.jpg)
Industry / Company
OTC Health Care
Price Increase Without The Harmful Side Effects.
OTC Health Care - Pricing & Innovation Guidance Enables First Price Increase in 10+ Years, Price-Pack Reinvention, and Premium Innovation
CHALLENGE
- Significant multifunctional effort spent to create premium tier innovation and price increase plans across 2 brands, 5 channels, and multiple price tiers
- All plans put on hold due to competitive, market, and retailer uncertainties/risks, putting Company profitability and growth plans in jeopardy
- Consumer Health Care President felt both compelled and hesitant to take a long-overdue price increase. She needed a breakthrough plan that would give her the confidence to move forward decisively
SOLUTION
- Part 1: LPA created a clear decision framework and led expert panel of internal and external retail experts and business leaders on 2-week sprint to recommend new path forward, with strong rationale and specific actions to de-risk execution
- Part 2: LPA focus included:
- Led by-SKU, by-retailer optimization of price-pack architecture and pricing plan to maximize client and retailer sales and profit opportunities and minimize competitive risks
- Led pricing and claims research on key SKUs to minimize price elasticity and optimize product switching interactions
- Provided significant input to updated innovation plans and retailer sell-in communications
RESULTS
- Successful sell-in of the first price increase in 10+ years, price-pack architecture reinvention, and premium innovation program across key retailers/channels (Mass, Drug, Food, Dollar, Amazon) despite major competitive launch
- Client engaged LPA for significant follow-on pricing and innovation work in two additional product categories
Client Feedback
“LPA’s approach to guiding us on whether and how to take our first price increase in 10 years worked well. Margin enhancement for the customer was critical, and we achieved it while also streamlining our pricing architecture. The new research data LPA brought to the table was especially helpful for internal selling, getting leadership and the Walmart Sales team comfortable with the pricing move and confident to go into Walmart and sell it during a difficult time.”