Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: LOCATION SEGMENT

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No.	SIC	Year	Notes
1	2037	1989	Minute Maid introduced its Premium Not from Concentrate juice in the Northeast and Florida in 1988 where Tropicana was the only previous major offering such product. Deal pricing increased significantly. Tropicana cut its prices in Florida in some places to as low as $1.89 a half gallon from a more typical price of $2.49, a 32% reduction. And in fact at times Tropicana's deal pricing was so competitive that its Not from Concentrate products sold for less than the From Concentrate products.
2	2037	1990	Minute Maid and Tropicana historically used price discounting only as a defensive tool. But after CH gathered 9% market share by discounting, Tropicana became more aggressive. By 1988 it had the lowest prices of the major players in the West. Pricing varies both from year to year and from region to region. The year to year changes are due to the cost of oranges. The region to region changes are due to pricing strategies used by Tropicana and others. Tropicana will price higher in regions where Minute Maid does not have distribution.
3	2082	1991	While most firms priced at the market, there were short-term differences in prices. These occurred as a result of temporary price promotions or pricing strategies that were tailored to local markets. Size and national coverage allowed the largest brewers to tailor prices for certain geographic markets. They could subsidize lower prices in an extremely competitive market with earnings from less competitive regions where AB could command higher prices. Most share shifts in the beer industry were the result of competitors' failure to quickly copy performance, not price.
4	2086	1992	Pepsi recently began selling Slice fruit-flavored drinks at reduced prices in several cities.
5	2096	1996	Frito-Lay's rivals claim the company sells its products for less than cost in areas where it wants to boost market share.
6	2840	1996	In 3 trial markets, P&G will stop distributing its product coupons. Instead, the company plans to offer "every day low prices" and spend marketing dollars aggressively to promote its brands. This is the first time a company has risked eliminating all coupons in a big geographical market.
7	4131	1989	Greyhound CEO installed a computer system to allow the company to offer discounts more selectively.
8	4481	1991	Cruise operators sometimes offer special promotional fares in a specific region of the country.
9	4512	2001	Delta, the nation's third-largest carrier, said it is offering low-priced one-way fares, eliminating Saturday-night stays on some tickets and cutting prices on advance-purchase and walk-up tickets. The fares cover travel between Atlanta and cities including New York, Philadelphia, Dallas and Washington.
10	4512	2002	In an effort to cut costs and boost revenue in a difficult market, many airlines are taking a second look at their fare structures. In response to business passengers who have been demanding a more fair, simplified system of pricing, American Airlines introduced a new, streamlined fare structure in 23 domestic markets that slashed walk-up prices by 40% and hiked leisure fares. The airline hopes to stimulate more business travel in a depressed market. Leisure travelers will be displeased and may be more likely to turn to rivals.
11	4512	2003	Delta Air Lines launched a sale for U.S. domestic and Canada fares and rival carriers matched on many competing routes. The carrier reports sale fares are down 20% lower than the lowest no sale fare in those markets. Business has slowed as families are not traveling as much now that school is in session, thus leaving carriers relying on business travel.
12	4512	2009	After two years of steadily raising fares as fuel prices soared, U.S. airlines are slashing prices in an effort to fill up empty seats. Now fuel prices are down sharply — but consumers are shutting their pocketbooks. With consumers reluctant to fly, fare sales are proliferating. AirTran Airways launched a domestic fare sale with one-way tickets as low as $39 between American cities. Two days later, American began with one-way fares to some European cities for around $200 and a one-way price of $75 between Los Angeles and Los Cabos, Mexico. Rival airlines were quick to match offers.
13	4700	2003	The fierce battle for market share among the three main online travel agencies has spurred a wave of deep discounting. The price competition has hit a new level in recent weeks as the companies fight to lure new customers. Market leader Expedia recently launched a major hotel sale covering 32 markets, offering additional savings of up to 25% on more than 300 already discounted hotels. Third-place Orbitz is also doing a hotel-sale, in an attempt to diversify away from airfare. No. 2 agency Travelocity has launched a two-day sale of all its packages.
14	4813	1992	AT&T's other new discount plans include a "Partners Option." This combines existing discounts on AT&T Pro Wats lines with an additional 20% cut on calls to the 20 domestic phone numbers most frequently dialed by the customer.
15	4813	2005	Wireless and landline telephone service providers offer special plans for those who call a specific country repeatedly.
16	5331	1993	In competing against other natl competitors in certain markets, Walmart will cut prices allowing profit margins to sink, because it subsidizes these locations with higher margins in mrkts where there is less competition.
17	5731	1993	During this Christmas season, there are price wars between Circuit City and Best Buy. Both are expanding into each other's areas; price breaks are only in geographic areas where both present.
18	7011	2002	Early on, individual hotel owners saw sites like Hotels.com as a way to target bargain hunters without affecting loyal customers who, they believed would buy directly from the hotels and pay higher prices. Meanwhile, in order to compete with rooms from other hotel brands on the bargain sites, owners offered cheaper prices than their competitors in order to get top billing on the sites which tend to rank hotels by price.
19	7513	1989	Ryder's consumer truck rental business is experiencing price pressure as rival U-Haul Rental has discounted by as much as 70% in some markets.
20	8200	1995	University of Rochester has cut tuition $5,000 for in-state students, trying to raise demand for its services.

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