Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: TARGETED COMPETITOR SEGMENT

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No.	SIC	Year	Notes
1	1021	1991	At the beginning of hostility, there were two price points: PrL and SL. Initially, Standard Leaders (domestic producers) lost share to Price Leaders (imports). By meeting the import price in 1984, they essentially eliminated the PrL price point and made the industry 100% SL. In this industry, win/loss as a result of price point coverage was a domestic/foreign issue rather than a competitor specific issue. Because price was the primary benefit offered by imports, once the domestic price dropped low enough, customers received better performance at what was a similar or only slightly higher price.
2	1311	1987	Leader (Saudi Arabia) holds price lower than market would bear to thwart new entry.
3	2111	1993	Announced price war in the cigarette business. PM announces aggressive pricing policy for long-term profitability. PM has 49% of cigarette market; RJR Nabisco, 27%. Most premium brands have lost share to discount cigarettes.
4	2385	1998	Columbia Sportswear is maintaining prices and cutting profit as the weak yen hurts its Japanese business.
5	2834	2008	Britain's state-run health service agreed to pay for the lung-cancer drug Tarceva after the maker, Roche Holding, matched the price of an older, less-expensive drug. Initially it was too expensive to be made available to patients. Tarceva worked out to be about $3,700 more expensive than Sanofi-Aventis Taxotere for an equivalent course of treatment.
6	3577	2005	Hewlett-Packard is responding to an aggressive onslaught of printer competitors with a set of price cuts and other promotions on some of its printers.
7	3674	2001	Intel is fighting Advanced Micro Device's recent price cut of 49% on some products by introducing faster chips and cutting prices by 54% on some products. Consumers, however, may not need such fast products.
8	3861	1989	Kodak once set prices at will on everything, but has been forfeiting increases to stave off Fuji and others.
9	3944	1996	Sega cut the price of its Saturn machine to $200 after rival Sony cut the price of its PlayStation to $200.
10	4213	1980	Overnite was the first to commence heavy discounting in the LTL segment in late 1980, in response to smaller carriers' sporadic discounts.
11	4512	2002	AMR corporation, American Airlines cut business fares by 43% in several of its markets and raised leisure fares at the same time. The fares are still higher than discount carrier fares but the gap has been narrowed considerably.
12	4812	2009	Virgin Mobile USA Inc. matched its rivals with a $50 unlimited wireless calling plan. The Warren, NJ provider over prepaid wireless service cut its "Totally Unlimited" plan by $30 to put it on par with similar plans offered by a number of prepaid players.
13	5331	2008	Retail price wars start early for Christmas toy sales. Amazon and the individual toy sellers it promotes match Wal-Mart's low prices, but the discounts were offset by shipping charges.
14	5411	2002	In recent years, as Wal-Mart Stores Inc. has added groceries to its all-in-one stores, the discounter has made big inroads. Kroger, Safeway, and Food Lion are all cutting costs and lowering prices to lessen Wal-Mart's impact. Wal-Mart has constructed more than 1,000 of its Supercenters and now claims the No. 1 spot in the U.S. grocery market. Counting grocery sales in all its outlets Wal-Mart last year held a 16% share of the market, with an estimated $80 billion in food sales. It is adding another 185 Supercenters this year. Kroger Co. and Safeway Inc. began cutting prices to match Wal-Mart. These price cuts are in turn decreasing their profits
15	5943	1990	To fight office superstores, Quill lowered prices by an average of 18%, reducing gross margins by almost 10 points to about 30%, and net profit to almost zero.
16	6211	2005	Since 2004, Schwab has repeatedly lowered its prices on stock and option trades to bring its fees closer to the rest of the industry.
17	6321	2001	Between 1995 and 1997, term life rates fell by as much as 15% as the availability of online comparisons forced insurers to get competitive.
18	7514	1988	Avis is starting a price war aimed at Hertz in an attempt to move into the number one position. Avis snatched at least three of Hertz's big accts w/ discounts of 20-30%. In response, Hertz grabed 2+ of A's big accounts on price.
19	7841	2004	Netflix has built a loyal following and has been briskly adding new subscribers to its rolls, despite the alternatives open to consumers. The company attributed its improved subscriber growth to the Nov. 1 price cut in its monthly subscription fee to $17.
20	8099	1988	More hospital emergency departments are offering competitive pricing to regain business lost to free-standing clinics. One Iowa emergency dept. cut charges for treating a sore throat to $30 from $67, but its charge for CPR went from $150 to $400.

<< Return to Choice 3