Value & Pricing Capabilities Development
Best Practices in developing a successful Pricing & Value Organization
- Get support from the top
- Develop Pricing culture + understanding of approach & stakes
- Develop a realistic & detailed roadmap for Pricing performance improvement
- Drive continued improvement by establishing clear responsibility & accountabilities for Pricing Performance across your organization,…
- Define & communicate clear Pricing & Value strategies to guide all pricing decisions
- Leverage Best practices & Key insights across the Divisions to ensure engagement & drive bottom line impact at divisional level
- Develop common Set of tools that can be flexibly adapted to serve the needs of each division, whilst ensuring greater coherence & comparability..
- Keep long term vision … but constantly look for Short term profit impact …
- Combine a longer term capabilities building project with short term results
- Provide a first vision of
- the roadmap for Pricing improvement for the Group
- what ‘the Group’ pricing way (process, tools, systems) could be
- Show relevance & effectiveness of approach
- Provide Quick Wins with significant bottom line impact
- Start developing pricing visibility & culture
- Provide a base upon which the Group approach could be developed / rolled out
Main objectives of the project
- “to identify opportunities for enhancing The Group’s Pricing & Value capabilities and to develop a plan for moving for-ward.”
- “to realize a significant short term improvement in profita-bility in target countries /SBUs by reducing margin leakage & re-aligning prices”
Pricing & Value Diagnostic & Roadmap
- Provide a diagnostic all rele-vant aspects of the current P&V processes
- Initiate the development of a P&V infrastructure (i.e. review and improvement process-es) that complements the intention of the P&V management tools
- Develop the P&V Strategy Roadmap to outline the path forward over the next two years as The Group gradually improves its level of P&V performance.
- Establish priorities and action plans for moving forward
‘Quick Wins’ - Short Term Pricing Improvements
- Identify quick hits (impact within year) Pricing improvement opportunities with bottom line impact
- Prepare Business Cases to quantify some opportunity for making pricing improvements
- Improve pricing decisions through the use of a first set of P&V Management tools and processes
- Pricing Waterfall tool to highlight price and margin leakages at a customer and product level
- Price Dispersion tool that helps establish pricing control, by providing a means to compare customer pocket prices
- Value Mapping Key products & Services
- Competitive Benchmarking of Competitors on Value attributes
- Pricing Strategy for key product groups and highlight the gaps between the cur-rent practice and the espoused strategy