Vistaar Global Beverage Alcohol Price Management Solutions The Challenging of Beverage Alcohol Pricing The beverage alcohol industry is an extremely competitive market fraught with challenges including multi-tier distribution with multiple channels to the end consumer, a complex regulatory environment, and a high volume of diverse products differentiated by brand, packaging, and price segments. Setting and managing prices across the value chain is a critical business process that has a huge impact on corporate revenue and profits. Vistaar is the leader for price management solutions in the bev-al industry. Our customers are global leaders such as Beam, Pernod- Ricard, Bacardi, and also includes a number of other global and regional companies in wine, spirits, and distribution. What is the Vistaar Bev-al Pricing Solution? Plan better, sell better, track better—what’s that worth to a company? Vistaar's customers in the beverage alcohol industry will tell you it’s worth 30 to 50 cents per case in improved profit. We begin by improving planning with a recommended optimal pricing strategy. The solution then provides expert guidance to the sales organization before, during, and after negotiations and joint planning with distributors, wholesalers, and retail chains. Finally, we close the loop by providing a robust library of analytic reports that support metrics for tracking plan vs. actual, ROI analysis, and numerous other data views. Vistaar’s Beverage Alcohol Pricing Solution is the only packaged software that manages pricing decisions across the beverage alcohol value chain, leveraging industry best practices, price optimization, and intelligent analytics. How Vistaar Enables Better Planning Price planning is an integral part of the pricing process in the alcoholic beverage industry. This includes front-line price planning and price promotions in the form of temporary price reductions. Vistaar incorporates pricing science into the process to enhance the ‘art’ of planning through scientific analysis and rigor. Our price elasticity and promotional lift models serve to improve visibility throughout the planning process, which ultimately results in better outcomes. The Vistaar solution seamlessly combines optimal front-line pricing with price promotions in a manner that enables users to understand the impact their actions will have on volume and margin before implementing them in the market. This is critical, because it’s the shelf price that determines the success of your pricing strategy. Key Solution Capabilities: Planning Portfolio Management Strategies Revenue Planning Competitive Insights Price Elasticity Models Promotion Lift Models Plan Pricing Strategy Effective Promotions Optimal Price Structure Negotiation Recommendations Plan vs. Actual ROI Analysis Analytical Insight Sell Track Retail Price Planning Scenario
Transcript
Vistaar Global Beverage Alcohol Price Management Solutions
The Challenging of Beverage Alcohol Pricing
The beverage alcohol industry is an extremely competitive market fraught with challenges including multi-tier distribution with multiple channels to the end consumer, a complex regulatory environment, and a high volume of diverse products differentiated by brand, packaging, and price segments. Setting and managing prices across the value chain is a critical business process that has a huge impact on corporate revenue and profits.
Vistaar is the leader for price management solutions in the bev-al industry. Our customers are global leaders such as Beam, Pernod-Ricard, Bacardi, and also includes a number of other global and regional companies in wine, spirits, and distribution.
What is the Vistaar Bev-al Pricing Solution? Plan better, sell better, track better—what’s that worth to a company? Vistaar's customers in the beverage alcohol industry will tell you it’s worth 30 to 50 cents per case in improved profit.
We begin by improving planning with a recommended optimal pricing strategy. The solution then provides expert guidance to the sales organization before, during, and after negotiations and joint planning with distributors, wholesalers, and retail chains. Finally, we close the loop by providing a robust library of analytic reports that support metrics for tracking plan vs. actual, ROI analysis, and numerous other data views. Vistaar’s Beverage Alcohol Pricing Solution is the only packaged software that manages pricing decisions across the beverage alcohol value chain, leveraging industry best practices, price optimization, and intelligent analytics.
How Vistaar Enables Better Planning
Price planning is an integral part of the pricing process in the alcoholic beverage industry. This includes front-line price planning and price promotions in the form of temporary price reductions. Vistaar incorporates pricing science into the process to enhance the ‘art’ of planning through scientific analysis and rigor. Our price elasticity and promotional lift models serve to improve visibility throughout the planning process, which ultimately results in better outcomes.
The Vistaar solution seamlessly combines optimal front-line pricing with price promotions in a manner that enables users to understand the impact their actions will have on volume and margin before implementing them in the market. This is critical, because it’s the shelf price that determines the success of your pricing strategy.
Key Solution Capabilities: Planning
Portfolio Management Strategies
Revenue Planning
Competitive Insights
Price Elasticity Models
Promotion Lift Models
Plan
Pricing Strategy Effective Promotions
Optimal Price Structure Negotiation
Recommendations
Plan vs. Actual ROI Analysis Analytical Insight
Sell Track
Retail Price Planning Scenario
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Key Benefits: Planning
Improved Pricing Strategy
More Accurate Forecasts
Increased ROI on Promotions Spend
How Vistaar Enables Better Selling If you’re like most companies in the alcoholic beverage industry, you have thousands of price structures, customer plans or P&Ls. The benefits of the Vistaar solution start with automated data population, so your sales team spends less time gathering and managing data and more time creating error-free and optimal price structures. During the process of preparing a new price structure, the user understands the impact of proposed changes at the deal, brand, and portfolio levels instantaneously. And, these changes are computed for the supplier, wholesaler/distributor and retail levels, which enable creation of win/win pricing scenarios for all members of the beverage alcohol value chain. Rapidly reacting to competitors, introducing new products, or addressing supply and demand imbalances all require an understanding of P&L impact on costs, prices, margins, market share, and more. Vistaar scenario planning allows you to easily understand the impact — from the individual product level up to an entire business unit — and choose the right combination of changes to achieve your business goals. In addition to this flexible user-driven sensitivity analysis, the solution also provides system- generated simulations that leverage advanced optimization techniques to create best case scenarios that users may have otherwise overlooked.
