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Tool 1: Price Evolutions (Illustrative) Tool 2: Dynamic Price Waterfall (Illustrative) Tool 3: Price Dispersion (Illustrative) For more information : http://privaledge.net
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Value
Curve
Price
Waterfall
Discount
Toolbox
Price
Corridors
Discrete
Choice
Value
Segmentation
PriValEdge - Pricing Tools:
Price
Dispersion
Tool 1: Price Evolutions(Illustrative)
Page 2
SK
U U
nit
Pri
ce
s (
$)
Tme Series (Weeks)
What it is:
Analyses Prices (or D&R)
evolutions over time
May be used for a single
product or a group of products,
globally or by client segments /
channel, or by account manager.
What it does:
provide visibility and insights
on evolutions to identify trends /
changes in dynamics or
correlations & opportunities &
threats that they represent
Corrective actions it may lead to:
Improved / more rational pricing on objectives.
Industry pricing actions to influence pricing dynamics
Price structure rebalancing
The stakes:
Together with other aspect of transactional analyses, typically results in bottom line improvement of up 4
% of sales in the first year
Plant Name (All)
Industry Name (All)
Custo Rev Segment Name 5_VL
Product Family Code (All)
Product Grp Code (All)
Prod Rev Segment Name (All)
1,00
2,00
4,00
8,00
16,00
32,00
64,00
nov.-07 juin-08 déc.-08 juil.-09 janv.-10 août-10 févr.-11 sept.-11
Ac1
Ac10
Ac11
Ac12
Ac13
Ac14
Ac15
Ac16
Ac17
Ac18
Pricing
Full ScreenNormal
Go to Financial Pivot
Go to Product Pivot
Go to Price Evolution
Go to SKU Elasticity
Go to Product Elasticity
Go to Customer Elasticity
Page 3
Tool 2: Dynamic Price Waterfall (Illustrative)
Dynamic Waterfall Analysis
60%
70%
80%
90%
100%
Results 100% 92.7% 14.1%
Leakages 7.3% 0.9% 1.0% 4.6% 1.4% 70.6%
Series1 93% 92% 91% 86% 85%
List Price Price
Concession
Invoice
Price Options Warranty $ Financing
Prompt
Pay
Margin/
COGS
Page 3Level 2 Tools
What it is:
Detailed analyses of
leakages (by type) that take
place between List price &
Pocket Margin.
May be used at Product,
Client, Segment or Market
level
What it does:
provide visibility and control
of ‘hidden’ discounts and
costs to clarify the
contribution margin on a
given deal.
Corrective actions it may lead to:
Rationalization of discount & client conditions policies.
Improved control & exceptions management on Discounts & Client Conditions
Sales force support & Monitoring
The stakes:
Together with Price dispersion analyses, typically results in 2 to 4 % ROS improvement in first year
Tool 3: Price Dispersion (Illustrative)
Page 4
National
0%
10%
20%
30%
40%
0 50,000 100,000 150,000
Avg
Dis
co
un
t
Lack of control &
discipline
Large accounts put
at risk by unfair
treatment
Large discounts
given to small
accounts
/ not taken away
from reduced
Standard volume discount
Ave
rag
e d
isc
ou
nt
Size of account (Yearly revenues €)
What it is:
Analysis of discounts given as
a function of size of accounts.
May be used for a single
product or a group of products,
globally or by client segments /
channel, or by account manager.
What it does:
provide visibility and control of
actual logic & discipline in the
implementation of Client
conditions & discounts.
Corrective actions it may lead to:
Rationalization of discount & client conditions policies.
Improved control & exceptions management on Discounts & Client Conditions
Sales force support & Monitoring
The stakes:
Together with Price dispersion analyses, typically results in bottom line improvement of up 4 % of sales
in the first year
Tool 5: Variance Analysis
What it is:
Analysis of variance in sales revenues.
Price variance
Volume variance
With additional detail on demand
May be used for a single product or a
group of products, by Sales rep or by client
segments / channel.
What it does:
provide visibility of key evolutions of
revenues and drivers for variance.
Helps monitor & manage pricing strategy
, campaigns & discounting policies
Corrective actions it may lead to:
Price adjustments.
Launch of campaigns & reactive actions
Competitive actions
The stakes:
Strong monitoring of Price & volume performance at any level – key driver to discipline & change
management
Revenue Variance(UnitPrice T2 * UnitVolume T2 ) - (UnitPrice T1 * UnitVolume T2 )
Price Variance(Unit PriceT2 - Unit PriceT1) * Unit VolumeT2
Menu-Tier Variance(MenuTier(T2)_OldUnitPrice x VolumeT2) - (UnitPriceT1 x VolumeT2)
Item-Price Variance(UnitPriceT2 x VolumeT2) - (MenuTier(T2)_OldUnitPrice x VolumeT2)
Promotional Item Price Variancetbd - will be a special component of item-price
Client Conditions & Discount Variancetbd - will be a special component of item-price
Volume Variance(Unit VolumeT2 - Unit Volume T1) * Unit PriceT1
Mix Variance(Unit VolumeT2 - (Unit Mix%T1 * Total VolumeT2)) * Unit PriceT1
Quantity Variance((Unit Mix%T1 * Total VolumeT2)-Unit VolumeT1) * Unit PriceT1
Tool 5: Time Series (Illustrative)
Page 6
SK
U U
nit
Pri
ce
s (
$)
Tme Series (Weeks)
What it is:
Analyses Prices (or D&R)
evolutions over time
May be used for a single
product or a group of products,
globally or by client segments /
channel, or by account manager.
What it does:
provide visibility and insights
on evolutions to identify trends /
changes in dynamics or
correlations & opportunities &
threats that they represent
Corrective actions it may lead to:
Improved / more rational pricing onbjectives.
Industry pricing actions to influence pricing dynamics
Price structure revbalancing
The stakes:
Together with other aspect of transactional analyses, typically results in bottom line improvement of up 4
% of sales in the first year
Plant Name (All)
Industry Name (All)
Custo Rev Segment Name 5_VL
Product Family Code (All)
Product Grp Code (All)
Prod Rev Segment Name (All)
1,00
2,00
4,00
8,00
16,00
32,00
64,00
nov.-07 juin-08 déc.-08 juil.-09 janv.-10 août-10 févr.-11 sept.-11
Ac1
Ac10
Ac11
Ac12
Ac13
Ac14
Ac15
Ac16
Ac17
Ac18
Pricing
Full ScreenNormal
Go to Financial Pivot
Go to Product Pivot
Go to Price Evolution
Go to SKU Elasticity
Go to Product Elasticity
Go to Customer Elasticity
Tool 6: Dynamic evolutions & elasticity (Illustrative)
Page 7
Ch
an
ge
in
Pri
ce
(%
)
Change in Volume (%)
What it is:
Analysis of evolution of Price
(and – or D&R) and how they
Impact Volumes or Margins.
