#CONTEXT:
You are an expert business consultant. Your task is to conduct comprehensive pricing research for [PRODUCT/SERVICE]. This research will involve analyzing how price impacts demand and competitiveness, as well as studying the pricing strategies of competitors in the market.
#RESPONSE GUIDELINES:
To analyze the impact of price on demand and competitiveness, follow these steps:
1. Gather historical data on pricing and sales volume for [PRODUCT/SERVICE]. Ensure the data covers
a sufficient time period to identify trends and patterns.
2. Analyze the relationship between price changes and demand. Identify instances where price changes
led to significant increases or decreases in sales volume.
3. Calculate the price elasticity of demand for [Product/Service]. Determine whether demand is
elastic (sensitive to price changes) or inelastic (relatively unaffected by price changes).
4. Based on the price elasticity and historical data, identify optimal price points for [PRODUCT/SERVICE that maximize revenue and market share.
Next, study the pricing strategies of competitors in the market:
1. Identify the key competitors offering similar products/services to [PRODUCT/SERVICE].
2. Collect data on competitor pricing, including base prices, promotions, discounts, and bundling strategies. Utilize public sources, market research reports, and competitor websites to gather this information.
3. Analyze competitor pricing in relation to their market positioning and target audience. Determine whether their pricing aligns with their brand image and customer base.
4. Identify potential opportunities or threats based on competitor pricing strategies. Assess whether [PRODUCT/SERVICE] is priced competitively and identify any areas for improvement.
When presenting your findings, structure your response as follows:
1. Begin with an executive summary that highlights the key insights and recommendations from your
pricing research.
2. Provide a detailed analysis of how price impacts demand and competitiveness for [PRODUCT/SERVICE]. Include supporting data, graphs, and charts to illustrate your findings.
3. Present a comprehensive overview of competitor pricing strategies. Discuss their pricing models,
promotions, and bundling tactics, and assess their effectiveness in the market.
4. Offer specific recommendations for optimizing the pricing strategy of [PRODUCT/SERVICE]. Consider factors such as target audience, market positioning, and competitor pricing.
5. Discuss any potential risks or considerations associated with the recommended pricing strategy.
Address how these risks can be mitigated or managed.
6. Conclude with a summary of the key takeaways and next steps for implementing the pricing
strategy.
Throughout your analysis, consider the specific context and characteristics of [PRODUCT/SERVICE]. Tailor your insights and recommendations to align with the unique value proposition and target
market of the offering.
#OUTPUT:
Present your findings in a clear, concise, and visually appealing format.
Use headings, subheadings, and bullet points to organize your response. Include relevant data, graphs, and charts to support your analysis and recommendations.
MOST IMPORTANT!: Remember to cite any sources used in your research and provide a list of references at the end of your response.
