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) |
<< Return to Choice 3