Pricing conundrums in Spain

This business was losing money on three important brands in Spain, due to low and inconsistent pricing.

Who was our client?
Based in the US, our client has 85 leading
brands, many of which are the biggest in
their category across the world.

Why did they get in touch?
The business was losing money on three key brands in Spain due to low and inconsistent pricing. This was the result of:

Prices being set by local and regional account managers, leading to huge variations between customers.
The profit pool was skewed in favour of the retailers who were sometimes making the majority of the margin.
There were too many price files to maintain due to the number of direct customers.
With the Spanish market in recession, increasing prices wasn’t an option. We needed to find other ways to make the business more profitable. The Acumen answer
Seeing clearly
Our consultants used our app, Acumen Radar™, to paint a clear picture of the retail/list price relationships, trade terms structures and SKU profitability, identifying where they were exposed.

With this information, we could set about defining the right solution.

Thinking differently
We simplified pricing by:

Adopting clear pricing principles
Introducing common discount buckets
Re-establishing the relationship between RSP and list price
Rebalancing margin levels across SKUs, while taking care not to damage the relationship with their customers.
Working smarter
We simplified the whole pricing process:

Introducing a minimum order quantity for direct customers.
Introducing standardised logistics terms to reward efficient practices.

Project Numbers

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News

Acumen's 2020 Highlights report 

Our 2020 highlights report includes a round up of revenue management news and insights throughout 2020.

Acumen's feature in the 2020 POI TPx Vendor Panorama

Acumen has once again appeared in the POI TPx Vendor Panorama, alongside 22 other vendors.

An interview with Acumen's APAC Team, published with Consultancy Asia

Acumen's APAC team - Andy Bainton and Sarah Stewart - discuss their journey so far in Singapore. 

Events 

Acumen's APAC Event: 'Building your revenue management roadmap in an evolving consumer goods landscape in APAC'

Thursday 27th May, 16:00 SGT

Webinar: Why is revenue management important?
Tuesday 23rd March, 16:00 SGT/ 8:00 GMT

 

To access recordings of past events & webinars, head over to our insights page.

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