B2B Marketing

Kunst 1600

1.

What are the major, quantifiable value and price elements associated with the Kunst 1600? Kunst 1600 is an injection-molded pump, i.e. it has fewer working parts, hence lesser wear & tear As it is essentially a modified compressor, the device can run longer and is more efficient than conventional pumps. In contrast to conventional pumps, the Kunst 1600 is oil-free

It had a projected lifetime of 6 years. It could evacuate chambers down to almost a perfect vacuum It s more efficient at lower pressure levels than competing models
Kunst 1600 is made from injection-molded aluminum. It wont rust like vacuum pumps made of steel.

2.

Construct a customer value model for the Kunst 1600 in the residential AC, home refrigerator, and light commercial refrigerator repair market segments.

Residential AC market: The technical /owner spends $473 for changing

oil/season (Cost for oil, scrub & disposal is $8.65 per oil change, which is $173 per season (considering 20 weeks in a season). Labor require half an hour for oil change. Hence the cost of labor is $30 * 0.5 hours * 20 weeks = $300. So using Kunst 1600, they get to save $473 every season. Home refrigerator & Light commercial refrigerator : Kunst 1600's ability to work more efficiently at lower pressure levels enables technicians to reduce vacuuming time by 10 minutes on a typical job. And during peak season in summer, this will enable them to take up at least 2 additional jobs per week which will be extra revenue of $400 a week. The very fact that Kunst 1600 is oil free, the technicians / owners can save an amount of $4.65 per oil change & $5 per gallon in charges for disposing oil. As given in the case, most of the technicians dump the

B2B Marketing

Kunst 1600

oil in deserted dumpsters & if caught, they can be fined $150 for the individual & $2000 for the company. Kunst 1600 saves them from all this trouble.

3.

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

Kunst should target the Home and Light Commercial Refrigerator Repair
Segment for the commercialization efforts. This is because they can create value for the repair companies only in this segment as seen from the facts provided in the case. They can actually show that the Kunst 1600 vacuum pumps can actually increase the numbers of jobs taken up per week (because of pump's ability to work more efficiently at low pressure) and will also help reduce the operating cases (because the pumps are oil free)

4.

Write a value proposition for the Kunst 1600 for the target market(s). Kunst 1600's value proposition for the Home & Light Commercial Refrigerator Repair market should be -

Improved efficiency Reduced vacuuming time translates to more jobs

done and hence more revenue Longer life Cost per pump is lesser over a period of time Lower maintenance cost Reduced operating cost