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 | Citrus Hill, during the late '80s, had an explicit pricing policy designed to drastically and unexpectedly cut product prices in key markets in attempts to gain market share from the major competitors. While this did succeed to some extent, Citrus Hill's prices were quickly copied and the company gained no more than 10% of any of the major product areas nation wide. By 1987 Citrus Hill had changed the pricing policy because it was losing too much money and all major competitors followed the prices up. At the time a Citrus Hill spokesperson said "We're willing to sell half of what we did in 1985 as long as we make more money." |
| 2 | 2082 | 1991 | Coors generally followed the price leadership of AB. When it was rolling out its products to new states in the 80's, it did price very aggressively to gain market acceptance. Coors was one of the two brewers that initiated the acceleration of price wars in 1988. Coors and Miller were able to maintain these discounts without AB joining in for a year and a half. During the first nine months of 1989, however, Coors shipments were up by less than a percent. With the heavy discounting Miller boosted shipments by 3.7% for the first 9 months of 1989. |
| 3 | 2082 | 1996 | Miller failed to follow Anheuser-Busch's list price increase in three key regions — Texas, Michigan and Illinois. |
| 4 | 4812 | 1998 | Some calls that are long distance on conventional phones are within the cellular phone's local calling area, and are treated as local calls. |
| 5 | 7011 | 2001 | Despite high prices for lift-tickets nationwide, a price war between Vail Resorts and Intrawest in Colorado has brought prices down dramatically. While Intrawest owns just one Colorado resort, Vail controls more than 60% of the market. Copper Mountain began the price war in 1998 prices. Vail suspects that its rival is selling below costs |
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