Transforming pricing approach for Paulig

Challenge

In the past, Paulig - Customer Brands Business Area mainly relied on the experience of sales people to define the right prices for their customer brands portfolio. This approach has the advantage of giving flexibility to capture local opportunities, however it could result in missed value opportunities by not considering the perspective of the customers & consumers.

Paulig - Customer Brand Business Area wanted to evolve towards a more value-based approach, and provide more guidance and support for the sales teams. The solution needed to fit with their specific context as a customer.

Solution

Together with a cross-departmental core team, we identified the category value drivers for consumers, which we quantified for the full product portfolio. Afterwards we created consumer price guidelines, based on the specific country, channel & customer context.

The above was part of our solution to create, price & sell the value towards customers, which we tested and finetuned based on 3 pilots. For these pilots, we worked again in cross-functional teams to brainstorm on the scenarios, and train the sales people.

We ensured a sustainable handover by providing implementation guidelines, training sessions and a pricing tool with the refined pricing logic.

Results

The sales teams are supported with a compelling value creation plans, enabling them to discuss joint growth plans with their customers rather than a discussion on costs & prices exclusively.

For the pilot cases, this resulted in positive financial impact for both the customers & Paulig. Paulig decided to roll-out the project gradually over the coming years.