Industry

Healthcare & Life Sciences

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