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Cummins Crosspoint Kinetics: Positioning and Launching the CK3000 Hybrid Engine

Daniel H. McQuiston
November 1, 2015
North America
Strategy & General Management, Marketing & Sales
11 pages
new product introduction, Segmentation, market segmentation, Targeting, Positioning
Student Price: 
$4.00 (€3.38)
Average rating: 

Cummins Crosspoint Kinetics, a division of Cummins Crosspoint, the Cummins Engine distributor in Indianapolis, Indiana faced a thorny problem. The company had developed the CK3000 hybrid engine which could be installed on either new or existing shuttle and/or transit buses. However, there had been a number of product failures and company bankruptcies of similar products, so Crosspoint Kinetics had to overcome those negative perceptions. In addition, while the product had been affordable on new buses due to government subsidies, there were no subsidies for retrofits, making the product almost cost prohibitive in those cases. Cummins Crosspoint was faced with the task of STP – segmentation, targeting, and positioning for this product. To accomplish this task Cummins Crosspoint had to account for four major factors: establish the proper balance between the hybrid technology and the ‘green’ value, implement a driver education system and provide feedback to the driver, combine natural gas engines with hybrid technology, and improve the perceptions of the engine in the marketplace.