Executive New Product Pricing Strategy Template

Executive Summary

Product: [Product Name]
Target Launch Date: [Date]
Recommended Price Point: $[Amount]
Expected Revenue Impact: $[Amount] in Year 1
Key Strategic Rationale: [2-3 sentence summary of pricing strategy]

1. Strategic Context & Business Objectives

Market Opportunity

• Total Addressable Market (TAM): $[Amount]
• Serviceable Addressable Market (SAM): $[Amount]
• Market Growth Rate: [X]% annually
• Market Maturity Stage: [Emerging/Growth/Mature/Declining]

Business Objectives

• Revenue Target: $[Amount] in [Timeframe]
• Market Share Goal: [X]% within [Timeframe]
• Customer Acquisition Target: [Number] customers in [Timeframe]
• Profitability Timeline: Break-even by [Date]

Strategic Positioning

• Brand Positioning: [Premium/Mid-market/Value/Disruptor]
• Competitive Advantage: [Key differentiators]
• Value Proposition: [Core customer benefit]

2. Cost Structure Analysis

Direct Product Costs

Indirect Costs (Annual)

*Based on projected annual volume of [X] units

Break-Even Analysis

• Fixed Costs: $[Amount]
• Variable Cost per Unit: $[Amount]
• Break-Even Volume: [X] units
• Break-Even Revenue: $[Amount]

3. Competitive Intelligence

Direct Competitors

Competitive Positioning Map

High Price │ Premium Player A    │ Our Target Position
          │                    │
          │                    │
          │ Competitor B       │ Competitor C
Low Price │                    │
          └────────────────────┘
          Low Value           High Value

Competitive Advantages

• Unique Features: [List key differentiators]
• Quality Superiority: [Specific quality metrics]
• Service Excellence: [Service differentiators]
• Brand Strength: [Brand positioning advantages]

4. Customer Analysis & Value Quantification

Target Customer Segments

Value Quantification by Segment

Primary Segment: [Segment Name]

• Cost Savings: $[Amount] annually
• Revenue Generation: $[Amount] annually
• Efficiency Gains: [X]% improvement
• Risk Reduction: $[Amount] in avoided costs
• Total Economic Value: $[Amount] annually

Price Sensitivity Analysis

• Price Elasticity: [X] (% change in demand per 1% price change)
• Acceptable Price Range: $[Low] – $[High]
• Optimal Price Point: $[Amount]

5. Pricing Strategy Framework

Pricing Model Selection

Recommended Model: [Subscription/One-time/Freemium/Tiered/Usage-based]

Rationale:

• Aligns with customer preference for [reasoning]
• Provides predictable revenue stream
• Maximizes customer lifetime value
• Competitive advantage in [specific area]

Price Architecture

Pricing Tactics

• Launch Strategy: [Penetration/Skimming/Competitive]
• Promotional Pricing: [Early bird/Volume discounts/Bundle pricing]
• Geographic Pricing: [Regional variations if applicable]
• Channel Pricing: [Different pricing for different sales channels]

6. Financial Projections

Revenue Projections (3-Year)

Profitability Analysis

Sensitivity Analysis

Impact of ±10% Price Change:

• Revenue Impact: +[X]% / -[X]%
• Profit Impact: +[X]% / -[X]%
• Volume Impact: -[X]% / +[X]%

7. Implementation Roadmap

Phase 1: Market Entry (Months 1-3)

• Pricing: $[Amount] (launch price)
• Target: [X] customers
• Channels: [Primary sales channels]
• Marketing: [Key marketing initiatives]

Phase 2: Market Expansion (Months 4-12)

• Pricing: $[Amount] (adjusted price)
• Target: [X] customers
• Channels: [Additional channels]
• Marketing: [Expanded marketing efforts]

Phase 3: Market Leadership (Year 2+)

• Pricing: $[Amount] (premium pricing)
• Target: [X]% market share
• Channels: [Full channel strategy]
• Marketing: [Brand leadership initiatives]

8. Risk Assessment & Mitigation

Key Risks

Contingency Plans

• If 20% below volume targets: [Action plan]
• If competitive pricing pressure: [Action plan]
• If cost increases >15%: [Action plan]

9. Success Metrics & KPIs

Primary Metrics

• Revenue: $[Target] by [Date]
• Market Share: [X]% by [Date]
• Customer Acquisition: [X] customers by [Date]
• Gross Margin: [X]% minimum

Secondary Metrics

• Customer Lifetime Value (CLV): $[Amount]
• Customer Acquisition Cost (CAC): $[Amount]
• Net Promoter Score (NPS): [Target score]
• Price Realization: [X]% of list price

Monitoring & Review Schedule

• Weekly: Sales performance, pricing realization
• Monthly: Market share, competitive response
• Quarterly: Profitability, customer satisfaction
• Annually: Strategic pricing review

10. Recommendations & Next Steps

Immediate Actions (Next 30 Days)

1. Approve recommended pricing strategy: $[Amount] launch price
2. Finalize go-to-market plan: Sales training and channel preparation
3. Implement pricing systems: Configure pricing in all systems
4. Launch competitive monitoring: Track competitive responses

Strategic Initiatives (Next 90 Days)

1. Customer feedback integration: Monitor early adopter responses
2. Channel optimization: Refine pricing for different channels
3. Performance tracking: Implement KPI monitoring dashboard
4. Market expansion planning: Prepare for phase 2 rollout

Long-term Considerations

• Dynamic pricing capability: Invest in pricing optimization tools
• International expansion: Develop global pricing strategy
• Product line extensions: Plan complementary product pricing
• Pricing organization: Build pricing expertise and processes

Appendices

Appendix A: Market Research Data

[Detailed market research findings and methodology]

Appendix B: Competitive Analysis Details

[Comprehensive competitive intelligence]

Appendix C: Customer Interview Insights

[Key findings from customer research]

Appendix D: Financial Model

[Detailed financial projections and assumptions]

Appendix E: Implementation Timeline

[Detailed project plan with milestones]

Document Version: 1.0
Last Updated: [Date]
Prepared by: [Name, Title]
Approved by: [Name, Title]
Distribution: C-Suite, VP Sales, VP Marketing, Product Management