VALUE: 15% OF YOUR TOTAL GRADE
Resubmit your marked copy of Report I and add: (you may renumber your pages to Part II from where you left off in Part I)
6. Product Strategy
a. Identify the Product
Class (For Example state if, Impulse Convenience Good, New Unsought Good,
etc. or if a B-2-B Product, Installation, Accessory Equipment, etc.)
- from the text, Chpt 9. beginning on page 242
b. Identify your productís current PLC Stage
c. Complete description of the
i) Core Benefit
ii) The Actual Product/Service/Experience (include any product liability or safety concerns)
iii) the Augmented Product (warranty, value added services, financing, etc).
Note: Be sure to describe the versions/models of your product, its quality level, features, style and design, packaging and labelling (submit a hand drawn picture or computer generated graphic, or 3D mock up of your productís packaging).
d. Select a Brand Name
and identify the type of Brand Sponsorship (i.e. will this be a
national brand, a private label brand, a family brand, etc.)
f. Identify the brand development to be used: New Brand, Line or Brand Extension, or Multi-brand)
- see Branding from MRK 106 witiger.com/marketing/branding.htm
g. Indicate how value will be created by the Actual Product and the Augmented for your target market(s).
7. Price Strategy
a. Pricing Objectives
(survival, long term profit maximization, short term profit
maximization, market share growth, market stabilization, etc.)
b. Describe how your price supports the productís positioning.
c. Will you be using a fixed (one price) policy for all customers or a flexible (negotiated) price for different customers?
d. Explain how your price relates to demand elasticity in the market place.
- elasticity witiger.com/marketing/supply-and-demand.htm
e. What other internal and external factors were considered when setting the price?
f. Show the Suggested List Price(s) for your product charged to final customers.
g. Show prices charged to all channel members (retailers and/or wholesalers)
h. Discuss other adjustments to List Price (Discounts, Allowances, geographical/freight pricing)
i. Identify the New Product Introductory Pricing strategy and provide your rationale for using it.
j. Do you intend to use a Product Mix Pricing Strategy? If so, will you use product line pricing, complementary pricing, bundle pricing, etc.?
k. Will you be offering Leasing options? If so, what are your leasing terms?
- Develop + calculate market and sales potential and forecasts
- estimate Market Share at the end of 2 years, at the end of 5 years
- use industry examples of similar products to evaluate your potential
- refer to industry association reports, newsletters or websites
- check witiger.com/internationalbusiness/countryinfoAssociations.htm
market forecast is a core component of a market analysis. It projects the
future numbers, characteristics, and trends in your target market. A standard
analysis shows the projected number of potential customers divided into
segments. These numbers are estimates. Nobody really knows, but we all
make educated guesses."
Tim Berry http://articles.mplans.com/what-is-a-market-forecast/ and http://articles.mplans.com/market-forecasting-should-be-part-of-your-plan/
Calculate Break-Even Analysis
Total profit equals the number of units sold multiplied by the selling price less
the number of units sold multiplied by the total variable cost minus the total fixed cost.
Special Implementation Problems to be overcome
- based on Chpt 18, page 513
- people required, special training
- special manufacturing considerations
- and special resources needed
Summary and Conclusions
- your personal comments as to how well this plan would really work in the "real world"
- what things would you need better information about to do this
- what challenges or problems did you have in developing this 3 part plan