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
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Simpson is uncertain how he should market the pads in order to reach potential influencers and cust omers. Furthermore‚ there are no precedents for advertising or promoting this product line. More i mportantly‚ Simpson must determine a price for the product‚ as he has promised to call Colerick Foun dation Company by the end of the week. Effectively pricing these pads and following a well defined market strategy could place CMI as a perennial market leader. The successful development of the new
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Background: Cumberland Metal Industries (CMI) was one of the largest manufacturers of curled metal products in the country.Their sales grew from $250‚000 in 1963 to over 18‚500‚000 by 1979.It originally custom fabricated components for chemical process filtration and other highly technical applications. The company’s philosophy soon evolved from selling the metal as a finished product to selling products that used it as a raw material . Earlier CMI used to sell exaust gas recirculation(EGR) valves
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1. Q1-1) What price would you charge for the Cumberland pad? According to the six stages of setting price‚ ①we have to select the pricing objective. Since Cumberland is in the level of introducing CMI‚ they have to pursue product-quality leadership which is to offer “affordable luxuries” for now and consider about maximizing profit later. ②The second stage is to determine demand. So‚ Cumberland has to consider consumers’ price sensitivity - in this case sensitive to quality. Therefore‚ we should
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Curled Metal Incorporated has declining sales‚ but has developed a new product (curled metal pile driver pads) that‚ in field tests‚ deliver customer benefits that are many times CMI’s manufacturing costs. Joseph Fernandez and Rajiv Sanwal of CMI’s Engineered Products Division are responsible for formulating a strategy for the new product. A key issue is the price to charge for the pads. The case raises issues of analyzing market potential‚ aligning price with business strategy‚ and the implications
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1980‚ Cumberland Metal Industries (CMI) had developed a new product for the pile driving industry. Its new pad‚ made of tightly curled metal‚ had the potential to break into an industry where little or no innovation was taking place. The CMI product testing showed great efficiency gains over the current standard asbestos product. The existing competition consisted of small firms‚ few of which had the knowledge or resources to design and develop new products. CMI seemed on the verge of breaking into
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the CMI pads according to both the Colerick and Fazio tests. I used the data from each case to derive the number of hours of driving required to complete the job with both the asbestos and CMI pads. The difference in time to complete the job multiplied by the cost per real hours was one part of the economic value in use. The other portion was the cost of the asbestos pads for each project. Colerick Test Feet driven 15000 Hours Cost per real hr($238) x total hrs Asbestos 100 $23‚800 CMI 75 $17
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their new curled metal cushion pads to be positioned as the “new industry standard” 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
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BACKGROUND CMI has developed a new technology using curled metal to create pile driving pads. Compared to existing products on the market‚ these pad offer several benefits: • Faster pile driving saves contractors rental fees‚ labor expense ‚ and spreads overhead over more feet driven in a given period of time • Longer life of pads save contractors additional cost in reducing changeover time • Heat resistance further reduces changeover time‚ saving additional expenses • Safety – CMI pads do not expose
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cushion pads‚ consisting of curled metal‚ performed superiorly to asbestos pads‚ which are currently the industry standard compliment product to pile drivers. 2. Despite the fact that there’s no such a product on the market at the moment. The copmany is likely to face competition from the asbestos pads market (a substitute product) 3. The potential market demand for pads could range between 174‚000 to 234‚000 per year 4. The traditional distribution structure for asbestos cushion pads is not
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