Curled metal inc

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Fourth, CMI needs to establish a network of influencers or increase publicrelations. To do so, CMI needs to established networks in a new industry to thecompany and key influencersto endorse its product. The result from ProfessorMcCormack will be of high value to gain endorsement from consulting firm.Fifth, CMI needs to do market research, estimate the priceelasticity of the new pad and the demand function and then adapt the initial price to the profit-maximized price.
Conclusion
CMI’s pads definitely will be the market leader inthe industry as it is innovative with high efficiency. Getting patent for this pad will ensure the growthprofitability of CMI. In this case, perceived value pricing is used as the padhasmore to offer than conventional asbestos. In line with this pricing strategy,marketing mix of advertising, education and distribution play a role in ensuringthe success of thisproduct.

Figure 1 –
Units Needed Monthly to Fulfill Industry Demand at DifferentMarket Shares
Figure 2 –
Conservative Production Schedule for First Year
(
11 ½”InchDiameter Units Only)
MedianUnitsNeededMinus 250 UnitsAvailable CapacityAdditional ProductionCost ($75,000/250 Units)Total UnitsProducedQ1 (25%Market Share)708.33458.33$150,000 750Q2(25%Market Share)708.3458.3$150,000 750Q3 (50%Market Share)1416.6651166.665$300,000 1500Q4 (50%Market Share)1416.6651166.665$300,000 1500
Totals 4249.96 3249.96 900000 4500
Figure 3 –Total

Manufacturing Costs With and Without $50,000 Tooling Expense
11 ½” Inch Diameter Units Only

Calculation Chart to Arrive at these Conclusions:UnitsProducedTotalManufacturing CostTotalManufacturingCost (w/Equipment)AdditionalCapacityCostTotalCostTotal Cost (w/PermanentTooling Expense)2503703017295-3703067295500740603459075,000149,060159,590...
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