Raise Price to Improve Revenues and Margins

CHOICE 2: ISOLATE THE SEGMENTS WHO MUST PAY THE PRICE INCREASE

D. Segments of customers where competitors are likely to be unwilling to counter the company's change in Value

Customer segments who purchase products with higher cost components

No.	SIC	Year	Notes
1	2096	1998	Kettle chips are cooked longer, in smaller batches and at higher temperatures. A 6.5-ounce bag of Saratoga chips costs $ 1.59, while a same-size bag of regular potato chips costs at least 20 cents less. Last year, kettle chips accounted for just 6.8% of the $ 4.1 billion potato chip market. In 1989, they made up 7.3% of potato chip sales.
2	3571	2001	Palm is delivering its response today even though the two new models it's announcing, the m500 and m505, are not scheduled to ship till late April and early May respectively. Despite their new monitors, both are essentially new versions of Palm V. The m505, with a 256-color screen, will go for $499 while black and white m500 will assume the Vx's current price-$399-while that model drops to $349 and the Palm V goes away.
3	4213	1990	CF established 4 separate U.S. regional short haul trucking companies to serve the specialized regional market demanding overnight and second day service within 500 miles. The main CF motor freight company kept the long haul business.
4	5812	2009	Starbucks Corp. said it is ready to fight back against rivals' claims that the company's coffee drinks are expensive and the notion it is losing share to cheaper coffee makers. As it reported a 77% drop in quarterly profit, the company also said it will adjust its pricing in some markets, raising prices of some of the more complicated drinks while lowering those on basic drinks. For example, Starbucks will offer a "grande" size iced coffee for less than $2, shaving as much as 45 cents off the price, depending on the market.
5	8062	2002	Walk in medical clinics in shopping malls promise patients to be able to walk out within 30 minutes for a premium of 75 percent over customary fees. These walk in medical clinic chains have teamed up with leading insurers and are planning to open more clinics. Clinical laboratories on the west coast are offering walk in lab test results to patients by internet within 24 hours.

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