Project case:
International pricing
Objective
The context of international pricing often incorporates strategic conflicts. For example, some companies rely on consistent decentralization and thus on shifting pricing responsibilities to the respective markets, while others pursue a strongly centralized approach. Both approaches have to meet different challenges, which have to be evaluated in light of the specific market environment and the company's situation. For a client in the automotive sector, the project goal was to support pricing through a set of specific strategies and centralized tools.
Approach by EbelHofer Consultants
In the first stage of the project, the price strategies of the individual countries will be analyzed, as well as the interdependencies between these markets and their effects on volume and profit. The analysis is carried out on a market-specific basis and in relation to the company as a whole. Further stages of the project include the development of a logic that enables central price and discount recommendations to be transferred and adapted to specific requirements of various countries. Crucial to the success of the project is the joint involvement of the company's head office and those responsible in the local markets. As a consequence, the acceptance of the project results increases and facilitates the integration of the new processes and tools into the day-to-day business.
Result
A cross-country pricing strategy is developed that utilizes market opportunities and reduces country-specific disadvantages due to grey market transactions. In addition, market managers are provided with tools for determining optimized prices and discounts. Based on these tools, specific market can be recognized and different scenarios can be evaluated. Ultimately, a significant increase in profitability and additional growth is achieved.
