Discount policy in food ingredients

Discount discipline had not been managed well ; during years, sales reps were given too much freedom to negociate net prices. As a result, the logic in the discount policy was completely gone. This resulted in widely scattered net prices without any logic in customer performance. The new commercial director wanted to reinstall price integrity and discount discipline.

How we helped

We assessed the net prices/channel

We redefined the 'desired' behavior of clients : buying the core product portfolio / buying the innovations / buying high margin products

In a true collaborative relationship with account management and finance, we redefined a functional discount grid that should drive customers in the right behavior