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/IMPROVE EXPERIENCE/IMPROVE IMAGE
| No. | SIC | Year | Notes |
| 1 | 2084 | 2003 | New Luxury products that are mass prestige or "Mastige" are goods that occupy a place between mass and class. They are priced below superpremium or old luxury goods. An example of such a product would be an eight ounce bottle of Bath & Body Works body lotion which sells for $9, a 276% premium over an 11 ounce bottle of Vaseline Intensive Care which sells for $3.29. |
| 2 | 2389 | 2002 | If Levi's suceeds with its new Levi Stauss Signature line it will be the first time in marketing history that a single brand will have a place at every level of retail. There will be $25 Levi jeans and $225 Levi jeans. Calvin Klein can sell to high end speciality stores as well as discounters because it sells different product lines in each retailer. In department stores it sells fashion apparel. In mass merchandisers it sells fragrances and underwear. |
| 3 | 2600 | 1995 | Filofax was doing well. Then the average retail price went up to $110, when competition was selling for about $40. Filofax lost a lot of money. Turnaround management at Filofax moved down the price scale, introducing a $16 student version and eliminating the fancier stuff. They also cut prices of the standard fillers from $3.60 to under $1.60, realizing that more money could be made on frequent purchases of fillers than on the binders themselves. They also added greeting cards, writing instruments and message pads through an aggressive acquisition campaign. |
| 4 | 3149 | 2004 | When K-Swiss Inc. was bought in the 1980s the new owner increased the price from $40 to $60 a pair, cut out sales to discounters and positioned the company as a conservative choice for anyone who wanted an alternative to flashier designs from companies such as Nike and LA Gear. The company also broadened their base by introducing a children's line, signing up more full-priced U.S. retailers, and expanding overseas. In the late 1990s K-Swiss Inc. increased their marketing team, hired brand managers from places like Procter & Gamble Co., and targeted the core 14 to 24 year olds why buy more than half of all the company's sneakers. K-Swiss began advertising on TV in particular to youth oriented cable networks such as MTV and to magazines such as Vibe and TeenPeople. |
| 5 | 3571 | 2000 | Apple needs to get back to the visionary products that have made it famous and ruled its recovery. Apple's 2000 crop of products is little more than eye candy. The PowerMac G4 Cube looks great, but consumers recoiled at the $2,300 compared to PCs that sell less than $1,200 apiece. |
| 6 | 3571 | 1992 | Apple, as a PL competitor, was the first Tier I competitor to respond to growth among SL and PrL price points, introducing the Mac Classic, which sold for 40% less than predecessor and 25% more than a similarly configured clone PC. |
| 7 | 3711 | 2001 | Luxury car-makers are going to offset the possibilities of tarnishing their brands' prestige because of their new cheaper models by additionally producing even more expensive cars. |
| 8 | 3751 | 1999 | In 1999, Harley-Davidson began selling custom bikes packed with accessories priced at $9,000 more than the standard model. The profit margin on these $25,000 bikes is likely 40%, four points higher than standard models. |
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