Commercializing the Kunst 1600 Dry

Piston Vacuum Pump

B2B MARKETING

GROUP: 5
Pooja Sumon (PGP/17/103)
Nikhil Chivane (PGP/17/328)
Sahil Chopra (PGP/17/343)
Thiyagarajan B (PGP/17/353)
 VALUE ELEMENTS

Residential AC Repair market (Initial Belief)

Attributes Kunst Others Savings
1600 (1.6 (3-6 CFM)
CFM)
Power Consumption t t 73.33% *
Oil Cost $0 $8 $8 per job
Labor Cost (Oil $0 $15 $15 per job
Change)
Soap and T0wel $0 $0.65 $0.65 per job
Oil Disposal $0 $1.25 $1.25 per job
Weight 16.5 20-30 3.5-13.5 pounds
pounds pounds
* For customers of repair business | Assuming power consumption is proportional to CFM of
Life time
machine 6 years 5 years 1 year more
Residential AC repair market
• Market research study reveals that repair business do not
follow instructed standard procedure
• Disbelief in reduced job time due to 1.6 CFM rating and
durability of the pump made of aluminum

Home and Light Commercial Refrigerator

• No significant value element for Home Refrigerator segment
• Light Commercial Refrigerator segment gets a significant value since it
already uses an 1.5 CFM vacuum pump and Kunst saves 10 minutes per
job
• Additional time could generate additional revenue of 2 more jobs per week
during summers
 PRICE ELEMENTS
Kunst 1.6 vacuum •$400(wholesale Life time: 6 years
pump price)
•$500 (retail price)

Residential AC • $250(3 CFM) Life time: 2.5 years

• $320(6 CFM)

Home and Light • $150 (1 CFM) Life time:

Commercial • $200(1.5 CFM) • 3 years
Refrigerator • 2 years
• Durable Kunst product’s life time is 2-3 time more but Price is
also 2-3 times, hence has a weak price element
• Brand awareness is also very poor
 ADDITIONAL VALUE PLACEHOLDERS
Trusted Brand Name: Kunst was acquired by
Atler also because of their commitment to
Trusted superior craftsmanship. Also Kunst was highly
Brand Name
regarded by scientists ,engineers &
healthcare professionals
Leadership position in Niches: With Sales
turnover of $120mn and market
leadership(60%) in laboratory, healthcare
and industrial applications
Weight differential: Kunst 1600 is lighter than
pumps currently used in residential AC repairs
Additional and heavier than those used in home
Leadership
Fine savings
Value position in refrigerator and light commercial refrigerator
Placehold niches repairs
ers Oil Dumping Fine Savings: This can also be
used as a valueplaceholder for Kunst. This will
figure as additional cost savings for the oil
companies that incur fines due to dumping oil

Weight 
differential
 CUSTOMER VALUE MODEL FOR KUNST
1600
Customer value model would focus on three aspects:
• Oil change cost savings (since oil change is not required in
the Kunst 1600)
• Incremental profitability (where contractors can perform
additional jobs, which can lead to increased profitability)
• Differential pricing (price/ lifetime is perceived as the value of
the pump)
Breakdown of value
elements
Oil change cost Incremental
Differential price
savings Profits

• Oil price (per • No. of additional • Price/Lifetime of

quart or pint) jobs created per existing pump in
(A) week * Profit per use (A)
• Labor costs (B) job * no. of • Price/Lifetime of
• Cleaning costs weeks = Kunst 1600 (B)
(C) - Incremental
• Scouring soap Profits
• Towels
• Disposal and
recycling costs
  (D)  
 Residential AC Home Light
SEGMENT repair refrigerator commercial
repair refrigerator
VALUE repair
ELEMENT
Oil change cost $318 $153.30 $207.30
savings
Incremental 0 0 $720
Profits
TOTAL Value for $318 $153.30 $927.30
customer
Differential Price $16.67 (3 CFM -$33.33 $16.67
(durability) user)
$44.67 (6 CFM
Based on the cumulative score obtained from
user)
the customer value model, we find that the
Kunst 1600 has the maximum customer value in Microsoft Excel

the Light commercial refrigerator repair Worksheet

segment
 SELECTION OF TARGET MARKET SEGMENT(S) 
Sales 1. Residential AC repair
Potential Growth segment – pitfalls of Kunst
Units rate 1600
Home refrigerator
Lower • 1.6 CFM rating is too small to
repairs 60000 N.A
CFM handle the residential AC
Light commercial repair jobs
rating
refrigerator repairs 40000 N.A • Focus group study also
Residential AC Brand
revealed that brand name is
visibility
repairs 125000 15% not famous
Light • Lighter model is more
weight vulnerable to break
• Acids exhausted could cause
• Residential AC repairs segment Corrosion corrosion of the aluminum
has the highest sales potential, housing
growing at 15% with the
population increase
• But considering the pitfalls, we
conclude that it is not viable to
include as target segment
2. Home Refrigerator
Repair segment

• Home Refrigerator repair segment is the second

largest in terms of sales potential – 60,000 units
• But the customer value model reveals that the lowest
value segment for Kunst 1600 is this segment
• It is also higher rated (1.6 CFM) compared to the
AirMaster (1 CFM) which is the number one brand
used
• Only 15 minutes was taken for operations – no
substantial benefits accrued by replacing the current
pump
• No incremental profits – since there are no additional
jobs created
• Thus this segment is not viable
3. Light Commercial
Refrigerator Repair
• More efficient working at low pressure
segment
Reduction in levels
• Light Commercial Refrigerator repair repair time • Reduction in repair time by 10
segment has the least sales • minutes
Fines ($2000 for firm and $150 for
No oil
individual) are not incurred since
potential among the three segments disposal
there is no oil disposal
• But the customer value is the Lesser • Competition would be relatively lower
maximum for this segment competition
($927.30) Best CFM
• CFM rating of 1.5 of current vacuum
pump compares to the 1.6 CFM of
• Incremental jobs are also created rating fit
Kunst 1600
generating additional profits

Kunst is a new acquisition, hence they would have

limited resources at their disposal. So they should target
only one segment - Light Commercial Refrigerator
Repair
Building on the potential in this segment, Kunst can
expand later by marketing Atler products
 VALUE PROPOSITION 
• Three different ways in which value proposition can be
presented
• All Benefits
• Favorable Points of Differences
• Resonating Focus

Resonating
All Benefits Favorable POD
Focus

• All benefits • All POD product • POD’s which

customers has relative to deliver the
receive from the next best greatest value
the product product to the
customer
• Choose the third way – Resonating Focus
• Following POD’s deliver the greatest value to the customer
• Oil change process eliminated
• Complete more jobs during the summer season which will lead to
increased profits
THANK YOU