Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PERFORMANCE LEADER PRICE AGAINST PERFORMANCE LEADER
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 3711 | 1990 | Jaguar recently introduced a new "base" model with less equipment and a lower price than the least expensive 1989 equivalent. |
| 2 | 3711 | 1991 | Ford's top-of-the-line Explorer from Eddie Bauer was nearly $4,500 below the top-of the-line Cherokee Limited. Jeep launched the Cherokee Sport, a stripped-down four-door whose price of $16,608 is designed to go head-to-head with the basic Explorer. About 3/4 of Jeep Cherokee sales had been in the upscale lines, but the company wants to push the lower-priced Sport to rebuild volume. It has thinner margins. |
| 3 | 3861 | 2000 | Leica's sales thrived, thanks largely to word of mouth within the tightly knit world of professional photographers. For decades, Leica did minimal marketing, simply because it did not need to. Since Nikon and Canon took over the professional market, undercutting Leica's luxury-priced models with cheaper prices, it has suffered ever since. For the first time in its history, it's trying to become a more aggressive marketer, rolling out more affordable cameras geared toward younger photographers. Until now Leica was focused on professional shutterbugs and wealthy hobbyists. Leica's luxury image suffered when retailers offered big discounts on the camera to get it out of the stores. |
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