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  1. 1. Brief Overview of SPMG’s 4 Core Areas of Expertise 011 - 647-349-4656 © Strategic Pricing Management Group, Inc. All rights reserved worldwide. www.youneedpricing.com
  2. 2. SPMG Pricing Pyramid “Hierarchy of Needs” Pricing is the most powerful strategic weapon for profit optimization, yet many companies fail to use it effectively. In our most recent poll conducted amongst executives from Fortune 500 corporations, less than 1% of companies have achieved pricing excellence. Yes! only 1%. Jaw dropping, as it sounds, there is a silver lining here; it’s a 50% improvement from 3 years ago when the poll was first conducted. Stage 5 <1% of Companies Integrated Execution Stage 4 <10% of Companies Optimizing Pricing Process Stage 3 20% of Companies Custom Pricing Alignment Stage 2 35-40% of Companies Customer Pricing Alignment Stage 1 30% of Companies Pricing Czars, flexible prices Strategic Pricing Management Group is a global price consulting firm with expertise in Moving organizations from Stage 1 up to Stage 5. SPMG has 15 years of pricing expertise completing more than 300 engagements worldwide.
  3. 3. Who We Are Over 25 years of combined consultative experience through innovation, research and hands-on management have positioned the consultants at Strategic Pricing Management Group (SPMG) at the cutting edge of value-based pricing & revenue strategies. The firm is staffed by experienced pricing management consultants who focus on varying attributes that challenge top and bottom line. As a result, SPMG is recognized for its ability to design pricing questionnaires, conduct the necessary research and develop pricing strategies & tactics that will allow companies to meet their goals and objectives. SPMG and its partners have the ability to conduct linguistic, cultural and health literacy appropriate research in the areas of women’s health (maternal, breast and cervical cancer, diabetes, etc). We have conducted numerous studies across North America, Europe, Asia, and South America We have assisted clients from a diverse range of industries with their strategic & tactical pricing, revenue and segmentation issues. However, health care (pharma and devices) has represented our largest single industry focus. The firm’s main services are strategic pricing and marketing strategy, pricing research and education. Each assignment is carefully managed using proven customized methodologies and techniques to meet specific client needs. SPMG possesses the necessary pricing tools to evaluate the success or limitations of our clients’ strategic & tactical pricing efforts in order to determine whether value is being created or destroyed. From the outset, we work with our clients to plan, develop clear action plans intended to help them meet their corporate goals and objectives. This process includes flushing out key issues vis-à-vis the customer, defining a clear set of objectives, clarifying expectations, determining deliverables and setting boundaries for the flexibility to evolve these as required.
  4. 4. Why SPMG Team 1. Deep understanding of Financial Services, technology and Developing Value- Based Pricing Strategies & Tactics 2. Specialization in competitive and value based pricing, specifically for service driven businesses 3. Specialization working with Boards, C-level and Executive Management to develop clearly defined strategy to improve top line performance for sustainable, profitable growth. 4. Access to like institutions and other leading industry pricing executives and academics 5. Availability of, and expertise in, an array of specialized pricing tools which have been tailored to highlight customer price sensitivity, decision selection criteria, monadic testing and competitive gaming (e.g., conjoint analysis, price-driver tradeoffs, price-driver scorecard construction, price metering and price-value mapping) 6. Relevant experience in advisory roles and defining value based pricing value propositions 7. Extensive and up-to-date familiarity with the some key regulatory issues 8. Network of strong industry contacts 9. Understanding of current industry structure & underlying dynamics 10. Understanding of pricing culture and decision-making environment across functions & channels 11. Very Strong Action orientation 12. Senior management perspective 13. Practical strategy mindset & ‘Great Value for the Money’
  5. 5. Recent Engagements Complete Pricing Engagements in some of the following countries Testimonials
  6. 6. Managing Partners Michael Hurwich, M.B.A. Michael has consulted to major firms for the past 15 years. He started his consulting career at Braxton Associates, the strategic arm of Deloitte & Touché Consulting Group. During his consulting career, Michael has developed numerous corporate and business unit pricing strategies for a broad range of clients in a broad range of industries including telecommunications, finance and insurance, logistics and distribution, pharmaceuticals, retail and not-for-profits. Michael has written numerous articles on pricing and marketing strategies including, “Pricing in Turbulent Times”, “Pricing for Speed: A Pharmaceutical Case”, and “Pricing for New Drugs” He is also a frequent lecturer in China, India, Singapore, Dubai, Malaysia, Mexico , the United States, and Canada. Some of Michael’s clients and past engagements include, Sanofi Pasteur, Novartis, Promega, Lily, Roche Diagnostics, GSK, Boston Scientific , too name a few. Michael has an M.B.A. in Corporate Finance & International Marketing from the Olin School of Business, Babson College, Boston and an Honors BA, Managerial Economics/Marketing. Alain Meloche, M.Sc., M.B.A. Alain has over twenty years of experience advising executives on strategic issues. He began his consulting career at Larson & Company, a strategic consulting boutique that was an offshoot of McKinsey, later acquired by Mercer Consulting, where he also worked. He has developed strategies for high technology companies in the pharmaceuticals, medical products, medical distribution, software, internet, telecommunications, logistics, and financial services industries. A key element in Alain’s consulting practice has been the development of pricing frameworks and the development of applications and tools to permit the application of these frameworks at both the corporate and field levels. His past clients have included Genentech, Roche Diagnostics, Kemin, chaindrugstore.net, GSK, and McKesson. In addition to an M.B.A. from the Harvard Business School, Alain also has an M.Sc. in Nuclear Engineering and an Honors B.S. in theoretical physics.
