Semiconductor

Simon-Kucher has worked with the worlds leading semiconductor and electronics companies to address both strategic and tactical marketing and sales issues. Our semiconductor and electronics pricing consulting practice's expert advice and analysis helps our clients balance their different goals and determine which pricing strategy best supports their overall corporate strategy. Simon-Kucher has helped clients quantify the perceived value of their products to achieve price optimization, differentiate willingness to pay across various customer segments, manage the customers price expectations, and optimize lifecycle pricing. Our substantial base of experience and expertise within this industry allows us to answer strategic questions and design implementation that translates strategy into results.

Semiconductor and electronics companies routinely struggle with balancing tradeoffs (e.g., between ASP, revenues, margin %, profit $ and win-loss) and identifying the optimal pricing processes to support strategic goals. Increasing pressure from all players in the value chain, including suppliers, OEMs, EMS and distributors, make it challenging to extract value and move away from cost-plus margin pricing. Further, sales and distribution need to be properly incentivized and empowered to negotiate and maximize the value of each deal instead of negotiating internally for lower prices.

  • Achieve value pricing by optimizing pricing processes that best support strategic goals
  • Optimize key account negotiation and management
  • Design worldwide market segmentation and pricing strategies
  • Develop a new pricing process and pricing organization
  • Structure sales and distributor incentives
  • Conduct value-based pricing and negotiations skills training
  • Develop a strategy and business plan for new product launches
  • Optimize discount systems and escalation/approval procedures
  • Develop optimal product/services bundles
  • Enhance pricing systems and tools to best track pricing performance using KPIs

 

Selected clients

  • Altera
  • Amkor
  • Infineon
  • Intel
  • KLA-Tencor
  • National Semiconductors
  • NXP
  • Texas Instruments
  • Xilinx