A4

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 two new pricing techniques. Your boss will meet with you at the end of the month to hear your proposal. 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.

Introduction

Describe the contents of the memo

Product or Service

Briefly describe your product or service. (Address the prompts below)

What utility or benefit does it provide to consumers?

Has your company offered this product or service in the past?

Which competitors offer the same or similar products or services in the market?

How has you company tried to stay competitive in the past?

Price Discrimination

Proposals Briefly describe the first price discrimination technique that you will use. (Address the prompts below)

What is the current price?

What will the new price be?

How will this technique generate more profits?

Briefly describe a second price discrimination technique that you will use. (Address the prompts below)

What is the current price?

What will the new price be?

How will this technique generate more profits?

Impacts on Market Demand

Explain and quantify how your proposal will impact sales within the first three months.

o Quantify using your assumed logic and consider displaying the impact in a data table. If actual data is not available or not permitted by the company for use in this assignment, you may use hypothetical trends or data, based on your understanding of similar companies in the industry.

Explain and quantify how your proposal will impact sales within eighteen months.

o Quantify using your assumed logic and consider displaying the impact in a data table. If actual data is not available or not permitted by the company for use in this assignment, you may use hypothetical trends or data, based on your understanding of similar companies in the industry. What could the company do differently, as a result of the increased sales?

Conclusion

References