Cumberland Metals

Topics: Marketing, Price, Value Pages: 2 (602 words) Published: December 14, 2010
Fred Batts
Cumberland Metal Industries
MBA 8145
Dr. Bellanger

Market Analysis


Cumberland Metal Industries has developed a coil pad breakthrough in the pile driving cushion pads. The market for pile driving cushion pads is a relatively nascent market. Products that the coil pads would replace alternatives made from wood, aluminum, micarta and most commonly, asbestos. The benefits and value of the technology have been proven through industry testing.

Market Size
In 1979 there were somewhere between 19,500 and 26,000 Pile hammers in production in the US. Each of these pile hammers is in action for about 25 weeks out of the year and are driving piles about 30 hours per week. With an average pile driving speed of 20 feet per hour, you can deduce there are between 292,500,000 and 390,000,000 feet of pile driving done each year. A conservative estimate on the durability of the coil pad is 10,000 feet per set. This leaves a demand of between 29,250 and 39,000 sets of coils.

Market Segments and Distribution Channels

The market segment of this product is fairly homogenous. There are a various entities that have influence over the market that need to be approached differently. Pile hammer manufacturers, architectural, engineers, soil consultants, pile hammer rental companies, construction contractors, and pile driving contractors.


Two trial studies were completed in testing the coil pad product. Using the current price and performance of asbestos pads, the economic break even price of each coil pad was computed. In the first trial, Colerick Foundation Company, the price of each pad had a value of $741.67. Most of this savings is in the minimization of downtime (see exhibit A). In the second trial, Fazio Construction, the value of each coil pad was computed to be $678.38. Because these pads represent a product that is not clearly understood, it will be difficult to convince construction companies of the...
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