Cumberland Metals

BackgroundCumberland Metal Industries (CMI) was one of the largest manufacturers of curled metals products in the US. From 1963 to 1979, their profits have grown nearly %800 from $250,000 to $18,500,000. CMIs primary product was the exhaust gas recirculation (EGR) valve on U.S automobiles. Wanting to expand their product lines, CMI introduced a newly designed cushion padan integral part of the process for driving piles. The cushion pads prevented the shock of the hammer from damaging the hammer or pile. With an ineffective pad, energy transmitted from the hammer would be given off as heat, and the pile could start to vibrate and possibly crack. Asbestos pad used to be the primary pads used. However, the cushion pads outperform asbestos pads by a huge number.

ProblemsCMI faced many challenges in their efforts to introduce cushion pads into the labor and tools market. One of CMIs challenge was identifying and building relationships with entities that participated in purchases, such as: pile hammer manufactures, architectural/consulting engineers, soil consultants, pile hammer distributing/renting companies, engineering/construction contractors, and independent pile-driving contractors. Another one of CMIs challenge was to identify the best channels of distribution. Some options that CMI have to weigh between are a direct sales force, their own distribution outlet, and construction-oriented manufacturers representatives. A third challenge was to determine the price point at which CMI would sell their cushion pads. Lastly, CMI was uncertain how to market the pads. Advertising and promotion concerned CMI because there were no precedents for this product or market.

RecommendationsCMI has a golden opportunity to become an industry leader, as well as very profitable from the cushion pads. However, in order to do so, CMI has to select the best strategic platform for each problem area. My recommendations for the channels of distribution are the use of construction-oriented manufactures representatives, as well partnerships with other distribution outlets. The use of representatives would act as the foot solders in recommending cushion pads to the public, also spreading news through word-of-mouth. By partnering with distribution outlets like Sears or Home Depot, it would allow a way for customers to purchase pads at their convenience. My recommendations for how to market the pads are to develop relationships with the purchase entities in which they can be used to direct all marketing efforts through their channel. All marketing efforts should be geared towards those specific channels because it would be the best strategy for CMI to raise awareness for their cushion pads. Cushion pads are for a niche market, almost exclusively used only by engineers, architect, and construction workers. Therefore, it would be most viable and cost effective to market to those individuals through the channels they are most connected too. Lastly, my recommendations for advertising and promotions for the pads are to use tradeshows, ads in magazines, in-store advertisement, and recommendations from leading experts such as from professor R. Stephen McCormack.