Initial Situation
Increasing competition and market consolidations lead to increased price pressure and margin erosion. In addition, growing price and service transparency in the market for connection products was leading to an increased willingness to switch on the part of end customers. A review of the company’s own service portfolio, price positioning in comparison with the competition, and sensible marketing options were developed.
- What is the competitive situation in terms of portfolio and pricing?
- Which broadband portfolio and which pricing policy is appropriate?
- What margins and marketing budgets are available in the new model and how are sales volumes developing?
- What form can a stringent pricing model take across the entire service portfolio and additional services?
- How can price transparency and comparability in performance in the core connection product be modeled in a price-sensitive way through upselling and bundling?
- How can the optimized portfolio be ideally marketed?
GP+S Services
- Analysis of sales channels, portfolio structure and pricing
- Preparation of a detailed competitive comparison and identification of the optimal product positioning
- Modeling of a margin model based on product-related contribution margins
- Development of a new pricing model and model variants with different price points as well as calculation of budgets for promotions
- Analysis of the portfolio impact on new customer business
Results
- Competitive comparison of offer communication, sales tools, broadband portfolio and pricing.
- Modeling of a competitive portfolio and pricing model with adjusted services and prices
- Modeling of variants for margin optimization
- Preparation of product component and service profiles
- Sales proposals for promotion opportunities and budgets
