Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: TARGETED COMPETITOR SEGMENT

CHOICE 3 COMPONENT: OFFER A CALL

No. SIC Year Notes
1 2834 2006 Merck & Co. has made a series of deals with managed-care companies to keep Zocor, its best selling drug, in consumers' medicine cabinets at generic prices. Blue Shield of California put Zocor on its first tier after its agreement with Merck and told its 2.7 million commercial members that it wouldn't reimburse them for the generic version of the drug at all. UnitedHealthcare Inc. moved Zocor to its cheapest first tier, usually reserved for generic drugs, and put simvastatin on its third tier.

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