1. What are the major, quantifiable value and price elements associated with the Kunst 1600?
a. Extended Lifetime Impact – Kunst 1600 has life time of 6 years and the competitors have lifetime of 2-3 years. Hence the Repair Agencies will have to buy more of the competitor products in a time horizon of 6 years.
b. Cost Savings due to No Oil Change – Kunst 1600 is Oil change free; hence the additional cost of each individual change is saved.
c. Additional Revenue – In case of Light Commercial Segment agency can do 2 additional jobs per week in the peak season of 12 weeks. This results in additional 720 USD revenue per year per Pump.
2. What additional value placeholders, elements not presently quantified, merit consideration in your value model?
a. Weight – Increases ease of use. Since the Pumps have to be transported to the location to operate.
b. Ecological benefits of no oil change
c. Reliability, Durability and Precision
3. Construct a customer value model for the Kunst 1600 in the residential AC, home refrigerator, and light commercial refrigerator repair market segments.
We can use the basic model.
Value ( Kunst ) – Value ( Competitor ) > Price (Kunst ) – Price (Competitor)
This model doesn’t consider
Cost of Funds since Kunst is pricier than the competitor and money is paid upfront.
Inflation
This model considers
• Oil Change cost savings
• Additional jobs revenue
• Lifetime Savings
4. Using your value model, select a target market segment(s) for commercialization efforts. Justify your choice.
Target Market Segment is Light Commercial Refrigerator
Reasons are
1. Kunst is not an established Brand in the Identified market segments
2. Rule of Seven reduces the acceptability in Residential AC segment.
3. The rating of KUNST 1600 is 1.6CFM, the rating is close to Light Commercial Refrigerator
4. Value Kunst 1600 brings to Light Commercial Refrigerator is the highest at 943.96 USD per year...