How to Boost Profits through Power Pricing


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Presentación Prof. Dr. Dr. h.c. Hermann Simon
Expomarketing 2011 PRICING, Corferias, Bogotá.

Published in: Economy & Finance, Business

How to Boost Profits through Power Pricing

  1. 1. How to Boost Profits through Power Pricing Bogota, March 17, 2011 Prof. Dr. Dr. h.c. Hermann Simon Bonn Office Haydnstrasse 36, 53115 Bonn , Germany Phone +49/228/9843-115, Fax +49/228/9843-380 e-mail: Internet: Expomarketing 2011
  2. 2. There Are Only Three Profit Drivers 1H01X007 - - Profit = Price x Volume - Cost
  3. 3. 1H01X007 - - Case: Powerstar – Electric Tool Price: $ 100 Variable Cost: $ 60 Fixed Cost: $ 30 million Units Sold: 1 million Revenue: $ 100 million Profit: $ 10 million
  4. 4. <ul><li>What is better for profit? </li></ul><ul><li>A volume increase of 5%? </li></ul><ul><li>Or a price increase of 5%? </li></ul><ul><li>Everything else unchanged. </li></ul>1H01X007 - -
  5. 5. Price as the Most Effective Profit Driver 1H01X007 - - To be read as follows: A 5% improvement in price brings price up to $105, everything else unchanged, this increases profit by 50% to $15 million. A 5% i ncrease in ... Profit Driver Profit Price ... leads to a profit increase of ... 50% 40% Old New New Old $10m $12m 1.05m 1m $10m $15m $ 105 $ 100 Sales Volume 2 0%
  6. 6. <ul><li>What is less harmful for profit? </li></ul><ul><li>A volume decrease of 5%? </li></ul><ul><li>Or a price decrease of 5%? </li></ul><ul><li>Everything else unchanged. </li></ul>1H01X007 - -
  7. 7. Price as the Most Effective Profit Driver 1H01X007 - - To be read as follows: A 5 % cut in price brings price down to $ 95 , everything else unchanged, this reduce s profit by 5 0% to $ 5 million. A 5% cut in ... Profit Driver Profit Price ... leads to a profit de crease of ... -5 0% -20 % Old New New Old $10m $ 8 m 0 . 95 m 1m $10m $ 5 m $95 $ 100 Sales Volume
  8. 8. Leverage of Profit Drivers 1H01X007 - - If the profit driver improves by 5%… … profit changes by… Source: Hermann Simon, Beat the Crisis - 33 Quick Solutions for Your Company, New York: Springer 2009. Price Variable unit costs Sales volume Fixed costs
  9. 9. Lesson 1 <ul><li>Price is the most effective profit driver. Price can generate huge profits or destroy margins. If possible, avoid price cuts. They may bring you volume and market share, but they often kill profits. </li></ul>1H01X007 - -
  10. 10. 1H01X007 - - The first commandment for pricing: Manage for Profit, not for Market Share! This requires an attitude change in many companies.
  11. 11. 1H01X007 - -
  12. 12. Profit vs. Market Share - Quote: <ul><li>“ Let’s be honest. We all claim to be going for profit, but heads start rolling as soon as the market share drops by 0.1%. When profit goes down by 20%, nothing happens.” </li></ul><ul><li> Executive Vice President </li></ul>1H01X007 - -
  13. 13. Profit vs. Market Share: Example Sony <ul><li>Result of discussion: Prices need to be increased. </li></ul><ul><li>Comment from top executive: “But then we lose market share” </li></ul><ul><li>End of discussion. </li></ul>1H01X007 - -
  14. 14. The Poison of PIMS <ul><li>Source: PIMS </li></ul><ul><li>PIMS-Study (1970-1983): Profit Impact of Market Strategy </li></ul>1H01X007 - - Market share in % Pretax return on investment in %
  15. 15. General Motors <ul><li>“ Fixed costs are extremely high in our in-dustry. We realized that in a crisis we fare better with low prices than by reducing volume. After all, in contrast to some competi-tors, we still make money with this strategy.” </li></ul><ul><li>Richard Wagoner, CEO General Motors </li></ul>1H01X007 - -
  16. 16. Porsche 1H01X007 - - “ We have a policy of keeping prices stable to protect our brand and to prevent a drop in prices for used cars. When demand goes down we reduce production but don’t lower our prices.” Wendelin Wiedeking, CEO Porsche
