Curled Metal Essay

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37801-Quantitative Marketing II : Pricing Strategies Group Assignment 1 Curled Metal Case 1) What are the core benefits of the new pile pad product for a customer? (list both qualitative factors and factors that you can quantify based on the case). Quantitative 1-Feet driven per hour performance-( hourly hammer,crane ,labour ,overhead cost) 2-Piles driven per set of pads 3-Number of pads used for each set 4-Time required per change of a set-( hourly hammer,crane ,labour ,overhead cost) Qualitative 1-Inadequate pads have risk of cracking the pile 2-Most of pads are unbranded 3-There is no real way of distribution, manufacturers offer heavy supply houses carry 4-Distibutors have low absolute amount of margin in pads…show more content…
Those group of customers are the ones with the highest value received and a premium pricing should be done. The cons for that strategy will be the hesitation of renting companies who are willing to increase the rental period and may also offer pads included renting to prevent the usage of the CMI pads. Other strategy might be focusing on the distributors which might add value by the convenience of availability and delivery and it would be a nice incentive for the distributor to get rid of conventional type pads instead foster the sales of CMI product with higher price and for use with higher absolute margin. I would recommend the second as most sustainable and successful way of placing the product into market. | Exhibit 1 Differentiation analysis for Kendrick | | | | | | Conventional Pads | CMI Pads | | | | 1. | Feet driven per hour while pile driver was at work | | | | | | | (does not consider downtime) | 150 | 200 | | | | 2. | Piles driven per set of pads | 15 | 300 | | | | 3. | Number of pads per set | 24 | 6 | | | | 4. | Number of sets required | 20 | 1 | | | | 5. | Number of set changes | 20 | 1 | | | | 6. | Time required for change per set | 20 minutes | 4 minutes | | | | 7. | Kendrick cost per set | $150 | Not charged | | | | 8 | Unit Pad cost | $ 6.25 | | | | | 9 | Total feet driven(300Pile*50) | 15000 | 15000 | | | | 10- |

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