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.ย
- 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
