Product Strategy plus at least one table)
Start your product strategy by referencing your target market segmentation that was discussed in the earlier part of your business plan. You should specifically identify the needs of your target market and discuss how you plan to satisfy those needs. Your product strategy should identify, very specifically, the features or functions of your product or service and explain how they will meet the needs of your intended customer. The focus of your product strategy should discuss the benefits that your product or service will provide for your customer. Describe how your product or service will be differentiated from the other products on the market. You should discuss what makes your business unique, special, unusual, or simply different from the rest. Include a diagram or table that shows the match up between your customers’ needs and your product or service features or functions.
Pricing Strategy (plus at least one table)
Your pricing strategy should generally describe your philosophy for pricing your product(s) and identify the specific pricing strategy you’ll lead with in the marketplace. Will you choose penetration pricing, skimming pricing, high/low pricing, everyday low pricing, or competitive pricing? Most importantly you should explain why your pricing strategy makes sense. You should reference your target market segmentation and explain why the pricing makes sense for your chosen customers. You should also reference facts from your environmental scan, industry research and the competitive analysis in order to explain why your particular pricing strategy makes sense. Describe any special pricing plans or programs you will use such as discounts, rebates, loyalty programs, coupons, payment plans, installment plans, special financing or seasonal pricing promotions. If you are offering multiple products or services, include a table that lists the types of products and the prices for each product or services. If you will have a large number of products you can group them into categories and give the average price for each category.
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