Matas pricing and Category management
Driving price perception and profitability with Pricing and Category Management
Situation
- Matas is a niche retailer in Danish Health & Beauty with +250 stores and one of the most used websites in Denmark
- Competing both with mass retailers, specialist retailers and growing number of online players, how does an old retailer ensure its price perception is strong, its assortment relevant and profit as optimal as can be?
Imago Advisory approach
- Imago Advisory assembled a strong analytics team and worked seamless with an internal team across procurement, sales and IT. An initial diagnosis identified several areas in pricing methodology that could be improved and suggested a plan of action covering further analysis, design, and implementation
- Estimated pricing attributes for all active SKUs based on comprehensive analysis and using these in a new strategy and implementation plan. This included new pricing methodology, new common nomenclature for prices, revised pricing processes down to graphics in circular and shops and system support to allow procurement and sales to work easily with new concept
- Designed process and tools to work with category management, that helped procurement managers define category strategies and optimize assortment based on customer decision tree (CDT), brands and Private Label, and across different size of stores leveraging detailed information from sales, loyalty clubs as well as shops, suppliers and market trends. This was rolled out in waves to build competences and improve methodology
Outcome
- Matas earnings was improved due to Pricing and Category Management
- A new Commercial Excellence team is now in place to own the Strategy for Pricing and Category Management and drive continuous improvement
