|
All companies typically engage in pricing strategy engagements, as these organizations release new products and services or re-evaluate existing services. Pricing strategy allows the business to optimize its sales, as well as market its products in a desirable positioning in the market. However, building a pricing strategy ppt focuses one key area initially: whether to the market or penetrate the market. The process of financial modeling is sometimes linked to building a product pricing strategy for a new product or service. Oftentimes, the desired pricing quantitative data isn?t available in the market, so we must use Excel to project values, which could be sales volumes, using built-in line estimation Excel functions. Microsoft Excel is the modeling tool of choice when conducting pricing analysis and financial modeling, such as pricing sensitivity modeling, game theory analysis, and cost structure analysis. Price skimming strategy involves introducing the new offering at a high price point relative to the rest of the market. Penetration pricing strategy involves introducing a product or service at a low initial entry price , often lower than existing competing products available in the market. The price of a product tells the customer much about the product, as consumers associate price with quality. Even though the pricing strategy templates is typically used as the rational element, its uses can be both political and emotional in nature. It is also used to create career wins for oneself, engagement sponsor, and other key stakeholders if quantified opportunities are taken into action. From non-rational viewpoint, the business case is used to gain credibility and develop a relationship with key management and create a vision of what the company could become. If we were to take an emotional perspective, it is used to create political risk for initiative sponsor if opportunities identified are not acted upon and show that an integrated approach must be taken. From non-rational perspective, the document is used to gain insight into those drivers of key executive issues, assess the financial pulse of the organization, and provide quantifiable and objective backing to business projects or other investments. In developing a pricing strategy powerpoint, there are a number of core objectives. You should develop the rational foundation for making change necessary. The financial analysis involved includes financial reporting, ratio analysis, DuPont Analysis, key stakeholder value analysis, and rudimentary pricing sensitivity analysis. You should establish the range ofbenefits to be achieved through operational activities. You should ensure project resources are allocated to the areas of highest leverage. A bottoms-up capital budgeting benefit case must be created and analyzed and a business case should be developed for benefits tracking. Usually, business case development includes conducting focus interviews , analyzing company financials, building the business case financial analysis, and building a top-down business case powerpoint. You should provide the basis for assessing the ROI and tracking financial benefits to the net profit during the implementation stage. You should measure major improvement opportunities for the business. Developing a familiar with how to write a business case requires a number of critical activities. Service positioning is a matter of asking yourself where are you positioning your product in the market? How important is pricing going to be a key part of that positioning? If you are running a discount store, you're always going to be trying to keep your prices lower than the competition. Consumers really do hold strongly to the idea that you get what you pay for. The pricing has to be consistent with the positioning. On the contrary, if you're positioning your product as an exclusive luxury product, a price that's too low may actually hurt your image. One of the most commonly built Excel models in any enterprise organization is one for a business initiative business case. As a matter of fact, any business project requiring opex should be built upon and justified by a business case document. This document will also be tracked on an ongoing basis to measure the success of the undertaken engagement. The business case typically takes the form of an Excel spreadsheet or can be a business case ppt and quantifies the financial components of the business initiative, projecting key metrics for making any important business decision: for example, NPV, ROI, Breakeven, ROIC.
pricing strategy ppt
Related Articles -
pricing strategy, pricing strategy ppt, pricing strategy powerpoint,
|