May be used for a single
product or a group of products,
globally or by client segments /
channel, or by account manager.
What it does:
provide visibility and control of
actual dynamics & relationships
between price components &
performance
Corrective actions it may lead to:
Improved Pricing & client conditions policies.
Earlier identification of competitive threats & changes in industry dynamics
Targeted price adjustment based on expected impact
The stakes:
Key to finer price adjustments & improved price realization
Disc. & Reb. Selection All
Unexplained Disc Selected
StdVolume Discount Selected
List to Max Price Disc. Selected Dynamic Evolution Map - Y: Net Price , X: Volume (Units)
Early Payment Discount Selected
Full truck Discount Selected
Discretionary Discount Selected 30
Rebates Selected
Unbilled Services Selected
Unbilled guarrantees Selected 100% 10000%
Client Management Costs Selected 11%
Recruiting Costs Alloc Selected 0% 10000%
Marketing Costs Alloc Selected -11%
Max to Client Price Disc. Selected 200% 1000%
5%
-90% 10000%
0%
100% 200%
-90%
a
a
a
Fiscal Year 2009 a Fiscal Year 2010
Fiscal Month (All) a Fiscal Month (All)
Industry Name (All) a Industry Name (All)
Region Name (All) aCusto Rev
Segment Region Name (All)
Acct Mngr Name (All) a 20 South 5_VL 1 708 -40,08% 56,70% 43,30% 1 513 -0,43% 54,25% 45,75% Acct Mngr Name (All)
Customer Name (All) a 15 North 5_VL 1 241 -41,13% 55,04% 44,96% 1 102 -0,34% 55,80% 44,20% Customer Name (All)
Market Name (All) a 19 South 4_L 1 808 -44,50% 57,28% 42,72% 1 580 -0,52% 56,90% 43,10% Market Name (All)
Market Segment Name (All) a 18 South 3_M 6 956 -46,67% 55,16% 44,84% 6 596 -2,57% 56,50% 43,50% Market Segment Name (All)
Customer Breath Name (All) a 14 North 4_L 2 204 -48,10% 57,27% 42,73% 1 992 -0,75% 58,24% 41,76% Customer Breath Name (All)
Custo Rev Segment Name (All) a 17 South 2_S 7 717 -49,86% 53,82% 46,18% 7 260 -2,98% 53,93% 46,07% Custo Rev Segment Name (All)
Material GrP Name (All) a 4 0 4_L 3 022 -50,53% 62,25% 37,75% 2 706 -1,04% 61,17% 38,83% Material GrP Name (All)
Product Family Name (All) a 21 West 1_VS 2 044 -51,31% 50,96% 49,04% 1 932 -0,81% 51,62% 48,38% Product Family Name (All)
Product Grp Name (All) a 9 East 4_L 1 974 -54,95% 64,78% 35,22% 1 718 -0,73% 63,79% 36,21% Product Grp Name (All)
Plant Name (All) a 1 0 1_VS 1 759 -59,30% 55,62% 44,38% 1 568 -0,77% 57,77% 42,23% Plant Name (All)
MAP
Ma
p O
pti
on
sM
an
ua
l &
Au
to Z
oo
m
Apply Zoom
DATA TABLE
Gro
ss S
ale
s
D&
R &
Oth
er
Mk
tg.
(% G
ro
ss
Sa
les)
CO
GS
(%
Ne
t
Sa
les)
Ma
nu
al
Gra
ph
Nº
Au
to G
rap
h N
º
Code
Change Type
of Analysis 1
Change Type of
Analysis 2
Region
South
Gro
ss S
ale
s
D&
R &
Oth
er
Mk
tg.
(% G
ro
ss
Sa
les)
CO
GS
(%
Ne
t
Sa
les)
Gro
ss P
ro
fit
(%
Ne
t S
ale
s)
Gro
ss P
ro
fit
(%
Ne
t S
ale
s)
South
North
South
North
South
West
East
-2
0
2
4
6
8
10
12
14
-1 0 1 2 3 4 5 6
Dynamic Evolution Map - Y: Net Price , X: Volume (Units)
A B Profile A Profile B
Pricing
Manual Y MAX
Manual Y MIN
X MAX
X MIN
Y MAX
Detected
X MIN
Detected
Y MIN
X MAXDetected
Detected
Apply
Speed
Apply
Speed
Speed
Speed
Apply
Apply
FULL SCREEN
USUAL SCREEN
Dynamic Evolution MapY: Net Price
X: Volume (Units)Bubbles: Gross Profit
Top TenGross Sales D&R & Other Mktg. (% GroCOGS (% Net Sales)Gross Profit (% Net Sales)Gross Sales D&R & Other Mktg. (% GroCOGS (% Net SalesGross Profit
ADJUST AXESAUTO AXES
Y: Net Price
Client Value
– “Rational”• Financial Value Measurement (FVM) /
Expected value in use (EVIU)
• Cost to customer without product minus cost to customer with product
– “Emotional”• Price elasticity
• Perceived value of ‘qualitative’ attributes
FVM/EVIU
Simulation of client level impact
Transactional analysis / observed elasticities
Win / Loss analyses Key Buying Factors
Choice based conjoint/ Perceived price/value
Discount / Rebates elasticities
Analysis / ToolsLogic / Approach
Tool 7: Economic Value to Clients (Illustrative)
Page 9
What it is:
Objective evaluation of
economic value to client of our
offering versus next best
competitive alternative.
Developed by target segment
and or for individual clients.
Can be adapted to supply an
interactive sales support tool
What it does:
Analyses & visualizes the
Value of our offering
Actions it may lead to:
Development of targeted offers (focusing on attributes that create value for clients)
Can provide a very effective support tool for Sales force
Targeted communication & marketing
The stakes:
In period of High pricing turbulence (such as now), typically results in bottom line improvement of up to 4
% through better ability to communicate value to clients
If used in the context pf a new product launch (or revamp), it often results in bottom line improvement of
10% or more through value based pricing
Increased
Efficiency
Total
Benefit
€ 123
€ 2260
€ 2137
Longer Life Incr
MaintCost
Conversion
Costs
Total
Costs€ 300
€ 200 € 500
Total
Prem.
€1760
€369 Best Alternative
Total
Value
€2029 !
Tool 8: Segmented Competitive Value Maps
Page 10
Customer Value Map
0.50
1.50
0.50 1.00 1.50
Relative Perceived Value
Rela
tiv
e P
ric
e
Dell
Compaq/HP
Clone
Toshiba
Fair Value Line
Value
Disadvantaged
Value
Advantaged
Relative Value (Perceived /measured)
Competitor 1
Competitor 2Competitor 3
Competitor 4
Segmented Competitive Value Maps(Segment X, Market B, 2008)
What it is:
Analysis & mapping of competitive.
