Assignment: Price Discrimination Memo
Your boss has just given you an important, high priority assignment. The company's core business product has shown steadily shrinking profitability and you've been asked to address the problem by coming up with at least one new pricing technique. Prior to the meeting, your boss would like to see a brief Memo that outlines your proposal and explains the impact it will have on units sold and profits.
Instructions
Develop a Memo of 2 to 3 pages for your boss. As a Memo is a succinct business communication, it is helpful to work through your ideas before writing the document. When you are ready, use the Sample Outline provided at the end of the Instructions to structure your assignment document.
1. Describe the company's product or service, using relevant economic terminology. Questions to address include, but are not limited to:
• What is the product or service? What Utility or benefit does it provide to the consumer?
• What is your company's history with this product or service?
• What does the competition in the market look like for this product orservice?
• What actions has your company taken to remain competitive?
2. Provide at least two specific proposals for price discrimination:
• Which Price Discrimination technique(s) will you use?
• What is the current price? What will be the new price?
3. Explain how implementing your proposal is expected to impact consumer demand:
• How will your proposal impact sales in the first three months?
• How will your proposal impact sales within eighteen months?
• What would increased sales enable the company to do differently?
Professional Formatting Requirements
Your assignment should follow these formatting requirements:
• Typed, double-spaced, professional font (size 10-12), include headings and subheadings, with one-inch margins on all sides
• In place of a Cover Page, provide the following heading at the top of Page One of your Memo:
- TO: Insert Professor's Name
- FROM: Insert Your Name
- DATE: Insert Date Submitted
- RE: Managerial Economics 515 - Assignment 3 -Price Discrimination Memo
• Include a References page that enables the reader to locate original sources. Application and analysis of course materials and resources are expected, and additional research is welcome
• The References page is not included in the required length