Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / PACKAGE OF SAME PRODUCT
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 2000 | 1990 | Frito-Lay has new jumbo-size packages, priced lower per pound than smaller packages. |
| 2 | 2086 | 1998 | Coke is a well run company that signs exclusive deals with movie theaters, restaurants, and schools. Soft-drink pricing is also cutthroat in supermarkets with 2-liter bottles for 69 cents and 12-packs for $1.99. Therefore profit margins are dwindling for third-tier companies who have to price products more cheaply than well known brands. Kahil bottling products are only 3 cents more than 10 years ago. Its a downward spiral as unsold products cost money for advertising. |
| 3 | 2600 | 1985 | Scott now says that it has the leading "value" brand: not as good as top quality but better than bargain brands, with more product per package than either. Increased Scott Towels sheets to 124 from 90 industry average. Prices 10 cents below hi quality. |
| 4 | 2834 | 1993 | Sterling Winthrop says it is slashing prices of large-size bottles of Genuine Bayer by 25%. The price reduction is geared toward the elderly as well as chronic pain sufferers. |
| 5 | 7011 | 2009 | The Brazilian Court Hotel in Palm Beach, Fla., just introduced a “Oh, Baby Baby” Babymoon package that will run from now through the fall. Rates for this package start at $440 per night for a two-night stay, and mommies-to-be can enjoy prenatal yoga and a mommy blow-out at their local Frederic Fekkai Salon & Spa. Dads-to-be can join moms for dinner for two-and-a-half at the hotel’s French-American fare Cafe Boulud and “virgin-tini” beverages, made up of cranberry and lime juices with seltzer. |
| 6 | 7999 | 2009 | Squaw Valley will announce its plans to slash the cost of its season pass by nearly $1,000. The so-called value passes, which offer steep discounts on season tickets, have been all the rage in recent years. Typically, value passes cut the prices by about two-thirds, although there are some holiday blackout dates. Some have gone on sale in spring so they can be used that spring, then throughout the following season. Often, there's a limit on the total number sold, and prices rise steeply again in the fall. |
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