Boa Technology Assignment PDF

Dan Cummins
Case Brief #1: Boa Technology
Date: 05 November 2018
1. Problem Statement: The main problem that the company is facing is to decide the pricing of the
Cushion pads. They have to decide a price strategy which channels to market the pads. They need to
develop marketing objectives on the selected pricing strategy.
2. Situation Analysis: Correct pricing of the CMI pad to acquire market potential.
Company
 Curled Metal Inc., -Engineered Products Division specializes in selling metal-based products across
various markets and leads in the manufacturing of “Cushion Pads”, which are used to drive piles
penetrating deep into the ground and supporting long structures such as buildings, bridges etc.
 The local vendors supply the raw material for the production of these cushion pads. The company
thereafter, flattens these curls and makes pads to drive piles. The company then examines its products by
using them to drive piles and providing support to large structures (Wolkenfelt, M. and Situmeang, F.
2018).
Customers
 The large contractors are their primary customers, as they can afford to buy the expensive pads.
Competitors
 The management at CMI don’t have much competitors, but they are quite feared that if their competitors
discover this new methodology of making cushion pads, others will already be capturing a huge percentage
of market before they get a patent protection.
 The local manufacturers are unaware of the technology CMI is using. They produce unbranded pads and
made of local materials like aluminum and micarta slabs.
The technology to produce cushion pads was pretty high, so the local manufacturers till now have not shown
much interest (Qiu and Messinger, 2013).
Collaborators
 The Kendrick Foundation company and Corey company are the main stakeholders of the company.
 The consumers, pile hammer influencers, engineering and construction contractors play a major role in
enhancing the business of the company.
3. Unchosen Alternatives
Marketing Strategy
The product is good, but receives no good marketing strategy, is a complete loss to the company, and in
competition, other companies take the benefit.
Lots of advertisement in business newspapers, industrial magazines, and advertisement on corporate social
platform like LinkedIn etc., should be done so that the customer gets an awareness of the product (Matsumura and
Matsushima, 2015)
Video of expert testimonials of the product should be shown on company website and other business websites,
providing the description of the quality of the product and talking its key highlights. (Sääskilahti, 2015)
1. Furthermore, workshops and seminars can be held to educate and make the customer aware of the
benefits of the product (Abdullah Saif, 2015).
Pros: Cons:
 The product will observe a wide coverage.
 Will reach out to the right audience
 Easily communicate with the focus market
 Higher profits due to sale of the product.
 Market share of the company will go high.
 The product will be globally accepted , and
 Will miss out the People who follow old school
thoughts and are not there on online platforms
or doesn’t believe in visiting seminars
 People may think video testimonials as a paid
strategy which can lead to negativity
(Varadarajan, 2015)

the company will achieve a major dominance
in the market.
Toulmin Conclusion.
CLAIM DATA WARRANT REBUTTAL
Product Differentiation Strategy
The Curled metal Inc suffered a huge decline in sales but the launch of cushion pads can be a boon to the
company. The cushion pads are simply incomparable. The product is exclusively different from the local
conventional pads. They take less time to complete the work, so can be used a time saving tool. It does not
contain any hazardous materials. They are easily replaceable, because they only heat up to a temp. of 250-degree
Fahrenheit, and can easily be handled with protective glove. All the benefits, can make the product easily
identifiable in the market, if proper marketing strategy is implemented (Choi, 2012).
Pros: Cons:
 Highly liked by the costumers.
 Work saving tool.
 How to communicate this to the right consumer
 There will no Reason To believe and without
which it will be very difficult to convince the
consumers

Toulmin Conclusion.
CLAIM DATA WARRANT REBUTTAL
4. Recommendation
Correct Pricing
The CMI pads should be placed at a little higher price, compared to the conventional
pads because of its numerous benefits. Even at a higher price, customer will buy because
it has long term benefits. Also, the company, instead of using the slip-seal technology, should keep using old
equipment to produce cushion pads, as they are easily available with the local manufacturers also (Matsumura and
Matsushima, 2015).
This will bring higher profits to the company. Also, it would be profitable, if the company sticks to
manufacturing one particular size of cushion pads (Feurer, Schuhmacher and Kuester, 2018)
Pros: Cons:
 High demand of the product
 Global Dominance of the company in the
market. (Guiltinan, 2011)
 Very High price will reduce the percentage of
consumers buying the product.
 People will switch over to less pricing options.
(Varadarajan, 2015)
No
advertising of
the product
has been
done.
People are unaware
of the benefits of
the product.
No growth of the
company till the
product makes a
good hold in the
market.
Even if the product is
acknowledged, higher
pricing will divert the
customers to other options.
The efficiency of the
product is very good
which calls for a high
demand in the market
People need to know its
benefits through proper
marketing strategies.
The company
needs to grow
and
compensate
the previous
losses by
launching
good pricing
options.
The company has to place
the product at a higher cost,
but not as high, that the
people have multiple
options.

