Reduce Price to Improve Revenues and Margins




No. SIC Year Notes
1 2000 1993 Gerber hiked prices 5.5% in September, creating up to a 28 cent premium over jars from rivals. Orders dropped 16%, and share tumbled 2 points. Gerber cut prices and leaned on coupons. But sales didn't pick up until competitors raised prices 5% by December.
2 2020 1993 US cheese mkt. share: Kraft 47.2%, Private Label 25.3%. Kraft had declining sales and market share for one year, pulled out across-the-board price cut, coupons. Gained back some. Borden's promotional spending increased 10% last year.
3 2043 1991 Kellogg offers price promotions and coupons to compete against lower price rivals (private-label brands).
4 2043 1994 Nearly two-thirds of all cereal sales are now made with coupons or other deals or promotions. Last year, the five biggest cereal companies spent $610 million to issue about 100 coupons for every person in America.
5 2043 1996 Post cutting list prices. Reduce charges to retailers 20% & cut back "increasingly inefficient" coupons & promotions. Will offer single all-purpose coupon good on all 22 cereals. Could reduce retail prices by $1/box (avg. $3.16).
6 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.
7 3692 1987 When Kodak entered the consumer-battery market, Eveready & Duracell responded w/ a flurry of rebates, coupons & specials.
8 3999 2003 Gillette has recently been spending on coupons. Recently, CVS took $1 off Venus (the triple-bladed Gillette razor for women), putting its price lower than that of rival Intuition.
9 5812 1988 Some shops accept other competitors' coupons with an extra $1 off when used.
10 5945 1992 Due to increased competition from discounters like Wal-Mart, Toys "R" Us for the first time ever, resorted to publishing 20 million copies of an in-store catalog containing $173 worth of coupons. Toys "R" Us used to have everyday low pricing.
11 5945 1994 Major discounters increase toy industry competition. Toys R Us still holds 21.5% of market, with Wal-Mart at 12.9% and Kmart at 7.1%. Toys R Us now offering coupon books.
12 7372 2009 Microsoft is cutting the price of Office and offering the free versions of Word, Excel, and other programs to head off competition from Google and other rivals that offer similar software at little or no cost. Microsoft has so many promotions for Office that its effective price is $100, down from $150, and even lower in such countries as Brazil and India. But the experience is sparking optimism at Microsoft about the new strategy. The company says unit sales of Office surged 415% in the second half of last year.

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