Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: CLUB MEMBER SEGMENT
CHOICE 3 COMPONENT: OFFER A COUPON
| No. | SIC | Year | Notes |
| 1 | 5600 | 2003 | Clothing chains have been doling out special "friends and family" holiday discount codes for as much as 25% off at the stores' Web site. The Banana Republic deals are intended for staffers and their loved ones. But with the codes being circulated by e-mail, the discounts are spreading fast. Store are all too happy to have the discounts spread. It increases store loyalty and sparks sales. |
| 2 | 5621 | 2002 | Instead of huge sales and advertising which may cheapen a brand's image, some retailers are looking towards low-key programs which promote customer loyalty. Gap and Ann Taylor both focus their coupons and sales advertising on charge card holders rather than the general public. These people are more likely to visit frequently, not just come in to take advantage of low pricing. |
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