Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: INTRODUCTORY OFFER SEGMENT
CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY
| No. | SIC | Year | Notes |
| 1 | 2721 | 1989 | Time magazine tempts potential subscribers w/ gadgets: calculators, clocks, telephones at a cost of $125m since 1983. Newsweek gave this up and instead slashed subscription prices. |
| 2 | 4512 | 1972 | Getting Southwest up and running was just the beginning of another saga: the fare wars with Braniff Airlines. At one point Braniff cut the price of its one-way fare from Houston to Dallas from $26 to $13. Lamar Muse came up with the brilliant way to match them. Southwest offered customers a choice: They could pay $13 or they could pay $26 and we'd throw in a free bottle of whiskey. |
| 3 | 4512 | 2003 | Starting in January, Lufthansa's 80 long-haul jets, including Boeing 747-400 and Airbus A340 and A330 aircraft, will be fitted with Boeing's Connexion wireless Internet system, the German Airline said. The agreement follows a trial that started in January this year during which Lufthansa offered the service free of charge on some flights between Frankfurt and Washington D.C. |
| 4 | 4813 | 1991 | Sprint offers free clocks, radios, and tie-ins with Hallmark, American Express, Burger King and environmental groups. |
| 5 | 4813 | 1995 | In April Sprint is expected to offer several months of free cable programming to new customers. Offers a totally different product for signing up (cable time). |
| 6 | 5600 | 1999 | To make up for lost time, Gap is turning to some tried-and-true methods to convert walk in shoppers to cybershoppers. In July, Gap held an in-store drive to get customers to submit their e-mail addresses. To spur shoppers to sign up, Gap offered 10% off and free shipping on their first online purchase. Gap's weekly e-mails plug specific merchandise and include links directly to apparel on Gap's Web site. |
| 7 | 6021 | 2004 | As banks intensify their focus on the consumer side of their business, they are dusting off the strategy of handing out gifts to new depositors. But this time, they are skipping the free toasters and instead offering bigger-ticket items: DVD players, flat-screen televisions, personal paper shredders and Sony PlayStations. |
| 8 | 6211 | 1999 | E*Trade, eager to remain the industry's top advertiser, was expected to spend about $300 million on advertising and other marketing programs, including promotional giveaways such as free long-distance minutes, frequent flier miles, and coupons for free trades. |
| 9 | 6512 | 1991 | Many desperate developers are covering remodeling costs and even paying tenants' moving expenses. Amenities abound, ranging from free health club memberships and shuttle buses to concierge services, free shoe shines and fresh-cut flowers. |
| 10 | 7941 | 2008 | The New Jersey Nets are giving a 10% rebate to new season-ticket buyers—in the form of a gas card. |
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