Curled Metal Inc. (CMI) used to manufacture custom-fabricated components for chemical process filtration and other highly technical applications. After CMI developed Slip-Seal, the company had grown rapidly over the past decade. However, company management wanted to diversify away from its heavy reliance on Slip-Seal. Thus, management began to examine their new product, a cushion pad, which is a key part of the process for driving piles. Especially, they focused on how they decided its price.
People relating to the new product can be separated into six groups including Pile hammer manufactures, Architectural/Consulting engineers, Soil consultants, Pile hammer distributing/renting companies, Engineering/Construction contractors and Independent pile-driving contractors. Although every group has their own characteristics, especially, Engineering/Construction contractors are prospective customers who need strong and high performance pads. In terms of the company skills, CMI possess great processing technology and ability to create new competitive products. Next, competitors in a cushion pad market are companies which manufacture conventional pad which have poor performance and are quickly destroyed. Potential collaborators are Pile hammer manufactures Architectural/Consulting engineers and Soil consultants, which could influence recommendation. In addition to that, magazines like Oklahoma Contractor and Professor Stephen McCormack have potential influence. In the business context, little attention to pads gives advantage to the CMI cushion pad. However, on the other hand, for Pile hammer distributing/renting companies, this new product is unfavorable and may hesitate to provide the pads because the pads enable a constructor to return equipment faster. CMI segments its potential customers as described above and tries to position the new product as a technology-oriented product to target...