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 SMALLER STANDARD LEADER
CHOICE 3 COMPONENT: PROVIDE A REBATE
| No. | SIC | Year | Notes |
| 1 | 2084 | 1991 | Because all competitors participated in coupon or refund discounting, this practice did not give one competitor a significant advantage over another. The standard discount was a $1 rebate off the 1.5 liter jug. Gallo's discount, though, was the most successful because it offered the best value for the price, and was offered regularly. Taylor California embarked on the most drastic rebate offer in 1983, when it offered a $3 rebate. Retailers unexpectedly dropped the price to $3 and advertised the product as "free", which ultimately hurt the brand's image. |
| 2 | 2800 | 1987 | Monsanto, facing new competition when its Lasso herbicide patent expires in December, cut the price of the weed killer for the first time since it was introduced in 1969. Ciba-Geigy is offering rebates on its product Dual (Lasso's competition). |
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