  17. 17. Good and Bad Market Share 1H01X007 - - Market Share Good Bad earned by performance, quality, innovation, value, adequate prices conquered by aggressive low prices without corresponding low costs good margins, high profits margins ruined, low profits, losses
  18. 18. Lesson 2 <ul><li>“ Manage for Profit, not for Share” is perceived as a provocation by many managers. It calls for a fundamental attitude change. In pricing, profit should and must be the first goal. Profit is the cost of survival. </li></ul>1H01X007 - -
  19. 19. Value Extraction: Get More out of It 1H01X007 - - ? ? Value Delivery (Welchen Wert liefern wir den Kunden?) Value Delivery (What value do we deliver to the customer?) Value Extraction (Wie holen wir uns den Gegenwert?) Value Extraction (How do we get the counter-value?) + + - / o / +
  20. 20. Gillette Blades <ul><li>The price per blade between the original Gillette Sensor and the 2006 Gillette Fusion has gone up by 298% </li></ul>1H01X007 - - Price per blade (£) +9% +41% +32% +36% +7% Source: Data collected by SKP London in October 2006. Price per blade is based on the largest pack available. 0
  21. 21. Value Delivery and Pricing: Colgate 1H01X007 - - <ul><li>First toothpaste with health authority approval </li></ul><ul><li>Price 25% higher </li></ul><ul><li>Market leader after one year </li></ul>
  22. 22. Porsche Cayman (1) 1H01X007 - - End of 2005 Porsche introduced the all new coupé Cayman S The Cayman S is technologically based on the roadster Boxster S Price position Cayman S?
  23. 23. Porsche Cayman (2) <ul><li>Convertible more expensive </li></ul>1H01X007 - -
  24. 24. Porsche Cayman 1H01X007 - - Price recommendation SKP Success factors: <ul><li>Think out of the box! </li></ul><ul><li>Innovation and creativity </li></ul><ul><li>Know and quantify the value drivers! </li></ul><ul><li>Precondition: Differentiation from Boxster S </li></ul><ul><ul><li>More power: + 15 hp </li></ul></ul><ul><ul><li>Different product name </li></ul></ul><ul><ul><li>Specific positioning </li></ul></ul>76 741 € 52 265 € 58 500 € 911 Boxster S Cayman S
  25. 25. Carbon Fiber Brake 1H01X007 - - Porsche price: ca. 8,000 € Ferrari price: ca. 15,000 €
  26. 26. Starbucks: Value Creation through Innovation 1H01X007 - - © Prof. Dr. Holger Ernst, WHU – Otto Beisheim School of Management
  27. 27. Lesson 3 <ul><li>Value delivery and value extraction are the essential determinants of profit and price. There-fore, understanding and quantifying the value is critical for profit maximization. </li></ul>1H01X007 - -
  28. 28. <ul><li>Can you be </li></ul><ul><li>profitable </li></ul><ul><li>with low prices? </li></ul>1H01X007 - -
  29. 29. Aggressive Pricing: Ryanair 1H01X007 - -
  30. 30. Cost Leadership 1H01X007 - - *Aldi Nord Source: FAZ, 18.02.04 0.9 2.6 Inventory turnover 3.0% 6.7% EBIT in % of sales 13.1% 4.9% Personnel expenses in % of sales 890 1,160 Gross profit per sm in € Regular supermarket Aldi*
  31. 31. Aggressive Pricing: IKEA’s Big “Bang” <ul><li>“ Sharpen your product” </li></ul>1H01X007 - - <ul><li>Target priced € 1 </li></ul><ul><li>One shape, one color </li></ul><ul><li>Size and shape optimized for efficient production </li></ul><ul><li>Only lighter colors </li></ul><ul><li>Consistent strategy, no “marketing overkill” </li></ul>
  32. 32. Price too Cheap: Printers - - 1H01X007 <ul><li>HP Series 4 printer </li></ul><ul><li>Launch price significantly lower than competiton </li></ul><ul><li>Within a month, a year‘s worth of stock was sold </li></ul><ul><li>The model was then taken off the market and substituted with a similar model at a much more expensive price. </li></ul>Source: Simon-Kucher & Partners research
  33. 33. Emerging Ultra-low Price Segment 1H01X007 - - <ul><li>Vijay Mahajan: “The biggest market opportunity of the 21 st century.” </li></ul><ul><li>Tata Nano: car for $2,500 </li></ul><ul><li>$35 tablet computer </li></ul><ul><li>Gillette Guard, India/October 2010: 11 cent blade, Mach3 44 cents </li></ul><ul><li>Sneakers for $1 </li></ul><ul><li>Siemens Imaging System </li></ul>
