Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PERFORMANCE PERCEPTION SEGMENT / A BRAND WITH PERFORMANCE (I.E., FUNCTION, RELIABILITY AND CONVENIENCE) AT THE LOWER END OF THE BRAND CATEGORY
CHOICE 3 COMPONENT: CHANGE RELIABILITY AND PRICE TOGETHER
No. | SIC | Year | Notes |
1 | 2084 | 1991 | In the early years of hostility, although Gallo competed against Inglenook, Almaden, Taylor California, and Paul Masson, its competitors were perceived as slightly differentiated from Gallo in image and in price. Gallo's strategy was to lower the price of its generics while introducing varieties backed by a $27 million advertising campaign; this succeeded in moving Gallo's Chablis Blanc closer in image to its competitors but at a lower price. This better performance package forced its competitors to discount their products. |
2 | 2399 | 2004 | When Levi began to sell to Wal-Mart Stores last year, it overhauled its entire operation, from design to production, pricing to distribution. Levi launched a segmentation strategy. It would sell different versions of jeans for different prices, from Levi Strauss Signature jeans to $150 upscale vintage designs. The sales didn't go as well as it had planned, at Wal-Mart and different department stores. Levi was forced to sell to Costco Wholesale Corp., which it originally thought would tarnish Levi's brand image. Wal-Mart also slashed the price of a basic pair of men's Levi Strauss Signature jeans to $19 from $23. |
3 | 3571 | 1986 | Amdahl and NAS offer clones for 20% less than IBM. |
4 | 3571 | 1987 | Both Amdahl and NAS have new "plug-compatible" products with sharp price and performance advantages over IBM. |
5 | 3571 | 1990 | IBM and Tandy waged aggressive campaigns with the school market with new low-cost computers. Apple's prices stayed up. |
6 | 3571 | 2003 | Hewlett-Packard's new point-of-sale (POS) computers, which are basically souped-up PCs, enable HP to sell them to retailers for half as much as the cheapest POS-specific machines made by rivals such as IBM and NCR. |
7 | 3711 | 2004 | The new Cadillac STS, a 320-horsepower luxury sedan with a V-8, was introduced at Paris Motor Show. This new car is aimed at Americans who want a European-style luxury car and the Europeans themselves, going up in direct competition with mainstays like the BMW 5 Series, Mercedes E-Class and Audi A-6. With prices ranging from $41,000 to $63,000, the models are around $7,000 less than comparable European sedans. |
8 | 3949 | 2001 | Competition in the golf club market is mainly limited to a few big companies and a few small ones. Most midsize players were kicked out in 1998 during a market meltdown. Marketing costs are so high that few can battle the big boys. That doesn't mean the big firms are immune to competitive risks, however. Adams Golf Inc. and Orlimar Golf Co. slashed prices of their top clubs to $299, at least $100 less than the top companies premium clubs. |
9 | 6411 | 2005 | The smaller carriers in the market are virtually all Price Shavers. If Cigna's price were 100, the smaller players would be in at 80 to 90. The school needs a low price. The agent needs to bring in one of these small people in order to offer a low priced option, though he will usually recommend that the school not use the low priced supplier. |
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