Assignment:
In the last unit, you reflected on the product element of the marketing mix. You were asked to present a new product to the CEO. The CEO likes the concept but wants you to come back with a strong pricing strategy. Based on the diagram and information below, discuss your pricing strategy for your new product.
1. Make sure you include pricing objectives, industry conditions and the pricing strategy you recommend for your product.
2. Try to be as specific as possible and provide the CEO with a recommended price for 1 single unit.
3. Lastly, create a break-even analysis based on your average sale based on the following numbers:
Fixed cost per year - $500,000
Average cost per single unit - $ this number is provided by you.
Variable cost - 40% of average cost per single unit.
Types of pricing
• Cost based pricing
• Demand based pricing
• Competition based pricing
• Value based pricing strategy
• Maximizing volume pricing
• Prestige pricing
• Reference pricing
• Bundle pricing
• Multiple-unit pricing
• EDLP pricing
• Odd-Even pricing
• Customary pricing
Attachment:- Pricing decision.rar