  34. 34. Tata Nano 1H01X007 - -
  35. 35. Lesson 4 <ul><li>It is possible to be successful with low costs and prices. But only a few companies rise to this challenge. If you want to make money with low prices you must trim your entire strategy chain (production, marketing, culture) to frugality. </li></ul>1H01X007 - -
  36. 36. Price Differentiation <ul><li>across customers </li></ul><ul><li>across values </li></ul><ul><li>across space and time </li></ul>1H01X007 - -
  37. 37. Rectangle vs. Triangle 1H01X007 - - &quot;The Profit Potential is always a Triangle&quot; Sales Price Unit Cost Profit Potential
  38. 38. Rectangle vs. Triangle 1H01X007 - - Sales Price Unit Cost Our Profit Our Sales Our Price &quot;Money Left on the Table&quot; &quot;Passed-up Profit&quot; With uniform price the profit is a rectangle, the profit potential is a triangle
  39. 39. Price Differentiation of Coca-Cola 1H01X007 - - 0.32 0.34 0.40 0.45 0.60 0.75 1.80 1.00 1.10 Big supermarket Grocery Store Bakery Vending machine- university Gas station Vending machine - street Newsstand - street Newsstand - airport Newsstand - train/bus station € 0.33 l-can Example
  40. 40. Value and Price Differences are Huge between Countries 1H01X007 - - 100 1137 282 100 260 188 100 328 133 100 2420 233 100 700 465 Mineral water Coca-Cola Red Bull Milka Feodora Lindt No name Mövenpick Häagen-Dazs WMF Riedel Swarowski Elite (Kaufhof private label) Staedtler Faber-Castell 9000 Softdrinks (1 litre) Chocolate (1 bar 100g) Ice cream (1 litre) Crystal glasses (2 glasses) Pencils (Sixpack) Product Brand Prices (Index) Source: Survey Grey Global Group, November 2004
  41. 41. Changing the Business Model: Coca Cola 1H01X007 - - <ul><li>Coca Cola recently toyed with the idea to vary prices for soft drinks of its vending machines with the outside temperature. </li></ul><ul><li>The warmer it gets, the higher the price goes. </li></ul><ul><li>These ideas were put on hold (for a while) due to consumer pressure and bad press during a time when its stock price was already low. </li></ul>+30 -10 0 +10 +20
  42. 42. Value Difference by Industry/Application 1H01X007 - - Value of 1 kg Aramid
  43. 43. <ul><li>Price of service contract </li></ul><ul><li>depends on yield of wind park </li></ul><ul><li>86% of customers </li></ul><ul><li>sign a 12-year service contract </li></ul>Enercon 1H01X007 - -
  44. 44. Two-Dimensional Pricing - BahnCard (Railcard) 1H01X007 - - Total Price with/without BC Realised Discount appr. 1 900 km Total total km per year With BahnCard Without BahnCard Full Fare = 100 140 € total km per year  actual discount end of 1990s: 28%
  45. 45. Multidimensional Power Pricing <ul><li>Case: Industrial Gases (Oxygen, Nitrogen) </li></ul>1H01X007 - -
  46. 46. Multidimensional Power Pricing 1H01X007 - - Price for gas Price (rent for cylinder) two-dimensional price move one-dimensional price move
  47. 47. Multidimensional Power Pricing <ul><li>Actual prices paid depending on usage rate per 50 liters. </li></ul>1H01X007 - - Usage in days 1 25 50 100 Actual price per 50 l gas $ 10.25 $ 16.25 $ 22.25 $ 35.00
  48. 48. Bundling: McDonalds 1H01X007 - - Bundling is ‘state-of-the-art’ pricing - extracting value from customers for products they have a lower willingness-to-pay for by bundling them with key value elements customers want. World Champions of Bundling They’re lovin’ it! Thirsty? Buy a Burger! Hungry? Buy a Coke! Example
  49. 49. Price Bundling/Cross Selling 1H01X007 - - Source: Scott‘s, © 2009, reprinted with permission
  50. 50. Lesson 5 1H01X007 - - Price differentiation, multidimensional, non-linear pricing, and bundling schemes are extremely effective pricing tools. Highly accurate information is required for these schemes.
