Reduce Price to Improve Revenues and Margins

CHOICE 2: ISOLATE SEGMENTS RECEIVING THE LOW PRICE

A. Product Purchased Segment

Introductory Offer Segment

No. SIC Year Notes
1 3944 2004 In 2004, the Lego Co. released a low-priced line of its plastic blocks. The new line, known as X-Pod, is sold in drugstores and supermarkets near the candy and magazines at the checkout, with 40 small pieces going for $3.49.
2 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.
3 5712 1995 The new products at Bombay Company will have an initial promotion for 10 days at a 15% discount.
4 6141 2008 In November, Chase rolled out a new Freedom card that may offer fewer cash-back bonus opportunities. Now, new customers will earn up to 3% cash back on gas, grocery and fast-food purchases for six months; after that, the rate will be 1% on all purchases.
5 7372 2000 In December 1999, Oracle software company cut prices to corporate customers by 40% to 50% for its new Internet database 8i, hoping to stimulate demand.

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