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Curled Metals Inc

The document analyzes marketing strategy options for a company, CMI, to launch a new cushion pad product. It conducts a SWOT and VRIO analysis. It finds the pad offers benefits like longer life, less weight, and increased driving time. It estimates the annual market size and does cost-benefit analyses for two companies. It evaluates alternatives for the 4 P's of marketing: product types, pricing with different profit margins, promotion through seminars or advertising, and place as direct sales or distribution. It recommends manufacturing only 11.5 inch pads, pricing at $199.99 for 60% profit margin, promoting through seminars with an industry expert, and using direct sales.

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3vickish
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470 views6 pages

Curled Metals Inc

The document analyzes marketing strategy options for a company, CMI, to launch a new cushion pad product. It conducts a SWOT and VRIO analysis. It finds the pad offers benefits like longer life, less weight, and increased driving time. It estimates the annual market size and does cost-benefit analyses for two companies. It evaluates alternatives for the 4 P's of marketing: product types, pricing with different profit margins, promotion through seminars or advertising, and place as direct sales or distribution. It recommends manufacturing only 11.5 inch pads, pricing at $199.99 for 60% profit margin, promoting through seminars with an industry expert, and using direct sales.

Uploaded by

3vickish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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GROUP 23

Problem Statement
What marketing strategy Product, Price, Promotion and Place- should be followed by CMI
to launch its new Cushion pad product in Pile drilling industry?
SWOT Analysis of CMI
Strengths:

CMI Possesses superior processing technology


Ability to produce different sizes of pads with same raw material

Weakness:

Inexperience in New market


No Brand Recognition
Limited Number of Trails
Lack of Comparable Pricing

Opportunities:

No exiting rivals
Large demand for Cushion pads
Can define the market

Threats:

Industry acceptance of the pad will determine its success.


Importance of the Pad is currently not acknowledged in the industry

VRIO Analysis
Value YES
Production of curled metal cushion pads will increase the revenue of the company by a
hundred percent.
Rarity YES
There is no other company currently competing with CMI. Other manufacturers do not have
the necessary capability to produce cushion pads which is as advanced as CMI.
Imitability NO
The product is patented and the technology is available with CMI. There are no duplicates
available as of now.
Exploited by Organisation YES

CMI has the resource and capability to produce the pads.


Perceived benefits of CMIs Cushion Pads

Any diameter can be produced from the same brand of curled metal
Longer life up to 10 times as compared to normal pads
Less Weight
Outstanding resiliency
No hazardous material
Can be handled immediately with protective gloves at 250 F
Increase in driving time by 33%

Total Annual Market Size

Cost Benefit Analysis


(a) Kendrick Foundation Company

Thus, Total Saving per job and per foot by using CMI pads is $19,640 and $1.31 respectively.

(b) Corey Company

Thus, Total Saving per job and per foot by using CMI pads is $15,510 and $1.29 respectively.

Decision on 4 Ps of marketing (Alternatives)


(a) Product
Choice 1: Only make 11.5 inch pads

Choice 2: Make all sizes pads

(b) Price
Choice 1: Selling Price set with 45% Profit Margin i.e. $148.80

Choice 2: Selling Price set with 50% Profit Margin i.e. 163.68

Choice 3: Selling Price set with 45% Profit Margin i.e. 199.99

(c) Promotion
Choice 1: Seminars

Presence in Pile talk Seminars


Conducting its own CMI seminars

Choice 2: Advertising

TV Commercials
Magazines

Choice 3: Rope in Prof. Stephan McCormack

Very well respected by the industry


Enthusiastic about CMIs cushion pads

Choice 4: Word of mouth

Use Architectural Engineers


Contractors

(d) Place
Choice 1: Selling to distribution stores

Hire independent manufacturers representatives

Choice 2: Direct Sales

In house sales office


Online sales

Recommendation
Product: CMI should manufacture and Sell 3,250 units of 11.5 inch Cushion Pads only.
Economies of scale is brought into the picture. Also the Market Size is large enough to
observe the production as CMI is the only player.
Price: CMI should quote its Cushion pads at $199.99 per unit i.e. with 60% Profit Margin.
Maximum Revenue is generated with such approach. Moreover, Kendrick, as CMIs first
customer, would not mind paying $49.99 additional to what it would have paid for
Conventional Pads ($150). This is because Kendrick would observe a total saving per job and
per foot as $19,640 and $1.31 respectively by using CMIs cushion pads.
Promotion: CMIs presence at the seminars is must. They should start their own seminar
CMI seminar for knowledge transfer on their own products. Prof. Stephan McCormack
can be roped in to conduct such seminars as he is already very enthusiastic about the new
product of CMI.
Place: Use of direct sales is majorly recommended. Specialized sales personnel are required
for briefing products to potential clients as the product is less known in the industry.

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