  51. 51. <ul><li>Price Wars </li></ul>1H01X007 - - <ul><li>If possible, avoid! </li></ul><ul><li>If unavoidable, win! Or end! </li></ul>
  52. 52. Price Wars 1H01X007 - - “ In a competitive war, the atomic bomb and price are subject to the same limitation. Both can only be used once.”
  53. 53. Price Wars <ul><li>Price wars can happen in every industry. </li></ul>1H01X007 - - *multiple responses possible Prof. Oliver Heil, “Price Wars: Issues and Prelimiary Results”, May 1996 Reason for a price war Excess capacities Commodity product Small market growth Price reduction in % due to price war Snacks, USA, 1991 Tires, Europe 1990 Cigarettes, Germany,1992 Airline tickets, USA, 1992 Passenger bus service, Eastern USA, 1993 % of cases factor was responsible for price war 80 55 25 17 15 Industry structure
  54. 54. It's always &quot;The Others&quot;! <ul><li>* Source: European pricing study; Simon-Kucher & Partners 2009 </li></ul>1H01X007 - - <ul><ul><li>52% are in price war* </li></ul></ul><ul><ul><li>&quot;Price war was initiated by competitors&quot; : 95%* </li></ul></ul><ul><ul><li>Lack of price leadership </li></ul></ul><ul><ul><li>Understand </li></ul></ul><ul><ul><li>Lead the market (competitors, customers) </li></ul></ul><ul><ul><li>Lead your team </li></ul></ul><ul><ul><li>Surgical strikes, if necessary </li></ul></ul>
  55. 55. Price Wars <ul><li>Honda vs. Chinese products in Vietnam </li></ul>1H01X007 - -
  56. 56. Honda Vietnam <ul><li>Initial situation: 80% market share, Honda Dream $2,100 </li></ul><ul><li>Arrival of Chinese competition: $550-700 </li></ul><ul><li>Honda’s market share drops below 20% </li></ul><ul><li>Price reduction for Dream to $1,300 </li></ul><ul><li>New development of Honda Wave α </li></ul><ul><li>Introduction at $732 </li></ul><ul><li>One year later the Chinese disappear from the market </li></ul>1H01X007 - -
  57. 57. Result <ul><li>“ The Honda Wave α has achieved a low price, yet high quality and dependability, through using cost-reduced, locally-made parts as well as parts obtained through Honda’s global purchasing network.” </li></ul>1H01X007 - -
  58. 58. How to Avoid Price Wars 1H01X007 - - … .companies that successfully avoid price wars consistently write and speak publicly about the horrors of price competition and virtues of value competition. They do this “jawboning” in articles, in their in-house publications, at industry association meetings and in every available public forum. Jawbone on pricing! … .price communication should be designed to minimize the likelihood that customers or competitors will misread your price levels or the reasons behind your actions. Having your own prices misread by competitors can be just as damaging as you misreading theirs; both can start a price war. Also consider using temporary price moves. Communicate your price effectively!
  59. 59. Lesson 6 1H01X007 - - If possible, avoid price wars. Enter into a price war only if you have sustainably lower costs and/or greater financial strength. Signaling is the most effective way to prevent or to end price wars.
