Chemical Industry, Business Development/Strategy
Value-Based Pricing Strategy Transformation
Problem Statement
ChemicalCo, a global specialty chemicals company, faced mounting margin pressure while relying on fragmented, cost-driven pricing practices with limited cross-regional alignment.
The VP of Product Line Management attributed these challenges to unclear ownership, underutilized pricing tools, and inconsistent collaboration between PLMs, Sales, and Pricing teams.
For example, pricing data was captured irregularly across regions, value-based pricing was rarely applied despite its relevance, and PLMs often acted as coordinators rather than strategic pricing leaders.
Key Objectives
Diagnose root causes of pricing inefficiencies across regions and functions
Establish a unified, scalable framework for value-based pricing execution
Empower PLMs with tools and training to drive customer-centric pricing decisions
Delivered Values
15%
net margin increase for pilot product. Importantly, this was accomplished without losing volume or customer goodwill – a testament to effectively communicating the value.
20
product line managers across 3 regions (i.e., APAC, EMEA, Americas) were trained and upskilled. PLMs began acting as strategic pricing partners to sales, using value quantification to guide pricing decisions.
30%
reduction in time spent on cross-regional price alignment. This efficiency gain freed up time for more strategic activities (like deeper market research and more customer engagement on value).
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“Gave our PLMs real ownership and confidence in pricing.”
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