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Curled Metal Inc.

Engineered Products Division

Submitted to: Submitted By:


Prof. Satyasiba Das Prasha Mishra (13PGP101)
Puneet Manot (13PGP102)
Ravi Singh (13PGP103)
Rishabh Raj (13PGP104)
Sneha Srivastava (13PGP100)

Indian Institute of Management Raipur 0


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

CASE ANALYSIS
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SWOT Analysis

Weakness
External Analysis

Strengths: Decline in sales


Technology expertise Lack of brand recognition
Flexibility of size Lack of established distribution
channel

Opportunities Threats
Internal Analysis

New product in the market Lack of awareness about the


importance of product
Less competition
Imitation by competitors
Demand of the product is expected to
increase because of the potential danger Front line buying becoming less
caused by the conventional pads. influential

Strategy adopted

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.

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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

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