Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PRICE LEADER AGAINST STANDARD LEADER
CHOICE 3 COMPONENT: OFFER A COUPON
No. | SIC | Year | Notes |
1 | 2600 | 2002 | Drypers emerged in the 1980s to challenge market leader Procter & Gamble by offering a branded product at a low price. P&G responded by bombarding Dryper's state of Texas with coupons for $2–more than twice the usual 75 cents. Dryper launched a campaign to tell consumers that P&G coupons could be used on Drypers products and sales shot up. Wal-Mart used the same strategy by posting Kmart's deals at the front of the store and promising to beat the prices. |
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