Prices
Value (perceived or measured)
May be used for a single product or a group of
products, globally or by client segments /
channel.
What it does:
provide visibility and control of Value & Price
positioning of Products by segment.
Helps define effective Value / Pricing
segmentationtegic
Corrective actions it may lead to:
Price adjustments.
Improved proved targeting of Price & Value proposition &segmentation
Support to Sales force in Value Selling
The stakes:
Varies considerably. Repositioning/ Retargeting of Value Proposition may often result in double digit price
increases or Volume increases
Tool 9: CBC / Perception Analysis (Illustrative)
Page 11
What it is:
T he most effective methodology
for measuring ‘Qualitative’ Value
perception & willingness to pay &
developing Price response /
elasticity models
Attributes elasticity not limited to
price but can include other key
factors affecting WTP
What it does:
Identifies & quantifies key
decision drivers
Model the impact of changes in
price or performance on key
‘attributes’Actions it may lead to:
More accurate & effective price & value positioning.
Identification & improvement of other levers that influence clients decisions
Improved competitive tactics & positioning
The stakes:
Performant approach to price optimization in many markets / industries.Typically results in bottom line
improvement of up to 10 %
Tool 10: Win / Loss Analysis (Illustrative)
Page 12
What it is:
Systematic & regular evaluation
of reasons of Wins & losses (or
significant changes in Share of
Accounts at clients).
Criteria will include our &
competitive prices but also
conditions & buyer profile to
identify drivers
What it does:
Help identify & quantify key
decision drivers
Helps optimize price positioning
Actions it may lead to:
More accurate & effective price positioning.
Identification & improvement of other levers that influence clients decisions
Improved competitive tactics & positioning
The stakes:
Performant approach to price optimization in deal driven B2B environment.Typically results in bottom line
improvement of up to 4 %
Tool 11: Price Points Analysis (Illustrative)
Page 13
What it is:
Identification of Psychological
price points from a customers’
perspective & their impact on
demand
Criteria will include our &
competitive prices but also
conditions & buyer profile to
identify impact
What it does:
Identification & measurement of
price points
Estimated impact of potential
price realignments / price points
optimizationActions it may lead to:
More accurate & effective price points positioning.
Improve price alignments along the product range & vis a vis competition
Improved competitive tactics & positioning
The stakes:
Performant approach to price optimization impulse / image driven product ranges or industries with high
pricing rivalry
0
1
2
3
4
5
6
7
8
9
80 85 90 95 100 105 110 115
Product price occurence (in comparable sales situation)
Occurrences
Marketing & Sales Support Tools
14
Key Tools
Share & competitive
performance monitoring
Peer Pricing & Value selling
support
Portfolio analyses
Analyses of performance on
key Value attributes
Campaign effectivenes
measurement & modeling
Competitive & Pricing
Intelligence tools
Tools to help support Strategic Marketing
& Sales with a value focus & Marketing
effectiveness improvements
Tool 13: Portfolio Pricing Dashboard (Illustrative)
Page 15
What it is:
Systematic & regular
Dashboard providing
indication of performance &
guidance on Client portfolio.
Criteria used may vary by
sector and based on
strategic priorities
What it does:
Monitoring tool
Support to sales force in
execution of Pricing strategy
Actions it may lead to:
Better targeting of pricing actions by sales force.
Identification of Price increase opportunities or imminent price threats
Improved monitoring of portfolio performance
The stakes:
Higher effectiveness in Pricing execution. Typically results in bottom line improvement of up to 2%
Client Conditions Monthly Monitoring
Report
AM: John Smith –
Client Portfolio
Total
Previous.year
Client Margin (YTD)
Vol.Band (Ann.)
Disc.Vol.
Band
Except.(N/Y &Auth)
Curr.Disc(%)
Disc.Ok’d(%)
Renego.(previous)
Client Rev. (YTD)
Renego.(next)
Growth(%)
IncentiveScore
(Sales Rep) Client
ABC
ACB
BAC
BCA
1.2M€
8.1M€
0.2M€
3.2M€
6%
32%
1%
-12%
31%
28%
29%
21%
L1
XL1
M1
L2
YTL
14%
17%
18%
25%
14%
18%
11%
18%
09/07
02/07
06/07
08/07
25
75
1
-20
L2
XL1
M2
L2
09/08
02/08
06/08
01/08
3.2M€ -2% 29% 17% 18% 354On Time6
Control 3Exception Handling
Monitoring 4Renegociations
Monitoring 5Calculation of
Salesman’s incentive
Control 2Net Price Check
Control 1Volume Band
Tool 14: Peer Pricing (Illustrative)
Page 16
What it is:
Support to sales force by
providing contextual information
on similar offers (price
conditions, features & outcome).
Key is identification of
comparable deals & collection of
relevant information
What it does:
provide visibility on what is
feasible / reasonable
Provides reassurance & peer
pressure to perform
Actions it may lead to:
More effective pricing by sales force (better margins).
Stronger emulation amongst sales force
Elimination of ‘way over-/under- priced offers’
The stakes:
Similar to Win/Loss - approach to price optimization in deal driven B2B environment. Typically results in
bottom line improvement of up to 4 %
Tool 15: Portfolio Analysis / Price Structure Mapping (Illustrative)
Page 17
Product Performance (Protection index)
Product 3
Product 2
Product 3
Product4
Segmented Price Structure Maps(Segment X, Market B, 2008) What it is:
Analysis & mapping of segmented Product
range.
Prices
Product performance
May be used for a group of products, globally or
by client segments / channel.
What it does:
provide visibility and control of coherence of
product Price & Performance positioning.
Can be used competitively to identify
competitive opportunities / threats
Corrective actions it may lead to:
Price adjustments.
Improved proved positioning of Products
Rationalization of product range
The stakes:
Depending on initial state 1 to 3 % improvement in average realized price
Fu
ll P
ric
e /
Ha
(€
)
Tool 16: Rating Performance / Value Curves
What it is:
Analysis & mapping of competitive.
Value performance
Performance on attributes
May be used for a single product or a group of
products, globally or by client segments /
channel.
What it does:
provide visibility and control of Value positioning
of Products by segment.
Identifies key attributes by segment
Helps define effective Value segmentation
Corrective actions it may lead to:
Value proposition adjustments
Improved targeting of Price & Value proposition &segmentation
Support to Marketing force in product development / Product attributes
The stakes:
Varies considerably. Repositioning/ Retargeting of Value Proposition may often result in double digit price
increases or Volume increases
Weight 56 1 1 10 13 19
Ship
Complete
Defects Range Service Shipment
Date
Price
Region: Central
Segment: Price Driven
Competitors Value Graphs
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
ACME
Comp 1
Comp 2
Tool 17: Promotional Performance analysis (Illustrative)
Page 19
Dis
co
un
t O
ffe
red
c (
% L
ist
pri
ce
)
Sales Impact (% LT Lift)
What it is:
Analysis or profit & volume
impact of promotions.
can be used any type of
promotional / sales animation
action to evaluate ROI of action.
