Industry
Consumer & Retail
Consumer Products
Company Profile
- €24bn annual revenue
- Global consumer electronics and health company with a portfolio of different product categories
Situation and Objectives
- Create a performance-based trade terms system
- Define the right MSRPs
- Define a clear distribution strategy
- Limit/adjust and optimize promotion activities
Approach
- Holistic analysis of channels and distribution, pricing, promotions, and terms and conditions
- Identified inconsistencies and improvement potential in all areas while considering interdependencies between them
- Developed new approaches in all areas and prepared their implementation
Four elements of commercial elements
Results
- Defined the global trade term and trade investment framework, including the implementation plan
- Recommended MSRPs across regions and markets
- Defined global distribution strategy (own sales, wholesale sales, distributor sales)
- New promotional mechanics and calendar
Impact
- Slower and lower price erosion for new products
- Margin increase by 6.7 %-pts
- Better alignment across countries and regions
- Higher ROI for money spent on trade or promotions
