Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST A PRIVATE LABEL SUPPLIER

CHOICE 3 COMPONENT: OFFER A COUPON

No. SIC Year Notes
1 2020 1993 US cheese mkt. share: Kraft 47.2%, Private Label 25.3%. Kraft had declining sales and market share for one year, pulled out across-the-board price cut, coupons. Gained back some. Borden's promotional spending increased 10% last year.
2 2043 1991 Kellogg offers price promotions and coupons to compete against lower price rivals (private-label brands).
3 2043 1994 Nearly two-thirds of all cereal sales are now made with coupons or other deals or promotions. Last year, the five biggest cereal companies spent $610 million to issue about 100 coupons for every person in America.
4 2043 1996 Post cutting list prices. Reduce charges to retailers 20% & cut back "increasingly inefficient" coupons & promotions. Will offer single all-purpose coupon good on all 22 cereals. Could reduce retail prices by $1/box (avg. $3.16)

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