Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PRICE LEADER AGAINST STANDARD LEADER

CHOICE 3 COMPONENT: OFFER A COUPON

No. SIC Year Notes
1 2600 2002 Drypers emerged in the 1980s to challenge market leader Procter & Gamble by offering a branded product at a low price. P&G responded by bombarding Dryper's state of Texas with coupons for $2–more than twice the usual 75 cents. Dryper launched a campaign to tell consumers that P&G coupons could be used on Drypers products and sales shot up. Wal-Mart used the same strategy by posting Kmart's deals at the front of the store and promising to beat the prices.

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