Unsure where to start?
1. Think about what you know and what you do not know.
2. Then identify what you need to know and where to get the data.
3. Then get all the data you can.
4. You might want to attempt this project in four suggested phases:
Phase 1: EXISTING DEMAND - determine the number of customers and average demand per customer for the product in Nanaimo (find some researched evidence to support what share of that product would be yours…(avoid grandiose assumptions)).
Phase 2: Once the existing demand is determined, then select two different pricing strategies that you would employ for your product. Describe how you would implement those strategies, how they would differ from each other and discuss how the forecasted demand (units) as well as sales in $ based on your new price would be impacted. Also, identify any costs that would be associated with implementing your ideas.
Phase 3: Create a spreadsheet (preferably in excel) for each of the above situations.
a) One showing just the market demand (units) with no price strategy involved – assume everyone is equal
b) Create a second spreadsheet for one of your price strategies showing:
i) market demand (units)
ii) total sales revenue (based on one pricing strategy)
iv) Using your plans to implement one of your price strategies identify any associated costs for your idea
v) Project the demand over at least a 3 year period and estimate the profit per year (it is quite common to lose money the first year or so after implementation-Break Even might take 2-3 years)
c) Create a third spreadsheet for your other price strategy repeating what is in b above.
Phase 4: Write a cover page. Write an introduction to the paper. Write the main body of the paper identifying and describing the two price strategies you intend to use and describe how they will differ in how they impact demand and profitability (feel free to reference your spreadsheets that you put in your appendix). Write a concluding/summary paragraph that determines which of the two proposed pricing strategies would be best, providing an evidentiary explanation as to why. Add a reference list. Add appendices as needed (you can embed excel spreadsheets within a word document – just check on a different computer that you can view them properly). Email your work ahead of time (WORD document format) to avoid being late due to technological problems or Murphy’s law.