Cumberland Metal

Industries

Company
Background

One of the largest manufacturer of Curled

metal in the country

CMI had market share of almost 80% when

Exhaust gas recirculation valves were
introduced in U.S automobiles.

Relying on only one product to maintain the

market share was not advisable by the
company management.

Market Players

Company: Innovator of Cushion Pad

Customers/Influencers: Pile Hammer

manufacturers,Pile hammer distributors,
construction contractors, Consulting
Engineers, Soil engineers, Independent pile
driving contractors.

Competition: No direct competition since no

one had entered the market. Competition from
substitutes like asbestos which have been in
the market already.

Market Size
Estimation of approximately:

19500-26000 Hammers

25 weeks a year(seasonality) 30hrs per week

total 290million-390million feet of piles driven annually. (assuming 20ft

per hour)

1 Set of CMI pad(6 pads) drives 10000 ft. Therefore 29000-39000 sets
required.

Total Market size: For 290million- 396 X 6 X 29000= $174000

For 390million- 396 X 6 X 39000= $234000

Average : 396$(price per pad) X 6 X 34000= $80784000

Segmentation :
1 Pile hammer manufacturers
2 Pile hammer distributors
3 Engineering/construction contractors
4 Independent pile driving contractors
Targeting:
75% of pile driving contractors already own their own tools.
Eventually after tackling the 75% majority 25% who rent will follow
the rest of the majority to demand CMI pad.
Positioning
Identify the positioning concepts for each segment and select the
best and communicate it.
Develop a Marketing mix for Each segment.
Does not Harm a persons health

Product: Hard wood > Asbestos>asbestos

> Curled metal
Cushion pads prevented shock of hammer from
damaging the hammer and the pile.
Curled Metal (Cushion pads)
Improved speed by 33% and Performance by
20%
3 dimensional resilience that can withstand any
temperature and chemical
Never exceeded more than 250 degrees hence
easier to change and handle.

Pricing strategy
Price objectives: maximize quantity and profit margin.
Price methods: cost-plus pricing set the price at the production cost
plus a certain profit margin.

Place
Consultants
Contractors
Rentals

Value based pricing : 120 asbestos= 1 CMI

3 X 120 EA = 360$
360 + 10% mark up = 396$

Promotion:
Word of mouth
Pile hammer manufacturers
To influence recommendations
Professor Stephen McCormack
Department to study pile driving and was a respected authority

Advertisement [Magazine/Newspaper/TV ads]

Publish our test results in magazine & Newspaper
Engineering channel on TV
Seminar: introduce cushion pad for the 1 st time
Potential buyers:
Independent Pile driving contractors
frontline buying influence
Pile hammer distributing/renting companies
Give free first set of pads

Manufacturers Representative:
Focus training on: cost saving benefit of the pads
Potential danger of the asbestos
Creating brand name
Important in promoting the diffusion of the product in marketplace.