What it does:
provide visibility and control of
actual performance of action,
including stock effects &
cannibalization, to provide
improved vision of actual &
relative performance
Corrective actions it may lead to:
Re-adust marketing budget to support most effective actions.
Best practice transfer (Test, Learn & generalize)
Improved targeting of promotions
The stakes:
20 to 40% improvement in Marketing ROI
Month (All)Region Code (All)Market Name (All)Industry Name (All)Custo Rev Segment Name (All)Product Family Code (All)Product Grp Code (All)Prod Rev Segment Name (All)
Column Labels
2009
Avg Price
2008
Avg Price
2009 Rev 2009 Prod Hier Vol Gr Pr Gr
Apparent
elastRow Labels Product Code Vol #VALUE! #VALUE! Gross Rev Product Code
Ac1 Ac1 1 695 2,63 2,63 4 181 Ac1 -6% 0% 43,02
Ac1 Ac13 1 572 34,10 34,14 44 413 Ac13 -17% 0% 159,98
Ac1 Ac15 1 170 39,45 39,42 57 360 Ac15 24% 0% 342,24
Ac1 Ac16 1 363 42,16 42,17 56 952 Ac16 -1% 0% 159,69
Ac1 Ac17 1 460 44,70 44,66 53 414 Ac17 -18% 0% -226,76
Ac1 Ac18 1 331 47,18 47,31 73 339 Ac18 16% 0% -62,23
Ac1 Ac19 1 534 50,00 49,85 66 983 Ac19 -12% 0% -42,85
Ac2 Ac2 1 408 5,24 5,26 7 604 Ac2 3% 0% -8,74
Ac2 Ac21 1 248 55,33 55,24 74 468 Ac21 8% 0% 48,24
Ac2 Ac23 1 479 60,46 60,42 84 845 Ac23 -5% 0% -66,91
Ac2 Ac24 1 375 63,08 62,90 88 276 Ac24 2% 0% 7,52
Ac2 Ac27 1 416 70,99 70,84 108 300 Ac27 8% 0% 36,16
Ac3 Ac30 1 406 78,91 78,88 119 755 Ac30 8% 0% 207,86
Ac3 Ac31 1 181 81,35 81,36 120 448 Ac31 25% 0% -1861,22
Ac3 Ac32 1 375 84,15 84,17 119 143 Ac32 3% 0% -216,68
Ac3 Ac33 1 652 87,07 86,69 100 272 Ac33 -30% 0% -68,35
Ac3 Ac34 1 547 89,32 89,10 119 633 Ac34 -13% 0% -53,16
Ac3 Ac35 1 332 92,10 91,75 127 072 Ac35 4% 0% 10,27
Ac3 Ac36 1 312 94,75 94,53 125 885 Ac36 2% 0% 6,56
Ac3 Ac37 1 499 97,37 97,11 135 000 Ac37 -7% 0% -27,14
Ac3 Ac38 1 256 99,62 100,07 124 493 Ac38 -1% 0% 2,07
Ac3 Ac39 1 472 102,62 102,63 149 513 Ac39 -1% 0% 79,69
Ac1Ac13
Ac15Ac16
Ac18
Ac19
Ac2
-1%
-1%
0%
1%
1%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
Price change (y) vs Volume Change (x) (2008-2009 - by Product )
Pricing
Full ScreenNormal Screen
Go to Financial Pivot
Go to Product Pivot
Go to Price Evolution
Go to SKU Elasticity
Go to Product Elasticity
Go to Customer Elasticity
++
--
2011 – Promotional Performance analysis
Tool 18: Benchmarking & Competitive Intelligence
Page 20
What it is:
Systematic & regular
monitoring & benchmarking of
competitors ‘Sell-In’ & ‘Sell-out’
prices at relevant levels
Key ingredient of Pricing
Intelligence
What it does:
provide ability to react faster &
smarter to competitive price
movements
0
10
20
30
40
50
60
70
80
90
1 3 5 7 9 11 13 15
Avis
Hertz
Europcar
Easy Rentacar
ADA
eSixt
Budget
RentaCar
Category xxx - Average Daily Rate Comparison(as function of rental duration)
Corrective actions it may lead to:
Better anticipation / faster reaction to changes in competitive prices
Identification of Price increase opportunities or imminent price threats
Stronger sales pitch
The stakes:
In period of High pricing turbulence (such as now), typically results in bottom line improvement of up to 2
% through better anticipation of - / faster reaction to - price movements
Tool 19: Pricing BSC & Dashboards (Illustrative)
Page 21
What it is:
Balanced scorecard – used to
monitor globally performance &
development of pricing strategy.
Criteria used may vary by
sector and level of analysis
What it does:
provide visibility & control of
implementation of Pricing
strategy
Corrective actions it may lead to:
Better anticipation / faster reaction to changes in Industry Pricing Dynamics.
Better & balanced monitoring & control of performance, faster ability to react
Improved ability to manage change & performance improvement over the longer term
The stakes:
Strong monitoring of Price Strategy performance & change management at any level – key driver to
Global performance
Tool 20: Pricing Diagnostic & Roadmap (Illustrative)
Page 22
What it is:
Diagnostic– evaluates current
level of performance vs Best
practices on all aspects of
Pricing management.
Roadmap : identifies key levers
for improvement of pricing
performance improvement &
provides concrete
recommendations & actions
plans to follow to get there
What it does:
Key tool to support sustainable
performance improvement
Corrective actions it may lead to:
Clarifies where we are and where we need to go.
Aligns & organizes the company around the required change management effort to achieve improvement
Helps prioritize & organize action for optimal effectiveness
The stakes:
Best approach to achievable sustainable’ performance improvement
Tool 21: Pricing Proccess RACI (Illustrative)
Page 23
What it is:
Defines & organizes participant
roles & responsibilities in all
pricing processes.
Defines calendar & organizes
to ensure effective collaboration
& consensus building
What it does:
provide visibility, coordination
& control of all key pricing
processes
Corrective actions it may lead to:
Improved coordination of stakeholders.
Conflict reduction, improved consensus building
Improved prioritization / more rational arbitrage between alternative plans
The stakes:
Effective management of Pricing & Value across the company
Tool 22: Pricing Thought Process (Illustrative)
Page 24
What it is:
A ‘qualitative’ process to
support more rational / effective
Pricing decision making – when
data availability is insufficient.
A tool to capitalize on
managers collective expertise to
improve decisions & develop
consensus
What it does:
Provide a strong logical
framework to help focus
discussion, rationalize them &
facilitate consensus
Corrective actions it may lead to:
Better Decision making.
