Case Study: General Electric
Strategic Pricing Associates led GE Lighting’s Strategic Pricing Initiative from pilot through roll-out. SPA led the Consumer and the Commercial & Industrial Channels away from an undisciplined, non-strategic “cost-plus” approach to a market value-based, strategic architecture with improved internal processes and controls.
Working with GE operational leaders, SPA developed pricing strategies that maximized the profitability of both business units. The project covered virtually every aspect of GE Lighting’s pricing mix:
- competitive strategy and positioning
- channel pricing strategy into distribution: list prices, discount tiers, rebates, exception pricing guidelines
- distributor special price request rationalization
- value-based economic analysis of brand value in the consumer channel by segment
- good/better/best positioning of products
- new product pricing strategy for the reveal product line
- global pricing agreements
- management/rationalization of channel coop funds
SPA continues to work with several Edison-Elite GE Lighting distributors with its Strategic Pricing for Distribution programs.