Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A TOP TIER STANDARD LEADER

CHOICE 3 COMPONENT: OFFER A COUPON

No. SIC Year Notes
1 2000 1993 Gerber hiked prices 5.5% in September, creating up to a 28 cent premium over jars from rivals. Orders dropped 16%, and share tumbled 2 points. Gerber cut prices and leaned on coupons. But sales didn't pick up until competitors raised prices 5% by December.
2 3999 2003 Gillette has recently been spending on coupons. Recently, CVS took $1 off Venus (the triple-bladed Gillette razor for women), putting its price lower than that of rival Intuition.
3 5812 1988 Some shops accept other competitors' coupons with an extra $1 off when used.
4 5945 1994 Major discounters increase toy industry competition. Toys R Us still holds 21.5% of market, with Wal-Mart at 12.9% and Kmart at 7.1%. Toys R Us now offering coupon books.

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