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    Kunst 3500 DRY PISTON Vacuum Pump: Presented by Group 3A

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    RohanMohapatra
    Kunst 3500 is a new vacuum pump being introduced by Kunst Vacuum Pumps to the residential AC repair market. Kunst wants to understand how the value proposition differs for contractors who do everyday, weekly, monthly, or seasonal repairs. An analysis found that the total cost of oil changes for the Kunst pump is much lower than competitors for all contractor types. The maximum profitable reselling price to wholesalers that Kunst could charge based on gaining a portion of the different market segments is recommended to be $1076.

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    Kunst 3500 DRY PISTON Vacuum Pump: Presented by Group 3A

    Uploaded by

    RohanMohapatra
    306 views7 pages
    Kunst 3500 is a new vacuum pump being introduced by Kunst Vacuum Pumps to the residential AC repair market. Kunst wants to understand how the value proposition differs for contractors who do everyday, weekly, monthly, or seasonal repairs. An analysis found that the total cost of oil changes for the Kunst pump is much lower than competitors for all contractor types. The maximum profitable reselling price to wholesalers that Kunst could charge based on gaining a portion of the different market segments is recommended to be $1076.

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    Kunst3500

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    Kunst 3500 is a new vacuum pump being introduced by Kunst Vacuum Pumps to the residential AC repair market. Kunst wants to understand how the value proposition differs for contractors who do everyday, weekly, monthly, or seasonal repairs. An analysis found that the total cost of oil changes for the Kunst pump is much lower than competitors for all contractor types. The maximum profitable reselling price to wholesalers that Kunst could charge based on gaining a portion of the different market segments is recommended to be $1076.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    306 views7 pages

    Kunst 3500 DRY PISTON Vacuum Pump: Presented by Group 3A

    Uploaded by

    RohanMohapatra
    Kunst 3500 is a new vacuum pump being introduced by Kunst Vacuum Pumps to the residential AC repair market. Kunst wants to understand how the value proposition differs for contractors who do everyday, weekly, monthly, or seasonal repairs. An analysis found that the total cost of oil changes for the Kunst pump is much lower than competitors for all contractor types. The maximum profitable reselling price to wholesalers that Kunst could charge based on gaining a portion of the different market segments is recommended to be $1076.

    Copyright:

    © All Rights Reserved
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    of 7

    Kunst 3500 DRY PISTON

    VACUUM PUMP
    Presented by Group 3A
    Himanshi Bhatnagar
    Kanna Dheepankar
    Shubham Narnoli
    Yogesh Lakshmanan
    Kunst Vacuum Pumps Kunst Vacuum Pumps is the recently acquired U.S.
    Division of Atler GmbH in Minneapolis.
    Background The firm manufactures top-end (i.e., 6 or more
    Company CFM) vacuum pumps for various sectors.

    During the previous


    fiscal year, Kunst
    sales soared to a 75-
    year record of $120 HVAC Wholesaler
    million. Kunst holds Context Collaborator
    Lockhart & Sanders
    a 60% market share Kunst
    in laboratory, health
    care, and industrial
    Vacuum
    applications. Pumps

    High demanding laboratories


    Pump Wizard Health care segment
    and other German Competitor Customer
    Industrial applications
    and Japanese Residential AC repair firms
    manufacturers
    2
    Problem Statement
    Atler wants to market it’s new vacuum pump under Kunst brand and introduce it to the
    untapped residential AC repair market segment.
    After market research, they now want to know how the value of Kunst 3500 is differs based
    on the oil-change-frequency and if they can create separate value proposition for these sub-
    segments.
    Heading

    Points of parity Points of difference Points of Contention

    Related: Kunst 3500 is lighter


    Related: Both Kunst and its than the competitive models
    and hence, is easier to carry Related: Kunst model has an
    competitors fall in the category
    around. Also, as Kunst 3500 is aluminium body while the
    of 3-4 CFM and meet the
    a compressor, it can run longer competitors offer steel made
    industry thumb rule – Rule of
    and cooler than the models.
    Seven.
    conventional pumps. Also,
    Kunst is oil-free.

    Not Related: Both Kunst and


    other pump manufacturers Not Related: The manufacturer
    Not Related: Kunst 3500
    market their vacuum pumps of Kunst, Atler Gmbh, is from
    doesn’t look like conventional
    through HVAC wholesalers to Germany. Some of the
    pumps.
    residential AC repair competitors are from Japan.
    contractors.
    COTP of Present Pump
    Cost
    One-Time maintenance workers $6.00
    One quart oil price $8.00
    Solvent Price $0.50
    Specialized fibre based towel $0.15
    Cost of disposing $1.25
    Total Cost of replacing oil once $15.90

    Everyday Repair Value Weekly Repair Value


    Number of repairs 20
    Number of repairs 100
    Cost of oil in repairs per year $1,590.00 Cost of oil in repairs per year $318.00

    Monthly Repair Value Seasonal Repair Value


    Number of repairs 4 Number of repairs 1

    Cost of oil in repairs per year $63.60 Cost of oil in repairs per year $15.90
    Value analysis and Resell Price recommendation
    (All numbers are for one year unless mentioned) Everyday Weekly Monthly Seasonal
      Kunst Present Kunst Present Kunst Present Kunst Present
    Benefits 0 0 0 0 0 0 0 0
    Cost 0 1590 0 318 0 63.6 0 15.9
    Value 0 -1590 0 -318 0 -63.6 0 -15.9
    Price 150 62.5 150 100 150 166.67 150 500
    CIP -150 -1652.5 -150 -418 -150 -230.27 -150 -515.9
    Customer's incentive 1502.5 268 80.27 365.9
    Maximum Resell price for one year 1652.5 418 230.2666667 515.9
    Maximum Resell price for 6 year 9915 2508 1381.6 3095.4
    Minimum Resell price for 6 Year (based on
    competitor) 375 600 1000 3000
    Price to wholesalers (based on minimum pricing) 262.5 420 700 2100
    Profit to Manufacturer (based on minimum pricing) 9.1875 14.7 24.5 73.5
    Market share 5% 50% 20% 25%
    Maximum Profitable segment (based on minimum
    pricing) 0.459375 7.35 4.9 18.375

    Recommended Reselling Price : $1076


    Thank
    You!!

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