CUMBERLAND METAL INDUSTRIES – GROUP 1

CUMBERLAND METAL INDUSTRIES GROUP 1

TRIAL ANALYSIS - COLERICK ASBESTOS FEET DRIVEN PER HOUR 150 PILES DRIVEN PER SET 15 NUMBER OF PADS 24 NUMBER OF SETS 20 NUMBER OF SET 20 TIME REQD FOR CHANGE 20 MINS COLERICK COST PER SET 50 CHARGED CMI 200 300 6 1 1 4 MINS NOT

ISSUES INVOLVED PRICING STRATEGY ESTIMATE SIZE OF THE MARKET SHOULD THE COMPANY INVEST IN NEW TOOLING

VALUE PROPOSITION NEGATION OF HEALTH HAZARDS ASSOCIATED WITH ASBESTOS USAGE- LEITMOTIF TIME REDUCTION REDUCED WAITING TIME FOR THE PADS TO COOL REDUCED DOWNTIME FOR CHANGEOVER OF PADS

MORE EFFICIENT ANY DIAMETER FROM SAME BAND OF CURLED METAL BETTER HEAT DISSIPATION THREE DIMENSIONAL RESILIENCE

CREW FRIENDLY IN TERMS OF HANDLING AT TEMPERATURE GENERATED REDUCED COST DUE TO LONGER LIFE

PROPOSED HIERARCHY OF ATTRIBUTES REDUCED OCCUPATIONAL HAZARD (HEALTH AND SAFETY) EXPLOIT WELL PUBLICISED HEALTH DANGERS - PULL OF THE MARKET TIME VALUE ENHANCED EFFICIENCY COST SAVING HORIZONTAL DIFFERENTIATION

MARKETING STRATEGY

MARKET SIZE EQUIPMENT DIRECT OWNERSHIP 13000 LEASE - 6500 TO 13000 TOTAL - 19500 TO 26000

EQPT USAGE 30 HRS X 25 WEEKS = 750 HRS PER HAMMER PER YR AVG ACTUAL DRIVING RATE 20 FT PER HR NUMBER OF PILES DRIVEN ANNUALLY 19500 X 750 X 20 = 290 MILLION FEET 26000 X 750 X 20 = 390 MILLION FEET

MARKET SIZE USAGE CURLED PADS 6 PADS FOR 10000 FEET LIKELY MIN /MAX MKT DEMAND ESTIMATE ( 290,000,000 ) / 10000 X 6 = 174,000 PADS ( 390,000,000 ) / 10000 X 6 = 234,000 PADS

MARKETING STRATEGY CONSUMER ANALYSIS INDUCE INTERMEDIARIES TO PROMOTE PRODUCT PULL STRATEGY - CREW HEALTH AS LEITMOTIF INFLUENCER SEGMENT SOPHISTICATED / UNSOPHISTICATED FRONTLINE BUYING INFLUENCE - NOT SOPHISTICATED 25% OF MKT

COMPETITION ANALYSIS CONSUMER CONSIDERATION SET HAD ONLY UNBRANDED PRODUCTS FIRST MOVER ADVANTAGE

MARKETING STRATEGY MARKET ANALYSIS DESIRE FOR ASBESTOS FREE MATERIAL SIX INFLUENCERS STANDARD INDUSTRY PRACTICES LARGELY TRADITIONAL

EVALUATING ECONOMICS BASE PRICE PRICING GOAL

MARKETING MEDIUM NO NATIONAL INDUSTRY ASSOCIATION WORD OF MOUTH COMMUNICATION PILE TALK SEMINAR LOUISIANA CONTRACTOR ENDORSEMENT OF OPERATIONAL PERFORMANCE BY PROF STEPHEN

MARKETING STRATEGY DISTRIBUTION CHANNEL HEAVY CONSTRUCTION SUPPLY HOUSES PILE MANUFACTURERS HAMMER SALES AND RENTAL OUTLETS

TARGET MARKET SEGMENT PILE HAMMER MANUFACTURER LOW VOLUME CUSTOMERS INFLUENTIAL RECOMMENDATIONS

ARCHITECTURE / CONSULTING ENGINEERS ULTIMATE AUTHORITIES FREQUENTLY MENTIONED PADS MOST IMPORTANT PURCHASE INFLUENCES

SOIL CONSULTANT CONSULTED ONLY ON EXTRAORDINARY CONDITIONS

PILE-HAMMER DISTRIBUTING/RENTING COMPANY NEED FOR EDUCATING NO DECREASED REVENUES DUE TO REDUCED USAGE TIME

TARGET MARKET SEGMENT INDEPENDENT PILE DRIVING CONTRACTORS FRONTLINE BUYING INFLUENCE EXPLOIT THEIR PRACTICAL ASPECTS KNOWLEDGE

PROF R STEPHEN OF A&M UNIVERSITY FOR ENDORSEMENT OF THE OPERATIONAL PERFORMANCE OF CMI TO INFLUENCE INDUSTRY ACCEPTANCE

THANK YOU