Be very slow with this process as rushing through it leads to missing key details. On page 1 of the case, Curled Metal Inc. There is several stakeholders to consider, first CMI that need a new successful product to the continued success of the company.
Since the pads are not considered a high profile product by the users, the leverage held by current distributors should be enough to drive sales.
Brushing up HBR fundamentals will provide a strong base for investigative reading. In order to penetrate the market, CMI has to alter the point of view of pile driving pads for the opinion leaders, engineering firms, and contractors involved in the decision process. In order to calculate the prices, it is important for this approach to consider the Fazio tests and the Colerick tests.
Secondly, the company has to determine the market which the company should target and then how to market the pads to these markets. What price should Curled Metal Inc.
Finally, an analysis of the different marketing channels and marketing strategy will be presented. These are described below: The following table shows the break-even price per foot considering the two different period and increasing constantly the monthly capacity.
In other words this would be around 6. Also micarta pads are much heavier than metal pads, thus increasing the risk of back and other weight related injuries. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions.
Conversely, CMI pads are significantly reduced the possibility of heat related injury, and are much lighter than the others pads. Fortunately the low cost of production per foot, For example, the company could hire a sales force and attempt to directly sell to customers or attempt to go through distributors.
Than the total time for the job, not considering delays and moving, can be estimated in minutes, equal to Second, the company must decide which channels to market the pads based on the selected pricing strategy. In other words this would be around 6.
Therefore, pursuing market penetration via an alternative 1 approach could be probably the best alternative for Curled Metals Inc.
We also know that it was a labor for a total of 15, feet driven with a mean of feet per hour. Hence the cost-per-foot saved by decreasing the down time to exchange pads is negligible compared to the cost-per-foot savings actuated by the increase in driving efficiency.
This is just a sample partial work. If we analyze this alternative closely, then it could be seen that this is one of the most expensive alternatives for the company but the most significant advantage of this alternative is that it fulfills the margin requirements of the company and it also competes well with the asbestos pads.
The total time saved and the time efficiency will have to be considered. If after a further evaluation of production cost, the cost per driven foot is increasing in a slightly proportional way with the quantity produced, the best alternative will be the second one that apply a premium markup to the costumer and keep a low market penetration.
The next step is organizing the solution based on the requirement of the case. Projected Attitude Importance Who? They should also market directly to contractors and engineering firms by educating them on the efficiency and safety benefits of the new CMI pads a pull approach.
(CMI) faced a pricing and channel marketing decision for metal pile cushions utilized during pile driving. CMI’s approach to metal pads has. Curled Metal Inc.–Engineered Products Division Case Solution,Curled Metal Inc.–Engineered Products Division Case Analysis, Curled Metal Inc.–Engineered Products Division Case Study Solution, Pricing Analysis of the New Business Model The calculations for the pricing of the new business model are given in the section of exhibits.
CASE STUDY Curled Metal Inc. Engineered Products Division Marketing Management Professor João Borges de Assunção Alexandre Neves, student nº Curled Metal IncEngineered Products Division.
MENU. Curled Metal IncEngineered Products Division case study. Curled Metal Incorporated has declining sales, but has developed a new.
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.Download