Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: LOSS LEADER SEGMENT / A LOW PRICED PRODUCT TO CREATE MARKET AWARENESS
CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY
| No. | SIC | Year | Notes |
| 1 | 5999 | 2009 | For Zazu, an Ashburn, Va., specialty gift store, the economy is also demanding that it think creatively about promotions. In the second half of 2008, the store's owners noticed that regular customers were buying less each time they came in. They (the people who run Zazu) dropped their ads and, as part of a new promotional effort launched a blog. Periodically, Zazu posts a giveaway on the blog- say, jewelry, scented candles or a stationery item. Anyone who leaves a comment on the blog is entered in the contest. Each giveaway costs the company between $10 and $30. But shoppers are drawn to the featured item of the week and the buzz generates more sales. |
| 2 | 7375 | 2006 | The software company has used financial incentives before to lift its share in the market. In 2006, it started a sweepstakes-like search service through which users could win prizes if their search terms matched those on a random list. |
| 3 | 7375 | 2007 | The software company, Microsoft, has used financial incentives before to lift its share in the market. In 2007, it started its Live Search Club, in which users earn prizes for completing puzzles that involve searches. |
| 4 | 7900 | 1988 | Mt. Reba is issuing game cards to any visitor to the ski area; the scratch-off cards reveal prizes ranging from subscriptions to Powder Magazine and a free soda pop in the lodge to ski vacations and lift tickets. |
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