Cumberland Metal Industries - 1716 Words

The table below breaks down the economic value in use of the CMI pads according to both the Colerick and Fazio tests. I used the data from each case to derive the number of hours of driving required to complete the job with both the asbestos and CMI pads. The difference in time to complete the job multiplied by the cost per real hours was one part of the economic value in use. The other portion was the cost of the asbestos pads for each project. Colerick Test Feet driven 15000 Hours Cost per real hr($238) x total hrs Asbestos 100 $23,800 CMI 75 $17,850 Difference 25 $5,950 Cost of pads 20 Sets @ $50 ea $1,000 Economic value in use $6,950 Per foot $0.46 Fazio Test Feet driven 12000 Hours Cost per real hr($238) x†¦show more content†¦The players in this segment are likely to be the larger international construction contractors like Conmaco and Raymond International, as well as larger independent pile driving firms. The market can be segmented by benefit because there are those consumers or purchase influencers who look at the impact the pads can have from an engineering standpoint. Because CMI pads transfer the energy from the pile more efficiently they were less likely to result in damage to the pile that may affect the integrity of the foundation. The players that would be in this segment would be the architectural and consulting groups, as well as the more sophisticated of the larger engineering/construction contractors. There is a second benefit segment that you can identify as well. This group would be defined by there need or want for a safer work environment. The use of asbestos pads would be undesirable to this segment, and w ould be more likely to choose the CMI pads. This segment would be harder to identify because they would be spread out amongst the different size firms. It is likely that at the time of the case larger firms were not yet concerned about the major litigation issues surrounding the use of asbestos. Since it is most likely site workers that would be identified in this segment’ it is likely that smaller firms were the principle is on site at the projects would be the major part of theShow MoreRelatedCumberland Metal Industry1463 Words   |  6 PagesCumberland Metal Industry 1,2- The first two questions will be gone through together in order to avoid confusion. Pricing is one of the most important elements to launch a product on the market. Mainly, because it is the only element, together with the marketing mix, that produces revenues. It is fundamental to set the right strategy in deciding and setting the price of a certain product to be sure that is fully understood and appreciated by customers in all its aspects and characteristics. ARead MoreCumberland Metal Industries5353 Words   |  22 PagesI.Case Analysis Overview Cumberland Metal Industries (CMI) is one of the largest metal manufacturers in the world. The company evolved from selling metal as a finished product to one that used it as a raw material, increasing sales from $250,000 in 1963 to over $18,500,000 in 1979. Currently, CMI relies heavily on SlipSeal, which is used as a high-temperature sealant in automobiles. Although CMI dominates the market for this product, corporate sales figures decreased over the last year. As aRead MoreCumberland Metal Industries Essay1105 Words   |  5 PagesCumberland Metal Industries (CMI) should price their new cushioning pads at $900 to maximize profit. CMI should begin by targeting the customers that will find the greatest value in the product an pay the most. This allow the company to maximize unit contribution, and leave available options for dealing with future competition and sales challenges. Customer CMI estimates a potential customer base of 19,500 to 26,000 actively operating pile drivers in the United States. Currently the marketplaceRead MoreCumberland Metal Industries : Case Study1144 Words   |  5 PagesCumberland Metal Industries – Case Study Aayush Koradia Issues: Following were the issues being looked by Cumberland metal ventures:  ¥ How to value the item which does not exist in market to guarantee individuals would end up buying?  ¥ How to promote, teach and decide the appropriate channel to dispatch the item  ¥ How to approach the influencers?  ¥ Demand estimates  ¥ How to create a market for the pads?  ¥ Product mix - What all items will be offered as they are as of now concentrating just onRead MoreCase 2: Cumberland Metal Industries1070 Words   |  5 PagesIndustrià «le Marketing Prof. dr. Muylle Steve Case 2: Cumberland Metal Industries: Engineered Product Division, 1980 Deadline: Friday 14/10/2011, 18h Group1: Team 07: Michiels Verona Moortgat Jonas Moravcovà   Alexandra Mortier Nick Seffers Raphaà «l 1. What is the worth of the CMI cushion pad relative to the incumbent asbestos cushion pad? Build a customer value model including value elements, word equations, assumptions, and calculations based on the test results of both ColerickRead MoreCumberland Metal Industries Analysis Essay example1301 Words   |  6 PagesExecutive Summary Cumberland Metal Industries (CMI), which was historically one of the largest manufacturers of curled metal products in the country, has developed a new product. This product is a metal cushion pad which is to be used with large crane-pile driving activities. The cushion is to prevent the shock of the hammer from damaging the pile. CMI’s cushion pad is a â€Å"one-of-a-kind† product as there is nothing similar on the market today making comparisons difficult. Upon successfulRead MoreCumberland Case1250 Words   |  5 PagesPresentation Marketing Cumberland Metal Industries ( CMI cushion pads) The Problem Definition: For Cumberland Metal Industries the curled metal cushion pads represent a great breakthrough. These pads offer the company the opportunity to diversify, and double their sales, given a proper market introduction. Cumberland Industries faces the challenge to Place in the market (promote/advertise) and price their latest innovation, the curled metal cushion pads in a way that it reveals the great advantagesRead MoreCumberland Case1241 Words   |  5 PagesPresentation Marketing Cumberland Metal Industries ( CMI cushion pads) The Problem Definition: For Cumberland Metal Industries the curled metal cushion pads represent a great breakthrough. These pads offer the company the opportunity to diversify, and double their sales, given a proper market introduction. Cumberland Industries faces the challenge to Place in the market (promote/advertise) and price their latest innovation, the curled metal cushion pads in a way that it reveals the great advantagesRead MoreCumberland Case Analysis Essay examples1384 Words   |  6 PagesEXECUTIVE SUMMARY Cumberland Metal Industries is evaluating a new product that makes pile driving less costly and more efficient. The product is a cushion pad made from curled metal that prevents the shock of a hammer from damaging the hammer or the pile. Currently the industry uses asbestos pads and is the only form of competition the company faces. If adopted there is potential to sell 29,000 to 39,000 sets of pads (6 pads per set) annually. The most important issue CMI management faces is settingRead MoreOptical Illusions852 Words   |  4 PagesHarvard Cases for BBUS 521 1. 2. 3. 4. 5. 6. 7. 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