, having analyzed Cumberland Metal Industries' (CMI) new product launch, has prepared this report detailing the superior performance of curled metal pads. We believe that CMI has developed a product that will revolutionize the pile driving industry. This curled metal cushion pad will allow companies to operate much more efficiently, thereby enabling companies to improve performance and realize significant time and cost savings. .
Objective.
Established in 1963, CMI is one of the country's largest manufacturers of curled metal products. However, as doubts arose regarding the company's ability to maintain its market dominance, it was imperative for CMI to diversify and expand its product offering. While integral to the operational and technical aspects of the industry, cushion pads were taken for granted as no substitutes were available. Damage from heat and shock, consistent down-time required for changing the pads, and potential health risks resulting from the use of asbestos pads provided an opportunity for the introduction of a more suitable alternative. CMI has indeed developed a suitable alternative made of curled metal which addresses these issues, thereby increasing awareness of the importance of cushion pads within the industry. With the ability to withstand high levels of shock and heat, this innovative pad will reduce damage to hammering equipment and to the piles themselves. This pad is also expected to outperform asbestos pads both in longevity and ease of use. To ensure the products' prices will be well received in the market, CMI invested in the capabilities of the professional staff at Jacko Consulting, Inc. to provide an economic value-added analysis and a marketing recommendation that will ensure a successful product launch. .
Economic Value Analysis.
Prior to setting a price for CMI's cushion pads, it was necessary to determine the product's intrinsic value to customers by conducting an Economic Value Analysis (EVA).