Curled metal Inc

[pic 1]

CURLED METAL INC.[pic 2]

GROUP 8

ANKITA SINGHAL • ANKUSH PHUTELA • DEEP SHETH

SAURABH SINGHAL • SHIVIKA SETHI • SRISTI GUPTA

B2B MARKETING

Case Overview

COMPANY OVERVIEW        PRODUCTOVERVIEW

• Curved Metal Inc. manufactures & sells products that use certain kind of metal as raw material

• Sales in 2007: $55 million (declining)

• Rose to fame with an innovative product Slip-Seal, widely popular among auto-makers

• Developed a new product

PROBLEM STATEMENT

• Decide upon a pricing strategy for the new pads

• Analyze the market potential for curled metal cushion pads

• Implications of price on company’s strategic & marketing objectives for the product

• Product: CurledMetalCushionPad • Raw material supplied by outside

vendors

• Used by building contractors in the hammering process: drivingpiles (supportstructureslikebeams)in ground

• Transmit energy from hammer to the pile and prevent damage due to shock

• Though a critical component in the process, usually ignored by the contractors[pic 3]

• Uses curled-metal technology

• Any size can be produced from the same band of raw material

• Coated with poly-vinyl chloride

CURLEDMETAL INC.

B2B MARKETING[pic 4]

History of Cushion Pads

HARDWOOD CUSHION PADS        MICARTASLABS

√ Adequate cushioning for driving        √ Alternate aluminum plate & micarta process        slab

X Poor availability & performance

X Had to be replaced frequently

√ Better resilience than wood

X Expensive labour for frequent

X High chances of getting ignited        replacing

X Wood easily loses resilience        X Very high temperature (600– 700ºF ) INCREMENTALBENEFITS OF C X Shorter product life (> Hardwood[pic 5]

• Manufacturing process of cushion pads allows any diameter to be produced from the same band of curled metal[pic 6]

• Life of CMI cushion pads is at least 10timesmorethan conventional pads • CMI pads drove piles 33%faster; Driving eficiency highly increased

• Safe to use and contains no hazardous material

• Average temperature of conventional pads: 600– 700ºF and of CMI pads: <250 ºF

• CMI pads weigh less than conventional pads and have outstanding resilience[pic 7]

CURLEDMETAL INC.

B2B MARKETING

Pricing of CMI Cushion Pads

KENDRI ConventionalCK CMI Pads

COREY[pic 8]

Conventional        CMI Pads

Piles required | Feet per pile Total feet per job

Feet driven per hour Hours of driving feet Inclusion for delays * Total hours per job Cost per hour ($)[pic 9][pic 10][pic 11]

Total cost excluding pads ($)

Cost per set of pads ($) [EVC]

No. of sets required | Pads per set[pic 12]

Cost per pad ($) [EVC]

Total cost of pads ($)

300 | 50          300 | 50 15000            15000 150                200 100                 75

67 + 7                 50 174                125 714                714 124236             89250[pic 13]

150            37986 20 | 24               1 | 6

6.25        6330

3000        37986

300 | 40          300 | 40 12000            12000 160                200

75        60 50 + 17        40

142                100 714                714 101388            71400

120            35988 50 | 12               1 | 5

10        7200

6000        35988

CTotal cost of job ($) [LCC] INC.[pic 14]

B2B127236 MARKETING

* Includes time for changing pads 127Values based on reported performance &

life

Pricing of CMI Cushion Pads

KENDRI ConventionalCK CMI Pads

COREY[pic 15]

Conventional        CMI Pads

Piles required | Feet per pile Total feet per job

Feet driven per hour Hours of driving feet Inclusion for delays * Total hours per job Cost per hour ($)[pic 16][pic 17][pic 18]

Total cost excluding pads ($)

Cost per set of pads ($) [EVC]

No. of sets required | Pads per set[pic 19]

Cost per pad ($) [EVC]

Total cost of pads ($)

300 | 50          300 | 50          300 | 40          300 | 40 15000            15000             12000            12000 150                180                160                192 100                 84                 85                 70

67 + 7                 57          57 + 17                 47 174                141                159                117 714                714                714                714 124236           100674           113526            83538[pic 20]

150            13281                120            7197.6 20 | 24               2 | 6            50 | 12               2 | 5

6.25        2215        10        3560

3000        26562        6000        35988

CTotal cost of job ($) [LCC] INC.[pic 21]

B2B127236 MARKETING

* Includes time for changing pads 127 Values based on estimated performance

& life

Pricing of CMI Cushion Pads VALUEANALYSIS[pic 22][pic 23][pic 24][pic 25][pic 26][pic 27][pic 28][pic 29][pic 30][pic 31][pic 32][pic 33][pic 34][pic 35][pic 36][pic 37][pic 38][pic 39][pic 40][pic 41][pic 42][pic 43][pic 44][pic 45][pic 46][pic 47][pic 48][pic 49][pic 50][pic 51][pic 52][pic 53][pic 54][pic 55][pic 56][pic 57][pic 58][pic 59][pic 60][pic 61][pic 62][pic 63][pic 64][pic 65][pic 66][pic 67][pic 68][pic 69][pic 70][pic 71][pic 72][pic 73][pic 74][pic 75][pic 76][pic 77][pic 78][pic 79][pic 80][pic 81][pic 82][pic 83][pic 84][pic 85][pic 86][pic 87][pic 88][pic 89][pic 90][pic 91][pic 92][pic 93][pic 94][pic 95][pic 96][pic 97][pic 98][pic 99][pic 100][pic 101][pic 102][pic 103][pic 104][pic 105][pic 106][pic 107][pic 108][pic 109][pic 110][pic 111][pic 112][pic 113][pic 114][pic 115][pic 116][pic 117][pic 118][pic 119][pic 120][pic 121][pic 122][pic 123][pic 124][pic 125][pic 126][pic 127][pic 128][pic 129][pic 130][pic 131][pic 132][pic 133][pic 134][pic 135][pic 136][pic 137][pic 138][pic 139][pic 140][pic 141][pic 142][pic 143][pic 144][pic 145][pic 146][pic 147][pic 148][pic 149][pic 150][pic 151][pic 152][pic 153][pic 154][pic 155][pic 156][pic 157][pic 158][pic 159][pic 160][pic 161][pic 162][pic 163][pic 164][pic 165][pic 166][pic 167][pic 168][pic 169][pic 170][pic 171][pic 172][pic 173][pic 174][pic 175][pic 176][pic 177][pic 178][pic 179][pic 180][pic 181][pic 182][pic 183]

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