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At a glance

The Client
A leading global wine & spirits company with a significant market share in Vietnam seeks to implement a structured pricing framework across Traditional & Modern trade. 
The Objective
To create a simplified pricing structure and build a defensible platform for growth. 

Challenges

  1. Balancing the need to increase net profit position without sacrificing market share.
  2. Achieving closer alignment from wholesalers with the organisational strategy. 
  3. Mitigating the impact of the grey market and counterfeit goods. 
  4. Overcoming weak margins for suppliers, wholesalers and retailers. 

Solution

We created a new pricing framework aligning the RSP to the net price, in accordance with the organisational strategy. This approach aims to ladder pricing from a consumer value proposition and is supported by a comprehensive 3-year implementation plan. 

Client journey

  • Radar Process – implement a rigorous data collection and validation process. 
  • Stakeholder Interviews – conduct a series of cross-functional stakeholder interviews to understand organisational strategy. 
  • Actionable Insights – Utilise Acumen Radar system to generate actionable insights. 
  • Tactical Recommendations – Share short-term tactical recommendations with KAMs to generate immediate value. 
  • Facilitated Workshops – Facilitate workshops to generate new pricing and investment structure. 
  • Impact Assessment – Produce an impact assessment that models the financial impact of the suggested change. 
  • Implementation Planning – Discuss and align on a phased implementation approach. 
  • Selling Story Creation – Facilitate workshops with customer teams to create a compelling story to take to the trade. 

Project outcomes

16% net profit benefit in traditional trade
18% net profit benefit in modern trade
1.2pp traditional trade account margin increase
0.3pp average modern trade account margin decrease
20% volume increase across both trade

Additional project outcomes

 

  • Aligned investment to brand objectives

    Redefined the investment structure, reallocating investment among brands to better align with company investment

  • Reduced grey market activity

    Shifted investment from the back margin to the front margin to mitigate the grey market activity 

  • Enhanced capability

    Empowered customer teams with tools to ensure customer alignment and secure commitment to new structure 

  • Implemented an appropriate customer reward structure

    Fine-tuned investments according to customer scale and value