and $150 for individual.

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Light Commercial segment:

Resource management during spykes in summer season needed improvement Need to avoid fines due to illegal dumping of oils. Fines are as high as $150 for individual but $2000 for the firm. To reduce time taken per job & ability to create more jobs. Possibility of idle time reduction. Try to eliminate Oil change as it is an annoyance.

Kunst 1600 Value Model

Home AC segment:
Compared to 3 CFM (20 pounds) and 6 CFM (30 pounds), Kunst 1600 is lighter at 16.5 pounds. Average life span expectancy is 6 years for Kunst vs 2.5 years of competitor pumps. Other pumps are expected to be 5 years however reality check with wholesalers determined it to be 2.5 years.
Kunst Cost Per Job Life span (a) Average job in a year (b) Cost of Kunst 1600 ( c) Cost per job ( c /(a*b) ) 6 1000 500 years jobs $ $ Competitors Cost Per Job Life span (a) Average job in a year (b) Cost of Kunst 1600 ( c) Cost per job ( c /(a*b) ) 2.5 1000 500 years jobs $ $

0.083

0.200

Kunst 1600 cost saving/ job = $0.117 Home Refrigerator segment:

No Oil change saves time & oil cost. No illegal oil dumping ensures no risk of fine levied on either individual or firm. Fines are as high as $150 for individual but $2000 for the firm.

Light Commercial Refrigerator segment:

No Oil change saves time & oil cost.

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No illegal oil dumping ensures no risk of fine levied on either individual or firm. Fines are as high as $150 for individual but $2000 for the firm. 10 minutes time reduction due to higher efficiency at lower pressure levels results in adding atleast 2 additional jobs per week during summer. This helps in spike management during summers.

Value proposition of Kunst 1600

We recommend Light Commercial Refrigerator segment for Kunst to present its value proposition. Reason being this segment will: a) Reduce time by 10 minutes/ job. b) Enable atleast 2 jobs per week. c) No oil change required saves cost. d) No oil change enables no illegal oil dump requirement that saves fine for the firm & individual. e) Direct cost saving in the oil disposal.