Trade Terms

The Aims

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The Process

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Trading terms negotiations with major retail customers is without a doubt one of the most difficult business issues for consumer goods companies in major developed and increasingly in developing markets. The challenge always is, and if anything is becoming more so, how to capitalise on the major volume and revenue opportunity these customers offer whilst not hurting brands and reducing gross profit disproportionately.

PACH Solutions is uniquely positioned given its combination of commercial nous, analytical rigour and strategic depth.  Our experience in working on KAM excellence suggests that starting with basic analyses on account profitability, price leakage, and commercial terms creates significantly higher value for clients than many of innovation concepts being pursued by key account managers.

We help clients work through a logical sequence of building blocks to develop Trade Terms and supporting tools which enable Account Managers to evaluate the financial effects of their activities based on a clear understanding of

  • Corporate strategies
  • Key growth drivers for the business
  • KPIs
  • Planned scenarios based on potential retail and competitive reactions