Hilti Vs Makita

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[pic 10]

0.76 + 0.63 + 0.90 + 0.67 + 0.5 – 0.73 0.24 + 0.36 + 0.10 + 0.33 + 0.5 – 0.27

[pic 11][pic 12]

2.73 > 1.26

To conclude, the calculations reveal that Hilti’s product offers the customer a higher value than Makita’s product.

5 Customer Value Model

In the following a customer value model is built up which is a high competitive advantage if used correctly. Customer value models are difficult to build up. They are based on assumptions of the costs and benefits of an offering to a customer. Value in business markets represents the worth in monetary terms of the different benefits a customer receives in exchange of a price of the market offering.

This value model is based on the ratings of the value and price elements agreed upon in this paper. There are value elements which increase the cost and there are ones which decrease. For each of the elements an explanation can be found which demonstrates how it affects the final value the customer perceives. For example the “On site demo” element cuts down the training cost and the cost of gathering information while the “After sales” element refers to the additional purchases a company has to make for the nails meaning that Hilti’s customers are paying more to purchase nails than Makita’s customers. A complete explanation of all of the elements can be found in the excel sheet provided with this paper.

In the end we concluded that Hilti’s value is much higher than Makita’s regardless the high purchase price Hilti’s customers are paying. Hilti’s Value is 2600$-1.329$ = 1.271$ which is higher than Makita’s 590$-541$ = 49$ with 1.221$.

6 Value Proposition

A revolution in fastening: Hilti’s BX-3 ME direct fastener

Reduce your labour time by up to 65% with Hilti’s professional direct fastener BX-3 ME

- Higher productivity

- Lower installation costs

- Outstanding customer service

At Hilti we aim to make the life of our customers easier. The BX-3 ME is one of our innovative solutions that enables our customers time and cost savings. With the outstanding technology and quality of Hilti’s BX-3 ME our customers can realize cost savings up to 36% and time savings up to 65% compared to traditional methods, resulting in a higher productivity and efficiency. Our award-winning BX-3 ME is easy to use and perfectly meets the demands of our professional clients. Onsite demos, highly qualified and experienced service and sales personnel and our availability 24/7 are just a few features of our outstanding customer service. We at Hilti put great emphasis on a direct relationship to our customers. As an innovative company that offers high-quality products we always strive for further improvements of our services and products. This is why, as one of few companies in our industry we can offer our customers a warranty of 20 years on the BX-3 ME. [pic 13]

7 Value-based Communication Tool – The Nail It! Campaign

https://www.makitatools.com/company/press-releases/2015/makita-launches-upgraded-3-year-lithium-ion-warrant

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Appendix

Exhibit 1: Value and price elements

Value elements

Hilti

Makita

Cost savings

by 36% of installation costs compared to the traditional method

Revenue enhancement

by 65 % more labour time to use on another projects

Customer Engagement

Onsite demonstration

Personnel selling

After sales: exchange - repair (within 24h, 1-day policy)

Authorized resellers

(online and offline)

Repair within 3 days

Customer Relationship

Short customer survey each week (satisfaction, transaction)

Complaint Management: in case of complaint, call within 48h

Own service centres

Mixture of brand owned and authorized service centres

Additional Product Feature

Safety features (trigger safety, drop-firing safety,

contact pressure safety and unintentional firing safety)

Star Protection Computer Controls: communication technology that allows

the Star Protection-equipped tool and battery to exchange data in real time and monitor conditions during use to

protect against overloading, over-discharging and overheating giving the world-renown reliability and durability

Weight

7.3lb

7.7lb

Independency

battery and waterproof

battery and waterproof

Design

Award (Red Dot Design Award 2016; IF Design Award 2016)

Ergonomic, high recognition factor

Compact and ergonomic, only 11-5/8” long

high recognition factor

Type of actuation

electric

electric

Efficiency

claims to be higher

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