Pricing and Sales Support
National/International Consumer Products Manufacturer; Casbah brand.
The company's product lines needed significant reorganization to improve the profitability, efficiency and effectiveness of the sales effort. Also needed was sales support to expand sales and be competitive.
Action Taken -
The action I took involved pricing restructure and a pricing advance to increase profitability to pay for a new national sales force and sales costs while at the same time staying competitive. I did a competitive pricing analysis. I improved the product line structure by line pricing the line segments, took a 7% price advance to the competitive level (this paid for a new national broker sales representation program (5%) and additional sales costs (2%). Certain products were dropped to help organize the line segments. Some product weight changes and name changes were also implemented to further organize the line.
The price advance paid for a new national sales team that I negotiated hiring as well as additional sales expenses while remaining competitive in pricing. It was easier to sell the product line regarding pricing, promotions and advertising. The products were better organized for the display shipper program I created to increase sales. The new national broker sales force substantially increased the number of distributors and increased sales. With new packaging changes, pricing advance, and the sales team I developed, sales increased 28% during the first year of some of the changes.