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 advantages that the product provides.
In order to do that, the company needs to pay attention to certain factors that can influence the success of the product on the market. These factors are: promotion and advertising, and the pricing of the metal pads …show more content…
Pricing the product is a sensitive aspect.. The price of the CMI pads should reflect the performance and operational benefits of the product. The Pads are more efficient, last longer, easy to handle, produce less heat, and produce significant cost savings compared to asbestos pads. Furthermore, the price should reflect as close as possible the economic value of the customer. The company should use the differential pricing strategy, which entails that the product is priced differently according to the