Industry

Consumer & Retail
Consumer Products

Company Profile

  • €24bn annual revenue
  • Global consumer electronics and health company with a portfolio of different product categories

Situation and Objectives

  • Create a performance-based trade terms system
  • Define the right MSRPs
  • Define a clear distribution strategy
  • Limit/adjust and optimize promotion activities

Approach

  • Holistic analysis of channels and distribution, pricing, promotions, and terms and conditions
  • Identified inconsistencies and improvement potential in all areas while considering interdependencies between them
  • Developed new approaches in all areas and prepared their implementation

Four elements of commercial elements

Results

  • Defined the global trade term and trade investment framework, including the implementation plan
  • Recommended MSRPs across regions and markets
  • Defined global distribution strategy (own sales, wholesale sales, distributor sales)
  • New promotional mechanics and calendar

Impact

  • Slower and lower price erosion for new products
  • Margin increase by 6.7 %-pts
  • Better alignment across countries and regions
  • Higher ROI for money spent on trade or promotions

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