Industry
Company Profile
- Global leader in generic and biosimilar drugs with a strong consumer healthcare arm
- Company group has multiple product tiers from high-end branded to low-cost
- Value tiers are separated into different brands within the company group
Situation and Objectives
- Leading CHC manufacturer
- Unstructured pricing process: Brand managers do the pricing for single SKUs
- Low transparency to management
- No value pricing: Prices are a reaction to competitors, although client has a leading position
- Lack of pricing research
Approach
- Develop and establish a standardized tool-supported pricing process together with brand managers in several workshops for the 12 most important brands in the 2 most important markets
- Hand over toolkit for strategic and tactical pricing: ComStratTM (strategic positioning), PriceMapsTM (price architecture), PriceChangeIndicatorTM (tactical price changes) and PriceStratTM (price elasticity estimation)
PriceMapsTM Tool

Results
- Strategic position adjustment for 5 brands recommended based on ComStratTM analysis
- Annual profit impact of more than USD 4m based on price increases due to PriceMapTM and PriceChangeIndicatorTM analysis
- Established as routine process and rolled out to the full region
Impact
- Project redeemed>10-fold within same year