Executive Summary
1. We see the company considering the penetration to the new market with a new product. After testing, their prototype cushion pads, consisting of curled metal, performed superiorly to asbestos pads, which are currently the industry standard compliment product to pile drivers.
2. Despite the fact that there's no such a product on the market at the moment. The copmany is likely to face competition from the asbestos pads market (a substitute product)
3. The potential market demand for pads could range between 174,000 to 234,000 per year
4. The traditional distribution structure for asbestos cushion pads is not well established. The company must be aware a key characteristic CMI of market players and influencers in order to tailor their marketing strategy.
5. The critical issues that company shall prepare a sound solutions for relate to product pricing, market potential, market penetration strategy and competitors opposition.
6. The recommended starting price range is $1,299 - $1,899
7. CMI might obtain $107M in annual profits before marketing
8. In order to penetrate the market, CMI must conduct substantial customer-education marketing initiatives
9. There are several marketing alternatives the company might choose to follow (high price, niche strategy, international markets etc)
Situation Analysis
Company
Cumberland Metal Industries (CMI) is a large and well established manufacturer of curled metal products in the US and has experienced significant growth since its founding. Typically, CMI sells products th ...