Stopped Margin Leakage and Delivered Profitable Price Growth Across Markets – Manufacturing Company

Background
  • Sub optimal portfolio pricing strategy
  • Lack of rules to establish commercial policy and rebate structure
  • Suboptimal pricing organization and unclear roles with many differences between countries
  • No coordination across departments to execute pricing
  • Lack of agility to react to unexpected macro conditions (currency devaluation, inflation)
  • Lack of consistency on monitoring process
Approach
  • Build Portfolio Management Strategy considering grouping product into categories, volume and margin
  • Commercial Policy Standardization across countries
  • Toolkit creation allowing fast reaction to unexpected macro economic events
  • Pricing discipline to control margin leakage (KPI’s socialization)
Results
  • Discount reduction 30Bps in one year
  • Strong Price Execution (5.5% growth beating operating plan)
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