Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A TOP TIER STANDARD LEADER

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No.	SIC	Year	Notes
1	2111	1989	P-M, is doing everything it can to take advantage of the management changes and debt from the KKR RJR buyout of 1989 –attacking in new product categories w/lower prices and an increased sales force
2	2676	1993	As Tambrands has been raising prices, Playtex, Kimberly-Clark's Kotex and Johnson & Johnson's o.b. brands have increased promotions.
3	2800	2004	Detergent sales have surged since Procter & Gamble cut prices of its larger detergent packets by as much as half this year, touching off a fierce price war with Unilever. The developing world is looking more attractive than it has in years to the world's leading purveyors of food, shampoo and laundry detergent. While growth is stagnant in North America and Europe, the market for consumer goods elsewhere is expanding fast, in stride with growing local incomes and populations. P&G's aggressive price cuts mark a shift away from the company's past missteps in pitching its high-priced, U.S. products to low-income consumers for whom names like Tide mean nothing. Hindustan Lever, Unilever's Indian arm, has matched P&G's price cuts and escalated the conflict by sharply lowering its shampoo prices . The companies are also battling for the attention of the subcontinent's huge middle class with ads, new products and even door-to-door sales pitches.
4	3290	1997	In early 97, Owens-Corning and Johns-Manville would go to major contractor accounts and offer to "sell at Certainteed less 12%". Posed a dilemma for Certainteed. In May, Certainteed began across-the-board reductions in that sector. All three took 10% price reductions.
5	3571	1987	Apollo Computer Inc. slashed prices on its cheapest computer workstations 50%, from $11,900 to $5,990. Also introduced a new mid-range model that it said is priced lower than competing machines of similar speed.
6	3571	2004	Hewlett-Packard is taking on Dell for the No. 1 spot in the personal computer industry. Their new strategy is to sell PCs without worrying about profits. They push high-margin peripherals, consulting and consumer electronics. After acquiring Compaq in 2002, H-P can cut prices further because of its massive size. The cost-cutting tactics are ideal for consumers as prices on desktops and laptops continue to fall. H-P offers a broader line of goods and services than Dell, leaving it with more leeway in profit margins. The size also allows the company additional clout when negotiating with contract manufacturers.
7	3661	2004	Nokia's and Samsung's price cuts are in response to the popularity of Motorola phones. At Nokia, profit margins, still the highest in the business, fell to 19% in the second quarter from 26% in the first. The average selling price of a phone fell to $110 from $115 in the first quarter. Just a year ago, Nokia was able to fetch $134 per phone. By attracting customers to lower priced phones now, Nokia hopes to keep those customers when they upgrade to fancier phones.
8	3861	1995	Kodak announced that under a co-branding agreement, some retailers in Japan will sell its film for half the Japanese retail price. This move was directly aimed at intensifying Kodak's war with rival Fuji, which controls 70% of the Japanese market.
9	4813	2001	Sprint is taking steps to spur Web demand, as it lowered the per-month service fee to $5 from $10.
10	5812	1995	McD is touting the $.95 Big Mac and waging a price war with BK and its lower priced Whopper
11	6021	1987	Citicorp is launching a service that will allow customers to wire funds nationwide at a cost 20% less than what Western Union does.
12	7200	2002	The race to enroll broadband users has heated up. MSN and Yahoo have just struck deals with DSL operators Verizon Communications and SBC Communications to be their preferred online services – at prices as much as 20% below AOL's. Rivals are also beefing up features.
13	7372	2004	Microsoft is attempting to do with DVR software what it had done with PC software: create a product that's good enough and cheap enough to lure users away from the more expensive, and often more compelling, rivals. Comcast's digital cable customers pay $10 a month on top of their cable bills for the DVR service. That's $3 less per month than Tivo.
14	7374	1995	Aggressive pricing. In this very profitable industry, winners have been gaining share with discounts since at least 1970. NPC discounted against the banks. NaBanco discounted against NPC. FNBO discounted against all Tier 1 competitors.

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