Curled Metal Inc (cmi)

CMI has developed a break through product that will change the pile driving industry forever. With the report detailing the improved performance of curled metal pads, CMI definitely has the potential to reach uncharted territory in this industry and gain significant market share. Not only is the pad more efficient, it will enable companies to save a significant amount of time and lower costs. While cushion pads are important to the operational and technical aspects for the industry, there is no substitutes or any improvements made to the conventional pad. The pads that were being used incur damaged easily by heat and shock, causing down time and health risks when replacing the pad. CMI has definitely developed a superior alternative using curled metal eliminating these issues and creating awareness of the importance of the pads. With the pad expected to outperform the conventional pads, the price of the product must be well received by buyers. To ensure a successful product launch, we have provided important recommendations below.

Pricing the pads is a critical part of CMI's success since it is revolutionary to the market, and offering value incentives of the pad will help gain profitability. If the pads prices are too high, buyers will want to stick to conventional pads, and if they are priced too low profit will not be gained. We recommend that the new pads should be offered at approximately $340 per pad. Although on average it cost $120 for a set of 12 conventional pads, the 33% faster driving time will outweigh the higher cost of one pad, along with the decreased time of waiting and changing pads. When introducing the product into the market, production should be moderate and increase as the new pads are accepted in the market.

We identified the main buyers as pile hammer renting companies who sell pads to contractors, independent pile driving contractors whose objective is profit, and engineering/construction contractors who specify material. It is important to note their distinct buyer behaviors as these buyers have a big influence in the industry. In addition to other influencers, testing the new pads with Professor McCormack and getting his approval will certainly be recognized in the pile driving industry and create awareness among others. While distribution outlets and direct selling are unnecessary, using existing distribution channels will be easier for buyers and stimulate product awareness in the industry. To maximize product turnover, it is important to stay focused on buyers who have well-established accounts.

Marketing the curled metal pads should not solely rely on word of mouth to promote the product. Instead we recommend that CMI should put effort in demonstrations to the most important influencers in the buying decision, and focus of the competitive advantages of using the new pads, such as reducing cost and time. The long-term savings of using the curled metal pads should be emphasized, since buyers