  7. 7. Managing Partners Loic Le Corre, MBA Managing Partner, SPMG Europe Prior to joining SPMG, Loic has had a distinguished career as a consultant and business owner. Over the past 20 years he has created two businesses which have been sold to a leading Fortune 500 company. Loic was also Vice-President of strategic consulting for a major consulting firm. While there he was located at the Washington, DC office for two years and took part in the creation of the London, Geneva and Paris offices. More recently Loic acted as Managing Director for Pricing Solutions Europe. Loic has consulted for many leading companies, including Syngenta, Michelin, Natwest, Societe Generale, Fortis, EDF, Danone, Orica, Groupama, ExxonMobil, Michelin, Bouygues, Danone, Electrabel, Carrefour, LEGO, Noos, Nationwide, Energizer and Ford, among others. In addition to his work with those companies, Loic has extensive experience in the Financial Services and Telecom sectors. Loic also has a very deep knowledge of strategic marketing and in that capacity has done extensive work on maximizing pricing and value propositions. Within the pricing and Value Management realm Loic has developed specific expertise in new product launch, client value modelling and in Pricing Capabilities Development Programs for Large Companies. Loic graduated as an engineer from the Ecole Polytechnique in Paris and received an MBA from the Wharton School (University of Pennsylvania). SPMG Managing Partners & Global Team Corporate Headquarters & Project Team
  8. 8. 1. Price Consulting SPMG’s core consulting competency resides in 4 key areas; Developing world class pricing processes, optimizing existing product pricing in order to increase profits, assisting with the pricing of new product launches and developing pricing strategies and tactics. Each of the following services include a complimentary 1 hour consultation and company assessment. 1. As-Needed Pricing Advice 2. Pricing Discovery / Data Mining Analysis 3. Price Discipline 4. Discount & Allowances 5. Dynamic Pricing / Revenue Optimization 6. New Product/Service Pricing 7. Scenario Planning 8. Pricing & The Sales Force 9. Pricing Process Implementation
  9. 9. SPMG Pricing Methodology Value Based Pricing/ Overview of Consulting Approach Changing a price is easy, but for your company price can help determine who are the right customers for your product and whether the value of your product & service is supported by your pricing structure? Many companies base prices on tactical internal cost-plus considerations. Our methodology below provides a value-based outside-in pricing approach towards strategic decision making goals. Out methodology draws primarily from a strategic review of customers to determine their perceived value of your products. Both the customer and competitive environment will therefore drive your pricing rather than costing considerations. SMPG will provide you with a detailed approach to systematically help your company develop pricing strategies that are consistent with your corporate, marketing and sales objectives. Our methodology is unique in that it allows for interim presentations to your company in a systematic fashion by module to transfer knowledge for immediate pricing adjustments. Customer Profiling & Strategy Financial Strategy Target & Focus Competitive Strategy Development Landscape Perceived Value Product Review & Advantages Strategy Pricing Methodology Alternatives
  10. 10. 2. Pricing Software/Tools Developing price elasticity and negotiator tools for analysis and revenue optimization. These user-friendly tools will help you evaluate and make strategic pricing and tactical decisions for managing your product, customer or sales force. There has been an increasingly steady rise in Sales Force Effectiveness Tools. As such, one of our most popular pricing tools has been the Sales Force Heat Map TM . This tool is designed to assist sales teams with analysing performance across different strategic business units, customer sets and regions for maximizing revenue and profitability! 1. Pricing Analyzer Software 2. Price Developer Software 3. Customer e -Valuator Software 4. Dynamic Pricing Software 5. Price Elasticity Tool 6. Price Negotiator Tool 7. Sales Force Heat Map
  11. 11. 3. Pricing Education and Training Our workshops are presented in more than 15 countries around the world. SPMG offers a variety of customized training formats designed to fit your needs both in-house or off-site. We offer 3 types of workshops: 1. General workshops that present an overview of pricing techniques and approaches. 2. Industry and company specific (in-house) workshops. These are tailored to individual companies’ or industries issues and cover pricing basics together with cases and exercises geared to the particular situation. 3. Advanced pricing techniques workshops… such as advanced quantitative analytics and pricing tools. SPMG offers wide range of on-line Webinars; we are a partner and a sponsor of Professional Pricing Society and European Pricing Platform.
