KONE MARKETING STRATEGY IN SOUTH KOREA

Attention!

In our Positioning, Kone will approach targeted customers – Engineering and Construction (E&C) companies who usually act as contractors for construction projects as a whole and are the decision makers of elevators and escalators’ usage in the projects.

1.     Product attribute:

·      Functional:

o   Kone’s products are high quality, aiming at high-graded buildings

o  Kone will not try to sell products but will sell the best products to customers, which exactly meet their needs and resources by providing solutions (a kind of consultancy service)

·      Expressive:

o   Kone is a renowned brand name that will prove the high-class positioning of the buildings

à We suggest keeping the standardization of the products, without specific adaptation for SK market, since the targeting and positioning of products basically doesn’t change.

2.     Objectives for entering South Korea market: non-financial objectives

·      Focus on building perceived quality, therefore boosting perceived advantage of the brand name

·      Obtain local market knowledge and build trust

3.     Marketing strategy:

·      Communication with E&C companies à building relationship network:

o   Joining construction conferences, particularly those held by state offices such as KESI, MKE, which are about intelligent/safe/”green” buildings à getting trust and recognition from state offices and end-users

o Exploiting long-term and broad business network in other markets where E&C companies are operating à taking advantage of referencing à building business relationships

·     Cooperating with strong local market player – Hyundai (who is now in conflict with Schindler about acquisition since 2004) ß acting as consultancy service provider in providing solutions à gaining knowledge and relationships

·      Acquiring minor local players à exploiting existing business relationships and knowledge

·      Approaching project investors if possible besides E&C contractors