SummaryCumberland Metal Industries (CMI), which was historically one of the nation's largest manufacturers of curved metal products, has developed a new product. This product is a metal cushion intended for use during large pile driving activities with crane. The cushion is intended to prevent the impact of the hammer from damaging the pile. The CMI cushion is a “one of a kind” product because there is nothing similar on the market today, making comparisons difficult. Following successful testing alongside Colerick Foundation Company (Colerick), CMI is now looking to bring this new product to market. Like many other companies developing new products, CMI has difficulty setting a market price to accompany a marketing strategy for cushions. CMI's problems going forward are twofold. First, CMI must decide how to market its product. Second, and perhaps more importantly, CMI must decide how to price its product. With both questions unanswered, CMI should attempt to determine what the precise size of the curved metal pad market will look like. The company should study the current market size, existing distribution channels and existing competition for similar products. In summary, from an industry potential and product offering perspective, this appears to be an attractive opportunity. Potential industry size Since this is a new product and the market size cannot yet be known, CMI...... middle of paper .. ....m Professor McCormack will be of great value in gaining approval from a consulting firm. CMI must conduct a market study, estimate the price elasticity of the new pad and the demand function, and then adapt the initial price to the profit-maximized price. Conclusion CMI pads will definitely be the market leader in the industry as they are innovative and highly effective. Obtaining the patent for this pad will guarantee the growth and profitability of CMI. In this case, perceived value pricing is used, as the slab has more to offer than conventional asbestos. In accordance with this pricing strategy, the marketing mix consisting of advertising, education and distribution plays a role in ensuring the success of this product..