Curled Metal Inc.
Situation Analysis and Main Problem - CMI is a well established company in the automotive market that is about to launch a new product. The new CMI’s cushion pads have tested very well in field tests conducted by the company and now its managers must decide how to penetrate this new market.
The pads main competitor product are the aluminum pads, many companies manufacture them and some construction companies even do it themselves. There are no organized channels of selling and distributing the product and CMI must decide for themselves how to sell the product and at what price.
EVC analysis (Appendix A) shows that the new pad’s EVC is ~$4,500 and CMI must now decide on how to price the new product as to distribute the value between themselves and the customers.
Chosen Alternative - A few alternatives for pricing the pads have been considered including high and low customer inducement and cost plus. The chosen alternative was the low customer inducement keeping most of the value at CMI which should generate more profit.
Implementation Plan - The market plan created for the product’s penetration places an emphasis on targeting long lasting customer relations such as large construction companies and positioning the product as a high end technologically superior product.
Contingency Plan - We try to map two scenarios that might cause us to re-evaluate our marketing plan such as unanticipated reaction from the customers or the competition.
Customers - The cushion pads market consists of many different segments, some are direct
customers and some influence the market’s direction and should be considered when analyzing the situation.
Pile hammer distributing/renting companies - These companies are the contractor's usual suppliers of cushion pads and therefore are an important segment in the market for CMI. They are considered to prefer buying pads that are easy to sell and won’t necessarily cut...