Mind mapping tool: Price war and customer real demand

Challenge and selection

I’m working in FMCG industry which there’s a challenge on price structure for the customer. In the  industry, we have many tiers of customer, whole seller, retailer, local retailer and end customer. Last  year when we launch our new product, we set the price in normal structure which depends on  volume that customer order however, in some area the competitor has allow the special benefit to  local retailer which benefit is closely to whole seller. Sale in many critical areas drop while, we stuck  in the price war which the company surely will be lead to the loss game. I decide to talk with all the  stakeholders to see the feedback. After grab a lot of idea, I start mapping the demand of customer  and then I start to see the linkage between them. In fact, customer in difference tier has slightly  difference demand which include to service, price and sale kit that support their sale.

Application

I started with talking with the stakeholder and note what they really need. In each specific area has  slightly difference need. After that, I and my team draw a mapping which the main topic is “How to  satisfy the customer.” Then we separate customer into two groups which are end customer and  retailer. We wrote down what they want, even small specific need. Following with mapping all needs  with the action.

Insight

These two groups have distinguished need. For end consumer, they need the price and quality right.  Then we move to the retailer side, the whole seller, retailer and local retailer are difference with  their budget and channel. Whole seller doesn’t need much on service, what their really need is the  net margin which include incentive. Retailers need net margin and promotion activities. While the  local retailers with lower budget they need the lowest price to reduce suck cost and the sale kit to  let their store staff able to sale by themselves. Then we start looking for what Wow in our mapping.  We start seeing that in term of service local retailers need more attention and able to approach with  the relationship style. They tend to listen and believe in sale person that have a good relationship  with them. Our team consulted with HR to develop sale talk dialog to enhance customer’s  relationship.

Approach

After we distinguished all the need, then we start to design price structure and product plan. For end  consumer, we promoted this brand as the best quality product with the value price to drive sale  faster to stimulate sale. We start setting incentive tier and money kick back to whole seller and  retailer. We started promotion activities in retail shop and small event in some critical local shop.  Our relationship with customer is better and customer felt comfortable to introduce our product to  end customer because they believe that our product is the best product. While we’d done all of this  things, we didn’t do any discount to any of channels to stop the price war expansion. And the sale  back on the track.

For my idea, mind mapping is the best way to organized all information flood in the crisis. We have  load of ideas and solutions at the first place without any organize we has potential make the bad

decision.  Separating the idea and the reason behind of all idea, we can find the right decision  making.


Mind mapping tool : Price war and customer real demand Challenge and selection I ’m working in FMCG industry which there ’s a challenge on price structure for the customer . In the industry , we have many tiers of customer , whole seller , retailer , local retailer and end customer . Last year when we launch our new product , we set the price in normal structure which depends on volume that customer order however , in some area the competitor has allow the special benefit to local retailer which benefit is closely to whole seller . Sale in many critical areas drop while , we stuck in the price war which the company surely will be lead to the loss game . I decide to talk with all the stakeholders to see the feedback . After grab a lot of idea , I start mapping the demand of customer and then I start to see the linkage between them . In fact , customer in difference tier has slightly difference demand which include to service , price and sale kit that support their sale . Application I started with talking with the stakeholder and note what they really need . In each specific area has slightly difference need . After that , I and my team draw a mapping which the main topic is “ How to satisfy the customer . ” Then we separate customer into two groups which are end customer and retailer . We wrote down what they want , even small specific need . Following with mapping all needs with the action . Insight These two groups have distinguished need . For end consumer , they need the price and quality right . Then we move to the retailer side , the whole seller , retailer and local retailer are difference with their budget and channel . Whole seller does n’t need much on service , what their really need is the net margin which include incentive . Retailers need net margin and promotion activities . While the local retailers with lower budget they need the lowest price to reduce suck cost and the sale kit to let their store staff able to sale by themselves . Then we start looking for what Wow in our mapping . We start seeing that in term of service local retailers need more attention and able to approach with the relationship style . They tend to listen and believe in sale person that have a good relationship with them . Our team consulted with HR to develop sale talk dialog to enhance customer ’s relationship . Approach After we distinguished all the need , then we start to design price structure and product plan . For end consumer , we promoted this brand as the best quality product with the value price to drive sale faster to stimulate sale . We start setting incentive tier and money kick back to whole seller and retailer . We started promotion activities in retail shop and small event in some critical local shop . Our relationship with customer is better and customer felt comfortable to introduce our product to end customer because they believe that our product is the best product . While we ’d done all of this things , we did n’t do any discount to any of channels to stop the price war expansion . And the sale back on the track . For my idea , mind mapping is the best way to organized all information flood in the crisis . We have load of ideas and solutions at the first place without any organize we has potential make the bad decision . Separating the idea and the reason behind of all idea , we can find the right decision making .