SummaryTerraCog, which was facing declining sales of its GPS products, decided to respond to consumer demands for a product with satellite image display by launching Aerial. However, the decision to launch Aerial hit a roadblock in terms of price. On the one hand, the production and design and development departments expressed their inability to reduce the price below $475. On the other hand, trading showed resistance for a price above $425. Evaluating the impact of the decision on our business, our ability to meet customer needs and our customer relationships, it is recommended that TerraCog launch Aerial at a price of $475 [109 words] Table of Contents Situation Analysis 3The Problem 4The Options 4Evaluation Criteria 4Evaluation of Options 5The Recommendation 7Action Plan 7Situation AnalysisTerraCog is a relatively successful company specializing in fishing GPS and sonar equipment. TerraCog is known for its ability to convert user feedback into products that outperform competitors in meeting customer needs. The GPS products offered by TerraCog are appreciated for their durability and value-added features. In 2006, Posthaste, a competitor, launched a GPS product called BirdsI that used satellite imagery as a display. BirdsI has visual appeal for customers and showed impressive sales rates last year. Therefore, customers are demanding a product from TerraCog that has a satellite image display. In response to this, TerraCog decided to launch a product called Aerial. Both TerraCog's President and Board of Directors have expressed keen interest in ensuring the successful launch of Aerial. In order to keep costs lower and accelerate the...... middle of paper ......past experience, the customer expects a user-friendly product from TerraCog. The absence of such a product would have a negative impact on customer relations.c) Impact on business – If Aerial is not launched, the company's market share is expected to decrease by 10% based on past trends, despite the fact that the market for GPS products is growing. Therefore, the option not to launch Aerial would have a negative impact on TerraCog's business. TerraCog recommendation is expected to launch Aerial at a price of $475 in order to meet customer demands and expectations and increase its business. Action plan A series of following actions are proposed to address the recommendation. :-1. The production team must stick to the deadlines that have been finalized previously2. The sales team should reconsider Aerial's market positioning in accordance with the new cost estimates.