Published by MBA Skool Team, Last Updated: February 06, 2019
Marketing Strategy of KONE analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on KONE marketing mix, help the brand succeed.
KONE marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the KONE Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
KONE Product Strategy:
The product strategy and mix in KONE marketing strategy can be explained as follows:
Kone is one of the leading engineering companies in the world. One of the main products of Kone is elevator and it has huge experience and expertise in manufacturing elevator. They created Kone Monospace which is the world’s first machine room less elevator. In all their products they focus on innovations like soundless and beautiful designs in the elevators. They have also created technological marvels by creating elevators which can go up to one kilometer used in high rise buildings. Installation and maintenance services are also provided by the KONE. Apart from elevators, Kone also provides solutions like escalators and automatic opening doors as a part of their marketing mix product portfolio which are more energy efficient, smooth and safe.
KONE Price/Pricing Strategy:
Below is the pricing strategy in KONE marketing strategy:
Kone adopts a skimming pricing strategy for its product.
For monospace it charges a premium because energy efficiency, not requiring another elevator room, eliminating fire hazards and lower installation time. This strategy helped in differentiation and brand building. The pricing strategy also depends on the country they are selling. In Netherlands and France, the skimming prices strategy are very successful but in UK and Germany, consumers are very price sensitive, hence competitive price was adopted.
KONE Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read KONE SWOT Analysis, STP & Competitors
KONE Place & Distribution Strategy:
Following is the distribution strategy in the KONE marketing mix:
Kone is currently operating in more than 60 countries with 1000 offices. Europe is the largest market for Kone. In most of the cases, it is a B2B based model and even one or two office in a state can cover most of the area.
Many of the upscale residential buildings, office complexes, hotels etc have Kone lifts all across the world.
KONE Promotion & Advertising Strategy:
The promotional and advertising strategy in the KONE marketing strategy is as follows:
Kone does the promotion to the target consumers. They generally target the contractors or building constructor because most of the time they decide on the supplier of the elevators. They generally bid for major builders for which they can get big projects. Contracting builders early in their project helps them to save money and time on the extra elevator room cost. For the KONE Monospace, they target the new low-rise residential properties they design the building and have more decision power. Hence this completes the marketing mix of Kone.
Kone is a Finland based engineering and services company founded in 1910. It has around 55000 employees operating across 60 countries and is headquartered at Espoo, Finland and headed by Henrik Ehrnrooth. The company’s vision is to deliver the best flow experience by providing Ease, Effectiveness and Experiences to users over the full life cycle of the buildings. Kone recognizes that urbanization and technological advancement are the new trends and they need to utilize the best out of them. In 2014, Kone was ranked among the top in the world by the Forbes Magazine.
Over the years, it has acquired a number of companies to diversify and expand its business all over the world. It has more than 3000 patents across their business shows the importance given to innovation.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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