TEST YOUR KNOWLEDGE: PRICE POINT COVERAGE
Determine whether each
product and
company is a Performance Leader, Standard Leader, Price Leader, or Next Leader.
Question 1: Up to 40% of all fingerprint cards are unusable, often smeared. Finger Matrix developed a $100,000 system that produces electronic fingerprints, ten times clearer than those made with ink.
(Year 1987-SIC 3674)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 2: Sherwin-Williams has repositioned each of its 4 main brands so that it has a focused distribution with each. The Sherwin-Williams stores carry only Sherwin-Williams paint. Mass merchants carry Dutch Boy. Independents get Martin-Senour. And discounters get Kem-Tone.
(Year l994-SIC 2851)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 3: Ad rates on network TV are an average of 25% higher than for cable, even when the programming reaches exactly the same number of viewers.
(Year 9997-SIC 4833)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 4: In 1989, Merrill Lynch had an idea for an all-purpose account, one that would include a credit card, a money market fund, a checkbook, a margin account and other frills. The CMA hit a lot of controversy for competition with banks, but it caught on and was a huge success.
(Year 1989-SIC 6211)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 5: In 1995, private-label goods were increasing all around. Private-label goods grew to 20% of grocery store items then from 15% five years before.
(Year 1995-SIC 2840)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 6: In 1987, Ultrasystems' latest innovation was the micro co-generation plant. The "unit" was the size of a freezer, efficient and mobile. Lease payments for the plant ran at least 20% less than current electric utility charges.
(Year 1987-SIC 1600)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 7: In 1990, Coleman made a polyethylene boat that was stronger and half as expensive as the industry leader. It went from a standing start to number one in a few years.
(Year 1990 – SIC 3949)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 8: In 1996, Royal Crown introduced an amber-colored draft cola in a long-necked glass bottle that used more expensive ingredients like pure cane sugar instead of corn sweetener. It cost 89 to 99 cents for 12 ounces. That made Draft's margin of $1 per case about four times as high as any other Royal Crown product.
(Year 1996 – SIC 2086)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 9: In 1992, Marlboro's U.S. market share continued to decline from 25.3% a year earlier to 24% due to high cigarette prices relative to discount brands.
(Year 1992-SIC 2111)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 10: In 1997, Blockbuster tried to increase sales by diversifying from video rentals into T-shirts, toys, books, magazines, and CDs. This effort was a disaster.
(Year 1997 – SIC 7841)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 11: In 1990, Malt-O-Meal cereals were no-frills – no decoder rings inside, few coupons, no TV ads. But Malt-O-Meal saved consumers big money. Its bags – not boxes – were typically priced at about 1/2 of what big brands cost.
(Year 1990-SIC 2043)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 12: In August of 1996, P&G began testing its first value-priced laundry detergent to be sold in the U.S.: Ultra Bonus.
(Year 1996-SIC 2840)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 13: In 1998, Microsoft quickly gained about 15% of the database market by selling low-cost, mass-market systems, most to small businesses and individual corporate departments.
(Year 1998-SIC 7372)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 14: In 1991, HealthInfusion hooked people up to intravenous treatments at home, instead of in a hospital, for about half the cost.
(Year 1991-SIC 8099)
Performance Leader, Standard Leader, Price Leader, or Next Leader?
Question 15: In 1994, Catalina's checkout-stand-generated coupons were a new product with the benefit of tailoring coupons to customers, based on what they already bought. Catalina's coupons cost $2.30 per coupon vs. 90 cents per newspaper insert coupon. But, when measured by the cost of persuading a Brand A user to buy Brand B via a coupon, Catalina's coupons cost about 1/3 as much as the newspaper inserts.
(Year 1994-SIC 7300)
Performance Leader, Standard Leader, Price Leader, or Next Leader?