Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ANOTHER LOW-END COMPETITOR

CHOICE 3 COMPONENT: OFFER A TRADE-IN ALLOWANCE

No. SIC Year Notes
1 7372 1991 Lotus will offer discounts on Lotus 1-2-3. The discounts are for owners of Excel or Quattro Pro: $150 retail (vs. $595). Recently, Microsoft (Excel) and Borland (Quattro Pro) offered deep discounts to Lotus users who switched, helping drive down Lotus's share of spreadsheet unit sales from 73% (89) to 48% (91).
2 7372 1991 Moving to halt steep market share losses, Lotus for the first time will offer competitors' customers sharp discounts on its industry-leading Lotus 1-2-3 spreadsheet software. It will sell its latest 1-2-3 version to owners of Excel or Quattro Pro for a suggested retail price of $150, or as low as $99 through distributors. The product now carries a list price of $595. Microsoft and Borland have made enormous advances against Lotus recently by offering deep discounts to Lotus users who switched.

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