Improved consistency across divisions and time
Improved consensus
Development of Pricing & Value culture
The stakes:
Improved Pricing management & consensus
Tool 23: Pricing Alignment
Page 25
What it is:
Visualization of positioning &
attractiveness if alternative
packages as a function of nt
usage
Key ingredient of Pricing
coherence management
What it does:
provide ability to improve
pricing coherence & better
position offers to meet client
usage characteristics
Corrective actions it may lead to:
Better positioning of packages & prices
Identification of Price increase opportunities
Stronger sales pitch better fit to needs
The stakes:
In segmented markets – with high price visibility, typically results in volume increases improvement of up
to 10 % through better fit of offer to needs
100 200 300 400 500 600 700 800
70 100 130 160 190 220 250 280
60 85 110 135 160 185 210 235
90 90 90 110 130 150 170 190
150 150 150 150 150 150 150 150
0
50
100
150
200
250
300
0 100 200 300 400 500 600 700 800
Variable
Short Trip
Long Trip
Illimité
Category xxx – 1 Day Rental package comparison(as function of Km driven)
Tool 24: Industry Pricing Dynamics Assessment (Illustrative)
Page 26
What it is:
Systematic & regular
assessment of Industry pricing
Dynamics.
Criteria used may vary by
sector and for Commodities vs
specialty
What it does:
provide visibility and
anticipation of industry level
pricing movements
Corrective actions it may lead to:
Better anticipation / faster reaction to changes in Industry Pricing Dynamics.
Identification of Price increase opportunities or imminent price threats
Improved monitoring of industry level indicators
The stakes:
In period of High pricing turbulence (such as now), typically results in bottom line improvement of up to 4
% through better anticipation of price movements
Tool 25: Pricing Simulator (Illustrative)
Page 27
What it is:
Systematic & regular
assessment of Industry pricing
Dynamics.
Criteria used may vary by
sector and for Commodities vs
specialty
What it does:
provide visibility and
anticipation of industry level
pricing movements
Corrective actions it may lead to:
Better anticipation / faster reaction to changes in Industry Pricing Dynamics.
Identification of Price increase opportunities or imminent price threats
Improved monitoring of industry level indicators
The stakes:
In period of High pricing turbulence (such as now), typically results in bottom line improvement of up to 4
% through better anticipation of price movements
Tool 26: Portfolio Pricing Simulator (Illustrative)
Page 28
What it is:
Decision support tools to
simulate / optimize pricing
across a porfolio of Products or
countries, taking into
consideration elasticities, price
corridors & potential competition
between ranges
What it does:
Optimization & coordination of
pricing across the portfolio
Corrective actions it may lead to:
Implementation of price corridors.
Differentiating offers to better serve different markets / optimoize value capture
Targeted Price increases / decreases
The stakes:
In period of High pricing turbulence (such as now), typically results in bottom line improvement of up to 4
% through better optimization & coordination of prices
Check / Uncheck All
Accuspray Accuspray barrel
Hyp BSCF/BCF Stopper
Hyp NSCF/NCF Stopper
Hyp TSCF/TCF Stopper
Hypak Comp SCF Other
Hyp Bulk Barrel Luer
Hyp Bulk Barrels Ndl
Hyp Bulk Ndl Shield
Hyp Bulk Plast Comps
Hyp Bulk PRTC
Hyp Bulk RNS
Hyp Bulk Stp/Byp Stp
Hyp Bulk Tip Caps
Hyp SCF Barrel Luer
Hyp SCF Barrel Ndl
Hyp SCF Barrel Ndl Physiolis
Hypak Plunger Rods Hypak Plunger Rods
Hypoint Needles Hypoint Needles
Monovial Stopper
Monovial Vials
TS Needle Guard
Preventis
Preventis Other
Rdf Bulk Stopper
Rdf RTS Barrels Luer
Rdf RTS Barrels Ndl
Rdf RTS Stopper
Rdf SCF Barrel Luer
Rdf SCF Barrels Ndl
Rdf Components Rdf Comp Others
Rdf Olunger Rods Rdf Plunger Rods
Uniject Reservoir
Sterifill Barrels S-fill SCF Brrl Luer
Sterifill Plungr Rod
Sterifill Stppr
Preventis
Readifill Barrel
Sterifill Components
Product Selection for analysis
Hypak Bulk Barrels
Hypak Componets
Bulk
Hypak SCF Barrels
Hypak Components
SCF
Monovial
FULL SCREEN
USUAL SCREEN
Go to Product Synthesis
Go to Impact Analysis
Go to Product Hypotheses
Go to Prodiuct Client Detail
Go to ImpactMenu
Go to MainMenu
Run Impact
Analysis
Tool 27: Retail Network Pricing Simulator (Illustrative)
Page 29
What it is:
Systematic Daily price
optimization in highly price
competitive environments
Can be used to optimize
pricing in a network, taking inti
consideration local competition &
demand
What it does:
Simulates / optimizes pricing
based on specific competitive
conditions & capitalizing on
historically measured elasticities
Corrective actions it may lead to:
Improved daily pricing to support overall marketing strategy & objectives
Faster reaction / anticipation of competitive moves
The stakes:
1 to 3% improvement in pricing realization… may be key in markets subject to very intense price
competition
Brand Teboil Criteria Weight Constr. (>) Profit ROS % SoC %
TypFuel 98E ROS 50% 0,10% Optim. 6 397 € 2,4% 31,9%
Date 04/01/2010 SoC 50% 18,00% Initial 4 509 € 2,3% 28%
Row Labels Nb Comp Prev PrcRev Prev Marg VarCost / LtrGr Profit Min Pr MaxPr Price
Gross
Profit Station Price
Mod
Revenue SoC ROS %
Gross
ProfitAura 3 ##### 6 682 € 388 € 1,542 € 94 € 1,605 € 1,739 € 1,661 € 118 € Aura 1,661 € 5 743 € 46,0% 2,1% 118 €
