Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A SMALLER STANDARD LEADER

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No.	SIC	Year	Notes
1	2082	1991	Miller was also one of the brewers responsible for the price wars that developed in 1988. Both it and Coors were attempting to gain market share from two of the failing brewers: Stroh and Heileman. With the above mentioned heavy discounting Miller boosted shipments by 3.7% for the first 9 months of 1989.
2	2082	1991	It was common practice for the large Standard Leader competitors to offer different prices depending on the geographic region. By pricing low in areas that were crucial to smaller competitors, AB was able to squeeze them out of the market. AB knew it would be able to subsidize these campaigns with strong margins from regions where it dominated the market.
3	2082	1991	Stroh rode a roller coaster in terms of market share during the period of hostility. Its share better than tripled, going from 4% to over 13%, between 1975 and 1983 as a result of its acquisition of both Schaefer and Schlitz. Since these acquisitions, however, it has stumbled to a point where it now only commands 8% of the market. Recently Stroh has been the target of a price war started by Coors and Miller in 1988. In addition, the large amount of debt incurred for the acquisition has hindered its performance.
4	2096	1998	The manager has a clear idea how Frito-Lay has tried to trap Eagle, and he says his competitor's strategy has been brilliant. "I would do it, too, in their place," he said. "We are primarily a supermarket company," Poldoian said, "and we are primarily a potato chip, tortilla chip and pretzel company. They have systematically drained the profit out of those businesses."
5	2752	1989	Bowne and Donnelley have been expanding by cutting price to target the financial weaknesses of their over-leveraged competitors by discounting below those competitors' " fully-allocated costs"
6	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.

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