238978675 Curled Metal Inc PDF

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Case Study for curled metal Inc business to business marketing...

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Curled Metal Inc. Engineered Products Division

Submitted to: By: Prof. Satyasiba Das (13PGP101)

Submitted Prasha Mishra Puneet Manot

(13PGP102) Ravi Singh (13PGP103) Rishabh Raj (13PGP104) Sneha Srivastava (13PGP100)

Indian Institute of Management Raipur

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INTRODUCTION Curled Metal Inc. has developed a new product – curled metal cushion pads. The company needs to formulate a business strategy and decide the pricing strategy for the product. The product, metal cushion pads are used for driving piles. Piles are heavy beams used as a support for building and structures.

Advantages of CMI Cushion Pads • • • • • • •

10 times longer life than conventional Pads Less weight than conventional Pads Outstanding resiliency Does not contain hazardous material CMI pads gets heated up to a temperature which can be immediately handled by protective gloves CMI pads drive piles 33% faster Performance increase of 20% as compared to conventional pads

Potential Buyers- Contractors • •

Kendrick Foundation Company Corey Company

CMI Cushion Pads Target Market • • • •

Contractors 75% contractors own their equipment 25% are smaller contractor who rent equipment Contracts mostly awarded on a revenue-per-foot basis

Purchasing Influences • • • • •

Pile Hammer Manufacturers - Could Influence Recommendations Architectural/Consulting Engineers – Key Influence on purchasing decisions Soil Consultants – Consulted only when extraordinary conditions exist Pile Hammer distributing /Renting Companies – Provide pads to contractors Engineering/Construction Contractors – Solicit large international firms involved in big construction projects.

Indian Institute of Management Raipur

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Independent pile-driving Contractors - Knowledgeable about practical aspects of pile driving but not managerially sophisticated.

CASE ANALYSIS SWOT Analysis

Internal Analysis

External Analysis

Weakness Strengths:

Decline in sales

Technology expertise

Lack of brand recognition

Flexibility of size

Lack of established distribution channel

Opportunities

Threats

New product in the market

Lack of awareness about the importance of product

Less competition Demand of the product is expected to increase because of the potential danger caused by the conventional pads.

Imitation by competitors Front line buying becoming less influential

Strategy adopted

Indian Institute of Management Raipur

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Positioning

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Calculation of WTP for CMI pads

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CONCLUSION Reasons for difference between WTP and Price 1. A stack of 11.5 inch CMI pad weighs 75 to 77.5 pound, whereas conventional pad weighs 30 to 40 pound 2. Acceptability of a new product takes some time. Therefore, charging a high starting price close to WTP might not be the best option 3. It is not very easy to communicate the benefits of a new product 4. Conventional pad costs $ 500 per pad, whereas the Selling price of CMI pad is $ 740 per pad. An increment of $ 240 will be acceptable pricing of a new product.

Indian Institute of Management Raipur

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REFERENCES http://prezi.com/zontqwscszzq/curled-metal-inc/ http://wenku.baidu.com/view/367d9811a216147917112843 http://www.scribd.com/doc/24156596/Price-of-CMI-Pads http://www.scribd.com/doc/111804504/Curled-Metal-Inc-Group-10

Indian Institute of Management Raipur

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