Strategy Execution Life Cycle – Partial life cycle from implementing and executing through monitoring and review.
Background context – Company was a leading construction materials supplier in a consolidated market where the top 3 suppliers had >70% market share. Profitability in the market facing part of the integrated value stream business was low. Persistent entry of new non integrated competitors into the downstream market that appear to have improved levels of profitability relative to incumbent competitors.
Strategic Challenge – To establish a pricing and branding strategy that leveraged the strengths and relative competitive advantage of the established industry incumbent supplier.
Strategic Activities – Collection and in-depth analysis of product pricing data by segment, sub market and customer. Development of a product pricing logic based on product value propositions and competitive dynamics. Articulate the gap between current pricing and target pricing outcomes and identify actions to bridge the gap. Link a brand strategy to the product pricing strategy. Establish sales control process that both drive and maintain pricing strategies over time and across geography.
Outcomes – The gap between target pricing and outcome pricing was reduced, resulting in an increased overall average pricing outcome and reduced customer churn.