Submitted by

Name: Revappa (2021085)

Case 2 (MBM)
Commercializing the Kunst 1600 Dry Piston Vacuum Pump

1) What are the major, quantifiable value and price elements associated with the Kunst
1600?
:-Quantifiable value
The Kunst 1600 dry piston Vacuum pump is fractional horsepower, injection-molded aluminium
pump
1. Reconfigured compressor outfitted with a screen over its input nozzle to catch contaminants.
Can run longer and cooler than conventional vacuum pumps.
2. Its function more efficiently at lower pressure levels than competing products.
3. Fewer working parts than traditional models. 1600 is oil free.
:-Price Element Kunst would sell the 1600 to its network for wholesalers for $400 , with a suggested
resale price of $500.

2)What additional value placeholders, elements not presently quantified, merit

consideration in your value model?

Evaluating the value elements from the market research study it was found that there was cost saving
due to elimination of oil change expenses.
Evan and Will found opportunity in growing sale and profit by penetrating new market segment such
as AC and refrigerant repair where customers can use the pump to dehydrate a refrigerator system
during repairs. There is a sales potential for the vacuum pump in market segment such as home
refrigerator repairs (60,000 units), Light commercial refrigerator repairs (40,000units) and residential
Ac repairs(125000units).

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

Few other value propositions are that kunsta 1600 lighter than the traditional pumps used for Ac
repairs. Also, it provides durability as it is constructed with moulded aluminium preventing from
rusting
Kunst 1600 has most AC system nozzles and vacuum pump hoses are one-quarter inch in diameter. At
that diameter, “resistance” retards the vacuuming process to the point where a 1.6CFM pump takes
about same length of time to evacuate a system as does a 6CFM.

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

efforts.  Justify your choice.
From the market research study, we can find greater potential lies in the light commercial refrigerator
repair segment where the incremental profits are higher delivering more value as there is less chance
of dumping of the oil and kunst eliminates hassles of oils changes for the technicians.

5. Write a value proposition for the Kunst 1600 for the target market(s).
On long term basis Kunst can target the home refrigerator repair segment market with a lower
configured capacity pump as the current 1.6 CFM pump will not deliver value to the
customer.
In order for Kunst to sustain in the market, it is essential to focus on Light Commercial
Refrigerator Repair Segment as the specification requirements of the technicians almost
match with the value delivered by Kunst 1600 pumps. The only concern is that the segment
technicians are looking out for minimising operational costs, which can be achieved through
proper marketing channels by enhancing the image of the product through its characteristics.
Also projecting the cost benefit and profits which will be gained by the customers through the
savings in the time of the usage of the pump as only lesser time is needed when Kunst pumps
are used will enable in defining the customer value with the pump. It is also essential in
conducting a higher awareness marketing as the refrigerator segment customers are not
familiar with the Kunst brand. But as there is an overall Brand equity for the Kunst Brand, it
will not be of much difficulty in increasing an awareness across the target segment