Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE FUNCTION
CHOICE 3 COMPONENT: CHANGE MAIN PRODUCT/REDUCED RESOURCES REQUIRED/NEW APPEAL TO THE SENSES
| No. | SIC | Year | Notes |
| 1 | 2000 | 1990 | Uncle Dave's appearance, taste, and price are quite different from most ketchups. Price : $3.79, compared with about $1.29 for Heinz. |
| 2 | 2068 | 2000 | Sorrles Pickard Gourmet Peanut Butter, a slightly sweet concotion aimed at adults rather than kids, has rolled through 11 western states and onto supermarket shelves. The $1 billion peanut butter industry, it turned out, was already skewed toward grownups. Of the 720 million pounds sold in the U.S. each year, adults gobble up 520 million, and the kids only 200 million. Yet the closest thing to a national gourmet brand is a "natural" butter from Smucker's, which lacks the sugar and hydroogenated fats found in Skippy and its ilk. They also got free advertisement on TV series by simply handing out free jars to movie cast and crew members. The 18-ounce jar of the peanut butter sells for $3.25 to $3.50, $1 more than traditional brands. |
| 3 | 2082 | 1995 | Strong consumer demand for high-quality malt beverages has warranted premium pricing that translates into increased profitability for both distributors and retailers. On average, Pete's sells for $6 to $8 per six-pack (depending on state taxes) versus domestic premium beers, which on average sell for $3 to $4 per six-pack. |
| 4 | 2086 | 2001 | Nutristar, selling at about 40 cents for a packet of powder that makes one liter of beverage, is priced at about 25% more than other powdered drinks and 30% below carbonated soft drinks. |
| 5 | 2721 | 1987 | Videofashion Monthly is a magazine, but available on videotape. The price of $9.95 per issue makes it more than twice as expensive as most fashion magazines. |
| 6 | 3421 | 1998 | Retailers are pricing Gillette's Mach 3 razor blade replacements between 50% and 55% higher than Gillette's older Sensor Excel razor blades. At some stores, the blades cost 70% more than Sensor Excel blades. |
| 7 | 3421 | 1996 | In razors, Gillette induces consumers to trade up to more sophisticated, higher-margin products as it rolls out improved versions of its line. In a developing country, it starts with double-edged blade, as income levels grow moves to Sensor & SensorExcel. |
| 8 | 3421 | 1994 | Gillette introduces Sensor razor, huge success. Customers move from cheap razors to costly shaving systems. Introduced 22 new products last year, tries to move customers up in value rather than to force prices down. |
| 9 | 3421 | 1998 | When Gillette introduced Sensor Excel in 1994, it was priced 15% higher than its predecessor, Sensor, which in turn was priced about 25% above the preceding generation, Atra Plus. |
| 10 | 3571 | 1987 | Toshiba's 15 lb. portable T3100 PC works like IBM's top of the line PC/AT laptop. At $4,300 it costs more than twice as much, but the Japanese machine has been outselling IBM's by 5 to 1. Toshiba has much better screen display. |
| 11 | 3571 | 1990 | By this spring, Macintoshes cost as much as 36% more than comparable IBM and Compaq machines. |
| 12 | 3571 | 2001 | Small, privately-owned HandEra's $349 HandEra 330 handheld goes on sale later this month on the company's Web site, www.handera.com. It has a similar casing as the boxy Palm III and the Handspring Visor series, only with a shiny metallic faceplate. It also has 8 megabytes of memory, like Handspring's Visor Deluxe, which costs just $199. However its configuration increases the screen's capacity to 15 lines from 11. The characters are also briefly visible in the text-entry area, unlike the Palm. The HandEra also has better backlighting, twice the battery life, and a microphone and speaker and dictation software. The HandEra, like the newest Palms, allow you to import Microsoft Excel spreadsheets and Microsoft Word documents with a program called QuickOffice. However, some programs must be rewritten for the higher screen resolution and the HandEra didn't synchronize well with Lotus Organizer, as other Palms can. Also, HandEra's expansion slots are nowhere near as useful right now as Handspring's. Lastly, HandEra uses the ancient serial port on the computer to connect its synchronization cradle, instead of the faster, simpler USB port, used by most competitor's devices. |
| 13 | 3944 | 2001 | Toys "R" Us bought the rights to the Cabbage Patch line this year and is setting aside a lavish display at its newly opened flagship store in New York's Times Square. To give the dolls a one-of-a-kind look, factory molds are changed almost weekly, an expensive undertaking. But since the doll is exclusive to Toys "R" Us, the chain is selling them for $80 apiece, four times more than its previous price tag. |
| 14 | 3571 | 2003 | Despite the PC market being mature and saturated, there are still business opportunities. Privately held Alienware Corp. succeeds in selling high-end, custom-built PCs for computer gamers. |
| 15 | 3600 | 2003 | Sharp and Sony, in response to computer makers entering their market, have argued that their higher prices are justified by the brighter displays and better contrast their TV sets offer. The computer makers, however, contend that most consumers can't tell the differences in picture quality from one digital set to another. |
| 16 | 3499 | 2004 | The M3 Power by Gillette at $14.99 is expensive. A staggering 67% premium over the suggested full retail price of Schick's Quattro and the Mach3 Turbo. In the competitive market even $10 is a major barrier. Schick may soon offer a cheaper battery-powered alternative of its own. A significant number of men may still want to try Gillette's first battery powered wet shaving system. Gillette brings competitive advantages by claiming 74% of the $7 bullion global wet shaving market vs. the 12% Schick claims. Gillette will launch an upgraded women's razor Venus Divine. |
| 17 | 3944 | 2005 | Game maker Hasbro has incorporated a DVD into the preschool classic Candy Land. Instead of a board, the new version comes with 25 small mats placed around a room with the DVD giving kids instructions for hopping along the "Candy Land path." The new price is $30, vs. $10 for the classic. |
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