Toulmin Conclusion.
CLAIM DATA WARRANT REBUTTAL
5. Implementation Plan
The prime goal of the business is not only to identify problems and come up with solutions but also, give strong
implementation plans, which gives success to the company. The objective of the company should be to maximize
profits. For this, they need to analyse the pricing of the product. As per recommendation, if the pricing of the
cushion pads is placed higher, still the customers will buy owing to its speed and efficiency.
If CMI gets the patent, no other company can come up with the same product in the market. They can put little
maximized prices, but with an initial promotional discount in order to capture the market.
Through marketing strategies, the company has to prove that their product is the best at a particular given price
(Nagler, M., Kronenberg, F., Kennelly, E. and Jiang, B. 2011).
Task Other? Other? Budget Timeline
The task is to launch
the new pad with a
correct marketing
strategy.
Advertisements, seminars,
etc can be done.
Product is very efficient,
so same equipment
should be used.
- Promotions
till the
product
captures the
market.
Appropriate pricing Pricing should be kept
higher than the local pads
Maximize the profit
margin.
10 times more
than the normal
pad.
Promotional
discounts can
be given.
2-3 weeks
Concluding, The company must do a market survey, calculate its appropriate pricing , adopt marketing strategy,
advertise the product through various online and offline sources.
6. Extras
Exhibit 1: The correct marketing of the product can help the company to get higher profits as well as compensate
for previous losses. We can give a good pricing and marketing strategy for this.
1. Maximize the quantity sold
2. Maximize profit margin
3. Use existing equipment to produce cushion pads
4. Take benefits of the existing distribution network like supply houses and rental companies (Qiu and
Messinger, 2013) .
CMI pads have a
very good quality
compared to
conventional pads
Saves time. CMI pads can be put at
a higher price, owing to
great efficiency.
Higher price of the pads
may force the
customers to look for
cheaper options.

Exhibit 2: Income Statement of CMI
Exhibit 3: The following is the comparative pricing of the different size of pads.

7. References
Abdullah Saif, N. (2015). How does Marketing Strategy Influence Firm Performance? Implementation of
Marketing Strategy for Firm Success. International Journal Of Innovation And Economic Development, 1(3),
pp.7-15.
Choi, K. (2012). A NOTE ON PRICING OF PRODUCT QUALITY FOR STATUS CONCERNS. Bulletin of
Economic Research, 66(4), pp.333-345.
Feurer, S., Schuhmacher, M. and Kuester, S. (2018). How Pricing Teams Develop Effective Pricing Strategies for
New Products. Journal of Product Innovation Management.
Guiltinan, J. (2011). Progress and Challenges in Product Line Pricing. Journal of Product Innovation
Management, p.no-no.
Matsumura, T. and Matsushima, N. (2015). Should Firms Employ Personalized Pricing?. Journal of Economics &
Management Strategy, 24(4), pp.887-903.
Nagler, M., Kronenberg, F., Kennelly, E. and Jiang, B. (2011). Pricing for a credence good: an exploratory
analysis. Journal of Product & Brand Management, 20(3), pp.238-249.
Qiu, C. and Messinger, P. (2013). Pricing decisions of skill-based products: The role of used-product
markets. Journal of Revenue and Pricing Management, 13(2), pp.133-148.
Sääskilahti, P. (2015). Buying Decision Coordination and Monopoly Pricing of Network Goods. Journal of
Economics & Management Strategy, 25(2), pp.313-333.
Varadarajan, R. (2015). Strategic marketing, marketing strategy and market strategy. AMS Review, 5(3-4), pp.78-
90.
Wolkenfelt, M. and Situmeang, F. (2018). The Analysis of the Consequences of Product Pricing Structures on
Product Evaluations. Academy of Management Proceedings, 2018(1), p.10067.