Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT A NEW PRODUCT TO NEW CUSTOMERS
CHOICE 3 COMPONENT: CUSTOMER BASED LIST PRICE CHANGE
| No. | SIC | Year | Notes |
| 1 | 2721 | 2001 | Launched in 2001, The Week is aimed at the U.S. intelligentsia. The news magazine became a must-read for politicians, celebrities and CEOs who like its smart distillation, presentation and the array of subjects. The average household income of the reader is $137,000. Stories are lifted and compressed from a variety of sources by a team of 20 editors. Discounted rates lure in readers, 55% of whom pay the full price of $75 once the special offer ends. |
| 2 | 2752 | 1989 | After the '87 crash, the industry will generate $550MM in revs., down from the pre-crash $850MM. Prices are down 25-50% as newcomer Donnelley(big in other mkts) has offered steep discounts and grown to 2nd. |
| 3 | 3711 | 1990 | Hyundai had greatly underpriced its Excel to shoot itself into the US market. So it had very small profit margins. |
| 4 | 3711 | 1990 | BMW, Porsche, and Jaguar are holding down prices on their 1990 models, and Toyota's Lexus, with a $35,000 list price in the US, is expected to sell for thousands of dollars more in Europe, suggesting that the US price is set deliberately low to gain a market foothold. |
| 5 | 4213 | 2003 | In order to attract business when Knight penetrates a new market, it charges rates at or below the market average. Once it gains credibility it raises rates at or above what the market charges. This has helped Knight gain a 25% annual sales growth for the past 5 years. |
| 6 | 4512 | 1986 | Continental is expected to announce low fares to 30 cities out of Chicago's Midway airport for travel between Nov. 20 and Dec. 15. Continental will be flying out of Chicago for the first time, and such promotional prices aren't unusual. |
| 7 | 4512 | 1986 | Continental offers $65 cross-country fares for people at least 65 years old who travel on Tuesday and Wednesday on Continental through March 5. |
| 8 | 4512 | 1986 | Until Tuesday, Continental West was offering one-way fares as low as $29. Competitors PSA and AirCal offer one-way fares ranging from $39 to $79. Now Continental offers fares at $65 from San Jose to LA w/ $39 and $49 fares available on limited basis. |
| 9 | 4512 | 1986 | Continental is expected to announce low fares to 30 cities out of Chicago's Midway airport for travel between Nov. 20 and Dec. 15. Continental will be flying out of Chicago for the first time. |
| 10 | 4512 | 1989 | United announced it will offer a special one-way fare of just $25 the first week of its new flight between Oakland and Ontario. Tickets apply to flights from 7/5 through 7/12, & must be bought before 7/4. |
| 11 | 4812 | 1999 | Globalstar is slated to start service in September. Teledesic, Lockhead Martin, and Boeing want to launch services. Rivals will offer cheaper packages than the $1,500 Iridium charges for phone gear and its $3-a-minute calls. |
| 12 | 4813 | 2004 | Customers need a broadband connection to get AT&T's service, but they will get unlimited local and long-distance calling for $19.99 a month for the first six months, rising to $39.99 a month thereafter. |
| 13 | 5200 | 1985 | Standard industry practice calls for a new store to offer as much as 20% off a competitor's prices for a limited time. |
| 14 | 5735 | 2004 | For an unspecified limited time, RealNetworks will cut the price of songs available on its Real Music Store to 49 cents per track, half the 99-cent per track price offered by Apple's far more popular iTunes Music Store. The Real Music Store is also slashing the price of albums by $5, to $4.99, also about half of what iTunes and other rival services charge. |
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