Market Research and Competitive Pricing

1.1. Identify the product category and sub-category and gather data on the market prices for similar
products.

1.2. Analyze the data collected and determine the average selling price for the product category and
sub-category.

1.3. Identify the competitors in the market and analyze their pricing strategies.

1.4. Determine the target market and assess their willingness to pay for the product.

1.5. Calculate the optimal price for the product based on market research and competitive pricing.

Product Life Cycle Analysis

2.1. Analyze the expected life cycle of the product (long-term or short-term).

2.2. Determine the launch date and the end of the product's life cycle.

2.3. Forecast the demand for the product throughout its life cycle.

Historical Data Analysis

3.1. Collect historical data on the product, including the first offer price, average selling prices, stock
damage or left over 2 years, and profitability of the product over its life cycle.

3.2. Analyze the data collected to identify patterns and trends.

3.3. Use the insights gained from the analysis to inform pricing decisions for the new product.

Production Cost Estimation

4.1. Estimate the production costs of the product, including SAM, labor, and material costs.

4.2. Compare the production costs to the optimal price calculated in step 1.5.

4.3. Adjust the price if necessary to ensure profitability.

Product Selection and Supply Chain Management

5.1. Select the product designs and products that will meet the company's goals in terms of both sales
volume and profitability.

5.2. Develop a supply chain strategy that takes into account demand, season launch, gender mix,
existing stock, and new stock mix.
5.3. Determine which products will be manufactured at what time to optimize production and minimize
waste.

Price Determination and Implementation

6.1. Bring together the Supply Chain, Sales, and SBA departments to finalize the product price.

6.2. Consider market competition, historical data, production costs, and other factors when determining
the final price.

6.3. Lock in the price in the system once it is determined.

6.4. Ensure that the product is tagged and dispatched to the warehouse and then to stores based on
sales to stock ratio and market demand.