Curled Metal Inc

Curled Metal Inc. is a well established company in the metal industry. They specialize in making curled metal products. The company has developed a new product, a metal cushion pad. The new pad is developed to last longer and is safe to use. Curled Metal Inc. wants to lunch the new product into the market. A successful market introduction could double the sales of the company, as well as compensate for the decline of some existing lines. The main challenge the company faces is what to price the pads. The pad is totally new to the market. Therefore, the way the company prices the pad could have a significant impact on everything else the company does.

CMI needs to analyze the market potential and align the pricing with its business strategy. The company should use the perceived value pricing method to price the pads and apply a marketing mix program. They should advertise the pad. The company should also figure out which channel of distribution would work best in distributing the new pad. CMI should set objectives for the company and focus on dominating the market. Since they are the first company to offer this product they have a comparative advantage over the other companies in the industry. They should use their advantage to maximize profits. The company should consider getting a patent to prevent other companies in the industry form coping or imitating the pad. The pad is very easy to be imitated because it does not involve high technology or a complex design. Therefore the company should not sell the pad until it gets a patent. CMI's pads will be the market leader in the industry.