The Challenge:
Intense competition, flat market demand, and downstream market consolidation were putting increased pressure on pricing for an industry leader with market teams across Europe and North America. The organization did not have the tools and methodology to take a systematic approach to pricing improvement.

The Approach:
Market Edge worked closely with the client to understand its market and pricing objectives, and then designed a multi-phase pricing improvement initiative. Current pricing performance was analyzed and pricing policy was assessed. Transactional pricing analysis scrutinized the range of discounts and rebates throughout multiple distribution channels. Value pricing analysis was performed to evaluate how individual product SKUs created value vs. competitive products. The insights from the transactional and value streams were utilized to generate a range of pricing improvement recommendations.

The Outcome:
Market Edge knowledge of best practice pricing techniques was embedded in the marketing team. Opportunities for increased performance were identified in discount management, price optimization, relationship management, and product mix. Pricing adjustments were implemented for over 5,000 products or services. After six months, 70% of the price changes held in the marketplace directly leading to a 4% improvement in operating margins and a corresponding increase in free cash flow.