Industry
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