Provide a brief product and target market description and classify the new product concept.
Describe key product characteristics, especially those that impact price and consumer benefits and value. Justify your decisions.
Next describe the positioning and branding decisions related to your product / service concept in detail.
Describe your pricing strategy.
SPECIAL NOTES – Price:
While you are not responsible for describing your distribution strategy at this point, you should be thinking ahead as to whether you will sell direct to consumers, through Amazon, or via retailers/wholesalers, as this decision will impact your pricing approaches and base price.
If you choose to include retailers/wholesalers such as grocery stores in your distribution strategy, understand that the price paid to you by retailers will be much less than what ultimate consumers pay when they buy your goods through the store. As an estimate, expect retailers to double the cost of the product (e.g., your selling price to them) when they set the price to be paid by ultimate consumers. Include both prices (price paid by retailers, price paid by consumers) in your write-up. Amazon works differently. You set the selling price, but a percentage of that price (usually around 15%) is retained by Amazon depending upon the services provided for each item sold or held in inventory. IF you are pricing from the perspective of a bakery, you are producing the goods yourself, so the price you set it what consumers will pay.