Case Study – Arnotts
Situation
- 41 key account managers setting their own pricing strategies
- Channel clashes between Woolworths and Coles resulting in retailer “fines” deducted off remittance.[+$200K]
- Excessive discounting driving revenues but lowering profitability below baseline levels
- Substantial and costly inventory builds due to forecasting errors
Outcome Required
- Optimised price points and strategy for iconic brands like Tim Tam and Kettle Chips
- Elimination of channel conflict
- Increased forecast accuracy to reduce excess stock build up
- Improved brand profitability
Action Taken
- Detailed analysis and pricing strategy developed for every promoted SKU
- Centralised pricing strategy and team established
- $5.0M trade spend improvement in 12 months
