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: CUSTOMER BASED LIST PRICE CHANGE
| No. | SIC | Year | Notes |
| 1 | 2834 | 2008 | Britain's state-run health service agreed to pay for the lung-cancer drug Tarceva after the maker, Roche Holding, matched the price of an older, less-expensive drug. Initially it was too expensive to be made available to patients. Tarceva worked out to be about $3,700 more expensive than Sanofi-Aventis Taxotere for an equivalent course of treatment. |
| 2 | 4512 | 2002 | AMR's American Airlines changed a three-day advance purchase requirement for discounted business-travel tickets to seven days, hoping competitors would follow suit. When most refused, American shot back by sharply discounting business fares in several competitors' markets. |
| 3 | 4724 | 2009 | Orbitz Worldwide Inc. plans to announce Wednesday that it will reduce the service fee it charges travelers to book hotel rooms on its Web site through July 15, upping the ante after recent online travel-agency moves to cut the fee on airline-ticket bookings. Earlier this month, Orbitz said it would waive booking fees on most flights booked on Orbitz.com and Cheaptickets.com through May, making it the last of the big online travel agencies to concede the valuable fee revenue. Orbitz had been more dependent on airline booking fee revenue than its competitors were. |
| 4 | 7514 | 1988 | Avis is starting a price war aimed at Hertz in an attempt to move into the number one position. Avis snatched at least three of Hertz's big accts w/ discounts of 20-30%. In response, Hertz grabed 2+ of A's big accounts on price. |
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