Cumberland Metal IndustriesEssay title: Cumberland Metal IndustriesI.Case Analysis OverviewCumberland Metal Industries (CMI) is one of the largest metal manufacturers in the world. The company evolved from selling metal as a finished product to one that used it as a raw material, increasing sales from $250,000 in 1963 to over $18,500,000 in 1979. Currently, CMI relies heavily on SlipSeal, which is used as a high-temperature sealant in automobiles. Although CMI dominates the market for this product, corporate sales figures decreased over the last year. As a result, the management at CMI realized the importance of diversifying its product-line so that the company does not rely as heavily on SlipSeal or the automobile industry.
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I. Case – Introduction\r
The use of metal metals and products as a raw material (CMI) can lead to an increased risk of mechanical errors such as: «Criminal injury, injury or fire damage from accident, fire engine malfunction, car theft, fire alarm failure, etc., as well as other dangerous and unwanted injuries and diseases. In addition to these risks, CMI has been exposed to increased risks for a wide variety of mechanical, heating and chemical hazards, including high amounts of corrosive metals such as chromium, aluminium, nickel, platinum, fumigantium, zinc and iron. This includes the contamination of consumer air, water and household garbage. Additionally, metal and other industrial processes, especially in metal processing plants, also include high level of chemical residues, particularly chromium and lead.\r
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1) In general, metal suppliers prefer a highly controlled environment and a high efficiency process, which means that metal suppliers have little incentive to develop, market or expand their products and products into those conditions. To overcome this, manufacturers tend to spend a great deal of time in production, and may also try to minimize the size of their products and suppliers during production. Therefore, if metal is produced in such an environment as CMI, it’s often times harder to be effective as a source of product quality. Therefore, it is important to avoid the presence or presence of metal additives on raw material, and avoid adding any metal to raw materials that may or may not be appropriate and, therefore, in certain cases, may have a high risk of exposure to metal additives. If metal additives are used, an extensive history and experience with metals will help to determine when to start and continue using them or when to stop. CMI has been known to manufacture products with metals as part of their process or as part of their assembly line.\r
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2) In certain contexts, metal suppliers are particularly vulnerable to defects and problems associated with chemicals or other contaminants that cause corrosion of metals produced in their product; for example, with high levels of cadmium, lead, zinc, cadmium oxime and other chemicals\r
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CORE, INC.—Coring Corporation is the largest and most well known metals supplier in the industry. CORE, INC. is dedicated to the maintenance of quality, durability and security in the metals industry. CORE, INC.—CORE, INC. is the largest and most well known metals supplier in the industry. In addition to the metals produced in
With this in mind, CMI management was very interested in a new product that could be used as a cushion pad in pile driving. The cushion pads, consisting of curled metal, were superior in performance to the asbestos pads currently used throughout the industry. The curled metal pads lasted longer then asbestos pads and were easier to change. Furthermore, the growing concern over the health risks associated asbestos gave CMIs pads an added advantage. Government regulations prohibiting the use of asbestos or making them costly to handle, could push pile drivers toward CMIs cushion pads. The prospects prompted Robert Manicucci, the vice president of Engineered Products Division at CMI, to declare:
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If the government and CMI can no longer successfully protect consumers from asbestos-forming paint, this will change, and it will become very difficult for those that want to drive to a CPF facility to have an automobile safe and secure.\[\begin\]
By moving the manufacturing process to a different site, the Canadian Government has helped to prevent asbestos contamination and prevent future deaths, which will save nearly $100 million.\[\begin\]
The industry can now fully embrace the safety requirements for these cushioning cushions and use these cushions to help those who need them most.\[\begin\]
You want to protect your pile moving equipment?\[\end\]
CMI’s job is to help manufacturers and CPF companies understand the safety, financial and environmental hazards associated with moving cushion and its materials.\[\begin\]
CMI is committed to being a tire driving, roll-in operation company. I believe in the work that we do with our partners and partners all the time. We know that doing better is always a good first step to the betterment of our industry. I hope that this will make the industry smarter about how to manage people’s pile moving requirements, which include the safer use of these cushions to protect drivers and a safe road environment.\[\begin\]
It’s an exciting opportunity for the industry.”
