gas station mini case.docx - Greg At this meeting we need to make a decision on the way forward with our pricing Ever since the major supermarket chains

gas station mini case.docx - Greg At this meeting we need...

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Greg: At this meeting we need to make a decision on the way forward with our pricing. Ever since the major supermarket chains started providing their customers with discount coupons for gas/fuel purchases (after spending $30 or more at their supermarkets), to use at our competitors, our sales have fallen by about 20%. We need to do something about this! Gianna: Well, why don’t we just match them? Gary: Because there are only a few major supermarket chains and they have already formed alliances with our competitor chains. So there aren’t really any significant alliance opportunities left for us. Gianna: OK, how about this approach, but why don’t we just honor their offers. That is, give anyone who has one of these competitive coupons a discount as well. We’ll make less money, but we’ll defend against these aggressive competitors. Gail: And we could improve our margins by adding a small amount to our prices across the board before the discount. These consumers just want the ‘perception’ that they are getting a good deal. So we add a little bit first and
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  • Fall '16
  • abc
  • Marketing, Gianna, Discount coupons

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