Espoo 6 ##### 37 978 € 2 654 € 1,462 € 1 320 € 1,538 € 1,666 € 1,551 € 1 494 € Espoo 1,551 € 49 623 € 28,5% 3,0% 1 494 €
Hämeenkyrö 3 ##### 6 434 € 455 € 1,471 € 147 € 1,540 € 1,668 € 1,579 € 151 € Hämeenkyrö 1,579 € 6 719 € 39,6% 2,2% 151 €
Hämeenlinna 6 ##### 2 772 € 271 € 1,465 € -37 € 1,535 € 1,663 € 1,543 € 340 € Hämeenlinna 1,543 € 12 690 € 24,5% 2,7% 340 €
Heinola 3 ##### 3 233 € 229 € 1,516 € -22 € 1,569 € 1,700 € 1,602 € 27 € Heinola 1,602 € 5 196 € 30,0% 0,5% 27 €
Helsinki 6 ##### 11 852 € 924 € 1,475 € -1 € 1,532 € 1,660 € 1,543 € 723 € Helsinki 1,543 € 37 160 € 21,0% 1,9% 723 €
Huittinen 2 ##### 5 972 € 426 € 1,448 € 143 € 1,584 € 1,629 € 1,584 € 144 € Huittinen 1,584 € 4 982 € 51,6% 2,9% 144 €
Hyvinkää 3 ##### 11 792 € 767 € 1,412 € 397 € 1,491 € 1,616 € 1,544 € 491 € Hyvinkää 1,544 € 10 063 € 54,2% 4,9% 491 €
Ilomantsi 3 ##### 5 897 € 414 € 1,512 € 172 € 1,581 € 1,713 € 1,626 € 170 € Ilomantsi 1,626 € 5 883 € 42,5% 2,9% 170 €
Jämsä 2 ##### 5 095 € 330 € 1,509 € 91 € 1,564 € 1,694 € 1,628 € 95 € Jämsä 1,628 € 4 571 € 46,7% 2,1% 95 €
Janakkala 4 ##### 6 578 € 548 € 1,478 € 205 € 1,552 € 1,681 € 1,594 € 205 € Janakkala 1,594 € 7 532 € 36,8% 2,7% 205 €
Juva 3 ##### 3 472 € 274 € 1,493 € 54 € 1,547 € 1,676 € 1,591 € 91 € Juva 1,591 € 5 045 € 36,8% 1,8% 91 €
Kaavi 4 ##### 5 179 € 401 € 1,506 € 101 € 1,579 € 1,710 € 1,612 € 117 € Kaavi 1,612 € 6 316 € 36,2% 1,9% 117 €
Kankaanpää 2 ##### 4 914 € 334 € 1,518 € 110 € 1,573 € 1,704 € 1,639 € 113 € Kankaanpää 1,639 € 4 560 € 50,5% 2,5% 113 €
Kärsämäki 4 ##### 1 722 € 149 € 1,463 € 75 € 1,535 € 1,663 € 1,545 € 134 € Kärsämäki 1,545 € 3 919 € 25,7% 3,4% 134 €
Kauniainen 2 ##### 3 636 € 304 € 1,481 € 91 € 1,538 € 1,666 € 1,592 € 107 € Kauniainen 1,592 € 4 591 € 45,1% 2,3% 107 €
Kaustinen 4 ##### 4 202 € 413 € 1,494 € 101 € 1,571 € 1,702 € 1,610 € 124 € Kaustinen 1,610 € 6 056 € 35,3% 2,1% 124 €
Kempele 2 ##### 5 526 € 385 € 1,517 € 139 € 1,573 € 1,704 € 1,639 € 144 € Kempele 1,639 € 5 239 € 51,3% 2,7% 144 €
Kerimäki 3 ##### 1 678 € 154 € 1,519 € 4 € 1,571 € 1,702 € 1,636 € 29 € Kerimäki 1,636 € 2 495 € 19,6% 1,2% 29 €
Kiiminki 2 ##### 1 590 € 286 € 0,546 € 35 € 0,639 € 0,692 € 0,666 € 33 € Kiiminki 0,666 € 1 584 € 44,7% 2,1% 33 €
Kokkola 5 ##### 12 538 € 979 € 1,487 € 388 € 1,561 € 1,691 € 1,626 € 307 € Kokkola 1,626 € 10 536 € 17,7% 2,9% 307 €
Brand: Teboil Fuel: 98E - ROS vs Share of Choice, by
station (bubble size proportional to revenues)
Station level Data
Optimization PerformanceOptimization Parameters
Aura
Espoo
HämeenkyröHeinola
Helsinki
HuittinenHyvinkää
Jämsä
IlomantsiJanakkala
JuvaKaavi
Kärsämäki
KauniainenKaustinen
Kerimäki
Kiiminki
Kokkola
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
0% 10% 20% 30% 40% 50% 60%
Optimize Multi-Stations pricing
ROS %
SoC %
Quality
Station Level Price Impact
Price Share
Station Level Optimization
Station Level Decision
Station Profile Database
Competitive Pricing DB
Navig
atio
n
Network Optimization
Tool 28: D & R Savings model (Illustrative)
Page 30
What it is:
Interactive simulation of
potential impact of changes in
D&R policies
Who is affected?
How much?
Potential impact on
demand & volumes.
Support to sales force in
explaining / implementing price
changes on their portfolio
What it does:
provide visibility and
anticipation of industry level
pricing movementsCorrective actions it may lead to:
Better planning / evaluation & selection of D&R changes.
Improved & faster implementation
Improved fairness
The stakes:
40 to 8 month delay in Implementation
20 to 60% fewer ‘exceptions’
Tool 29: Segmentation & Clustering
What it is:
Segmentation of Clients / Consumers,
based on.
Attributes sought
Potential & willingness to pay
May be used for a single product or a
group of products, globally or by channel.
What it does:
Helps define effective Value / Pricing
segmentation
Help visualize weights / stakes &
priorities by segment.
Actions it may lead to:
Development of targeted offers.
Support to targeting by sales force
Targeted communication & marketing
The stakes:
Varies considerably. Segmentation & adaptation of Value Propositions may often result in double digit
price increases or Volume increases
0
10 000 000
20 000 000
30 000 000
40 000 000
50 000 000
60 000 000
70 000 000
80 000 000
90 000 000
Value Driven
Price Driven
Delivery Driven
Service driven
Speed Driven
Quality driven
1 2 3 4 5 6
Comp2
Comp1
ACME
Tool 30: Statistics & Regression Tools (Illustrative)
Page 32
What it is:
Statistical tools to support in
depth analysis & modeling of
Pricing & Value
Clustering
CBC / Discrete choice
Logit Regressions
..
What it does:
Enables true insights &
sophisticated modeling
Corrective actions it may lead to:
Understanding causalities / Identififying trends
Ability to model / predict
Continous improvement based on historical data
The stakes:
Insights / price response modeling is at the root of Price optimization
Tool 31: Flexible P&L Reporting (Illustrative)
Page 33
What it is:
Regular reports ensuring
coherence with Finance &
enabling insights on impact of
pricing on overall financial
performance
Ability to zoom or group flexibly
by product / segment / regions
What it does:
provide visibility accountability
for Pricing performance
Provides early warning of
threats & improved visibility for
opportunities
Corrective actions it may lead to:
Better anticipation / faster reaction to changes.
