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Curled Metal Inc.

Group - 15

Introduction:
Curled Metal Inc. has developed a new cushion pad, for which the marketing strategies and the
pricing had to be decided.
Factors influencing customer’s buying decisions:
The product is a business – to – business
CMI vs Conventional Pads product. Thus, the main aspects that the
customer will look for, while buying the
time reqd for change/set 4
20 product, is the quality and the
no. of sets reqd 1 subsequent cost reduction due to use of
50
this product.
no. of pads/set 5
12 As per the field tests, the new product
piles driven/set 300 allows faster drilling of piles and also lasts
6
way longer than the existing products in
ft driven/hour 200
160 the market. Thus, the customer stands to
benefit both from the high quality of the
0 50 100 150 200 250 300 350
product as well as the increased
CMI Pads Conventional Pads
efficiency of the drilling procedure.
Break – even Analysis:

The retail price is set at $190, and it is


assumed that the distributor margin will
be 35%. Thus, the company will have a
contribution margin of 37% over its
selling price to the distributor.
It is expected that the break –
even will be achieved in less than 4 years,
by which about 24000 sets of pads would
have been sold.

Integrated Strategy for CMI:

Group 15: Ajeya, Mithilesh, Ritika, Ritu Raj, Shrutarshi


Curled Metal Inc.
Group - 15

Appendix: Calculation of Break – Even Analysis:

Group 15: Ajeya, Mithilesh, Ritika, Ritu Raj, Shrutarshi

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