Advanced pricing and customer portfolio analysis
Deep-dive into sales to understand a Target’s customer concentration and its pricing strategy.
The challenge
Our client, a private equity fund, was looking to acquire a carve-out from a large pharmaceutical group with a global reach and a strong customer base. Part of the investment case was built on the Target’s ability to sustain its margins through a coherent pricing strategy.
Our client wanted to better understand the customer portfolio to assess dependency levels both globally and at a regional / factory level.
In addition, they wanted us to investigate the entity’s ability to streamline its pricing strategy and fix higher price points for new customers.
The outcome
Working with sales and margin data detailed by factory, product, client and shipping conditions, we performed several analyses to assess local activity for the company in the upcoming years and evaluate risks regarding the importance of key clients or SKU in sales.
We then clustered contracts by client segment, product type, and shipping area to uncover patterns traceable to the global pricing strategy. Our analyses tackled differences between clients segments and key accounts. Furthermore, we performed a focus on new customer life cycle over the past 4 years to assess the evolution of price points.
These insights helped our client get a deeper knowledge of the reality behind the business issues and improve his investment decision process.
