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: PRODUCT BASED LIST PRICE CHANGE – ANCILLARY PRODUCT
| No. | SIC | Year | Notes |
| 1 | 2111 | 1992 | Last March RJR cut the price on its Magna and Sterling brands 30% to stem the erosion in market share. |
| 2 | 4512 | 2005 | Despite early signs of victory, discount airlines are getting squeezed by traditional carriers and a new set of insurgents. Last year, Delta, which dominates Atlanta where AirTran has a hub, was accomplishing what once seemed unthinkable: wringing massive pay concessions from pilots and aggressively paring operating costs. Earlier this month, Atlanta-based Delta slashed its most expensive fares by as much as 50%, instantly erasing a chunk of AirTran's price advantage. |
| 3 | 4813 | 1993 | With MCI's new discount collect-calling service attracting customers, AT&T began pushing a rival service at the same price. AT&T holds 75% of collect call market; MCI holds about 5% to 7%. Sprint and others hold the rest. |
| 4 | 5999 | 2005 | Wal-Mart and Costco are cutting prices on digital-photo prints to win consumers who are switching from traditional film to digital cameras. Home printer maker Hewlett-Packard will cut per-print costs by 17% for people who own H-P printers and buy its paper and ink. All hope to form consumer habits in favor of their methods and encourage people to print more than the current 20% to 30% of pictures taken. Wal-Mart cut prices on 4-by-6-inch prints to 19 cents from 25 cents while Costco's price dropped to 17 cents. Costco will also lower one-hour processing rates while Walgreen's is running a bulk promotion. |
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