  60. 60. Implementation and Process 1H01X007 - - <ul><li>Information, models, decision guidelines </li></ul><ul><li>Organization, responsibilities, incentives, timing </li></ul><ul><li>Competencies, qualifications </li></ul><ul><li>IT support </li></ul><ul><li>Sequence: analysis, decision, implementation, monitoring </li></ul>
  61. 61. Profit Improvement through More Effective Pricing Processes <ul><li>Typically, the margin is improved by 2%-points and project payback is less than one month. </li></ul>1H01X007 - - 2.0 - Classifying customer and product groups based on price elasticities - Anti-discount incentives for the sales force 1-5 bil Wholesaler 0.8 - Systematic quantification of value-to-customer - More comprehensive and reliable competitive intelligence 5-10 bil Engineering 1.1 - Value-to-customer based price setting - Systematic estimation/determination of price elasticity 5-10 bil Consumer products 2.2 - For innovations: Using value-pricing instead of cost-plus - Better forecasting of cost developments for long term contracts 5-10 bil Electronics 2.5 Reduction of over engineering through target valuing/target costing Standardisation of processes, especially for limited/small run series 100-500 mil Machinery 8.0 - Reorganisation of the selling process and guidelines - Stronger centralisation 100-500 mil Software 1.5 - Introduction of new elements to the price structure - Invoicing of additional services 0.1-0.5 bil Automotive supplier 1.6 - More strongly differentiated price structure - Indicator- supported identification of opportunities with profit potential 5-10 bil Tourism 1.6 - Better exploitation of brand equity - Enhancing the pricing competence of the customer representatives 1-5 bil Bank Increase in ROS in % Main thrust of SKP pricing improvement project Company                revenue (US$) Industry
  62. 62. Case: Tour Operator 1H01X007 - - Margin up 1.6% points Project payback < 1 month Result: Focus on 50,000 most relevant decisions, automatic identification New Process: 1 million price decisions per season Situation:
  63. 63. Case: DHL 1H01X007 - - Margin up 1.5 percentage points Project payback < 1month Result: Central pricing and discount system Continuous monitoring New Process: Decentralized pricing in 200 countries Large price inconsistencies Situation:
  64. 64. Case: World Leader in Assembly Products 1H01X007 - - Very quick win: Average discount down from 16% to 14% Margin up 2 percentage points Result: Anti-discount incentive for sales force Better information on price elasticity New Process: 40,000 articles Prices are negotiated Situation:
  65. 65. Price Defense Commission <ul><li>The &quot;price defense commission&quot; rewards sales force performance in terms of their pricing achievements. </li></ul>1H01X007 - - Special 80% 100% 3,0% 9,0% Commission Price <ul><li>Industry supplier </li></ul><ul><li>Global company </li></ul><ul><li>Sales force with broad price authority </li></ul><ul><li>Primarily sales commission, only partly linked to margins </li></ul><ul><li>Strong price decline during the last years; most of transactions were closed at maximum discount </li></ul><ul><li>Strong margin drop </li></ul>Source: SKP project database
  66. 66. Case: Private Banking 1H01X007 - - Result: Profit increase of €60 million = 4% - points Clear pricing guidelines and responsibilities Better information for account managers New Process: No clear pricing guidelines No information on price elasticities Situation:
  67. 67. Case: General Electric <ul><li>Pricing Manager </li></ul><ul><li>Experiences </li></ul>1H01X007 - - Reports directly to Division CEO Rigorous implementation Considerably stronger pricing discipline Improved preparation: Price argumentation, defence Source: GE Management, personal discussion with Jeff Immelt
  68. 68. Lesson 7 1H01X007 - - The improvement of value and pricing processes typically leads to margin increases of 2 percentage points. The cases show that quick wins and high profit increases were achieved. You can develop the best strategy in the world, implementation is 90% of its success.
  69. 69. Summary 1H01X007 - - <ul><li>Price is the most effective profit driver. Manage for Profit, not for Share. </li></ul><ul><li>Value pricing: higher value – higher price – higher profit </li></ul><ul><li>It is possible to make money with low prices, but… </li></ul><ul><li>Keep an eye on the emerging ultra-low price segment </li></ul><ul><li>Whenever possible differentiate prices </li></ul><ul><li>Look at your pricing processes! Implementation counts! </li></ul>
  70. 70. Simon - Kucher & Partners 1H01X007 <ul><li>Worldwide Strategy & Marketing Consultants </li></ul><ul><li>Focus: Revenue-driven Profit Growth </li></ul><ul><li>Core Competency: Pricing </li></ul>- -
  71. 71. World Leader in Price Consulting 1H01X007 “ Simon-Kucher is world leader in giving advice to companies on how to price their products.” Business Week “ Simon-Kucher is the worlds’ leading pricing consultancy.” The Economist “ In pricing you offer something nobody else does.” Professor Peter Drucker “ No one knows more about pricing than Simon-Kucher.” Professor Philip Kotler “ No firm has spearheaded the professionalization of pricing more than Simon-Kucher & Partners.” William Poundstone ( Priceless, Hill and Wang, 2010) - -
