Terracog Global Positioning Systems
Letter of Transmittal
To Ed Pryor- VP, Sales Harold Whistler- VP, Design & Development Tony Barren- Director, Production
From
Emma Richardson- Executive Vice President
Date 17/03/2008
Subject: Pricing strategy & viability of “Project Aerial”
Enclosed report deals with the launching price problem being faced by TerraCog for its forthcoming GPS product Aerial, different options that are available to the company, selection criteria for evaluation and proposed solution along with action plan and contingency plan.
Executive Summary
There is significant disagreement over the proposed pricing of Aerial between the different departments.
Presently TerraCog has 3 options. It could offer the product at a price which is substantially higher than its competitors, try to offer the product at a price which is slightly higher than its competitors or defer the launching.
Each of the 3 options is assessed separately against the 3 criteria that have been used for evaluation.
Conclusively, it is recommended that the launching should be deferred by 3 months. A contingency plan is also discussed which suggests that the product should not be launched to the market at all.
(Word Count- 106)
TABLE OF CONTENTS: PAGE NO.
SITUATION ANALYSIS……………………….................................................... 6
PROBLEM STATEMENT………………………................................................. 7
OPTIONS………………………………………....................................................... 7
CRITERIA FOR EVALUATION…………………............................................... 7
(In descending order of priority)
EVALUATION OF OPTIONS……………………............................................. 8-10
RECOMMENDATION…………………………................................................. 11
ACTION PLAN………………………………….................................................... 12
CONTINGENCY PLAN……………………….................................................... 13
To Ed Pryor- VP, Sales Harold Whistler- VP, Design & Development Tony Barren- Director, Production
From
Emma Richardson- Executive Vice President
Date 17/03/2008
Subject: Pricing strategy & viability of “Project Aerial”
Enclosed report deals with the launching price problem being faced by TerraCog for its forthcoming GPS product Aerial, different options that are available to the company, selection criteria for evaluation and proposed solution along with action plan and contingency plan.
Executive Summary
There is significant disagreement over the proposed pricing of Aerial between the different departments.
Presently TerraCog has 3 options. It could offer the product at a price which is substantially higher than its competitors, try to offer the product at a price which is slightly higher than its competitors or defer the launching.
Each of the 3 options is assessed separately against the 3 criteria that have been used for evaluation.
Conclusively, it is recommended that the launching should be deferred by 3 months. A contingency plan is also discussed which suggests that the product should not be launched to the market at all.
(Word Count- 106)
TABLE OF CONTENTS: PAGE NO.
SITUATION ANALYSIS……………………….................................................... 6
PROBLEM STATEMENT………………………................................................. 7
OPTIONS………………………………………....................................................... 7
CRITERIA FOR EVALUATION…………………............................................... 7
(In descending order of priority)
EVALUATION OF OPTIONS……………………............................................. 8-10
RECOMMENDATION…………………………................................................. 11
ACTION PLAN………………………………….................................................... 12
CONTINGENCY PLAN……………………….................................................... 13