Australia Nappies & Wipes

A bottle of baby wipes and a rubber duck sitting on top of a stack of diapers.

Company Profile:

  • Turnover: AUD$1bn
  • Categories: Nappies & Wipes
  • Region: APAC/Australia
  • Market Position: Brands are in the Top 2 in their respective categories
  • RWA Solution: 2-year Pack Price Architecture (PPA) Strategy & Financial Projections

Business Situation:

  • For Nappies and Wipes:
    • Internal focus on profit optimisation at odds with key customers desire to drive footfall through price and promotion investment. 
    • A lack of understanding of cross channel impact on volumes and therefore profitability
    • A need to ensure that profit optimisation requirement is realised through the full P & L and not at the expense of inefficiency at factory
    • Address customers long term challenge around improving profitability on core pack groups

What We Delivered:

  • Delivered a Pack, Price Architecture (PPA) strategy and set of 2 financials
  • Financial recommendations identified:
    • Nappies: Bench price and promo calendar optimisation changes; Ranging new convenience sized offer in key age segments to offset channel leakage and margin accretion roadmap for key Customers
    • Wipes: A set of optimal bench price & promotional tactic/bundling recommendations with innovation/pack changes
  • Identified a significant lift in contribution margin in the first 12 months for the client, and for the retailers
  • Profit improvement to client in Year 1 across both categories of $12.4m

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