Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: INDIVIDUAL CUSTOMER SEGMENT

CHOICE 3 COMPONENT: PROVIDE A REBATE

No. SIC Year Notes
1 2086 2002 On average, food companies spend $60 billion a year on givebacks (paying stores for stocking their brands). Kraft sales shrank $4.6 billion, or nearly 14%, off its top line; Kellogg Co.'s (K ) 2001 sales shrank 15%, to $7.6 billion when incentives were subtracted from reported sales. Net profits weren't actually impacted, since companies deducted the rebates as costs elsewhere, usually putting them in with general expenses.

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