Cumberland Metal Industries ( CMI cushion pads)
The Problem Definition: For Cumberland Metal Industries the curled metal cushion pads represent a great breakthrough. These pads offer the company the opportunity to diversify, and double their sales, given a proper market introduction. Cumberland Industries faces the challenge to Place in the market (promote/advertise) and price their latest innovation, the curled metal cushion pads in a way that it reveals the great advantages that the product provides.
In order to do that, the company needs to pay attention to certain factors that can influence the success of the product on the market. These factors are: promotion and advertising, and the pricing of the metal pads on the market.
Marketing Strategy: A sensible thing for the company to do is to use the niche strategy in order to place the product on the market. A Niche strategy will focus on a specific area of a service or a product. The advantage of using niche strategy is that it can focus on a specific niche that provides either a large volume of business or small volume with lucrative profit margins. The whole idea behind the niche strategy is that it targets those people who are interested in the type of product offered. In our case, by placing the CMI metal cushion pads as a niche, Cumberland Metal Industries has the potential of becoming a dominant player on the market.
The next step is promoting and advertising the product as such (niche/innovative etc.). What Cumberland Industries should do, is create a brand. They have a truly innovative product that has the potential of becoming a huge success. Before the CMI metal pads, the only pads available were the asbestos pads. Those, however, could be found at diverse retailers, and were not properly marketed. Moreover, it is well known, and proven that the asbestos pads are a hazard to health and also there are some government regulations that prohibit the use of asbestos...