professional communications class assignment

Report Plan

Ertugrul Alsan

3/11/14

This report plan identifies the recipients of my recommendations, it identifies the topic of my main report, it identifies the purpose for writing my report, it identifies the resources that are going to be needed, it also identifies the method that I will use to collect my information as well as the criteria I will use to evaluate the information collected.

The recipients of this report are the CEO of Burger King as well as its financial managers. The companies’ financial managers will analyze the financial viability of my recommendations as well as conduct a cost and benefits analysis while the CEO will approve as well as spearhead the implementation of my recommendations.

In my report, I am going to recommend three pricing strategies to be used by Burger King. The pricing strategies that I am going to recommend are,

Cost plus pricing strategy. This pricing strategy ensures that the organization makes a profit from selling its products by first calculating the costs of producing a single product and adding a margin before coming up with the final price for the product (Robert & Schindler 2011). For example, if the cost of producing a product is $0.8, the company can set a margin of $0.4 so as to come up with the final price of $1.2 for the burger. Thus the company will make a $0.4 profit for each burger it sells. The market oriented pricing where the products of Burger King will be priced depending on the price of similar products in the marketplace (Tim S. 2011). For example, if the market price for burgers in the US is $1.2, the company will price its burgers at $1.15 or $1.1 in order to make its products affordable in the market place and eventually attract customers. Penetration pricing is another pricing strategy that I will recommend in my final report. This pricing strategy ensures that the company reaches goals such as increasing its market share, making its product affordable as well as increasing the sales levels of their products (Robert & Schindler 2011).

The above pricing strategies are going to enable the company reach its goals as well as objectives, the goals and objectives that are going to be reached by the company are going to be, increasing the market share, improving on its brand image, increasing the sales levels of its products, the pricing recommendations are also going to ensure that the company retains its customers and that they remain satisfied.

The pricing strategies that I am going to recommend will solve the following; the company will have no difficulties in selling its products after it implements the penetration pricing tactics/strategies, the company will make profits at all times after it implements the cost plus pricing strategy, the companies’ products will always be affordable and cheaper than the products of competitors after the company implements the market oriented pricing strategy.

The resources that are going to be needed to support to implement my recommendations will include, remunerations for those that are going to be involved in conducting market research when trying to calculate or find out the market price of competitors products in the marketplace. A computer will also be needed to store as well as analyze data with the use of Microsoft applications such as excel. Employees in the finance department will be trained on implementing the pricing techniques now and in future.

Observation will be used to gather information. The company will observe prices and their movements in the market place; they can as well collect information from competitors’ websites and their menus. Information will also be collected from the companies’ financial records. Relevant information to be collected includes how much the company spends when producing a single product or unit.

Information will be successfully evaluated by identifying how it was found or acquired, checking its relevance with regards to the project plan and checking whether it will attain the objectives of the main report and whether or not it will satisfy and be accepted by the companies’ management.

References

Tim Smith (2011) Pricing Strategy: Setting Price Levels, Managing Price Discounts and Establishing Price Structures Cengage Learning

Robert Schindler, Robert M. Schindler (2011) Pricing Strategies: A Marketing Approach

SAGE Publications