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Case Study:. Canty International. Main Event, Facts & Characters. Request for proposal received from Bryants Inns (Diana Cromwell) to Bob Sweeney Requested a substitute to replace wall coverings(vinyl/paper based). Attractive Fire resistant

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case study

Case Study:

Canty International

main event facts characters
Main Event, Facts & Characters

Request for proposal received from Bryants Inns (Diana Cromwell) to Bob Sweeney

Requested a substitute to replace wall coverings(vinyl/paper based)

  • Fire resistant
  • Pass safety requirements
  • Competitive in price(high value)
  • Sound proof
  • Durable

Purchasing agent’s requirements:

facts on product produced
Facts on product produced

Techno-Fibre cover

Lightweight sturdy bamboo fibre core


--abrasion resistant, soil proof

--Low maintenance, fire resistant, sound proofing

Estimated 10 year value

*All products are produced upon customers designated orders


How can Canty International establish the value that Decoline will contribute to the industrial and commercial industry consumers?

numbers breakdown
Numbers Breakdown

Fixed Costs

Break-Even Point = $24.75

At 500 m₂

Variable Costs


We assume:

Canty International is well established

No other products in the market are like Decoline

Canty International has the funds to develop Decoline

No other company has the advantage of a design lab

competitive analysis
Competitive Analysis
  • Decoline doesn’t have any direct competition but they have a lot of competitors that offer similar style products
  • Decoline lasts 5 times longer than the current products on the market
swot analysis
SWOT Analysis


  • The design lab allows the company to produce a product that completely meets the customer’s request.
  • Making a greater profit due to the supply of high quality materials at minimum cost


  • Not meeting current capacity restrictions
  • Problems at any area of production may delay the process of making a product
swot analysis1
SWOT Analysis


  • Many growth opportunities because of the design lab


  • Losing market shares if their products don’t equal or surpass their competitors’ products
target market
Target Market

Hospitality and Service Industries




Retirement Communities

Focus on North America

alternative 1 price skimming
Alternative #1: Price Skimming

Canty International will set high price for Decoline initially to maximize revenues


High price equates to high quality

High price will limit demand giving time to build production capacities

Better to price too high than too low

alternative 1 price skimming1
Alternative #1:Price Skimming


Competitors may enter the market with a lower price

Company may have high unit costs associated with small volume productions

When the price drops past customers may feel cheated

alternative 2 market penetration
Alternative # 2: Market Penetration

Initially set the price low to attract more consumers


Low price will build sales, market share, and profits quickly

As sales grow, costs drop, which causes the price to drop

Discourages competitors because the profit margin is low

alternative 2 market penetration1
Alternative # 2: Market Penetration


Lower price will cause larger volumes, which may cause the company difficulty to keep up with demand

Consumers may believe low price means low quality product

Company will have a hard time increasing selling price later

alternative 3 value based
Alternative # 3: Value-based

Decoline is prices to match Customer’s value perception


Higher the value perception, higher the sales

Donation to charity increases company’s image

Decoline will perceived as prestigious, because of their high prices

alternative 3 value based1
Alternative # 3: Value-based


Consumer research implementation costs

If consumer’s value perception of Decoline decrease, less products are sold

Value of products depends on how consumers view them


Price Skimming


Plan B

Price is set at $30.99

to get 25% in markup

Break-Even Analysis
  • Fixed costs
  • Variable costs
  • Break-even point

Pricing strategies

  • Cost-based
  • Competitor-based
  • Value-based

Course Concepts:

Monopolistic competition

Price Skimming

key findings
Key Findings
  • Canty International is world renowned and that helps launch a new product into the market.
  • RFT requested for a product with certain specifications.
  • Current products in the market don’t measure up to Decoline.
  • Case reference materials: Marketing, Canadian edition
    • Dhruv Grewal, Michael Levy, Ajax Persaud and Shirley Lichti; McGraw-Hill Ryerson, 2009

Created by Group B

Sayali DeshmukhAman DhaliwalKai Min (Leo) HuangLeslie McCollumBrittany PetersenEmily SandhackColin Williams