KONE: The Monospace Launch in Germany

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Case

Reference no. 9-501-070

Subject category: Marketing

Authors: Das Narayandas (Harvard Business School); Gordon Swartz (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 2001

Version: 25 February 2005

Length: 21 pages

Data source: Field research

Topics: Business marketing; Marketing planning; Marketing strategy; New product marketing; Product management

Notes: To maximise their effectiveness, colour items should be printed in colour.

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Abstract

Focuses on the launch of a new elevator product in Germany. In 1996, global construction slumps and low differentiation among competitive offerings has led to significant price competition and margin erosion in the elevator industry. In these circumstances, KONE, one of the global players in this industry, has developed the Monospace elevator product that uses revolutionary technologies. This new product is expected to have a significant impact on the current product lines of KONE and its competitors. The firm has test marketed the product in three European country markets to varying degrees of success. The firm is now planning to launch the new product in Germany, the largest country market in Europe and vital to KONE's overall success. With little room for error and the future of the firm at stake, KONE's German subsidiary needs to develop a detailed launch plan for Monospace in Germany.

Locations:

Europe; Germany

Industry:

Machinery

Size:

USD2 billion revenues, 20,000 employees

Other setting(s):

1996