INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Kunst 1600 Case Analysis

Assignment-1

Submitted by,

Megha
PGP/22/143
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.