Value Pricing Overhaul for a Leading B2B Tire Distributor
Developed a value pricing strategy for a leading retailer, including pricing strategy assessment, price structure and grid calculations, and analysis of organizational impact.
Context
A leading tire distribution company is facing fiercer competition and wishes to level-up its pricing model by integrating peer pricing & prices sensitivity.
Scope & Deliverables
- Pricing strategy & discount grids structure: positioning, cascading between channels, and grids & sensitivity inputs.
- Pricing definition: client segmentation, target recommanded prices, discount grids, corridors.
- Pricing execution: price definition tool for salesreps, value-defense training, price discipline KPIs.
Team
Lead by
With
Consultant
An experienced expert with 4 years at Bain & Company.
Data Scientist
Responsible for client segmentation & advanced sensitivity analysis.
Product Engineer
Developed the pricing tool.
Constellations Impact
- Achieved +1 to 1.5 EBIT points with the new pricing model while preserving competitiveness.
- Enhanced pricing maturity and secured processes with a dedicated tool.
- Sales reps trained to defend the new pricing & associated value; Pricing organization fully onboarded.