Guidelines

Submit your analysis of the organization’s current products/services, a plan for a new service offering, and a pricing strategy that incorporates non- monetary and financial costs and revenue goals.

Portfolio Analysis
Create a service/product opportunity matrix showing your organization’s current service offerings and your recommendations for modified and new services according to market (existing, geographic, new). Evaluate the matrix in terms of existing service growth, the organization’s mission, marketing objectives, and branding strategy.

New Product/Service Offering
As part of the product section of your plan, propose a new product or service for your organization. In your proposal, describe:

1. The product or service
2. The target audience(s) according to segmentation variables. How large is the market? What is its growth potential?
3. The specific need or problem the service will solve
4. Delivery: Discuss how the service will be provided, by whom, using what resources, at what cost, and so forth.
5. Brand positioning: Discuss how it will apply to this service. Will the current positioning be used, or will a new one need to be created?
6. The service’s relevance to the organization mission statement and its resources
7. How the characteristics of successful new products (relative advantage, compatibility, etc.) will be satisfied by the product
8. How your SWOT analysis supports your idea for the new service
9. The potential advantages of offering this new service. What are the potential disadvantages?

Pricing Strategy
Determine the price you will charge for your organization’s services. This may be based on an “average” price per service rendered. You must:

1. Demonstrate that your price allows a reasonable financial surplus in accordance with your profitability strategy, allowing for your fixed and variable costs.
2. Complete a breakeven analysis in sales and units for your current service portfolio using the contribution margin method. Complete a breakeven analysis for your new service idea.
3. What non-monetary costs does your target audience face to obtain your services or products? How will you manage those costs in terms of your pricing strategy?
4. Describe your overall pricing strategy. What is your rationale for the pricing strategy selected?
5. Identify your total year ONE gross revenues and projected gross profitability or surplus. Determine this for a three-year window, based on reasonable projections.
6. Weigh your pricing strategy with pricing currently offered by your competitors or competitor-substitutes. Consider how your proposed price fits into the target audience and compares to the competition. Your pricing should allow for sufficient surplus revenues to enable you to cover your essential fixed and variable costs.

Submission, APA, 4 pages