INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE- KOCHI CAMPUS, INFOPARK,

KAKKANAD, KOCHI- 30

Commercializing Kunst 1600 Case Analysis

BBM Assignment-2

Submitted by,
Rakesh Krishnan Sudheer
WEB -076

1. What are the major, quantifiable value and price elements

associated with the Kunst 1600?
The case is all about commercializing the Kunst Dry piston Vacuum Pump
which is believed to be the signature model which the management
believed to bring in value to certain segment market segments.
The management of Kunst believed that the product will bring in
reputation for precision, reliability and durability in the vacuum pump
segment in the US. Evan and Will were planning to understand which
segment Kunst 1600 will deliver a value proposition.
Kunst vacuum pumps is based out in Minneapolis which is recently
acquired by Atler GmbH. Kunst sales soared to a 75 year record of
$120million. Atler management believed that Kunst product lines and
market segment were complimentary to their own which enabled them to
request that Kunst take a 1.6 CFM compressor reconfigure it as vacuum
pump and market it.
2. What additional value placeholders, elements not presently
quantified, merit consideration in your value model?
Evaluating the value elements from the market research study it was
found that there was cost saving due to elimination of oil change
expenses. Evan and Will found opportunity in growing sales and profit by
penetrating new market segment such as AC and refrigerator repairs
where customers can use the pump to dehydrate a refrigerant system
during repairs. There is a sales potential for the vacuum pump in market
segments such as home refrigerators repairs (60,000 units ), light
commercial refrigerator repairs(40,000 units) and residential AC repairs
(1,25,000 units).
3. Construct a customer value model for the Kunst 1600 in the
residential AC, home refrigerator, and light commercial
refrigerator repair market segments.
Few other value propositions are that Kunst 2600 lighter than the
traditional pumps used for AC repairs. Also it provides durability as it is
constructed with moulded aluminium preventing from rusting. There is
great chance that potential customers buy Kunst due to its brand name.
4. Using your value model, select a target market segment(s) for
commercialization efforts. Justify your choice.
From the market research study we can find greater potential lies in the
light commercial refrigerator repair segment where the incremental profits
are higher delivering more value as there is less chances f dumping of the
oil and Kunst eliminates hassles of oil changes for the technicians.

5. Write a value proposition for the Kunst 1600 for the target
market(s).
On long term basis Kunst can target the home refrigerator repair segment
market with a lower configured capacity pump as the current 1.6 CFM
pump will not deliver value to the customer in the target sector.
In order for Kunst to sustain in the market, it is essential to focus on Light
Commercial Refrigerator Repair Segment as the specification
requirements of the technicians almost match with the value delivered by
Kunst 1600 pumps. The only concern is that the segment technicians are
looking out for minimising operational costs, which can be achieved
through proper marketing channels by enhancing the image of the
product through its characteristics. Also projecting the cost benefit and
profits which will be gained by the customers through the savings in the
time of the usage of the pump as only lesser time is needed when Kunst
pumps are used will enable in defining the customer value with the pump.
It is also essential in conducting a higher awareness marketing as the
refrigerator segment customers are not familiar with the Kunst brand. But
as there is an overall Brand equity for the Kunst Brand, it will not be of
much difficulty in increasing an awareness across the target segment.