Case: Curled Metal Inc. (CMI) Introduction Curled Metal Inc. originally sold metal as a finished good but has later developed its business concept to transforming metals into high value added manufactured products. Early in 2008‚ the company was about to launch a new product‚ which could revolutionize its business‚ setting a new standard in the pile-driving market: CMI cushion pads. However‚ this product launch poses key strategic issues to the company‚ ranging from assessing manufacturing capacity
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Curled Metal Inc.—Finding the Perfect Price Brief Description of Company and the Situation Curled Metal Inc. (CMI) specializes in selling metal-based products to various markets. With over $55 million in annual sales (FY 2007‚ Exhibit A)‚ they’ve managed to capture 80% of the automobile industry’s market share by developing and selling a highly specialized product‚ Slip Seal‚ designed just for auto manufacturers. They’ve seen a recent slip in sales (a loss of nearly 10% from 2006 to 2007‚ Exhibit
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Curled Metal Inc – Engineered Product Division Overview Cumberland Metal Industries (CMI) was a company which sold metal as raw material in other products. After the company had developed the product – Slip Seal that could meet the demanding specification of the automakers‚ it had grown rapidly over the past decade. The sales increased from $750‚000 in 1991 to over $55 million in 2007. However‚ the sales decreased from 61 million in 2006 to 55 million in 2007‚ a net decrease of 9.5%‚ the net
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in the pile driving market. In order to successfully launch this product‚ we first and foremost recommend that CMI acquire a patent to prevent this product from being copied and imitated‚ thus avoiding the entry of competitors. The associated value and advantages of CMI’s metal cushion pads are evident from the results of the two comparative performance tests by Colerick and Fazio. CMI pads drove piles 33 percent faster than asbestos per hour and lasted the entire job while also eliminating the downtime
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Metal Industries (CMI) is one of the largest metal manufacturers in the world. The company evolved from selling metal as a finished product to one that used it as a raw material‚ increasing sales from $250‚000 in 1963 to over $18‚500‚000 in 1979. Currently‚ CMI relies heavily on SlipSeal‚ which is used as a high-temperature sealant in automobiles. Although CMI dominates the market for this product‚ corporate sales figures decreased over the last year. As a result‚ the management at CMI realized the importance
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Cumberland Metal Industries (CMI) should price their new cushioning pads at $900 to maximize profit. CMI should begin by targeting the customers that will find the greatest value in the product an pay the most. This allow the company to maximize unit contribution‚ and leave available options for dealing with future competition and sales challenges. Customer CMI estimates a potential customer base of 19‚500 to 26‚000 actively operating pile drivers in the United States. Currently the marketplace
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1. a. What is the “average” size of the market in CMI pads given that each set of 6 CMI pads will drive 10‚000 feet? Market Size Hammers 19500 26000 Weeks used 25 25 Hours per week 30 30 Feet per hour 20 20 Feet per year 290000000 390000000 Feet Per Set (4 initially plus 2) 10000 10000 Sets per year 29000 39000 Pads per year 174000 234000 Pads Manufactured 3000 3000 % of Market 1.72% 1.28% It is estimated that there are 19‚500 to 26‚000 hammers in use 25 weeks per year or 30 hours per
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company must be aware a key characteristic CMI of market players and influencers in order to tailor their marketing strategy. 5. The critical issues that company shall prepare a sound solutions for relate to product pricing‚ market potential‚ market penetration strategy and competitors opposition. 6. The recommended starting price range is $1‚299 - $1‚899 7. CMI might obtain $107M in annual profits before marketing 8. In order to penetrate the market‚ CMI must conduct substantial customer-education
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Policies Case Study: Curled Metal Inc. Executive Summary Situation analysis: CMI is looking to diversify its portfolio. It wants to introduce a new high performing cushion pad into the pile-driving market. CMI will initially target small engineering/construction and independent pile-driving contractors. CMI will have the first-to-market advantage‚ as there are currently no direct competitors for metal pads. In terms of channels‚ CMI would distribute its pads through manufacturing representative. Main problem:
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aware of the value added benefits and cost savings involved in the use of CMI pads and are eager to buy. These two companies are a perfect example of the makeup of the most profitable customer‚ the Independent pile-driving contractor. They are the frontline of the buying influence‚ and once that they are aware of the value added this product provides they can easily become our most profitable segment. It is essential that CMI supply the companies that tested the coil pads with this product‚ before
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