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:
- The product or service
- The target audience(s) according to segmentation variables. How large is the market? What is its growth potential?
- The specific need or problem the service will solve
- Delivery: Discuss how the service will be provided, by whom, using what resources, at what cost, and so forth.
- 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?
- The service’s relevance to the organization mission statement and its resources
- How the characteristics of successful new products (relative advantage, compatibility, etc.) will be satisfied by the product
- How your SWOT analysis supports your idea for the new service
- 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:
- Demonstrate that your price allows a reasonable financial surplus in accordance with your profitability strategy, allowing for your fixed and variable costs.
- 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.
- 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?
- Describe your overall pricing strategy. What is your rationale for the pricing strategy selected?
- Identify your total year ONE gross revenues and projected gross profitability or surplus. Determine this for a three-year window, based on reasonable projections.
- 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.
Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!
Step-by-Step Writing Guide for Product/Service and Pricing Strategy Assignment
Step 1: Analyze Current Products/Services
Start your paper with an overview of what the organization currently offers. Include:
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A list of current services/products
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The markets they serve (existing customers, new areas, online vs. in-person, etc.)
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How they align with the mission, branding, and goals
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Identify gaps or opportunities based on performance or customer feedback
Use a service/product opportunity matrix (Ansoff Matrix format is ideal):
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Market Penetration (existing products, existing markets)
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Market Development (existing products, new markets)
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Product Development (new products, existing markets)
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Diversification (new products, new markets)
Step 2: Propose a New Product or Service
Write a detailed proposal for your new service idea.
Include:
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What it is (clearly describe the product/service)
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Target audience using segmentation variables:
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Demographic: Age, gender, income
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Geographic: City, region, or state
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Psychographic: Interests, values, needs
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Behavioral: Usage, loyalty
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Market size and growth potential (use data from IBISWorld, Statista, or Census Bureau)
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Need/problem being solved – What gap does this service fill?
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How it will be delivered: staff, platform, facilities, technology, estimated cost
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Brand positioning: Is this service consistent with your brand? Will it require a rebrand?
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Mission alignment: Show how the service supports the organization’s mission.
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Innovation characteristics: Demonstrate how the service has:
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Relative advantage
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Compatibility with values/tech
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Simplicity
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Trialability
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Observability
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SWOT justification: Use your SWOT to explain how the strengths and opportunities support this service.
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Benefits & risks: What value does this service bring? Are there risks (cost, market readiness)?
Step 3: Create Your Pricing Strategy
Here’s how to do it step-by-step:
A. Set a Price
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Calculate your fixed and variable costs.
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Research competitor prices in your industry or region.
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Determine an “average” service cost per customer and the surplus margin you need.
B. Conduct a Breakeven Analysis
Use the Contribution Margin Method:
Break-even units=Fixed CostsPrice – Variable Cost per Unittext{Break-even units} = frac{text{Fixed Costs}}{text{Price – Variable Cost per Unit}}
Do this for both:
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Current services portfolio
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New service proposal
Use Excel or a calculator to show your numbers.
C. Non-Monetary Costs
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These include: time, travel, emotional effort, learning curve, etc.
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Consider how you’ll minimize these: online delivery, user-friendly design, extended hours, support services.
D. Explain Your Overall Pricing Strategy
Choose a strategy and defend it:
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Cost-Plus
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Value-Based
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Market Penetration
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Premium Pricing
Explain how this pricing meets: -
Customer expectations
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Market standards
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Internal revenue/surplus goals
E. Revenue and Profit Projections
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Estimate gross revenues for Year 1
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Show projections for 3 years
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Include your expected profitability or surplus in each year
Step 4: Final Tips
Organize into clear sections: Analysis, New Service, Pricing Strategy Follow APA guidelines: cover page, headings, in-text citations, references Use data, charts, and numbers where needed Reference at least 5–7 credible sources
Helpful Resources:
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