Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: OCCASION SEGMENT / AN IMPULSE SALE OPPORTUNITY
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2000 | 2009 | Makers of household goods and food are paying more attention to the "paycheck cycle" as cash-strapped consumers are showing a tendency to make their largest purchases when their salaries first come in and to cut back as that money runs out. PepsiCo Inc.'s Frito-Lay snacks business in some stores has tried "promotions that are different at the beginning of the month than at the end of the month. People have more money to spend at the beginning [of the month] and a little less at the end. The first of the month we might promote bigger sizes and at the end of the month we might shift down to smaller sizes in order to keep our sales growth going. It's worked well." |
| 2 | 5311 | 2001 | Customers don't appear to be responding to Kmart Corp's deep price cuts on thousands of items, which the discount chain instituted with considerable fanfare this past spring. Kmart has permanently slashed the price of nearly 50,000 items so far as part of Bluelight Always. The Bluelight Specials program involves daylong discounts on certain products that are supposed to be brought out in a cart once an hour to a canopy where sirens and a flashing blue light flag the special. But individual stores don't always offer the specials—one reason why the promotion appears to be a bust. |
| 3 | 5999 | 2003 | Online companies can segment their customers quickly using a range of information. This segmentation would be nearly impossible in a traditional retail or service environment. Clickstream technology and cookies allows a greater depth of information which allows a company to offer a segment-specific price or promotion immediately. This preserves margins and customers. |
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