Business

a) Put Yourself in Hatala’s shoes and develop a detailed marketing plan for launching the monospace in Germany .

Kone-Monospace has to directly target for new equipment business in Low-rise residential elevators.

b) Set a price for Monospace (to facilitate comparison with prices of existing products) and specify clearly how it is to be positioned relative to the current product line.

The monospace has to be priced at DM __________ for the following reasons

1. Cost of production for Monospace is Similar to the cost of production of PH-hydraulic DM ~ 65,000 (As the DM 60,000 is the sales value and ~7% on average is loss of new equipment business)

2. Differential beneficial proposal for customer

3. Saving in electric fuses when compared to other elevators

4. Monospace provides 5% savings on construction and installations costs

5. Machine room is not applicable and hence saving on the same

6. No hydraulic in the system and hence fire safety norms are relaxed

7. Since the market share for kone in Germany 8.5% of total market is less and the market is growing at a slower pace profit margin (10%) on products has been given preference over volume of revenue

8. Comparison of price of other products with Monospace is given below

|COMPARISON OF SALES PRICE OF KONE |

|SL |EQUIPMENT |SALES PRICE |

|1 |PH-HYDRAULIC |60000 |

|2 |MONOSPACE |73000 |

|3 |TRACTION TYPE |75000 |

|4 |PU-TRACTION |80000 |

|5 |PS-TRACTION |120000 |

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c) Based on the pricing and positioning decisions, propose a marketing and sales effort

d) Justify your decision and investments with anticipated sales and the associated contribution relative to the amount you...