Project Description

Achieving revenue and profit improvements with sustainable adoption of new business capabilities through the successful implementation of a global, advanced regular price optimization system

The Client

A global, multi-billion-dollar discount grocery retailer with divisions in countries across Europe and Asia, as well as the United States

The Challenge

After completing the selection of an advanced pricing tool guided by The Parker Avery Group, the client began implementing regular price optimization capabilities for three countries in Europe. The project included multiple currencies and different master data sources.

The company’s general philosophy is to be the low-price leader compared to its competition, so the project had to focus on value measurement and impact on customer perception. Company leadership also recognized the importance of a comprehensive change management program to ensure the adoption and sustainment of new pricing capabilities.

Further, each country had different regulatory considerations (e.g., cannot sell below cost) that the system configuration must address.

The Parker Avery Solution

The Parker Avery team provided industry-leading practices, business process design, change management, data validation, testing, and roll-out support to successfully implement the new regular price optimization solution.

Key Parker Avery activities included:

  • Confirmed information gleaned during the initial discovery phase
  • Documented level 1 through level 3 business processes
  • Defined and documented a RACI (responsibility and accountability) matrix for each level 2 process step
  • Refined and confirmed pricing team structures and defined roles and responsibilities
  • Worked with each country on a tailored change management strategy including communication materials, training strategies, and reinforcement plans
  • Assisted in data validation
  • Wrote user acceptance test (UAT) scripts and provided support for the execution of testing activities
  • Based on the timing of the three countries, continued to refine a five-year implementation strategy by module/country
  • Outlined expected benefits and ROI by country, year, and module

The Result

Two of the three countries have begun executing regular price changes in their stores (and online) and are starting to measure the value of their pricing decisions. Early results for the categories of products that went live with the solution have shown improved revenue by 1% and profits by 5% in one country. Further, the company is preparing to start the implementation of regular pricing in two additional countries.

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