Curled Metal Essay

1816 Words May 8th, 2013 8 Pages
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

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
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Competitors: Current cushion pads are made out of hardwood or a mix of aluminium and micarta slabs. All above made by significally smaller manufacturers and most of them are sold unbranded. None of the competitors have shown interest or competence to develop or manufacture this product; therefore it's a new-product market, but since it has unknown penetration time, CMI risks in competition unless it has patent protection.
Channels: This pad is a new product which requires non-trivial marketing and with unknown penetration time. Therefore – the best way to deliver the product is by direct sale force and dedicated outlets, but it will increase the costs substantially. On the other hand, Channels like distributers; heavy equipment houses and Manufacturer representative - which offer wide access to potential clients without the need for special work force - wouldn't be motivated to invest marketing resources in the new pad, and will have their share of the profit (Eventually, CMI decides to go with rep's, which will sell it on to the heavy equipment houses and distributers).
main problem
The main problem is – how to price the new cushion pad in a way that would bring the most profit and allow market penetration.
There are three main challenges: 1) lack of marketing data, and 2) high

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