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Revenue Management Consulting

Pack Price Architecture 
Optimisation

Image by Kenny Eliason

PPA facts & figures

64%

of new products fail to achieve their sales targets

(Nielsen)

70%

of consumer goods companies lose money due to poor pricing decisions

(PR Newswire)

40%

of FMCG sales and profits can be attributed to pack price architecture

(McKinsey)

Managing hundreds of SKUs is a daunting task for major FMCG brands, requiring a well-defined strategy. In the absence of a robust pack price architecture (PPA), brands may fail to satisfy customer demands and price points, leading to missed opportunities. In the inflationary environment we’re in today, brands must assess what PPA growth drivers can be leveraged to address evolving shopper missions, consumption occasions and need states.

At Acumen, we specialise in pack price architecture optimisation, offering solutions to establish a clear revenue strategy for your portfolio and identify pack price opportunities that will unlock growth.
 

Our PPA projects deliver a variety of
benefits for our consumer goods clients

Increased

sales

Increased sales as a result of better aligning with consumer preferences, shopper occasions and price sensitivity

Improved profitability

Improved profitability through reduction of costs, increasing margins on certain packs and driving volume growth across packs and channel

Better market positioning

Better market positioning through growing sales and relevance across channels 

Our approach to PPA follows 3 key phases:

DIAGNOSE

Pack Price Portfolio asssessment

Identify opportunities to address consumer / shopper needs

Situation analysis

Develop understanding of pressures and key performance drivers of the existing PPA and define picture of success

PPA optimisation opportunities

Identify opportunities to extract more value across your brand portfolio

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Validate PPA hypothesis

Assess business impact for each of the identified opportunities

Build business case

Design and communicate PPA strategy

Prepare implementation

Define implementation plan and set up scorecard and review process

Selling story

Create internal and external selling stories for implementation

DEVELOP

EMBED

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Questions? Get in touch

If you'd like to discuss your pack price architecture strategy with the Acumen team, get in touch using the form below:

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