• Stratence Partners

Pricing Strategy: Shaping a European Price Corridor Strategy & Execution

Updated: Jun 6

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