Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST A PRIVATE LABEL SUPPLIER
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 2000 | 1993 | Many big food and consumer-product manufacturers are selling their own private-label versions of their products, hoping to corner both high and low ends of consumer spectrum. Ex: James River uses the operations that make Brawny towels and Northern bathroom tissue to make private-label paper towels and tissues, and disposable plates. |
| 2 | 2000 | 1993 | Due to competition from private-labels, many SLs have begun to produce their own private-label goods: Campbell's, American Safety Razor Company, Union Carbide for garbage bags, Heinz. |
| 3 | 2111 | 1989 | American brands just launched a discount brand at half the price of standard cigarettes. Liggett introduced Pyramid earlier this year, a highly successful discount brand. Philip Morris is introducing new discount brand. |
| 4 | 2111 | 1993 | In the early nineties, tobacco customers began looking for cheaper alternatives to premium brands which were selling at a record $2 a pack. The big companies responded by launching their own low-end brands, like Phillip Morris' Basic, which became the best-selling discount cigarette. |
| 5 | 3571 | 1993 | IBM will launch a different subsidiary, Ambra, to sell ultra-cheap machines that won't bear IBM's name. |
| 6 | 3571 | 1993 | After being battered for several years by low-cost personal-computer rivals, Compaq struck back in 1992. It now builds computers that cost up to 60% less through what it calls "design to price." To achieve desired price, engineers design products to be cost-efficient. Design products with fewer parts, and reuse parts from existing designs. Its factories have been overhauled to crank out products more cheaply. |
| 7 | 3861 | 1994 | Kodak to offer its first economy-brand film, Funtime, to compete with private-label knockoffs and low-priced competitors. Funtime expected to be priced about 20% lower than Kodak's mainstay Gold Plus brand. |
| 8 | 7812 | 2005 | Some media companies are trying to reverse the tide of piracy by cutting prices on legitimate DVDs and CDs low enough to challenge the pirates at their own game. Time Warner Inc.'s Warner Bros. hopes to get a foothold in the Chinese market by setting the price of its DVD movie releases there to between $2 and $4. Entertainment companies are pushing for much tougher law enforcement overseas, but in the meantime, selling cheaper DVDs is a bid to create a more compelling value proposition. Yet, and merchandise that's priced higher than a dirt-cheap pirate copy could prove a tough sell. Even $2.65, the price at which Warner Bros. plans to sell DVDs is still a lot of money. Legitimate movies don't offer much better quality than their pirated counter parts. And the latest movies are typically available much sooner as counterfeits. |
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