Curled Metal Inc. Case Study

Recommendation: Curled Metal Inc. (CMI) should price the cushion pads at $1,630 and target pile-driving contractors. 

3C Analysis: The cushion pads are designed for customers in the pile-driving business that care about cost-effective efficiencies. Key customers are 1) engineering/construction contractors and 2) independent contractors who aren’t managerially sophisticated but are knowledgeable about pile-driving. With its Slip-Seal technology, CMI has innovative approaches that enable it to diversify. Its competitive advantage is that the company has past success in its Slip Seal technology, gaining a first-mover reputation. It’s technically capable, as CMI’s metal pads are safer and more efficient than conventional pads. CMI’s weakness is that it lacks brand recognition for this technology, has no apparent patents to consider, and has relatively low capacity. Considering competition, the pile-driver industry has no dominant manufacturer despite pile hammer distributing/renting companies providing pads. An industry weakness is that the pads are not considered a work-saving tool, but only a necessary part of business.

Strategy: One key issue here is to figure out what segment to target. While pile hammer manufacturers, architectural/consulting engineers, and soil consultants are key purchase influencers, the needs of the direct buyers - the large international engineering/construction contractors and cost-driven independent pile-driving contractors - match with CMI’s offerings. CMI is able to deliver a more durable and higher quality product to save time and money for construction contractors.

Tactics: CMI’s pads reduce downtime and provide greater efficiency, resulting in cost savings on the pile-driving process. It is best to price the product at $1,630 to deliver high value to the customers while ensuring indifference, since they are able to receive the conventional pads for no cost (see appendix 1). CMI should concentrate its effort on selling pads to direct buyers in order to gain its reputation in the market. CMI should advertise its cost-saving and time-saving efficiency based on the test results through magazines like “Oklahoma Contractor, ” support Professor McCormack’s research and encourage him to publish it, and host seminars like “Piletalk” to compare the performances between conventional pads and CMI pads. A free trial promotion before signing contracts would also dispel product uncertainty.