Price structure optimization and competitor driven market responses typically require approvals throughout the organization. The Vistaar solution ensures that business/pricing rules are consistently applied as sales personnel negotiate and finalize deals. For example, automatic application of rounding rules known as “penny pinching” can drive significant incremental profit. Also, adhering to price gap rules by size and brand enforces strategic differentiation for the entire portfolio and optimizes positioning vs. competition. In short, established pricing best practices are integrated into the price structure creation workflow in order to maintain an active link between strategic planning and sales execution.
Key Solution Capabilities: Selling
Optimized Price Structures
Gaming Scenarios
Strategic Alignment
Line-wash View
“Pinching Pennies”
Best Practice “Guard Rails”
Approval Workflow
Key Benefits: Selling
Improved Gross Profit
More Successful Negotiations
Ability to Balance Margin and Volume Objectives
Rapid and Fact-Based Competitive Response
Increased Accuracy
Price Structure Workbook
Line Wash Report
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How Vistaar Enables Better Tracking Performance management ensures constant monitoring and management of the planning and selling processes. The analysis is highly tailored to the planning and selling workflow, which means the analytics are meaningful and actionable. Tracking extends into automated processes within the Vistaar solution, which means that all charge-backs can be automatically tied to invoices, which eliminates labor and increases accuracy.
Business Rule Exception Reporting (pricing best practices that are adhered to and not adhered to and the number of such occurrences)
Line-wash Report
Pennies Pinched Analysis
National/Key Account Reporting
Key Benefits: Tracking
Closed Loop Planning and Sales Execution
Improved ROI for Promotion Planning Based One Event Level Plan vs. Actual Analysis
Actionable Information Drives Improved Fact-based Decisions
Typical Scenarios Where Vistaar Adds Value Vistaar’s beverage alcohol solution can support of number or critical planning process which deliver significant business value. Some examples include:
Benefit Scenario 1: Use Vistaar to align price-image with brand positioning and avoid unintended margin expansion downstream in the value chain by methodically analyzing price structures from FOB-to-Shelf, consistently maintaining price structures across markets (for e.g., open and control states, countries), and gaining control over deal proliferation chaos.
Benefit Scenario 2: Use Vistaar to improve negotiation leverage with distributors or key accounts by giving the field visibility into accurate data such as price and volume trends, competitive market trends and split-case charges. Then use “what-if” simulation analysis on price structures to evaluate pro-forma P&L impact at product, brand, account, market, and channel roll-ups.
Benefit Scenario 3: Use Vistaar to run effective promotions and increase ROI by optimizing the timing and depth of promotions for each product in the portfolio, leverage internal and market data sources to understand price-demand sensitivities, and calibrate the trade-offs between volume vs. contribution profit.
Benefit Scenario 4: Use Vistaar to minimize deal-incentive payout leakage by automating & monitoring distributor invoicing accuracy against the agreed terms of the price structures.
Benefit Scenario 5: Use Vistaar to reduce pricing deviation from intended brand strategy by aligning price and promotion plans with your business plans, monitor plan-to-actual variances, and quickly respond to market developments through collaborative planning and data-driven, volume vs. profitability trade-off analysis.
Integrated Best Practice Recommendations Improve Profitability
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Vistaar Price Management Solution
Flexibility: Enables modeling of highly complex organizations, products, market segments, etc.
Integrated Simulation Capabilities: Scenario planning for any function or level; integration between planning and execution
Business-driven User Interface: Versatile UI which facilitates user adoption while retaining full solution capabilities at the back-end
Extensible Architecture: Enables integration of other functions, organizations, capabilities into a single unified data model and pricing platform
Vistaar Value Proposition
Improved profitability due to best practice adherence
Better productivity due to streamlined processes
Smarter decisions through multi-dimensional customer, product, deal analytics
Mitigation of customer and partner revenue leakages with proactive analysis
More effective promotions and price changes
Improved deal negotiations with dynamic data and in-line analytics
More control with automated review and approval process
More effective deployment of strategies due to better business alignment
Improved “field” empowerment with appropriate governance
Why Vistaar?
Vistaar is a leading provider of price management solutions. Vistaar’s pricing software enables companies to achieve pricing best practices through price analytics, price
optimization, price list management, and deal management. Vistaar is working with some of the world’s largest manufacturers, distributors and service providers to transform
pricing operations into a strategic advantage. For these companies, Vistaar pricing solutions drive measurable price and margin improvements that deliver profitable growth
and maximum shareholder value. Vistaar’s operations include six offices across North America, Europe and Asia.
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