Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ANOTHER LOW-END COMPETITOR
CHOICE 3 COMPONENT: CHANGE RELIABILITY AND PRICE TOGETHER
| No. | SIC | Year | Notes |
| 1 | 2389 | 1989 | Contrast w/ Lee: Levi's agreed to sell its jeans in JC Penney and Sears, but drew the line there. Levi sells lower-end Brittania brand to the mass merchants. Its brand name remains untarnished. |
| 2 | 2834 | 1994 | By entering the generic drug market early (just before patents expire), the big drugmakers can keep initial prices high. The majors often price generics at only 10% to 25% less than the brand-name price, while generics ideally should be half the full price. |
| 3 | 2834 | 2006 | Pfizer Inc. is planning to introduce a heavily discounted generic version of the antidepressant Zoloft after the brand-name drug loses domestic patent protection. Merrill Lynch estimates that a single generic drug typically is priced 35% to 40% less than the brand-name medicine during the six-month exclusive period and, if left alone, can capture 90% or more of the market from the brand-name it copies. But when an authorized generic is part of the mix, prices drop by 50% or more during the exclusive period, and the patent challenger often winds up with roughly half the market share it would have had on its own. |
| 4 | 2840 | 1998 | In response to consistent growth in the value priced laundry detergent, P&G in 1995, began testing its value priced laundry detergent: Ultra Bonus. |
| 5 | 3630 | 1992 | In 1989, GE reintroduced RCA as a lower-priced appliance brand specifically for smaller retailers. |
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