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
Premium Variable cost Costs Cost
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
Premium Marketing
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
Premium Generally Accepted Accounting Principles Price Gross profit margin
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:
Premium Marketing
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
Premium Marketing Sales Selling
Presentation Marketing 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
Premium Marketing Product life cycle management
Corporation (CMI) hope to acquire Corporate Transfer Services (CTS). Currently‚ CMI is a business that sells mortgage insurance to banks and other mortgage lenders. However‚ executives at CMI desire to expand their business into the real estate relocation industry. Essentially‚ this industry works to assist employees who have been transferred to a new city as they try to find a new home. The president and vice president of CMI met with the four owners of CTS on multiple occasions. If CMI acquires
Premium Insurance Real estate Vice President of the United States
Case Presentation Curled Metal Inc. (CMI) faced a pricing and channel marketing decision for metal pile cushions utilized during pile driving. CMI’s approach to metal pads has significant efficiency advantages over currently used pads available in the market. However‚ CMI has to take into account several barriers to entry into this market. The primary barrier is that most companies viewed role of pads as a necessary accessory or tangent item instead of viewing them as a potentially value adding or
Premium Pricing Costs Marketing
Curled Metal Inc.-Engineered Products division Overview 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
Premium Time Price Value added
it makes sense that their recommendations will not always be the same. Discussion of the ethical issues 1. Economics The only argument in favor of making the terrorist payments‚ other than saving company employees from harassment‚ is economic. CMI paid $1.7 million over an eight-year period from 1997 to 2004‚ or $212‚500 per year on annual revenues of $4.5 billion. The payments are immaterial. Also‚ the amounts are analogous to the premiums on an insurance policy. By making the payments‚ the
Premium Ethics United Fruit Company Virtue ethics