Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: TARGETED COMPETITOR SEGMENT

CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE

No.	SIC	Year	Notes
1	2038	1992	ConAgra's profitable Healthy Choice line attracted competition. ConAgra met low prices when competitors resorted to discounting to move share. ConAgra introducing $1.99 entree instead of $2.99 entree.
2	2111	1989	American brands just launched a discount brand at half the price of standard cigarettes. Liggett introduced Pyramid earlier this year, a highly successful discount brand. Philip Morris is introducing new discount brand.
3	2399	2004	Levi Strauss, once an iconic brand for youth worldwide, is seeking to reverse a long slide by going down market. Launched last July in Wal-Mart Stores Inc., Levi's Signature line of jeans for men, women, and teens, is priced at only $10 to $23 a pair. That is as little as half the price of the familiar 505 and 501 pants that are part of Levi's core Red Tab line. Levi Strauss has since rolled out Signature in Target Corp.'s 1,400 discount stores as well.
4	2731	1994	Competitors like Research Institute of America grabbed chunks of CCH's business with easier-to-use products at cheaper prices. CCH fired 1,200 of 7,000 workers in 1991. CCH introduced a CD-ROM-based guide to the federal tax codes.
5	2840	1996	In response to consistent growth in the value priced laundry detergent, P&G in 1995, began testing its value priced laundry detergent: Ultra Bonus.
6	3441	2002	Wildeck, Inc. a maker of metal guard rails and material lifts for factories and warehouses developed a product to keep forklifts from destroying the corners of racks on factory floors. A competitor came out with a similar product made from lighter steel and priced 15% lower. Rather than dropping its price Wildeck introduced a "light" version of its protector than sold for less than the competitor's product. This low price product attracted price conscious buyers who the company then educated on the advantages of buying the heavier duty products.
7	3541	1990	Cincinnati Milacron rolled out a new, low-cost model aimed right at Fadal. Japanese rivals are looking into designing simpler products that can match Fadal's price.
8	3571	2000	Palm Inc. is planning on introducing a new entry level organizer. The new organizer will have a lower base price than previous Palm models, in hopes of competing with Handspring's Visor line.
9	3674	1999	Intel Corp. is accelerating price cuts on its Celeron microprocessor to fend off AMD in the market for low-cost PCs.
10	3695	2001	TiVo does have one big advantage. If you don't want to pay its $10 monthly fee forever, you can make a one-time payment of $199. UltimateTV does not have that option.
11	3711	1990	Jaguar recently introduced a new "base" model with less equipment and a lower price than the least expensive 1989 equivalent.
12	3861	1994	Kodak to offer its first economy-brand film, Funtime, to compete with private-label knockoffs and low-priced competitors. Funtime expected to be priced about 20% lower than Kodak's mainstay Gold Plus brand.
13	4512	2004	United attempted with Ted to wrest market share from a gaggle of increasingly scrappy low-cost carriers by offering lower fares and a more informal atmosphere than in mainline carrier.
14	4724	2009	Orbitz Worldwide Inc. reported Wednesday that its first-quarter loss widened sharply on a write-down. On Tuesday, the company launched a price-assurance program that automatically will refund customers when lower hotel rates are booked on the Website by another customer.
15	4841	2002	Charter Communications is fighting back against the satellite threat with lower-cost packages and a hold on rate hikes.
16	5411	1992	Giant Food in each of its 154 stores has set up a warehouse-style aisle, stacked high with oversized packages of toilet paper and other goods, at prices comparable to warehouses.
17	5812	1992	Carl's Jr. recently matched McD's $1.99 kids-meal price and offered a choice of three baked potatoes with a drink for $1.99. The chain also featured a 99-cent "Big Burger", a less garnished version of a $1.79 Carl's burger.
18	6211	2000	Schwab has acquired Cybercorp as its low-end price point.
19	7372	2008	Microsoft in November began offering Exchange and SharePoint as a Web service for a monthly fee. Customers like the change because they usually end up paying less to subscribe to the software than they spent buying the program and paying for the staff and hardware to run it.
20	7812	2005	Some media companies are trying to reverse the tide of piracy by cutting prices on legitimate DVDs and CDs low enough to challenge the pirates at their own game. Time Warner Inc.'s Warner Bros. hopes to get a foothold in the Chinese market by setting the price of its DVD movie releases there to between $2 and $4. Entertainment companies are pushing for much tougher law enforcement overseas, but in the meantime, selling cheaper DVDs is a bid to create a more compelling value proposition. Yet, and merchandise that's priced higher than a dirt-cheap pirate copy could prove a tough sell. Even $2.65, the price at which Warner Bros. plans to sell DVDs is still a lot of money. Legitimate movies don't offer much better quality than their pirated counter parts. And the latest movies are typically available much sooner as counterfeits.

<< Return to Choice 3