Mastering product complexity (PDF, 3316 KB) - Roland Berger

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42 B.4 PRODUCT VALUE MANAGEMENT FOR A LEADING CONSUMER GOODS MANUFACTURER Examples demonstrate that product value management reduces product costs and drives sales Benefits (excerpt) BODY CARE COSTS DOWN! FACIAL CARE SALES UP! HAIR COLORING PRODUCTS -10-15% of packaging costs > Switch from silk screen printing technology to offset printing > No negative impact on consumer value perception (no visible difference) -15% folding box costs > Size of folding box reduced by 20% > Positive effect on logistics costs > Optimization of interior design, elimination of glue dots, etc. > Positive customer impact (driven by sustainability) + 1.6% market share > Differentiation of hair coloring products by market to meet local price standards and consumer needs – Smaller packaging and elimination of deep conditioner inserts in CEE, India, for example – Lower cost of goods sold – Lower price points
43 B.4 PRODUCT VALUE MANAGEMENT FOR A LEADING CONSUMER GOODS MANUFACTURER Implementing 10 pilot projects enabled the company to reduce the cost of sales by EUR 60 m Impact of 10 pilot projects on cost of sales [EUR m] 480 62 418 RESULTS: > Products with the right features at the right cost thanks to – Better transparency – Better alternatives – Better decisions > >100 people from various functions involved in pilot projects > Savings potential of over EUR 60 m identified and realized > Additional potential through sales push Before PVM 1) Savings After PVM 1) 1) Product value management
Page 1 and 2: Mastering product complexity Düsse
Page 3 and 4: A. Key findings
Page 5 and 6: 5 A. KEY FINDINGS Product variety h
Page 7 and 8: 7 A. KEY FINDINGS Product variety a
Page 9 and 10: 9 A. KEY FINDINGS In the discrete i
Page 11 and 12: 11 A. KEY FINDINGS Four optimizatio
Page 13 and 14: 13 A. KEY FINDINGS Relevance of opt
Page 15 and 16: 15 A. KEY FINDINGS Automotive and F
Page 17 and 18: B. Examples of product complexity m
Page 19 and 20: 19 B.1 CUSTOMER-ORIENTED CAR RETAIL
Page 21 and 22: 21 B.1 CUSTOMER-ORIENTED CAR RETAIL
Page 23 and 24: B.2 Modularization strategy for a l
Page 25 and 26: 25 B.2 MODULARIZATION STRATEGY FOR
Page 31 and 32: B.3 Complexity reduction for an FMC
Page 33 and 34: Contribution margin 33 B.3 COMPLEXI
Page 35 and 36: 35 B.3 COMPLEXITY REDUCTION FOR AN
Page 37 and 38: 37 B.3 COMPLEXITY REDUCTION FOR AN
Page 39 and 40: 39 B.4 PRODUCT VALUE MANAGEMENT FOR
Page 41: 41 B.4 PRODUCT VALUE MANAGEMENT FOR

Mastering product complexity (PDF, 3316 KB) - Roland Berger

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