Cumberland Metal

Cumberland Metal Industries Cumberland Metal Industries (CMI), a company that specializes in the do of curled alloy intersections, has developed a natural alloy cushion decorate with long durability and better health safety to admirer contractors drive piles faster. After successfully testifying the cushion decorates, CMI now motivations to launch this tonic product to the securities industry. The primary quill concern CMI has is How to price the new pad? Since this is a new new product, vastly superior to its competitors, CMI should price the new pads as if they are a monopoly and maximize profits. However, in assemble to do this, CMI must first obtain a letters bare to prevent the pads from being copied by competitors. Until CMI obtains this visible, they should hold off on selling them as it would invite the entry of competitors since the pad is non a high technology product and can substantially be copied. As such, the following pr icing strategy stool aside be found on the fact that they gain patent protection. Value Based Pricing We believe CMI should use a prize based pricing method and consider dissimilar merchandise programs including advertising, education, and distribution channels to launch the product as closely as develop it to gain full market share.

These marketing programs are extremely important as they fall by the wayside for help CMI educate their customers and facilitate the perceived the value of the new pads. By knowing the price of an 11 ½ inch asbestos pad is around $3 and knowing that a CMI pad lasts thirster than asbestos pads, about 10 times longer, the p roduct life of the CMI pad will have a value! of approximately $30. However, based on the test data from Colerick, in which they spent $ super acid for asbestos pads fleck employ 6 CMI pads for the same job; it took $ special K / 6 = $166.67 worth of asbestos pads to complete the same job by CMI pads. From the test data from Fazio, in which they spend $2000 for asbestos pads while using 5 CMI pads for the same job; it took $2000 / 5 = $400 worth...If you want to get a full essay, order it on our website: OrderEssay.net

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