KONE has targeted MonoSpace directly at Europes largest new-equipment market
segment: low-rise residential elevators. Put yourself in Htls shoes and develop a detailed marketing plan for launching the MonoSpace in Germany.
Kone was to launch the MonoSpace in the low-rise residential elevator market in Germany, which was its largest country market in Europe and vital to its overall success.
96% of elevators purchases in GER
Kone has two real options:
They could market the product either both lines together MonoSpace and the hydraulic and the geared traction They could position it as top of the line.
Set a price for the MonoSpace (to facilitate comparison with prices of existing products as given at the bottom of case page 4, price a low-rise, 4-floor elevator) and specify clearly how it is to be positioned relative to the current product line (PH, PT, PU, or PS).
MonoSpace fits relative to product lines. Based upon the above mentioned two options of MonoSpace launch plan, KONE can have the following two strategies to position MonoSpace in the elevator market, so that it should not cannibalize its own products and should be differentiated among its competitors.
Approach 1: Rather than adopting price-skimming strategy in extremely sensitive German market, KONE should price the MonoSpace similar to products offered by SCHINDLER and OTIS, but emphasize MonoSpace benefits to customers. Approach 2: KONE should position MonoSpace above the gear traction products, market its special features with high end pricing and keep the hydraulic as their low-end model. Since thee was less demand for new elevator installation, KONE should focus on profits and not on market share generated from following low cost strategy.