edf40wrjww2CF_PaperMaster:Desc
Leica Geosystems AG has assigned students of Babson College and FHS St. Gallen to a
J-MCFE project. This project involves a comprehensive study of both the American and German-speaking market for the introduction of alignment laser products. The team¡¦s objectives are to understand each market, outline the applications of each laser leveling devise, establish the potential market volume, and determine the price elasticity in each market.
Market Definition
Throughout the German-speaking market, Hilti is the most known and most used brand of laser levels. Its products are high-end tools that are also amongst the most expensive of all brands and can be directly compared to the LINO L2 line laser. In the American market, many brands exist, but no definitive brand can be labelled as the clear market leader. Many American brands cater the Do-it-yourselves (DIY) and are priced at a much lower price level than the proposed Leica offering. Each market possess different distribution channels with the German-speaking market concentrated upon specialty retailers and online sales while the American market focuses upon ¡§big box¡¨ (Home Depot and Lowe¡¦s) retailers, with a smaller market for specialty retailers and online sales. While substitute goods such as hydrostatic levels and string exist, lasers levels possess much greater attributes and functions and will dominate the market in the long-term.
Operational Areas
One of the main differences in the two markets is the laser preferences among craftsmen. In the German-speaking market, rotation lasers are heavily favored while in the American market line lasers are heavily favored. Craftsmen in the German-speaking markets value high-quality tools and are wi ...