Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: TARGETED COMPETITOR SEGMENT
CHOICE 3 COMPONENT: OFFER A COUPON
| No. | SIC | Year | Notes |
| 1 | 2000 | 1993 | Gerber hiked prices 5.5% in September, creating up to a 28 cent premium over jars from rivals. Orders dropped 16%, and share tumbled 2 points. Gerber cut prices and leaned on coupons. But sales didn't pick up until competitors raised prices 5% by December. |
| 2 | 2020 | 1993 | US cheese mkt. share: Kraft 47.2%, Private Label 25.3%. Kraft had declining sales and market share for one year, pulled out across-the-board price cut, coupons. Gained back some. Borden's promotional spending increased 10% last year. |
| 3 | 2043 | 1991 | Kellogg offers price promotions and coupons to compete against lower price rivals (private-label brands). |
| 4 | 2043 | 1994 | Nearly two-thirds of all cereal sales are now made with coupons or other deals or promotions. Last year, the five biggest cereal companies spent $610 million to issue about 100 coupons for every person in America. |
| 5 | 2043 | 1996 | Post cutting list prices. Reduce charges to retailers 20% & cut back "increasingly inefficient" coupons & promotions. Will offer single all-purpose coupon good on all 22 cereals. Could reduce retail prices by $1/box (avg. $3.16). |
| 6 | 2600 | 2002 | Drypers emerged in the 1980s to challenge market leader Procter & Gamble by offering a branded product at a low price. P&G responded by bombarding Dryper's state of Texas with coupons for $2–more than twice the usual 75 cents. Dryper launched a campaign to tell consumers that P&G coupons could be used on Drypers products and sales shot up. Wal-Mart used the same strategy by posting Kmart's deals at the front of the store and promising to beat the prices. |
| 7 | 3692 | 1987 | When Kodak entered the consumer-battery market, Eveready & Duracell responded w/ a flurry of rebates, coupons & specials. |
| 8 | 3999 | 2003 | Gillette has recently been spending on coupons. Recently, CVS took $1 off Venus (the triple-bladed Gillette razor for women), putting its price lower than that of rival Intuition. |
| 9 | 5812 | 1988 | Some shops accept other competitors' coupons with an extra $1 off when used. |
| 10 | 5945 | 1992 | Due to increased competition from discounters like Wal-Mart, Toys "R" Us for the first time ever, resorted to publishing 20 million copies of an in-store catalog containing $173 worth of coupons. Toys "R" Us used to have everyday low pricing. |
| 11 | 5945 | 1994 | Major discounters increase toy industry competition. Toys R Us still holds 21.5% of market, with Wal-Mart at 12.9% and Kmart at 7.1%. Toys R Us now offering coupon books. |
| 12 | 7372 | 2009 | Microsoft is cutting the price of Office and offering the free versions of Word, Excel, and other programs to head off competition from Google and other rivals that offer similar software at little or no cost. Microsoft has so many promotions for Office that its effective price is $100, down from $150, and even lower in such countries as Brazil and India. But the experience is sparking optimism at Microsoft about the new strategy. The company says unit sales of Office surged 415% in the second half of last year. |
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