ET 104COSTING AND PRICING POLICY

GUIDELINES FOR GROUP INDUSTRY PRESENTATION

OBJECTIVE

The pricing strategy of a small enterprise can ultimately determine its fate. Small enterprise owners can ensure profitability and prolonged existence by paying close attention to their pricing strategy.

The objective for the group project is to expose students to some industry-specific pricing challenges. As well as to identify how the problems faced and the decisions made by other firms are similar to their own.

Each group will select and study a particular industry, or channel which offers unique pricing challenges. Groups will select an industry with which at least one of its members has past experience. (i.e. past business plan ET 102).

PRIMARY TASKS

1. Study the chosen industry or channel through published secondary information or by interviewing a manager of a company belonging to the chosen industry

2. Develop an understanding of the pricing strategy (research or interview)3. Document and present a short talk

a. Describing the industry and its current pricing practicesb. Identifying company specific pricing strategies (research or interview);c. Analyze and make specific recommendations for the business to improve

its current price offering or overall pricing strategy

WRITTEN REPORT

Please refer to the written report guidelines given during the first week of classes

ORAL PRESENTATION

Presentations should be limited to a maximum of fifteen minutes with additional time allotted for class discussion. A group may divide the presentation however it sees fit. It is absolutely acceptable for one person to present or for the whole group to present. The presentation should be orderly (according to the report outline) and well delivered. Visual materials (i.e. PowerPoint is recommended) should be readable, understandable, and relevant to your discussion.

GRADING

Each of the teams would be graded on their group presentations on four of the following criterions.

1. Content or Exposition of the Topic2. Research Effort3. Presentation4. Ability to Stimulate Class Interest

REPORT OUTLINE

I. Introduction – reasons for choosing the industry and the specific companyII. Industry Analysis

a. Description of the Industryb. Key Playersc. Consumer Spendingd. Competitive Landscapee. Production and Cost Issuesf. Current Pricing Practices

III. Company Analysisa. Company Background (includes product description, target market,

marketing strategies)b. Main Competitorsc. Demand Factors (i.e. How important is price to the consumers of the

business? What is the buying behavior of the consumers? how sensitive are consumers to price?)

d. Production and Cost Issues (if similar to the industry, you can just refer to Section II. Industry Analysis)

e. Current Pricing Strategy (i.e. cost-plus? Value pricing? Etc. should include product prices as well)

IV. Recommendation