Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PRICE LEADER OR NEXT LEADER PRICE AGAINST PRICE LEADER OR NEXT LEADER
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 5331 | 1996 | One price comparison cited by Goldman Sachs last year found that Dollar Tree's prices averaging less than 1/2 those of Kmart for comparable items. |
| 2 | 5411 | 1999 | Save-A-Lot is a smaller assortment grocery subsidiary of SuperValu (based in Minneapolis). The strategy is to have the prices constantly be lower than the supercenters. A gallon of milk at Save-A-Lot is $1.99 vs. $2.19 at Wal-Mart. Wal-Mart, does however have specials on milk for 99 cents which cuts Save-A-Lot's business significantly. The customers return after the sale ends. |
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