  72. 72. Employees and Revenue 1H01X007 Revenue in 2010: $141 million - -
  73. 73. Global Presence 1H01X007 Germany, Bonn Switzerland, Zurich England, London Italy, Milan Spain, Madrid USA, San Francisco Germany Munich Japan, Tokyo Poland, Warsaw Germany, Frankfurt USA, New York Germany, Cologne USA, Boston Luxem- bourg Austria Vienna Belgium, Brussels USA, Miami Denmark, Copenhagen Netherlands, Amsterdam France, Paris China, Beijing Singa- pore Australia, Sydney - -
  74. 74. Experience in Latin America <ul><li>SKP has carried out over 100 projects in Latin America and has a deep understanding of the regional markets. </li></ul>Project experience Selected clients in the region
  75. 75. Contact for Latin America: Manuel Osorio Partner Head of Latin American Practice Miami phone: +1 617 319 9584 fax: +1 617 231 4576 e-mail: manuel.osorio Manuel has been working in marketing & strategy consulting for over 10 years. His activities focus on developing marketing strategies and improving pricing processes for global corporations in the US and Latin America. He has worked in projects in more than fifteen countries in the Americas, Europe and Asia with clients such as Pepsi, Kimberly-Clark, Johnson & Johnson, Intel, HSBC, Google, Mastercard, Bose, Texas Instruments, Holcim, Assa Abloy, Comex, Arauco, iBasis, Constant Contact, Software AG, and TeleCheck. Manuel is the leader of Simon-Kucher’s Latin American practice, with extensive work experience in Brazil, Mexico, Chile, Colombia, and Argentina, among others. He regularly speaks on conferences on the particular issues of Latin American markets. Manuel received an MBA degree from the MIT Sloan School of Management. Prior to MIT, he worked for four years as a senior internal consultant for Copec, a Latin American conglomerate. His experience included corporate strategy, business development and corporate marketing. At the same time, he taught Introduction to Economics as a part-time professor for three years at the engineering school of the Catholic University of Chile. Manuel received a Master in Engineering degree and an Industrial Engineering degree from the Catholic University in Chile. Manuel grew up in Brazil and Chile so he is fluent in English, Spanish and Portuguese.
  76. 76. Books by Hermann Simon 1H01X007 - -
  77. 77. Most Influential Management Thinkers in German-speaking Countries 2005-2010 1H01X007 Source:, Internet Surveys, n = 2526, 2005 – 2010 - - 1. Peter F. Drucker † 40.1% 2. Hermann Simon 14.4% 3. Fredmund Malik 14.1% 4. Michael E. Porter 6.6%
  78. 78. Hermann Simon 1H01X007 Professor Simon has published over 30 books in 25 languages, including the worldwide bestsellers Hidden Champions (Boston 1996, cover story of BusinessWeek in January 2004) and Power Pricing (New York 1997), as well as Strategy for Competition (New Delhi 2003). Manage for Profit, Not for Market Share (Boston 2006) takes a critical look at the widespread focus on volume and market share and calls for a conscious shift of focus towards profit. His book Hidden Champions of the 21st Century, Success Strategies of Unknown World Market Leaders (New York 2009) investigates the strategies of little known market leaders. His most recent book Beat the Crisis (New York 2010) provides companies with practical advice against the crisis and for a quick recovery. Simon was and is a member of the editorial boards of numerous business journals, including the International Journal of Research in Marketing, Management Science, Recherche et Applications en Marketing, Décisions Marketing, European Management Journal as well as several German journals. Since 1988 regularly writes columns for the business monthly Manager Magazin. As a board member of numerous foundations and corporations, Professor Simon has gained substantial experience in corporate governance. From 1984 to 1986 he was the president of the European Marketing Academy (EMAC). A native of Germany, he studied economics and business administration at the universities of Bonn and Cologne. He received his diploma (1973) and his doctorate (1976) from the University of Bonn. Simon holds an honorary doctorate from IECD Business School of Bled, Slovenia. Hermann Simon is chairman of Simon-Kucher & Partners Strategy & Marketing Consultants with offices in Amsterdam, Beijing, Bonn, Boston, Brussels, Cologne, Copenhagen, Frankfurt, London, Luxembourg, Madrid, Miami, Milan, Munich, New York, Paris, San Francisco, Singapore, Sydney, Tokyo, Vienna, Warsaw and Zurich. Simon is an expert in strategy, marketing and pricing. He has an extensive global range of clients. In the German language area he was voted the most influential management thinker after the late Peter Drucker. Before committing himself entirely to management consulting, Simon was a professor of business administration and marketing at the Universities of Mainz (1989-1995) and Bielefeld (1979-1989). He was also a visiting professor at Harvard Business School, Stanford, London Business School, INSEAD, Keio University in Tokyo and the Massachusetts Institute of Technology. From April 1995 to May 2009 he was CEO of Simon-Kucher & Partners. - -