Converted Pricing Inconsistency into a Scalable Revenue Growth Engine – Consumer Goods Company

Background
  • Lack of coherent price structure by customer segment – smaller customers pay lower prices than bigger ones
  • High price dispersion by customer segment reflects lack of a consistent pricing policy which would capture customer differences
  • Lack of structured discount policy that would stimulate good customer behavior and would avoid high price list dispersion
Approach
  • Customer Segmentation and target definition by segment;
  • Price positioning recommendation considering customer segment, product, brand, channel and region;
  • Trade terms (Price, Rebate and discount) structure and levels recommendation
  • Chanel Margin Architecture Proposal
Results
  • New commercial policy implemented in the region (three different countries);
  • Revenue Amount Results 9pp above target;
  • High customer satisfaction with new commercial policy
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