Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: PUBLIC RELATIONS SEGMENT / AVOID PUBLIC OR GOVERNMENT ACTION AGAINST THE COMPANY
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
|Prescription drug users became so mad over exorbitant prices that they took to the streets, causing Wellcome PLC to drop the price of AZT (anti-AIDS drug) by 40%.
|GlaxoSmithKline PLC and Secretary of Health and Human Services Tommy Thompson will announce today a prescription-drug discount program that will give low-income seniors on Medicare who don't have health benefits discounts on all the company's outpatient drugs. The program will be administered by Express Scripts Inc., a pharmacy benefit manager. The program is part of a growing effort by pharmaceuticals companies to address a growing chorus of complaints from seniors that lifesaving therapies are too expensive. Seniors whose income is less than three times the Federal Poverty limit but too high to make them eligible for Medicaid could participate in the Orange Card Program. The program will offer average discounts of 30%.
|Since the invasion of Kuwait 11 weeks ago, the price of gasoline at the pump hasn't risen as fast as the price paid to refiners. Because big companies are heeding Pres. Bush's warning to restrain prices. Hold sensitive prices down.
|Fees for using ATMs have been a problem for consumers for years. On Sept. 3, Washington Mutual stopped charging users of its ATMs in the New York area, even ones with accounts at other banks. Meanwhile, Congress is looking at tougher disclosure requirements for mutual-fund fees and for mortgage closing costs, which can be hundreds of dollars.
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