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…
Cumberland Metals should use their ‘purchase influences’ to spread WOM. According to the case, there are two groups that would be the most appropriate to do that: the pile hammer manufactures, and the architectural/consulting engineers. Furthermore, CMI should make contracts with the two companies that have tested the product, Colerick Foundation and Fazio Construction for continuing using the product. Initially the company can sell the product to the companies for a lower price, in order to gain market trust. Furthermore, the case talks about another potential influence, Professor Stephen McCormack. The company could use him as a promoter of the pads. By having an expert figure recommending and talking about the metal pads, might again boost sales. Furthermore, as the product gets market acceptance, Cumberland Metal Industries, should publish articles in specialty magazines (trusted source), such as: ‘Construction Engineering’ etc.
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