Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST A PRIVATE LABEL SUPPLIER

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No. SIC Year Notes
1 0000 1993 Although many industries are in a reprieve because of an upturn in the economy, many companies are forgoing price increases because they fear that premiums may give private label and foreign competition the opportunity to steal share.
2 2000 1991 Price differences between private labels and name brands are shrinking as big companies cut their prices.
3 2000 1992 Now, Kraft is quietly cutting back prices on several products. But it hasn't reduced them as quickly as private-labels.
4 2043 1993 General Mills cut prices on the biggest boxes of three major brands. Beginning next month, it will lower prices on some packages of Apple Cinnamon Cheerios, Trix and Total by between 11% and 16%. Together those brands represent about 6% of the company's sales. These brands have each been losing market share.
5 2043 1994 Kellogg kept raising prices–6 times in past 3 years–in spite of private-label growth. Rival General Mills just decided to drop its prices.
6 2043 1996 Private label maker Ralcorp has been unsuccessfully trying to raise prices. Recent price cut by Post will put more pressure on low end players.
7 2067 1993 Wrigley kept prices steady ($.25 since 1987), gave private label manufacturers no room to gain; Natl Chewing Gum has tried for a decade to sell its gum to major retailers – only Dollar General sells the gum. Leaders not allowing price gaps.
8 2086 1998 Cott's private-label discounting caused a price war: 2-liters of Coke or Pepsi can be found for 59 cents, compared with prices of around $1 before the price war began.
9 2111 1993 Market share gains by generic and private-label products have driven Philip Morris and Procter & Gamble to cut prices for Marlboro cigarettes and Pampers diapers.
10 2676 1992 In September, P&G cut the list prices of its Pampers and Luvs diapers 7%, amid growing competition from private-label manufacturers.
11 2676 1993 The principal reason for the decline in consumer product sales in the past nine months were price reductions on diapers in the U.S. by the two major brand name manufacturers — Procter & Gamble and Kimberly-Clark — in order regain market share lost to private label/generic brands. Prices were reduced 5% in October 1992 and a further 5% in January 1993 by P & G. Kimberly-Clark also reduced prices 5% in October while in January it reduced its box count by 10% and prices by 7% effectively raising prices 3%.
12 2676 1993 P&G cut prices of Pampers and Luvs three times in a year to battle for babies' bottoms with Paragon Trade Brands, which sells store-label diapers.
13 2840 1991 P&G has been minimizing the price spread between its brand and private labels.
14 2840 1993 Procter&Gamble switched to value-pricing. It has cut laundry detergent prices 15% and deodorant prices 24%. It's also lowered prices on disposable diapers, bar soap, fabric softeners, dish soap and other products.
15 2840 1993 In recent months, P&G has had to cut prices on its core disposable diapers and laundry detergents in response to lower-priced competitors. Just cut detergent product prices as much as 15%.
16 3577 1982 Xerox has lowered prices on its low-volume copiers. Xerox made 20 price reductions in 1980.
17 7372 2004 A recent move by Take-Two Interactive launched a price war that is providing a bounty for consumers just as the holiday gift-giving season is getting under way. Last week, rival game giant Electronic Arts slashed prices on its marquee sports games, lowering to $29.95 from $49.95 the price on its flagship Madden football and significantly discounting other titles. The price cuts from Electronic Arts were a direct response to Take-Two's decision earlier this year to price its line of ESPN videogames at $19.95.
18 7514 1992 Alamo announced a three-tier pricing structure, with lower nationwide rental rates of $15 a day for economy cars, $19 for midsize autos, and $29 for Cadillacs. Alamo said the Cadillac rate represented as much as a 55% price cut from its previous rates. Hertz responded by cutting its rate on subcompact cars to $14.99 from $18.99 a day. It's standing firm on rates for midsize or luxury cars.

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