Project Description
New Data-Driven Solution Strengthens Grocer’s Competitive Pricing Capabilities
Client Challenge
With heavy reliance on an Excel-based pricing system, this U.S. division of a multi-billion-dollar international discount grocer was having difficulty managing increasing retail pricing complexity in a highly competitive market.​
The client struggled to keep pace as competitors adopted advanced pricing systems and price discrimination strategies. The retailer’s pricing strategy was dependent on obtaining accurate competitive price data. However, the existing approach to managing shopping lists and handling data feeds from their third-party price auditor was not capable of supporting the rising number of tracked competitors and locations. Further, while some key pricing decisions were delegated to divisional offices, others were consolidated in the buying organization, creating challenges with pricing alignment.
Parker Avery Solution
Parker Avery reviewed the client’s existing pricing capabilities and documented gaps with leading practices. During this exercise, the team identified competitor data management as a significant pain point. Working closely with the client, Parker Avery also defined the client’s future regular price business processes, identified non-system critical success factors required to drive business benefit, and led the client through the system selection process.​
Parker Avery performed the following key activities:​
- Evaluated current-state pricing and competitor data gathering and benchmarked against leading practices​
- Defined future-state processes and non-system dependencies​
- Vetted potential software providers​
- Documented system requirements, issued an RFP, and evaluated responses​
- Organized onsite software demonstrations and drafted a detailed demonstration script​
- Conducted reference calls with vendor customers​
- Coordinated technical evaluation of the potential pricing solutions, including a detailed security assessment​
- Developed a multi-faceted scoring assessment and reviewed findings with stakeholders​
- Drafted a detailed business case​
- Counseled the client during negotiations with vendors​
Results
The client successfully concluded negotiations with the recommended pricing system provider. ​Because of the deep knowledge about the client’s desired future-state business processes and strong team relationships, Parker Avery was contracted to support the implementation phase of the initiative. ​
Further, during the pilot phase of the new pricing system implementation, the client realized $8 million of margin benefits in just eight weeks across a sample of piloted products and select regions.
The Parker Avery Group is a leading retail and consumer goods consulting firm that transforms organizations and optimizes operational execution through development of competitive strategies, business process design, deep analytics expertise, change management leadership, and implementation of solutions that enable key capabilities.
