Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE RELIABILITY
CHOICE 3 COMPONENT: CHANGE MAIN PRODUCT/REDUCED RESOURCES REQUIRED/DEMANDS ON HEALTH
| No. | SIC | Year | Notes |
| 1 | 2000 | 2003 | The Atkins name confers trust. This allows the company to charge high prices–like six bucks for a box of cereal. Atkins pasta is based on soybeans, which don't cost much more than wheat, yet Atkins charges $4.99 a box, twice as much as wheat-based noodles. Kraft aims to highlight low-carb content of some of its meats and cheeses. In March, Heinz One Carb Ketchup will hit stores. |
| 2 | 2020 | 1993 | Vermont Family Farms offers premium milk from clean cows–priced higher. |
| 3 | 2047 | 2004 | The pet food marketer, Iams was one of those companies that had a special bond with its consumers, selling $13 bags of cat food and other high-priced products exclusively in pet stores and through veterinarians. Five years ago, Iams was bought by Procter & Gamble. P&G began moving Iams into 25,000 mass retail outlets thus increasing Iams distribution 50%. Iams R&D began collaborating with Procter's scientists who study human hearts, bones, muscles, teeth, and gums to create a new pet food that would lengthen an animal's life. Iams released new foods that included weight-control formulas, antioxidant blends, and tartar-fighting "dental defense" ingredients. Iams is now the nation's number one pet food brand and worldwide sales have doubled to $1.6 billion thus tripling profits. Iams is expanding into the business of magnetic-resonance imaging which is their brand of MRIs for dogs and cats. Iams' branded insurance will help pay for the $1,200 scans. |
| 4 | 2840 | 1994 | P&G developed a bar soap version of Oil of Olay moisturizer, which has captured a big share of the market despite a hefty price of $2.09 for two bars. That product helped account for an 8% price increase in the bar-soap category. Add price point. |
| 5 | 3021 | 2004 | Adidas' T-Mac 4 shoe, priced at $120, features an adjusting knob at the heel. Another upcoming Adidas shoe, priced at $250, is expected to feature a built-in computer chip for fit-adjustments. |
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