Identification of Price increase opportunities or imminent price threats
Improved monitoring & control of performance
The stakes:
Improved control & faster reaction
Month (All)
Region Code (All)
Market Name (All)
Industry Name (All)
Custo Rev Segment Name (All)
Product Family Code (All)
Product Grp Code (All)
2007 2008 2009 2010 % Gr (10/09)
Theoretical Revenues 1) 94 832 963 92 711 698 117 583 738 113 518 393 -3,5%
Unexplained Discount -2 986 736 -2 790 767 -2 990 030 -2 789 994 -6,7%
Gross Sales 91 846 227 89 920 931 114 593 708 110 728 399 -3,4%
Total Discounts -13 692 016 -12 291 691 -17 870 605 -15 830 026 -11,4%
Invoice Revenues 78 154 211 77 629 239 96 723 104 94 898 374 -1,9%
Total Rebates & freebees -10 396 467 -10 114 566 -13 041 436 -12 537 011 -3,9%
Net Revenues 67 757 744 67 514 674 83 681 667 82 361 362 -1,6%
COGS -37 778 327 -38 043 193 -45 991 374 -45 737 252 -0,6%
Total Client & Mktg costs -21 873 956 -22 296 836 -27 826 188 -28 026 613 0,7%
Other Logistical Costs
Net Margin -13 768 496 -15 122 192 -17 962 084 -19 429 116 8,2%
Net Margin % -15% -17% -16% -18% 11,9%
D&R as Pct of Theo Sales 29% 27% 29% 27% -4,8%
Pricing
Full ScreenNormal
Go to Financial
Go to Product
Go to Price
Go to SKU
Go to Product
Go to Customer
Tool 32: Pricing Traffic Lights (Illustrative)
Page 34
What it is:
Systematic & regular review of
pricing performance at detailed
with indicators / early warning
system to identify opportunities &
threats & know where
management attention should
focus.
What it does:
Saves management times by
providing key synthetic info &
warning systems
Corrective actions it may lead to:
Better anticipation / faster reaction to opportunities & tgreats
Management attention better focused on real issues
Faster &eralier issue resolution
The stakes:
Agility & competitive leadership
Performance Touring Handling AS
PRODUCT LEVEL PRICING TRAFFIC LIGHTS Price
Change
Discount
Change
Share
Growth
% Rel Share
vs Ref.
Comp
% Premium
vs Ref.
Comp
Value
Positioning
Win / Loss
Indicator
Elasticity
Measure GM % Fullfilment Overall
Action
Required
BRIDGEST ONE 100 13% 0 1 8% 9 13% 1,5 60% 94% 0,6 60%
BRIDGEST ONE POT ENZA RE92A AS 115 14% 0 0 8% 9 19% 1,6 58% 101% 0,6 58%
215/45R18 BW W BRIDGESTONE POTENZA RE92A AS #E440 98 21% 0 0 8% 9 22% 1,7 58% 89% 0,6 59%
BRIDGEST ONE T URANZA EL400-02 88 27% 0 0 8% 9 33% 1,0 58% 87% 0,6 60%
215/45R17 BW Z BRIDGESTONE TURANZA EL400-02 #E402 69 26% 0 0 8% 9 48% 0,9 45% 85% 0,5 46%
215/45R17 BW Z BRIDGESTONE TURANZA EL400-02 #E329 83 23% 0 0 8% 8 49% 1,3 37% 99% 0,4 38% X
P215/45R17 BW W BRIDGESTONE TURANZA EL400-02 #G432 103 30% 0 0 8% 8 24% 1,9 50% 84% 0,5 51%
BRIDGEST ONE T URANZA EL42 98 41% 0 0 8% 7 31% 1,1 58% 99% 0,6 57%
P235/45R17 BW W BRIDGESTONE TURANZA EL42 #C193 115 49% 0 0 8% 9 29% 1,0 60% 102% 0,6 60%
P235/50R18 BW V BRIDGESTONE TURANZA EL42 #E445 125 58% 0 0 8% 7 18% 0,8 60% 84% 0,6 58% Y
P235/60R18 BW H BRIDGESTONE TURANZA EL42 #C010 83 39% 0 0 8% 7 15% 0,9 58% 95% 0,6 59%
P245/45R19 BW V BRIDGESTONE TURANZA EL42 #G447 127 32% 0 0 10% 7 14% 1,0 59% 85% 0,6 60% X
BRIDGEST ONE T URANZA EL42 RFT 96 25% 0 0 8% 9 18% 0,9 39% 101% 0,4 38%
205/55R16 BW H BRIDGESTONE TURANZA EL42 RFT #7334 100 21% 0 0 8% 7 10% 0,5 37% 102% 0,4 37%
225/45R17 BW H BRIDGESTONE TURANZA EL42 RFT #E446 111 31% 0 0 8% 9 7% 0,4 46% 100% 0,5 47%
225/45R17 BW H BRIDGESTONE TURANZA EL42 RFT #7335 112 42% 0 0 8% 9 7% 0,4 51% 86% 0,5 51%
225/45R17 BW H BRIDGESTONE TURANZA EL42 RFT #E330 85 53% 0 0 8% 8 4% 0,4 59% 98% 0,6 58%
BRIDGEST ONE T URANZA ER30 84 29% 0 0 8% 7 5% 0,5 59% 83% 0,6 58% Y
205/45R16 BW W BRIDGESTONE TURANZA ER30 #7271 101 26% 0 0 8% 7 6% 0,7 45% 98% 0,5 46%
225/45R17 BW W BRIDGESTONE TURANZA ER30 #7272 121 37% 0 0 8% 8 9% 0,9 43% 102% 0,4 44%
225/50R16 BW W BRIDGESTONE TURANZA ER30 #7270 77 34% 0 0 8% 9 7% 1,1 40% 101% 0,4 39%
245/50R18 BW W BRIDGESTONE TURANZA ER30 #7273 99 42% 0 0 8% 7 10% 1,4 37% 84% 0,4 37%
255/50R19 BW W BRIDGESTONE TURANZA ER30 #7275 107 25% 0 0 8% 8 14% 1,0 47% 93% 0,5 46% Y
255/55R18 BW W BRIDGESTONE TURANZA ER30 #C195 122 20% 0 0 8% 7 18% 1,5 59% 99% 0,6 60%
255/55R18XL BW Y BRIDGESTONE TURANZA ER30 #7269 120 18% 0 0 8% 8 23% 1,1 42% 99% 0,4 43% X
285/45R19 BW W BRIDGESTONE TURANZA ER30 #7274 77 19% 0 0 8% 9 34% 0,8 37% 84% 0,4 37%
BRIDGEST ONE T URANZA ER300 88 20% 0 0 8% 7 20% 0,9 39% 100% 0,4 40% X
235/55R17 BW W BRIDGESTONE TURANZA ER300 #F355 126 23% 0 0 8% 9 21% 1,0 58% 102% 0,6 59%
BRIDGEST ONE T URANZA ER33 83 13% 0 0 8% 7 16% 1,0 59% 101% 0,6 58% Y
Pricing
Tool 33: Pricing Objectives vs Realized(Illustrative)
Page 35
What it is:
Detailed monitoring & control
of performance vs objectives
Earlier identification &
resolution of potential issues /
slippages
What it does:
provide visibility and
anticipation of evolving
performance & possible
corrective actions required
Corrective actions it may lead to:
Better anticipation / faster reaction to changes in performance
Performance measurement & incentives management
The stakes:
Key to achieving level 2 of performance
More proactive management of performance
(All) Objective vs. Realized Top Invoice Sales Objectives Year (All)
Cust. Name Cust. Number Objective Realized
1692 521650 0 144864
