Industry

Consumer & Retail
Consumer Products

Company Profile

  • US$2bn company annual revenue
  • Global Consumer durables brand with an iconic brand

Situation and Objectives

  • Increase profitability by defining product value based on consumers' willingness to pay, developing a pricing framework to define global list prices and limit price and identifying products, customers and countries to be improved

Approach

  • Diagnosis of today's commercial policy
  • Consumer Pricing: Implementation and Trainings of new pricing framework
  • Customer Pricing: Implementation and Trainings of new pricing framework

Results

  • Defined MSRPs that are (1) based on value drivers and (2) ensure a logical price architecture
  • Defined retailers' purchase prices that (1) are coordinated across countries and regions (incl. currency risk) (2) secures and increases manufacturer's margin
  • Action list and implementation plan to realize the profit potential by product, customer and country

Impact

  • Increased margin by +1.4%-pts (+4.9% total margin)
  • Coordinated prices across regions and continents