Does the consumer want to set their own price? Well, that is what Jay Walker, the founder of Priceline.com, was beating on. This new idea in consumer marketing started out with a bang then took a severe drop around the turn of the century. The company has tried several approaches and products to entice their target market. These tactics included: online gas and grocery discount prices, and airline and hotel accommodations. Some of these tactics have been successful and some have not. But, the leadership of Priceline.com continues to be optimistic that their method of "Name Your Own Price" will take the company to the top of the mountain.
             This paper will take the position of a marketing consultant to answer three important questions: what is the optimal service mix for the company, what is the most important actions that the company should take to achieve profitability in each of it industries, and what should the short-term marketing plan for the 4th quarter 2001 and 1st quarter 2002 be? These questions will be answered as well as providing a SWOT analysis of the company.
             Strength – There are four key areas that are strengths for the company. These areas are: user-friendly, brand-name recognition, large supplier base, and bargain prices. These areas are self-explanatory however, lets briefly describe the benefit of each; user-friendly describes the ease of use, the consumer will experience, when they go to the company's website; brand-name recognition refers to the brand equity they have established by being the first-mover in that industry; large supplier base identifies, in size, the supply chain they have established; and bargain prices represents the major marketing strategy, which is providing the lowest price.
             Weakness – However, the company also has four predominant weaknesses. These weaknesses being, they are not always the lowest price, travel times are not always convenient, no reward for ...