  12. 12. 4. Market Research We conduct historical (inside-looking out) and field research (outside- looking in) of your market segments using advanced tools and methodologies. Quality products and services shouldn’t be priced in a vacuum. They are the result of solid market intelligence and thorough input from customers who have a vested interest in a company’s product or service. As experts in pricing research, we set out to design a line of research products & tools that truly reflect the needs of our clients. Some key questions addressed by SPMG and some research tools we have used include:  How could price affect demand? Our Price Targeter ™ approach is useful for new offerings and variants of or improvements to existing offerings.  What trade-offs do decision makers make between price and other components of an offering?  How effective are the marketing & discount programs? Visit our Market Research Page for details
  13. 13. Recent Case Studies Type Of Engagement Client Example Leading Provider of Regulatory & Compliance Tools to Financial Services Industry: The principal objective of this project was to First introduce Value Based Pricing Principals to Product Management in an effort to develop a Introducing Value Based Pricing more effective pricing approach of measuring, creating and communicating value in the Corporate and Financial Services Division. into the Organization. Determining the receptivity and price/value Secondly, developing an understanding of the key price/value drivers for tradeoff of an existing and key customers based on an analysis of the price-value relationship for various products and services. Evaluated clients performance on each proposed new product by existing attribute, as well as those for competitors. Identify a directional and non-customers. assessment of market price elasticity by market segment. Develop information used to develop more effective pricing strategies. Large Caribbean Financial Institution: Identified elasticity of demand of Customer Research & product price various core attributes through Discrete Choice Study for existing & proposed Elasticity Study products to retain & grow market share and revenue. Major Pharmaceutical: Large Price elasticity study and revenue forecast New Product Pricing Strategy across modeling that will help determine the elasticity of demand for a new three Latin American Countries medication being launched in 2010 to women patients and respective physicians. Leading Yellow Page Directory: Developed strategic pricing and incentive alternatives designed to improve net revenue performance through Discount and Incentive Analysis discounting, refining or extending existing customer discount plans across Core Metro Areas in key cities around the United States.
  14. 14. Recent Case Studies Type Of Engagement Client Example Leading manufacturer of gypsum wallboard. Developed a Pricing Strategy that focused on customer value as a key driver of profitability rather than Pricing Strategy Development price alone. Assisted the client in differentiating their offering to provide superior customer value & improve their price position. World’s largest manufacturer of air conditioning, heating, and refrigeration equipment. Performed a Net Price Analysis for 3 selected Net Price Analysis & Workshop distributors. Developed and administered a pricing workshop for distributors so the client could deliver long-term value to its distributors & dealers. Floor Covering Company. Canada’s leading national floor covering solutions company for both commercial and residential flooring. The work sought to Value-Based Pricing Analysis & instill the principles of value-based pricing within the organization in order to Workshop meet corporate goals and objectives of identifying opportunities to increase incremental revenue. One of North America’s largest manufacturer of residential Vinyl windows. The work sought to explore and instill principles of value-based pricing Value-Based Pricing and Customer across different customer and market segments e.g. Contractor, builder, Segmentation Analysis distributor or dealer networks. The goal was to reduce pricing incentives and provide pricing stability to the market. Chemical Distributor: Examined net price (list price less discounts and Net Price Analysis incentives) to identify and develop a strategy for alignment of over/under discounted customers.
  15. 15. Some Of Our Clients Around The World
  16. 16. International Offices North America Canada – H.Q United States Michael Hurwich, CEO & President Patrick J. Taylor, Partner Alain Meloche , Vice-President ptaylor@youneedpricing.com Zoltan Lorantffy, Director Info@youneedpricing.com Europe Western Europe - UK Western Europe - France Marios Michael Andreou, Partner Loic Le Corre, Managing Partner mmandreou@youneedpricing.com llecorre@youneedpricing.com Western Europe - Germany Central and Eastern Europe - Hungary Heinz Otto , Partner Eniko Pongracz, Partner holuehr@youneedpricing.com epongracz@youneedpricing.com Asia China -Hong Kong Indonesia - Tangerang Edward Chan P, Eng, Partner Erwin Husin, Partner echan@youneedpricing.com ehusin@youneedpricing.com Latin-America Brazil - Rio de Janeiro Alex Carneiro, Partner acarneiro@youneedpricing.com
  17. 17. Contact Us For more information about the services, please contact: Zoltan Lorantffy Director, Business Development & Corporate Training Tel: 647-349-4656 Email: zlorantffy@youneedpricing.com Strategic Pricing Management Group 98 Harbord St., Suite 301 Toronto, ON M5S 1G6, Canada www.youneedpricing.com © Strategic Pricing Management Group, Inc. All rights reserved worldwide.