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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.