Industry
Chemicals & Materials
Base Materials & Metals
Company Profile
- $14bn annual revenue
- Integrated production in three business units in more than 50 countries
- Strong focus on capacity utilization to drive down fixed cost per unit
Situation and Objectives
- Establish pricing principles and structures to return to sustainable margin level to cover cost of capital
- Transform the commercial approach to balance volume and margin targets
Pricing framework development and global roll-out
Results
- Define mid-term margin and market share targets
- Develop price guidance for improved internal transparency and steering of sales
- Shorten pricing cycles to more than once per year
- Establish systematic price increase management process incl. acceptable volume losses
- Adjust sales variable compensation balancing volume and margin targets
- Plan communication activities to employees and customers to support stepwise implementation
Impact
- 10% price over three years
- at market share target
