The document summarizes KONE's plan to launch the Monospace elevator in Germany. It provides background on the German elevator market, including key facts about market size, segmentation between hydraulic and traction elevators, price pressures, and the types of players. It then discusses the customer buying process and influence of different stakeholders like property developers, general contractors, and architects. Finally, it outlines KONE's promotion and launch plan to target these customers by promoting Monospace's features, return on investment, energy savings, and lower price compared to gear traction elevators.

1. KONE – THE MONOSPACE LAUNCH BY : ‘YOU’ NG ‘I’ STAN JAYESH DUDPURI (092120) NIGAM BHAVSAR (082142) DHYANI MEHTA (092114) RAVISH MENON (092140) RAVI PANDYA (082155)

2. MONOSPACE – THE GERMAN LAUNCH With launch of Monospace in UK , Netherlands & France , next launch preparation was for Germany The German Market Scenario was as follows : Product : The elevator market of 15500 units was to shrink by 15% from 1996 - 2000 Residential construction dominated the market Residential constructions with elevators installed were 74% and forecasted to remain flat till Year 2000 Market split for Hydraulic elevators & Geared Traction elevators was 60-40 and out of 40 % Traction elevators , 67 % (or 27% of total) were expensive PU type. KONE – The Monospace launch

3. MONOSPACE – THE GERMAN LAUNCH KONE – The Monospace launch Price : There has been pressure on prices with the fall of 5 % in ’1994 & 7% in ’1995 This has led to the focus on services than sales Competition like Schindler has gone upto 11% to be market leader and otis had lost 13% by loss of market share to eliminate losses in new business. The production cost in Germany is estimated to be same as for comparative hydraulic elevator Players : The market players are divided into Majors , Mid sized and Cowboys and are elaborated as follows : Majors Mid Sized Cowboys 6 companies 30 players approx 150 mainly within city 24 hrs service networks, , sales & installation branches in Germany. Manufacturing at Germany & abroad Sale of new equipment 100 – 300 machines annually No manufacturing setup , mainly dealing with purchase & assembly of component , installation & local service.

4. MONOSPACE – THE GERMAN LAUNCH KONE – The Monospace launch People / Customers : The Customers involvement in purchase decisions making is mentioned in following matrix : Property developers General contractors Architects Concerned with overall cost of developing & renovating of property and overall cost and factors affecting investment value (cost, quality ,time) Less technical expertise , rely on architects. Numerous small contractors exist Generally do not select the elevator by make or model but specify desired features like cosmetic options Perceived as not involved in final decision making (10% of the time) Great influence in final decision making (50 % of time) Can influence final decision making (40 % of time) Use Competitive Bidding Process Execute the contract per property dealer’s & architects plan

5. MONOSPACE – THE GERMAN LAUNCH KONE – The Monospace launch Process : KONE selling process involved initiation by customer 96% of times Being major player KONE had access to 100% demand. Initiation by sending specifications & request for bid Subsequent visit by sales person to meet the construction manager / architect Review of architectural drawings , specifications / special requirements / details of elevator etc in sketch or CAD.

6. MONOSPACE – THE GERMAN LAUNCH Launch of Monospace in Germany basis the Market Scanning is proposed as follows : KONE – The Monospace launch Promotion / Launch Plan Promote with relevant material the features to Target customers (General Contractors & Architects) Discuss with customer the ROI & energy savings ( energy cost being a third from hydraulic elevators) and other less maintenance features in totality Take total orders (with elevator room) Use services to promote new product and create install base Price the product lower than Gear Traction elevators to gain both hydraulic & Gear traction markets

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