We helped Arnotts make $5.0M EBIT in 12 months on $100M in revenues.

Situation

  • 41 key account managers setting their own pricing strategies
  • Channel clashes between Woolworths and Coles resulting in retailer “fines” deducted off remittance.[+$200K]
  • Excessive discounting driving revenues but lowering profitability below baseline levels
  • Substantial and costly inventory builds due to forecasting errors

Outcome Required

  • Optimised price points and strategy for iconic brands like Tim Tam and Kettle Chips
  • Elimination of channel conflict
  • Increased forecast accuracy to reduce excess stock build up
  • Improved brand profitability

Action Taken

  • Detailed analysis and pricing strategy developed for every promoted SKU
  • Centralised pricing strategy and team established
  • $5.0M trade spend improvement in 12 months
Share This