Pricing Strategy: Shaping a European Price Corridor Strategy & Execution

Introduction To Stratence Partners. Cross-Industry Expertise & Selected References

• Developed and acquired deep expertise by partnering with leading Organizations across many Industries

• Applies Thought-Leadership and Cross-Pollination to help the Organizations to outperform the competition through innovation and disruptive Best-Practices

Case Study: Chemical Industry

Problem statement

• Lack of coordinated pricing strategies across various businesses

• Wide range of prices for the same product across EU P&L’s

• Specialized Traders were shipping products from one country to another

• Channel relationships & trust issues from trade price pressure

• Recurrent Channel renegotiations damaging bottom line

• Difficult budget round discussions internally across the various P&L’s

Diagnostic

• Price Consistency & Elasticity analysis of key SKU’s (20/80 rule)

• Price variance trend over last 5 years: average $30M p.a. profit erosion uncovered

• Pan European Channel analysis

Implementation

• EAME price corridor strategy & process

• Pricing Segmentation, Targets & Guidance

• EDWH monitoring tools to support coordination

Business impact

• Year #1: $70M profit impact

• Year #2: $201M profit impact despite cost going up and demand going dramatically down

Specific Industry Expertise, Business Cases and References available on demand