The most important issue concerning the management is the price setting of this new product. I suggest the price of this new product should be set at $500.00.this price would attract customer and they get a chance to try it. The other major issue for the managers is to devise a comprehensive strategy to make this product an industry leader in the future. As our product is new but competitive, we need to set a price that could generate reputation as well as confidence in your product by our consumers. After doing research and by testing our product we found out that our product is way reliable in terms of product differentiation, reliability and usage. The most important thing is to save time while changing these pads as the cost grows more with using time which is not necessary. Each time the consumers wants to change a competitors pads it takes them 20 minutes whereas it only takes us 4 minutes. So each time a consumers changes the pad they save 16 minutes. Likewise our product is driven 200 feet per hour as compared to 160 feet per hour which is 23% more per hour. Our price for this product is only $500, whereas if we look at our competitors it is $6000.00 which is again 1200% cheaper. The Cost per set for Conventional Pads= Cost per set × # of set changes for # feet per hour driven = 120 × 50 = $6000 for 160 feet driven per hour
The Cost per set for CMI Pads = Cost per set × # of set changes for # feet per hour driven = 6000/12= 500 for 200 feet driven per hour
The second concern for the managers is to make a marketing strategy for this product so that it will increase the revenues as well as be the hit for the company in the