Pricing represents the greatest lever for corporate success. We support Consumer Healthcare companies holistically in the development and optimization of price and condition strategies as well as in the concept design and application of intelligent methods for pricing. With the definition of processes, instruments and organizational structures, we support you in the sustainable professionalization of price and condition management, from the price strategy and formation to the price implementation and monitoring. We would be glad to work for you in the following areas, among others:
The dovetailing of corporate strategy and pricing strategy poses challenges for many OTC companies. The required consistency with the portfolio and sales strategy is also often insufficient in that context. This is particularly noticeable in the fact that there is often no clearly defined and communicated target value for sales work at the country and product level. Even the desired price positioning in the market environment is often not sufficiently defined in the price strategy.
Price architecture determines how prices are formed domestically and internationally. In that context, the single elements and stages in the pricing process are defined. A global reference price can be just as much an element as a regional or country-specific reference price. Whether a gross or net price approach should be pursued must be decided. In addition, the influence of the transfer price on local price formation must be clarified in the context of transfer pricing.
Determining the appropriate pricing method at the product level is very important in the area of OTC pharmaceuticals. The combination of different methods is often the path to success. For example, with “Value Based Pricing”, Consumer Healthcare companies are able to ideally make use of the end customer’s willingness to pay. With market-oriented pricing, i.e. in line with the competitive environment, manufacturers optimize their sales and market share.
Professional price management is a complex task, which should be equipped with sufficient capacity and dedicated competence. The functional and organizational anchoring of price management in the corporate structure is therefore a relevant success factor. The structuring of necessary pricing tasks and processes at the headquarters as well as in the national companies plays an important role in this context. Depending on the maturity level of the organization, we develop efficient organizational structures and processes for you in order to meet the requirements of recurring pricing processes. In doing so, we ensure that the necessary instruments for excellent price management are implemented.
Consumer Healthcare companies often do not have the necessary experience to develop economically meaningful condition systems while considering their sales structures, and thus often favor large differences between the required gross prices and the net prices ultimately enforced. We will support you in establishing your conditions by using performance-related factors, by providing room to make decisions and escalation processes as well as competence documents for sales and field staff such as negotiation guidelines.
There are few topics that allow for such a direct measurement of success as pricing. We will support you in implementing suitable structures, processes and instruments to monitor and optimize your pricing. Our proven pricing software solutions and pricing tools enable recurring price analyses across all relevant dimensions of the business model as well as the transparent simulation of price adjustments to key performance indicators.
Do you have questions or would you like to discuss the topic? Then do not hesitate to contact our Consumer Healthcare experts.
