Kunst
Case Analysis
By-
Ankit Arora
Constance Kulinckx
Sandjay Moutien
Anurag Badoni
KUNST 1600 dry piston vacuum pump * Injection molded :Fewer working parts * Aluminium made: No problem of rust * Pumping speed: 1.6 cubic feet per minute(CFM) * Price:$400 Wholesale $500 Retail * Weight: 16.5 pounds * No oil needed as acids are vaporized directly into the atmosphere
The US market * Home refrigerator repairs: 60000 units * Light commercial refrigerators repairs: 40000 units * Residential AC repairs: 125,000
Findings after market research * Usage of vacuum pump is 30 minutes. This time is used to do other chores. * Vacuum pump rarely failed on the job * Technicians never hit a perfect zero and removed the pump after the pressure was decreased to acceptable levels it was not perfect but it lasted the season * Vacuum pump was considered a disposable item. The cost came out to be $.50 per job * The owners were more concerned about the labor cost which was very high * Although oil change was required after every job, the technicians changed the oil once a week and some once a season * Pumps were not handled properly and were prone to rough usage * Technicians challenged the company’s claim that the 1.6 CFM pump takes equal time to do the job as the 3 and 6 CFM pump. * PumpWizard was identified as the top brand * Kunst was found to have a poor brand recall
Residential AC repairs: A lucrative market * Revenue expected: 125000 units Growing at 15% CAGR * Savings expected by AC repair firms: Oil Change = $8 per quart This means $8*1000= 8000 USD Labor cost saved: $15*1000=15000 USD Time saved : .5*1000 = 5000 hours Other costs saved : (.15+.50)*1000 = 750 USD
* Weighs less than conventional pump * Avg no. of jobs = 1000 per season * Time