Cumberland Industries

Case Overview

The year is 1979, Cumberland Metal Industries(CMI), one of the largest manufacturers of curled metal products in the country has developed a new product. As compared to the hardwood blocks or abestos pads, the new metal cushions developed at CMI had successfully tested for longer durability and passed health safety regulations. CMI realized the potential of the product and the opportunity of becoming industry leaders with this newly developed product of theirs, hence wished to introduce to the product to the market immediately.

Though, since the products success relied heavily on its marketing mix and especially the pricing strategy, CMI faces a challenge. The following report offers an analysis on the critical issues to be dealt with, pricing strategy and recommendations based on the possible marketing mix.

Critical Issues to be dealt with (Write it in the form of multiple questions under various sub-headings (refer to syllabus) ) - Philipp

What is the firm’s price for the curled metal pads?

CMI is the first company in the industry to come up with a better product in a somewhat new category. In order to price the curled metal pads, CMI must first make an EVC calculation to defer how much value the customer can get out of the product.

How much is one of these pads is worth to a customer (EVC)?

The CMI pads are worth significantly more to the contractors than the asbestos due to the time saved on various processes as well as the additional safety it gives to the employees. An EVC is helps calculate the total time saved and the total dollar value of time saved.

Annual demand for pile driving and for CMI pad?

Key decision influencers?

Pile hammer manufacturers, architectural/consulting engineers, soil consultants, pile hammer distributing/renting companies, engineering/construction contractors, independent pile-driving contractors.

Competitive products and channels of distribution?

No manufacturers dominates the business....