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/NEW APPEAL TO THE SENSES
| No. | SIC | Year | Notes |
| 1 | 2000 | 1997 | Campbell Soup raised prices 4% on its soups at the same time that it added 33% more chicken to its chicken noodle soup. The added ingredients boosted the soup's sales 19% and created a "halo effect" of added quality around the other Campbell soups whose prices rose. |
| 2 | 2043 | 2003 | Since Kellogg's cereal dilemma, the company has indeed been transformed, but not in the way even the CEO expected. Cookie sales have been crumbling, down 5% this year after falling 2% in 2002-but cereal has taken off. Shedding its long obsession with volume, Kellogg decided to put its marketing muscle behind the brands that bring in the most money. It got consumers to pay more for higher profit cereal by adding a feature of two, much as razor makers did by adding a third blade. |
| 3 | 2047 | 1987 | Quaker's new premium dog food Tender Chops, which looks like premium pork chops, retails for 12% more than Quaker's regular dry food, w/o costing much more to make. |
| 4 | 2084 | 2003 | The first price of Kendall Jackson wines in 1982 vintage's Vintner's Reserve Chardonnay placed in the mass prestige market segment was $5 a bottle. Well below the $10 plus price of today's boutique wines, the price was only $2 above economy wines. |
| 5 | 3421 | 1990 | Gillette's new Sensor is $3.75, well below Atra and Trac II, hoping to lure shavers from the older products. But cartridges will cost 25% more than those for Gillette's old systems, giving it about 8 cents more gross profit per cartridge. |
| 6 | 3421 | 1994 | Gillette, the industry's leader, priced its new Sensor replacement blades for women 3x more than traditional disposable razors. |
| 7 | 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. |
| 8 | 3861 | 1994 | Kodak is fighting store brands with a new low-priced, seasonal film, Funtime. Kodak also launching high-end film for special occasions, Royal Gold. |
| 9 | 5812 | 1994 | Dunkin' Donuts (previous leader) only offers one flavor of coffee, Starbucks 30. Starbucks trendier. Starbucks offers 10 cents off a cup of coffee if you bring in your own reusable mug – aimed at today's trendy greenies. |
| 10 | 5999 | 2002 | Rival high-end soap product manufacturers of Caswell-Massey such as Crabtree & Evelyn and Bath & Body Works have the means to introduce new products about every 90 days. Caswell-Massey has sales of $500 per square foot while its larger competitors reach $540 per square foot. And Caswell-Massey charges $4 to $6.50 on average for a bar of soap, whereas Bath & Body Works sells soap for an average of $3 per bar. |
| 11 | 7011 | 1985 | Mid-priced Holiday Inns has introduced a budget product called "Hampton Inns", a high-priced urban hotel called "Holiday Inn Crowne Plaza", and suites-only product, "Embassy Suites". |
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