Reference no: EM133847239

Case: For this second assignment, please provide at least a 500-word analysis of your Pricing Strategy for the new product. Based on your first paper describing your product, determine the following Pricing information to determine the actual price you would sell the product. The more details and calculations (show your work with charts and Excel spreadsheets) you can create, the more realistic your numbers will be.

Cost Analysis: List of raw materials and their costs, manufacturing, and assembly costs, including machinery, facility rent, human resource costs, packaging costs, and storage costs. Continue with transportation, warehousing, and additional packaging costs to get the product to the retail location or ship it directly.

A critical threshold is the break-even point. Determine the minimum price point the product can be sold at, then build on that with a suggested retail price where both the retailer and the manufacturer profit. Then, a suggested pricing plan strategically gets customers to buy the product. This may include any package deal pricing, discounts, couponing, or other pricing strategies described in the book.

The second part of pricing is creating a budget for marketing. Since marketing costs so much money (for example, One 30-second Superbowl commercial costs over $6 million to show it one time), you will need to project how you will advertise the product to customers and how much that will cost to generate sales. This paper will help set up your promotional paper later in the term.

Question: How much are you willing to spend on marketing and promotions, where will the ads take place, how often, what is the market focus, and what are any influencer payments? If you have social media, remember to include the cost of at least one social media manager, if not a whole team, including salaries, benefits, and office space.  Get quick and affordable assignment help now!

Lastly, you need to have projected sales and profits for the company based on this pricing and promotional spending. Otherwise, you will be going out of business since you need to make money to spend money. Create a simple projection of sales forecast for the next three years, how much that will cost, along with the marketing campaign, and then show possible profits.

Remember that all numbers are projected estimates and do not have to be perfect. Still, they represent your understanding of how much it costs to make the product, advertise it, and produce sales so you have money coming into the business. Hence, you, as the entrepreneur, make some money.