Local subsidiary of major global fertilizer company

Price differentiation based on Customer/product segmentation

Project Scope & Objective

  • Loss of ~10 points of market share to a disruptor with low margin expectations
  • Lack of discount methodology results in large price / profitability dispersion

Project Summary

  • Refining customer segmentation; Selectively prune “tail” customers (serve through distributors)
  • Introduce discount corridors based on market segments to guide sales teams new sales incentive program based on margin
  • Replacement of revenue-only sales incentive scheme to one including price and product mix drivers


  • Profit improvement based on price and mix variances.
  • Simplified the discounting process with providing clear guidelines and price target
  • Focus price effort on key account and reduce “tail” customers pricing disruption
  • Reduce the number of internal price exceptions request
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