Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WHO PURCHASE PRODUCTS WITH HIGHER COST COMPONENTS

CHOICE 3 COMPONENT: CHANGE MAIN PRODUCT/IMPROVE EXPERIENCE/NEW APPEAL TO THE SENSES

No.	SIC	Year	Notes
1	2000	1987	Pet's B&M baked beans are $1.05, while a can of Heinz baked beans 69 cents. Can of Progresso minestrone ready to serve soup costs $1.59, Campbells condensed minestrone 59 cents.
2	2037	1989	Private label OJ prices have been traditionally lower than those of the majors. This price differential has narrowed a great deal over the years. In 1978 the brand name orange juice producers had a 25% premium over private labels. In 1983 it was 15% and in 1988 it was 7% to 10%.
3	2096	1998	Kettle chips are cooked longer, in smaller batches and at higher temperatures. A 6.5-ounce bag of Saratoga chips costs $ 1.59, while a same-size bag of regular potato chips costs at least 20 cents less. Last year, kettle chips accounted for just 6.8% of the $ 4.1 billion potato chip market. In 1989, they made up 7.3% of potato chip sales.
4	2300	1997	The Special Reserve jeans line will retail for about $48 compared to $44 for red tab jeans, Levi's current top line. They will be made with "ring-spun" denim, a thicker, softer fabric that has not been widely used since early 1970s. It will be offered in a variety of styles and washes.
5	3334	1990	What I am interested in is the competition that aluminum is now having with steel, and it was my original understanding that there were problems with recycling steel, and that is why people were using aluminum for cans rather than steel. Now I read articles that contradict that, and I am not really sure what the reason is. I had sources tell me that steel is definitely less expensive. That is true. As your raw material and a finished can. Okay then why so much aluminum and so little steel? Because aluminum is a considerably more attractive package. It may not be the initial cost of steel and manufacturing can. Truckload of beverages made with aluminum weighs one third of the weight of steel. So it’s transportation costs? Yes they add up to it, you get more rapid cooling with aluminum, better decoration.
6	3651	2003	Flat-Panal display monitors or LCD monitors take up less desk space, use less power, and give off less heat than CRTs. LCDs reduce eyestrain because they don't flicker. Cathode ray tubes and images are brighter and sharper. PC makers prefer LCDs because they are much lighter and smaller than CRTs. Flat-panel monitors will help computer makers meet energy use and environment regulations. The average selling price for a 15-inch LCD was $351 and $503 for a 17-inch LCD, the 15-inch models account for 43.1% of unit sales compared with 41.3% for 17-inch models. The cost difference of a 15-inch LCD and a comparable 17-inch CRT monitor was $400 two years ago and $100 today. Sony Corp has 20.4% market share in unit sales followed by HP at 17.5% and Samsung at 13.6%.
7	3661	2004	Nokia has poured millions into the development of high-tech "smart phones" allocating 80% of its research and development budget to the software that gives these phones computer like capabilities. The company rushed production to prevent Microsoft from setting the industry standard. However, the phones have proved too bulky and expensive for many consumers and remain a small portion of the market. Smart phones cost about $420, about 50-60% more than midrange phones. Consumers now favor midrange models with colored screens and cameras that competitors have been highly successful with. Nokia's global market share has plunged to 29% from 35% as Samsung and Motorola pushed their midrange models. Nokia's midrange phones suffered delays and hit the market a year after major rivals did. It also experienced technical problems.
8	3861	1998	The Advanced Photo System (developed by 5 manufacturers, including Kodak) means a price increase of about 10% for consumers.
9	5712	1994	Levitz intends to expose higher price points here, and the company is advertising sofas at $499 to $599, as opposed to an opening $399 price point, but the new prices are for better quality products and represent better value.
10	5812	1992	Domino's to replace its current pizza next month with a "premium pizza" that has more cheese, toppings and a higher price. Pizza will cost about 7% more.
11	7832	1998	The major innovations are the building of multiplexes with better seating and better sound. These multiplexes are clearly more attractive to customers because they take share from existing screens and also command higher prices. Megaplex average ticket prices are 25% higher than for older screens, average concession revenues per parton to be 10% higher, and attendance per average screen of 65,000 to 90,000 per annum, versus 55,000 to 70,000 for older screens.

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