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

...