Kunst 1600 Case Study

1399 words - 6 pages

1. What are the major, quantifiable value and price elements associated with the Kunst 1600?

Value Elements - The total cost involved in oil changing and messiness is reduced

Price Element - Increased pump durability -- The Kunst 1600 lasts 2 to 3 times longer than the incumbents in most segments. This means that repair firms will have to buy more conventional pumps than Kunst 1600s. This impacts the price a repair firm has to pay for conventional pumps (i.e., 2 to 3 times greater) and not the number of jobs it can complete.

2. What additional value placeholders merit consideration in your value model?

• Weight differential – The Kunst 1600 is lighter than pumps currently used ...view middle of the document...

Word equations benefit customer managers by building up in an easily understandable way exactly how an estimate for each value element was obtained.

Exhibit 2 presents the summary results for the customer value models for the residential air conditioning (AC), home refrigerator repair, and light commercial refrigeration repair market segments. In order to equate the different life times of the competing pumps, the model is presented on a per-pump, per-year basis. Finally, Exhibit 2 contains value placeholders, which are value elements that are not presently expressed in monetary terms. Inclusion of value placeholders conveys that those elements are worth something to the customer, and leaves open the possibility that some specific amount might be ascertained in the future.

Deriving it from “fundamental value equation”,

Fundamental Value Equation: Vk - Pk  Vi - Pi
where k = Kunst 1600 and i = incumbent brand

Total Value-in-Useki = (Vk - Vi ) - (Pk - Pi )

4. Using your value model, select a target market segment(s) for commercialization efforts. Justify your choice.

Of the four segments, the one offering the greatest potential is a light commercial refrigerator repair. This is the only segment where all three value/price elements (incremental profit, cost savings from oil changes, and durability) come into play for the Kunst 1600. The fact that the Kunst 1600 enables firms to do more jobs per week is the pivotal factor in that owners and technicians trivialize changing the oil and overestimate the lifetimes of conventional pumps.
 The value-in-use per year (i.e., $943.97) and value created per year ($927.30) are significant and far greater than that created in the other three segments.
 The incentive to buy the Kunst 1600 in this segment is significant (i.e., around $844 per year).
 The Kunst 1600 reduces repair job time by 10 minutes and increases the number of job possible by 2 per week during the summer months.
 The Kunst 1600 eliminates the hassle of oil changes for these largely independent operators.
 There is no likelihood of fines due to illegal dumping of oil.
 The competition will probably not be as strong in this segment as it will in other segments, namely residential AC repairs.

5. Write a value proposition for the Kunst 1600 for the target market(s).

“The faster draw-down performance of the Kunst 1600 enables your firm to complete more jobs in the busy season and earn more, while eliminating the oil change mess and hassle.”

Exhibit 1

Word Equations for Kunst 1600 Value Elements

Cost savings per oil change = Oil price + Labor cost + Clean-up supplies + Oil disposal cost

Labor cost = Hourly rate of individual changing oil x Hours of time required per change

Clean-up supplies = monetary amount of scouring soap used + price of cloth towel

Oil disposal cost = recycling charge per gallon of oil x number of gallons recycled

For Residential AC...

Other Papers Like Kunst 1600 Case Study

Angel Investors Essay

3779 words - 16 pages School Case Study, Ref: 9-298-083. Freear, J., Sohl, J.E. and Wetzel, W. E. 1996 “Creating New Capital Markets for Emerging Ventures” Prepared for the Office of Small Business Administration under contract SBAHQ-95-M-1062. 6 Gaston, R. J., and S.E. Bell 1988 “The Informal Supply of Capital” A report prepared for the office of Economic Research, Small Business Administration. 7 Venture Capital Journal, March 1999, p. 45. Page 7 �2000 MIT

Performance Management Essay

3239 words - 13 pages where “individualism” was more accepted than a strong community responsibility. According to Kreitner there are exists practical evidence that suggests that a two-level rather than five-level hierarchy should be used. However, Maslow’s model has had a considerable impact on the study of motivation in general and in particular as regards employee performance. Once the employee reaches the level of enhanced self-esteem needs, a worthwhile job and

Starbucks Research Paper

3097 words - 13 pages /about-us/company-information/mission-statement. "Starbucks & Howard Schultz: Culture & Core Values Case Study - corevaluesinstitute.ca." corevaluesinstituteca RSS. N.p., n.d. Web. 30 Apr. 2014. http://corevaluesinstitute.ca/culture/starbucks-howard-schultz-culture-and-core-values/. "Starbucks' growth strategy? Open more Starbucks." CBSNews. CBS Interactive, n.d. Web. 30 Apr. 2014. http://www.cbsnews.com/news/starbucks-growth-strategy-open-more