1968 555379 0 136822
1695 506527 0 117699
1974 526000 0 109570
1727 555376 0 98046
1946 521607 0 97007
1946 521607 0 97007
2076 553933 21000 109593
1819 520119 0 85737
1995 500730 0 85496
1700 521606 0 83158
2007 523324 0 76190
1711 555377 0 70765
2160 506610 0 66531
1968 506711 0 65709
1968 506711 0 65709
1916 507987 0 62994
1700 520133 23000 83158
2009 525928 30000 88030
1830 521633 0 56727
1960 525894 0 54548
1670 521651 0 53791
1671 520134 0 53240
1726 523335 0 52366
2047 520136 0 51722
Year 2008
Acct Mgr (All)
Region (All)
Segt (All)
Size Seg (All)
-20 000
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
-20 000 0 20 000 40 000 60 000 80 000 100 000 120 000 140 000 160 000
Objective vs. Realized Performance Rebate by Customer
Realized (RUB)
Ob
jecti
ve
s (R
UB
)
Under Objective
Over Objective
Full ScreenNormal Pricing
Tool 34: Financial Performance reporting (Illustrative)
Page 36
Month (All)Region Code (All)Market Name (All)Industry Name (All)Custo Rev Segment Name (All)Product Family Code (All)Product Grp Code (All)Prod Rev Segment Name (All)
Column Labels2009
Row Labels Product Family Name Vol
Avg Price
2008
Avg Price
2009 Rev 2009 Prod Hier Vol Gr Pr Gr
Apparent
elastAc1 Access Control 15 852 34,15 34,31 542 959 Access Control 0% 0% 0,37
Ac2 Access Control 15 563 59,34 59,18 945 212 Access Control 3% 0% 9,70
Ac2 Supplies 10 66,24 Supplies
Ac3 Access Control 15 425 83,30 82,10 1 253 386 Access Control -1% -1% -0,72
Ac4 Access Control 7 005 91,72 92,00 578 539 Access Control -10% 0% 32,75
Ac5 Access Control 1 518 13,17 13,14 15 395 Access Control -23% 0% -109,76
Ac6 Access Control 1 430 15,78 15,75 23 648 Access Control 5% 0% 24,92
Ac7 Access Control 1 337 18,37 18,42 23 146 Access Control -6% 0% 22,33
Ac8 Access Control 1 371 21,00 20,96 32 079 Access Control 12% 0% 64,50
Ac9 Access Control 1 573 23,68 23,65 34 561 Access Control -7% 0% -47,18
Ba1 Barriers 144 443 3,60 3,68 517 506 Barriers -3% 2% 1,25
Ba2 Barriers 145 489 6,05 6,12 879 665 Barriers -1% 1% 1,11
Ba2 Security / Protection 171 7,16 Security / Protection
Ba3 Barriers 147 459 8,59 8,65 1 286 061 Barriers 1% 1% -1,28
Ba4 Barriers 71 809 9,37 9,09 636 824 Barriers -2% -3% -0,80
Ba5 Barriers 13 461 1,36 1,36 17 778 Barriers -3% 0% 19,89
Ba6 Barriers 14 118 1,63 1,63 18 333 Barriers -21% 1% 38,38
Ba7 Barriers 13 616 1,90 1,90 24 984 Barriers -4% 0% 24,57
Ba8 Barriers 13 341 2,18 2,17 32 928 Barriers 14% 0% 35,46
Ba9 Barriers 11 783 2,44 2,44 32 647 Barriers 14% 0% 57,90
Co1 Consulting / Advice 564 4359,80 4282,87 2 428 385 Consulting / Advice 1% -2% 0,30
Co2 Consulting / Advice 595 7624,84 7302,13 4 556 528 Consulting / Advice 5% -4% 1,15
Co3 Consulting / Advice 597 10555,82 10586,90 6 235 685 Consulting / Advice -1% 0% 4,55-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
-60% -40% -20% 0% 20% 40%
Price change (y) vs Volume Change (x) (2008-2009 - by Product )
Pricing
Full ScreenNormal Screen
Go to Financial Pivot
Go to Product Pivot
Go to Price Evolution
Go to SKU Elasticity
Go to Product Elasticity
Go to Customer Elasticity
Go to Financial Pivot
Go to Product Pivot
Go to Price Evolution
Go to SKU Elasticity
Go to Product Elasticity
Go to Customer Elasticity
What it is:
Detailed monitoring & control
of financial performance &
impact of price changes
Earlier identification &
resolution of potential issues /
slippages
What it does:
provide visibility and
anticipation of impact of policy
changes & possible corrective
actions required
Corrective actions it may lead to:
Better monitoring / faster feedback to impact of new policies
Improved planning & faster readjustments when required
The stakes:
Key to achieving level 2 of performance
More proactive management of performance
Tool 35: Pricing Corridors Management (Illustrative)
Page 37
European Price Corridor Market AA (€/Litre)
Prod A
Prod BProd C
Prod DProd E
Prod F Prod GProd H
Prod I
Prod J
Prod A
Prod BProd C
Prod DProd E
Prod F Prod GProd H
Prod I
Prod J
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
0 2 4 6 8 10 12
Product Range
Sell
-In
Pri
ce
Haut corridor
Prix Mini
Validés 2007
What it is:
Implementation of maximum
price differences to ensure
pricing coherence across
neighboring countries of client
segments
Prevention of parallel trade
What it does:
provide visibility to relative
price levels to ensure coherence
& avoid risk of disruption to
distribution channelsCorrective actions it may lead to:
Better coherence / fairness of pricing
Facilitates channel management
The stakes:
Key to achieving level 2 of performance
More proactive management of performance
Tool 36: Pricing Exceptions Management (Illustrative)
Page 38
What it is:
Detailed monitoring & control
of ‘pricing exceptions’ granted &
of the fair process of exceptions
management
Improves pricing fairness &
coherence
Saves time in management of
exceptions
What it does:
provide visibility and
accountability for exceptions é
ensures that they are used
effectively
Corrective actions it may lead to:
Better / fairer / more effective management of prices & client conditions
Performance measurement & incentives management
The stakes:
Key to achieving level 2 of performance
More proactive management of performance