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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