Implementing Strategic Management Processes

2900 words - 12 pages ://www.statcan.gc.ca/pub/75-001-x/2008107/pdf/10657-eng.pdf Kenneth Gribble (1998). Discovering your Niche. Civil Engineering. Volume 68, Issue 12. Academic Search Complete. Accession #1459606 Milena M. Parent and David L. Deephouse (2007). A Case Study of Stakeholder Identification and Prioritization by Managers. Journal of Business Ethics. Volume 75, Issue 1, pg. 1–23. ProQuest Central Database. Document ID: 1328615741. Military Police Complaints

Forecasting The Quarterly Rice Production In The Province Of Iloilo Using Different Forecasting Models

8603 words - 35 pages persons per hectare of area harvested to rice as compared to Thailand and Vietnam that only feed 7 and 12 persons per hectare, respectively (BAR, 2012). All of the things mentioned above have direct effect on the pursuit of this study in determining the future quarterly production of palay in the next succeeding years which will bear huge impact for the country’s effort on pursuing a hundred percent healthy and full citizens. Rationale of the

Pricing Strategy

5359 words - 22 pages , pricing decisions cannot be based on supply and demand curves. 3. Estimating the potential market for a product is possible but estimating demand is problematic. Most customers tend to be enthusiastic when seeing a new product but their input is not a good indicator for real demand. 4. For enterprise software, sales numbers are too small for a statistical significant study. By the time a company has sold enough licenses, it has advanced on to a

Urbanisation In India

6028 words - 25 pages this article, specific attempt has been made to examine the contribution of both the types of urban process mentioned above. The main objectives of the study are as follows: i) To study the level , trend and regional pattern of urbanization. ii) To examine the relative contribution of natural increase as well as rural to urban migration in urban growth in the recent past. iii) To examinee India’s future urbanisation in the light of new economic

Z Score Analysis

8723 words - 35 pages between matched samples of failed and nonfailed firms for as long as five years prior to failure. He questioned the use of multivariate analysis, although a discussant recommended attempting this procedure. The ZScore model did just that. A subsequent study by Deakin (1972) utilized the same 14 variables that Beaver analyzed, but he applied them within a series of multivariate discriminant models. The aforementioned studies imply a definite potential

Case Studies - Csr In Pakistani Perspective

7465 words - 30 pages Case studies - CSR in Pakistani perspective A selection of companies based on as a sample on various industries of Pakistan. 1. Citizen-Police Liaison Committee ( CPLC) 2. National Refinery Limited 3. Pakistan Petroleum Limited 4. Shell Pakistan 5. Pakistan State Oil (PSO) 6. Pak-Arab Refinery Company Limited 7. Sui Southern Gas Company ( SSGC) 8. Askari Commercial Bank Limited 9. Khadam Ali Shah Bukahari (KASB) Securities 10. The

Lafarge S.A

2924 words - 12 pages NAME: IHEKANANDU KINGSLEY N. COURSE: MGMT 292 / F12 N01 TITLE: INDIVIDUAL CASE STUDY (LAFARGE S.A.) SUBMITTED: October 5, 2012 TABLE OF CONTENTS 2. INTRODUCTION 3 3. DESCRIPTION OF CASE 4 4. VALUES 4 4.1. Types of values 4 5. TEAMWORK 7 6. MOTIVATION 8 7. CREATIVITY 9 7.1. Components of creativity 9 8. CONCLUSION 12 9. BIBLIOGRAPHY 13 INTRODUCTION This report aims to provide an in-depth analysis of initiatives pursued by Lafarge as


665 words - 3 pages Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very

Related Essays

Claasical Sculpture Essay

1681 words - 7 pages geometry was highly advanced. In approximately 250 BC, Aristarchos of Samos was able to compute, with great accuracy, not only the size of the earth, but also the respective distances to the moon and sun in terms of the earth’s radius (Heath, 321-325). Greek study of geometric figures such as pentagons and pentagrams led to the discovery of the so-called golden ratio or golden section. In brief, two quantities, a and b, are said to be in this ratio

Reflective Essay

984 words - 4 pages Philosophy is the study of fundamental problems. Management philosophy is the beliefs and values of managers. Managers have an obligation to run their departments with ethics. Many managers have different views and beliefs than other managers and supervisors. An example is that some managers believe that they do not work on their employees but rather they work with them, motivating the employees to push harder. In return the employees will give


943 words - 4 pages nutritional content of foods required for a good health. A salient general principle is that more energy is significant and is required to support periods of growth and even to fuel the active lives. Eating well and being active is significant for everyone. This study shall focus on the dietary and meal plan for adulthood stage (Ebersole, 2008). During senior or elderly years from age fifty until the end of life, a collection of both physiological and

Ifb Project Essay

4628 words - 19 pages . : 0411471707 BBA (Gen) VI Semester Sec A Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No.!, Sector 22, Rohini Delhi 110086 Student Declaration This is to certify that I have completed the Project titled “A Study Of Consumer Durable Market For