Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: REWARD CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: LOW DEMAND PERIOD SEGMENT

CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY

No. SIC Year Notes
1 3711 2006 Faced with stagnant car sales due to rising fuel costs and a housing slump, luxury retailers are hoping that buyers will purchase cars as Christmas presents. They are promoting this with various deals. Ford Motor is offering a free iPod and a Motorola RAZR to customers who purchase an XJ sedan.
2 4512 2002 International airfares dropped 13.8% in December, yet nearly a quarter of the seats on international flights were empty. Many travelers are still leery about flying, and there's a preference during the winter months toward warm-weather destinations closer to home. These factors have led to heavy discounting and plenty of perks in European travel. British Airways just wrapped up a sale on round-trip fares to 45 European cities for travel through April 6. A flight from New York to London was as low as $198 – excluding taxes, which can add $110 or so – and included a free two-night hotel stay valued at $100.
3 5541 2008 Some small businesses are overhauling their pricing strategies amid the recession and finding new growth through lower offerings and discounts. Mr. Transmission considered offering incentives. Knowing that justifying a major repair in the wake of an economic downturn was becoming harder, it began offering food and gasoline vouchers to customers who had transmission overhauls, which account for 90% of its business. In December, the company began working with a partner to offer $500 gasoline certificates with a transmission overhaul, which generally cost between $1,800 and $1,500. Customers get $25 a month on a Visa Cash Card for 20 months. Mr. Transmission has recorded a 60% increase in sales so far this year compared with the year-earlier period.
4 6021 2006 As rates for home equity lines of credits rise, banks are offering special promotions and rate cuts to ensure consistent demand. PNC Financial Services is offering $25 Visa gift cards and airline tickets to customers that take out a new home-equity loan or line of credit.
5 7011 2002 Weak business travel has forced hoteliers to cut prices and offer additional incentives to lure vacationers. Perks include free Sundays, bonus airline miles and free food for kids.
6 7011 2006 In order to lure in summer travelers despite rising gas prices, hotels and attractions offered promotions related to fuel purchases. Visitors to New York's Apple Core hotels in July who were without a rental car received two daylong Metro cards, two round-trip airport transfers and free breakfast.

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