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Curled Metal

In: Business and Management

Submitted By alexne
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הפקולטה לניהול
בית הספר למוסמכים במנהל עסקים ע"ש ליאון רקנאטי

1243.3412 - Pricing Policy
2013, Second Semester

Curled metal case

Lecturer: Dr. Meir Karlinsky
Submission date: May 5th, 2013

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Executive Summary
Curled Metal Inc. (CMI) examines a new potential product: using wounded, flattened curled metal as a cushion pad for piles driving hammers.
The Decisions the company needs to take are what price should be charged for it, and how to market it to the costumers (channels).
The alternatives we've examined are: Perceived value, Differentiation and Contingency value. EVC is the offered solution, with a price tag of XXXXXXX for the 11.5 inch pad.
Suggested marketing plan is based on focusing in the 11.5 inch pads and …
Main risk is the unsufficient data, which can resolve in a different demand function/market characteristics than expected. Another risk lies with the cooperation of the manufacturer rep's.
Situation analysis
Company (Product): CMI sells metal-based products. It has developed a special seal for the auto industry, which was a big success and currently holds 80% market share. However, CMI isn't confident with maintaining that percentage, and therefore started looking for other opportunities.
This approach led to the development of a cushion pad which allows Pile-hammers to work faster and in a more safety way. Manufactoring process allows any diameter pad to be manufactured from the same band of curled metal, hence – simple and rather flexible process.
Customers: The potential clients are the engineering/construction contractors and the independent pile-driving contractors. There are also pile-hammer manufacturers, but they are considered less as a potential costumer. However, pile-hammer manufacturers, along with other parts in the industry, could influence the end-users, and…...

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