Client Description
Multi Category, $8 Billion + in annual sales
Background
- Input costs were rising faster than the company could react
- Competitors were reacting more decisively
- No predictive capability for decision making purposes
Objectives
Determine process and discipline for proactively dealing with input cost fluctuations via pricing
TPG Approach
- Develop a COGS based forward looking 18 month forecast
- Determine an approach for “war gaming” pricing & Promo what if’s for new direction
- Model competitor’s COGS fluctuations and ability to adjust
- Establish Clear Process and Accountability
- Assured monthly communication
- Utilized analytic based decision making
Impact/Results
- 4 year cumulative net price recovery of $100MM
- Legacy of systems and process embedded for repeatable benefits