Submitted to: Submitted By: Prof. Satyasiba Das Prasha Mishra (!P"P#$ Puneet Manot (!P"P#%$ &avi Singh (!P"P#!$ &ishabh &a' (!P"P#($ Sneha Srivastava (!P"P##$ Indian Institute of Management &ai)ur # I*+&,D-C+I,* Curled Metal Inc. has develo)ed a ne. )roduct / curled metal cushion )ads. +he com)any needs to formulate a business strategy and decide the )ricing strategy for the )roduct. +he )roduct0 metal cushion )ads are used for driving )iles. Piles are heavy beams used as a su))ort for building and structures. Advantages of CMI Cushion Pads # times longer life than conventional Pads 1ess .eight than conventional Pads ,utstanding resiliency Does not contain ha2ardous material CMI )ads gets heated u) to a tem)erature .hich can be immediately handled by )rotective gloves CMI )ads drive )iles !!3 faster Performance increase of %#3 as com)ared to conventional )ads Potential Buyers- Contractors 4endric5 6oundation Com)any Corey Com)any CMI Cushion Pads Target Market Contractors 783 contractors o.n their e9ui)ment %83 are smaller contractor .ho rent e9ui)ment Contracts mostly a.arded on a revenue:)er:foot basis
Purchasing Infuences Pile Hammer Manufacturers : Could In;uence &ecommendations Architectural/Consulting Engineers / 4ey In;uence on )urchasing decisions Soil Consultants / Consulted only .hen e<traordinary conditions e<ist Pile Hammer distributing /Renting Companies / Provide )ads to contractors Engineering/Construction Contractors / Solicit large international =rms involved in big construction )ro'ects. Indian Institute of Management &ai)ur Independent pile-driving Contractors : 4no.ledgeable about )ractical as)ects of )ile driving but not managerially so)histicated. C>SE >*>1?SIS SWOT Analysis Strategy adoted Indian Institute of Management &ai)ur % Strengths! +echnology e<)ertise 6le<ibility of si2e Weakness Decline in sales 1ac5 of brand recognition 1ac5 of established distribution channel Oortunities *e. )roduct in the mar5et 1ess com)etition Demand of the )roduct is e<)ected to increase because of the )otential danger caused by the conventional )ads. Threats 1ac5 of a.areness about the im)ortance of )roduct Imitation by com)etitors 6ront line buying becoming less in;uential " # t e r n a l
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A n a l y s i s Positioning Indian Institute of Management &ai)ur ! Calculation of WTP for CMI ads Indian Institute of Management &ai)ur ( C,*C1-SI,* $easons for di%erence &et'een WTP and Price . > stac5 of .8 inch CMI )ad .eighs 78 to 77.8 )ound0 .hereas conventional )ad .eighs !# to (# )ound %. >cce)tability of a ne. )roduct ta5es some time. +herefore0 charging a high starting )rice close to @+P might not be the best o)tion !. It is not very easy to communicate the bene=ts of a ne. )roduct (. Conventional )ad costs A 8## )er )ad0 .hereas the Selling )rice of CMI )ad is A 7(# )er )ad. >n increment of A %(# .ill be acce)table )ricing of a ne. )roduct. Indian Institute of Management &ai)ur 8 &E6E&E*CES http://prezi.com/zontqwscszzq/curled-metal-inc/ http://wenku.baidu.com/view/367d9811a161!7917118!3 http://www.scribd.com/doc/!1"6"96/#rice-o$-%&'-#ads http://www.scribd.com/doc/1118(!"(!/%urled-&etal-'nc-)roup-1( Indian Institute of Management &ai)ur B