Impress4Less is a company founded by two b-school recent alumni. They both had taken advantage of their school's career placement services, and thought they could offer additional supplemental services and advice. They're constructing a website where anyone looking for help in positioning themselves for a new job might go to download templates of resumes, examples of personal brand brief elevator pitches, videos of strong and weak interview answers, and the like. Their plan is to offer some of those basics for free, to get people onto the website. But what they're really interested in selling is their consultation time, consisting of feedback on resumes and help with practice interviews.

They're working with their former school's entrepreneurial club in proposing to launch their online premium service for $50. This past year served as a test market at the b-school. Given the friendly partnership, and as a learning opportunity for the students, Impress4Less shared some information on basic cost structures. Their fixed costs on this project were $3,000, and variables costs were $10 per user exchange.

Currently at the b-school, the situation is as it looks in the figure below (to the left); that is, 200 users purchased their services during the last academic year at the $50 price. But the club members get regular feedback (from classmates) that the $50 price tag seems steep, so they're asking Impress4Less for a price cut of 10%, essentially going to the figure at the right.

1). Please conduct a pricing analysis on the above. Example below.

Value Capture Customer Focus) Customer Segment Marketing objective Initial Price as % of List Price Price adjustments (period) 95% 90% (3 months) 90% 85% (6 months) New customer Market (referral) development New customer (e Market commerce) Development Existing Customer (existing Market product line) penetration 85% 80% (2 months) Pricing Tactics: Describe your pricing tactics to communicate and capture the value of your product. How will you use discounts and markups to capture value? Develop a table per template below and elaborate cells with text description below the table. Note that the numbers in cells below are for illustration purposes only! Product Line Value Capture (Product focus) Pricing strategy Initial Price as % of List Price Price Adjustments (period) Premium pricing 120% 100% (6 months) Volume Discounts 90% NNN (new product