Cumberland Metal

Cumberland Metal Industries Cumberland Metal Industries (CMI), a company that specializes in the do of curled alloy intersections, has developed a natural coat cushion puff with long durability and better health safety to admirer contractors drive piles faster. After successfully testifying the cushion have kittenss, CMI now needs to launch this brand-new product to the grocery store. The capital concern CMI has is How to price the new pad? Since this is a revolutionary new product, vastly superior to its competitors, CMI should price the new pads as if they are a monopoly and maximize profits. However, in assemble to do this, CMI must first obtain a letters barren to prevent the pads from being copied by competitors. Until CMI obtains this obvious, they should hold off on selling them as it would invite the entry of competitors since the pad is non a high technology product and can substantially be copied. As such, the following prici ng strategy stool off be found on the fact that they gain patent protection. Value Based Pricing We believe CMI should use a prize based pricing method and consider different merchandise programs including advertising, education, and distribution channels to launch the product as closely as develop it to gain full market share.

These marketing programs are extremely important as they release for help CMI educate their customers and facilitate the perceived the value of the new pads. By knowing the price of an 11 ½ inch asbestos pad is around $3 and knowing that a CMI pad lasts longitudinal than asbestos pads, about 10 times longer, the product life of the CMI pad will have a value of approximat! ely $30. However, based on the test data from Colerick, in which they spent $ jet for asbestos pads fleck victimisation 6 CMI pads for the same job; it took $ atomic number 19 / 6 = $166.67 worth of asbestos pads to complete the same job by CMI pads. From the test data from Fazio, in which they spend $2000 for asbestos pads while using 5 CMI pads for the same job; it took $2000 / 5 = $400 worth...If you want to get a full essay, order it on our website: OrderEssay.net

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