Case: Cumberland Metal Industries: Engineered Products Division

1. What is the primary concern of Mr. Simpson at Cumberland Metal Industries:

Engineered Products Division?
Simpson’s primary concern was the pricing of the new CMI metal cushion pads. He was also
concerned about how to market the pads and how to reach the various purchase influences.
Advertising and promotion also concerned him because there were no precedents for this
product or market.

2. What is your price for the curled metal pads for Colerick? Why?

Value-based Pricing:

As time is the important factor in driving piles, we should go with value-based pricing. With
this, we are save 6.6 Hours of Colerick and 16.6 hours of Fazio.

The per-hour cost for the company was $238. So, we are saving $1570 for Colerick and
$3950 for Fazio.
We should sell the set for $2000. As for CMI, 1 set consists of 6 pads.

Therefore, $2000/6 = $334 per CMI pad. In this way, we will save $570 for Colerick and
$3950 for Fazio.

3. How should Cumberland go about marketing these pads? Describe in detail the channel
members, influencers, and others, and provide your plan.
● Consumer awareness is important. To increase awareness, the company can provide
demo/ explain about the product to prospective customers. It can also advertise its
product in construction magazines, etc.
● Distribution should be done through hammer sales outlets and construction houses.
● The company can collaborate with the Engineering/ construction contractors (purchase
influences) and pile hammer distributing groups which will help in increasing customer
awareness, thus increasing sales.