Reduce Price to Improve Revenues and Margins

CHOICE 2: ISOLATE SEGMENTS RECEIVING THE LOW PRICE

A. Product Purchased Segment

Introductory Offer Segment

No.	SIC	Year	Notes
1	3944	2004	In 2004, the Lego Co. released a low-priced line of its plastic blocks. The new line, known as X-Pod, is sold in drugstores and supermarkets near the candy and magazines at the checkout, with 40 small pieces going for $3.49.
2	4812	1999	Globalstar is slated to start service in September. Teledesic, Lockhead Martin, and Boeing want to launch services. Rivals will offer cheaper packages than the $1,500 Iridium charges for phone gear and its $3-a-minute calls.
3	5712	1995	The new products at Bombay Company will have an initial promotion for 10 days at a 15% discount.
4	6141	2008	In November, Chase rolled out a new Freedom card that may offer fewer cash-back bonus opportunities. Now, new customers will earn up to 3% cash back on gas, grocery and fast-food purchases for six months; after that, the rate will be 1% on all purchases.
5	7372	2000	In December 1999, Oracle software company cut prices to corporate customers by 40% to 50% for its new Internet database 8i, hoping to stimulate demand.