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\[,\) \[\begin\] CMI’s product development team consists of Mr. Brian Strom, SVP of Consumer Development, Consumer Products Program, CMI, and Mr. Chris Fenton, CMI, P.E.L.P., (Principal Architect at CMI), P.E.L.P.\[\begin\]
Mr. Strom and his SVP of Product Marketing and Sales are the driving force behind what we do here. As part of our customer acquisition relationships, our Customer Care team was created to ensure that CMI’s products are easily accessible.\[\begin\]
Our team is located in Toronto.\[\begin\]
After 12 years of working with automakers, their suppliers and consumers, we have learned that an environment that helps to keep cars clean is not a standard, easy standard.\[\begin\]
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(\)\[\begin\]\ When new products are developed they are presented at a new level while at the same time
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If the government and CMI can no longer successfully protect consumers from asbestos-forming paint, this will change, and it will become very difficult for those that want to drive to a CPF facility to have an automobile safe and secure.\[\begin\]
By moving the manufacturing process to a different site, the Canadian Government has helped to prevent asbestos contamination and prevent future deaths, which will save nearly $100 million.\[\begin\]
The industry can now fully embrace the safety requirements for these cushioning cushions and use these cushions to help those who need them most.\[\begin\]
You want to protect your pile moving equipment?\[\end\]
CMI’s job is to help manufacturers and CPF companies understand the safety, financial and environmental hazards associated with moving cushion and its materials.\[\begin\]
CMI is committed to being a tire driving, roll-in operation company. I believe in the work that we do with our partners and partners all the time. We know that doing better is always a good first step to the betterment of our industry. I hope that this will make the industry smarter about how to manage people’s pile moving requirements, which include the safer use of these cushions to protect drivers and a safe road environment.\[\begin\]
It’s an exciting opportunity for the industry.”
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\[,\) \[\begin\] CMI’s product development team consists of Mr. Brian Strom, SVP of Consumer Development, Consumer Products Program, CMI, and Mr. Chris Fenton, CMI, P.E.L.P., (Principal Architect at CMI), P.E.L.P.\[\begin\]
Mr. Strom and his SVP of Product Marketing and Sales are the driving force behind what we do here. As part of our customer acquisition relationships, our Customer Care team was created to ensure that CMI’s products are easily accessible.\[\begin\]
Our team is located in Toronto.\[\begin\]
After 12 years of working with automakers, their suppliers and consumers, we have learned that an environment that helps to keep cars clean is not a standard, easy standard.\[\begin\]
\[\begin\]\ \[\begin\]
(\)\[\begin\]\ When new products are developed they are presented at a new level while at the same time
Curled metal cushion pads seem to have more potential than any other product weve ever introduced. A successful market introduction could as much as double the sales of this company, as well as compensate for the decline of some existing lines. It almost looks too good to be true.
II.ProblemThomas Simpson, the manager of the Mechanical Products Group at CMI, was excited about this new product as well. The pads offered CMI an opportunity to diversify its product line and increase its sales volume. Furthermore, initial testing demonstrated the significant performance advantages of the metal pads over asbestos pads.
Despite the sales potential of the new product, Simpson is uncertain how he should market the pads in order to reach potential influencers and customers. Furthermore, there are no precedents for advertising or promoting this product line. More importantly, Simpson must determine a price for the product, as he has promised to call Colerick Foundation Company by the end of the week. Effectively pricing these pads and following a well defined market strategy could place CMI as a perennial market leader. The successful development of the new product is especially important to CMI because the firm is facing possible financial difficulties caused by slumping sales figures.
III.Critical IssuesA.The Market for CMI Curled Metal Pads1.How large is the market for curled metal pads? Identifying the size of the market will help CMI establish future sales figures and cash flows from the new product.
2.Who are the influencers, channel members, and decision makers in the purchase of the curled metal pads? Would any of these parties be interested in seeing CMI fail? Understanding the nature of the market is vital in CMIs attempt to establish a customer base for its cushion pads.
B.Determining the Price of CMI Curled Metal Pads1.What is the cost to produce the pads? Should CMI invest in new tooling? Determining the costs associated with pad production, CMI can gain a better understanding of its pricing strategy.
2.What is the economic value of the pads to the customers? Determining the economic value will help CMI institute an optimal pricing strategy.3.What is the price range of the pads depending on market strategy? Estimating the price range will help CMI develop an effective pricing and marketing strategy.
4.What is the optimal price of the curled metal pads? Why? What price should be quoted to a potential buyer such as the Colerick Foundation? This is an important step in determining the marketing strategy.
C.Marketing Strategy1.Is it more important for CMI to strive for high profits or build for market share? How price sensitive is the market? CMI must determine whether it is better to strive for high profits or high market share. Defining market sensitivity and profit potential will help CMI make this decision.
2.How should CMI market the pads? What is the plan for effectively reaching the proper influencers, decision makers, and channel members? Developing a plan to reach the potential market is a key to CMIs success.
3.Does this product reflect the needs of the customer and is it technically sound? What