Lotus slices prices to win retail share

Software vendor cuts prices of single applications to under #50 to enter second-tier stores

Lotus has redoubled its efforts in the retail market after slashing the price of its single applications by half to under #50.

The software vendor is hoping the aggressive price cuts will increase its presence in second-tier retail outlets such as superstore outfit Tempo. Products affected include Lotus Organiser and Wordpro, which have had their prices dropped from #99 to #49.

Trevor Ward, Lotus partner sales manager, said: ?We have quite a good presence in Bytes and Dixons but we want to get into the second tier of retail stores like Tempo and product doesn?t really move in those markets unless its sub-#50.?

Ward also claimed that Lotus?s single applications could be sold on the back of Microsoft?s Office Suite. He said: ?People buy Office for the brand but they are often not comfortable with the individual products so that?s why we believe there?s still a market for single applications.?

But Johnathan Hulse, Microsoft Office product manager, scoffed at Lotus? strategy. ?Price isn?t a factor. This is a last ditch attempt to gain share but it won?t work because price cutting as a strategy is flawed.?