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    Case Analysis of Kunst 1600 - FINAL

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    Vineet Kumar Goyal
    This document provides a case analysis for Kunst 1600, a dry piston vacuum pump. It examines potential target market segments and how to formulate a marketing strategy. The key recommendations are: - The most valuable target segment is the light commercial refrigerator repair segment, which would save $207 per year in oil change costs, provide an additional $720 per year in profits from more jobs, and have a lower differential price per year than competitors' pumps. - The document analyzes the potential value proposition for three target segments based on oil change savings, incremental profits from more jobs, and differential price compared to competitors. - It recommends Evan Stone, the senior product manager, target the light commercial refrigerator repair segment as it

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    Case Analysis of Kunst 1600 - FINAL

    Uploaded by

    Vineet Kumar Goyal
    1K views4 pages
    This document provides a case analysis for Kunst 1600, a dry piston vacuum pump. It examines potential target market segments and how to formulate a marketing strategy. The key recommendations are: - The most valuable target segment is the light commercial refrigerator repair segment, which would save $207 per year in oil change costs, provide an additional $720 per year in profits from more jobs, and have a lower differential price per year than competitors' pumps. - The document analyzes the potential value proposition for three target segments based on oil change savings, incremental profits from more jobs, and differential price compared to competitors. - It recommends Evan Stone, the senior product manager, target the light commercial refrigerator repair segment as it

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    Case Analysis of Kunst 1600_FINAL

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    This document provides a case analysis for Kunst 1600, a dry piston vacuum pump. It examines potential target market segments and how to formulate a marketing strategy. The key recommendations are: - The most valuable target segment is the light commercial refrigerator repair segment, which would save $207 per year in oil change costs, provide an additional $720 per year in profits from more jobs, and have a lower differential price per year than competitors' pumps. - The document analyzes the potential value proposition for three target segments based on oil change savings, incremental profits from more jobs, and differential price compared to competitors. - It recommends Evan Stone, the senior product manager, target the light commercial refrigerator repair segment as it

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views4 pages

    Case Analysis of Kunst 1600 - FINAL

    Uploaded by

    Vineet Kumar Goyal
    This document provides a case analysis for Kunst 1600, a dry piston vacuum pump. It examines potential target market segments and how to formulate a marketing strategy. The key recommendations are: - The most valuable target segment is the light commercial refrigerator repair segment, which would save $207 per year in oil change costs, provide an additional $720 per year in profits from more jobs, and have a lower differential price per year than competitors' pumps. - The document analyzes the potential value proposition for three target segments based on oil change savings, incremental profits from more jobs, and differential price compared to competitors. - It recommends Evan Stone, the senior product manager, target the light commercial refrigerator repair segment as it

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    The case discusses positioning and segmentation strategies for Kunst 1600, a dry piston vacuum pump. It evaluates three potential target segments - residential AC repair, light commercial refrigerator repair, and home refrigerator repair - based on factors like oil change savings, incremental profits, and differential pricing.

    The three target segments being considered are the residential AC repair segment, light commercial refrigerator repair segment, and home refrigerator repair segment.

    The factors considered to evaluate the target segments are oil change savings, incremental profits from additional jobs per week, and the differential pricing per year between the pump and its alternatives.

    EEPM-04/IIMK

    Case Analysis of KUNST 1600

    Presented by Vineet Kumar Goyal (EEPM-04-046) Ashutosh Kumar (EEPM-04-004) Shailesh Awasthi (eMET-08-102)

    EEPM-04/IIMK

    Major Issues

    PRESENT CASE IS ABOUT POSITIONING AND SEGMENTATION OF KUNST 1600, A DRY PISTON VACCUM PUMP LAST PARA OF THE CASE: HOW TO BRING VALUE FOR CUSTOMERS, BRING DOWN OPERATING COST AND INCREASE REVENUE CRITICAL DECISIONS EVAN STONE(SENIOR PRODUCT MANAGER) NEED TO MAKE:
    FIND TARGET SEGMENT & VALUE PROPOSITION FORMULATE MKTG STRATEGY FOR THIS PRODUCT

    VALUE PROPOSITION
    PROJECTED LIFETIME (PRICE/YEAR) OIL CHANGE SAVINGS

    KUNST 1600 (KEY FEATURES):


    A VERY DURABLE PRODUCT WHICH CAN LAST FOR 6 YEARS LIGHT IN WEIGHT, MADE FROM INJECTION MOULDED ALUMINIUM NO OIL CHANGE REQUIRED

    KUNST, A MARKET LEADER IN LABORATORY, HEALTH CARE & INDUSTRIAL APPLICATIONS IS NOW PLANNING TO ENTER A NEW SEGMENT

    EEPM-04/IIMK
    TARGET SEGMENTS

    Actionable Recommendations
    AVAILABLE BEFORE EVANS (PRODUCT MANAGER)

    RESIDENTIAL AC REPAIR SEGMENT LIGHT COMMERCIAL REFRIGERATOR REPAIR SEGMENT HOME REFRIGERATOR REPAIR SEGMENT

    VALUE PLACE HOLDERS: DURABILITY, WEIGHT DIFFERENCE, BRAND (-VE), RULE OF 7 (-VE) PRICE ELEMENTS
    OIL CHANGE SAVINGS: RESIDENTIAL AC REPAIR SEGMENT
    COST SAVING PER OIL CHANGE = OIL PRICE+LABOR COST+CLEAN UP SUPPLIES+OIL DISPOSAL COST

    = $8+($12*0.5)+(0.15+0.50)+($5*0.25) = $15.90 COST SAVINGS PER YEAR = $15.90*20 = $318 LIGHT COMMERCIAL REFRIGERATOR =$4+($24*0.5)+(0.50+0.15)+($5*0.125)= $17.275 COST SAVING PER YEAR = $17.275*12 = $207.30 HOME REFRIGERATOR REPAIR SEGMENT = $4+($15*0.5)+(0.50+0.15)+($5*0.125) = $12.775 COST SAVING PER YEAR = $12.775*12 = $153.30 INCREMENTAL PROFIT PER YEAR
    =NO. OF EXTRA JOBS PER WEEK* AVRG. PROFIT PER JOB* WEEKS PER SESSION LIGHT COMMERCIAL REFRIGERATOR =(2 JOBS/WK*$30)*12 WK = $60*12 = $720

    DIFFERENTIAL PRICE PER YEAR = PUMP PRICE/EXP. LIFE (IN YEARS) KUNST 1600 PRICE/EXP. LIFE (IN YEARS) RESI. AC = ($250/2.5)-($500/6) = $16.66 LIGHT COMM. REF. = ($200/2) ($500/6) = $16.66 HOME REF. = ($150/3) ($500/6) = (-$33.33)

    EEPM-04/IIMK

    Analysis
    RESIDENTIAL AC REPAIR SEGMENT FACTORS OIL CHANGE SAVINGS INCREMENTAL PROFIT DIFFERENTIAL PRICE TOTAL VALUE $318 LIGHT COMMMERCIAL REPAIR SEGMENT $207.30 HOME REFRIGERATOR REPAIR SEGMENT $153.30

    $0

    $720

    $0

    $16.66

    $16.66

    -$33.33

    $334.67

    $943.96

    $119.97

    WE RECOMMEND EVAN TO CHOOSE LIGHT COMMERCIAL REPAIR SEGMENT AS ITS DELIVERING THE HIGHEST VALUE OF $943.96 TO THE CUSTOMER

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