Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PRODUCT COST SAVINGS SEGMENT / MANUFACTURING BUSINESS FUNCTIONAL COSTS / MAKE COST
CHOICE 3 COMPONENT: CHANGE RELIABILITY AND PRICE TOGETHER
| No. | SIC | Year | Notes |
| 1 | 2038 | 2002 | Budget Gourmet started out by developing a process to make and sell a line of entrées for $1.69 each, which gave it a good price advantage. But unlike other low-priced lines, Budget Gourmet's products were comparable to the over-$2 competition. And it backed up the product with first-class packaging, promotion, and advertising. The result was a remarkable success in an extremely competitive field previously dominated by three of America's largest, most successful food companies. |
| 2 | 2834 | 1993 | Perrigo has rocketed to the top of the private-label nonprescription drug industry. It supplies 857 knockoffs of major brands to discount chains. The stores sell the products under their own labels, at 30-50% less than name brand prices. |
| 3 | 2893 | 2006 | To protect its ink franchise, increasingly under attack from rivals, Hewlett-Packard could sue any ink makers it suspects are infringing on its patents. Last year, H-P warned Cartridge World Inc., a domestic retail ink-cartridge refiller of patent infringement. New competitors such as Cartridge World, Caboodle Cartridge Inc., and Rapid Refill Ink International Corp. refill empty ink cartridges made by H-P and others, and sell them at discounted prices of up to 50% off a new cartridge. |
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