Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: VOLUME PURCHASED SEGMENT
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 | 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. |
| 3 | 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. |
| 4 | 3711 | 1992 | Ford has expanded a promotion advertising a single price for several different Ford Escort and Mercury Tracer models. |
| 5 | 4812 | 2009 | Unlimited plans are growing more popular and it's clear why: They allow consumers to get rid of landlines or put several wireless lines under a single family plan. Indeed, in January, Sprint’s Boost Mobile (which offers prepaid plans with no contract) launched a $50 nationwide unlimited plan that includes talk, text, data and walkie-talkie. |
| 6 | 4812 | 2009 | Sprint Nextel Corp.'s Boost Mobile plans to offer an unlimited nationwide calling plan for $50 a month, a bid by the youth-oriented wireless service to severely undercut rivals. With the cheaper plan, which is half the cost of the $99 unlimited plans offered by the major carriers and roughly $10 cheaper than similar unlimited prepaid services offered by MetroPCS Communications Inc. and Leap Wireless International Inc., Boost is hoping to go after budget-conscious consumers. It represents an aggressive move by Sprint to attract customers even as its own core wireless service continues to lose subscribers. In addition to unlimited calling, customers will get unlimited text messages, mobile Web surfing, and a walkie-talkie feature. Customers aren't locked into a contract, and can leave anytime. |
| 7 | 4813 | 1999 | Amid the bewildering array of choices, backers of Broadband Office say they will appeal to tenants on simplicity, convenience and cost. They'll offer a single contract for local phone service, long-distance, and data connections. Broadband Office plans to spend as much as $100 million during the next 12 months to install fiber-optic and other high-speed lines through its owners' buildings. The plan is to undercut prices the Bells typically charge, which can approach $1,000 a month for a single high-speed data line. Broadband says new users will have to wait a matter of days, not weeks, to get its service. |
| 8 | 4813 | 2004 | Verizon began selling consumers a package of DSL and pay-TV through an alliance with satellite broadcaster DirecTV. Both local Bells and cable firms view these bundled service plans as a key tool to hold onto customers. |
| 9 | 5812 | 2009 | Restaurant chains are offering more aggressive promotional deals as they try to tempt diners in lean times. Starbucks is offering breakfast deals in which consumers can get an oatmeal and a latte or a breakfast sandwich and a coffee for $3.95. |
| 10 | 5812 | 2009 | In a continuing effort to boost profits per sale, Panera Bread Co. plans to expand its combo offering to include desserts and sell loaves of bread for customers to eat at home. The impulse and add-on items are intended to help the bakery-café chain weather an expected decline in customer visits for 2009. Panera hopes to continue to steer customers to high-margin products such as its signature salads, as well as an expansion of its popular "You Pick Two" combo meal of a bowl of soup and half of a sandwich or salad. Soon, with an addition of a drink to the combo, customers will be able to add a baked good to their meal for 99 cents. Customers will also be able to add the bakery item to their order at that price if they buy a regular sandwich, salad or soup and a drink. |
| 11 | 6211 | 2003 | Fidelity will offer cheap trades to big customers which are ones with at least $1 million in household assets. The company guarantees it will execute trades within five seconds at the best available price. In response, Charles Schwab Corp. is offering its lowest commission of $14.95 to those trading more than 30 times a quarter. E*Trade cut its commission for those making nine or more trades a month to $9.99, with a nine second guarantee to execute the trade. |
| 12 | 6321 | 2003 | Hartford Property & Casualty will discount its auto homeowner's policies up to 15% when you buy both property and casualty insurance policies. You can get another 5% discount after insuring with the company for five years. For maintaining a good driving record for five years, a Hartford policyholder can take an additional 5% discount on an auto policy, says the company's senior vice president of personal lines. |
| 13 | 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. |
| 14 | 7999 | 2008 | As the recession begins taking a toll on the ski industry, resort operators are offering a flurry of discounts they hope will draw more visitors. Many ski resorts have lifted the minimum-stay requirements associated with the normally busy holiday season. |
| 15 | 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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