Pricefx Empowers Verallia to Accelerate on Value-Based Pricing
With around 10,000 people and 32 glass production facilities in
11 countries, Verallia is leading European and the third largest producer globally of glass containers for food and beverages.
Verallia provides innovative, customized and environmentally friendly solutions to more than 10,000 businesses around the world and produced more than 16 billion bottles and jars and achieved revenues of €2.7 billion in 2021.
Verallia purpose is to re-imagine glass for a sustainable future. By redefining how glass is produced, reused and recycled, to make it the world’s most sustainable packaging material.
The sales breakdown per region currently stands at;
68% Southern and Western Europe
22% Northern and Eastern Europe and:
10% in Latin America.
Verallia started its pricing journey by implementing value-based Pricing methodology using Excel Spreadsheet within a Pilot project in Europe.
This first step in the pricing journey was successful and enabled to confirm value creation opportunities for the company, however:
Excel tool was heavy & needed a long time to set up as data were imported from different system ( SAP, Salesforce…). Therefore, it was not updated as frequently as needed.
Value Based pricing methodology applied did not allow to cover properly 100% of business, some product families needed alternatives pricing approach
Pricing guidelines were not easily accessible to sales team & thus price recommendation execution was not at optimal level
Data confidentiality was not 100% granted as Excel spreadsheet with critical information were shared among many employees.
Reporting capabilities were limited
Verallia Management team wanted to go further in the pricing journey and decided to Implement a Pricing Software in order to achieve pricing Excellence:
Verallia has set up 7 Objectives to achieve through new software implementation:
Strengthen value-based Pricing Methodology using latest technologies (IA)
Set up pricing Models using different strategies such price optimization & value-based margin target or price list
Provide market relevant, optimized and customer specific pricing range to sales team for new business & precise guidelines for price variation @ product & customer level in yearly agreement negotiation
Improve efficiencies and reduce the time it takes to price for Sales team through a full integration between Pricing engine & Quotation Tool.
Gain efficiency through a full automatization of master data
& transaction data update thanks to a seamless integration with data source systems (SAP, Salesforce…)
Provide to Top Management a powerful price positioning analysis and dashboards
Control & secure access to confidential data
Pricefx’s mission was to replace the existing Excel based pricing tool used by Verallia. Our solution (as well as its benefits to Verallia) was thoroughly tested during a 6 Months Proof-of -Concept process.
During this period, Pricefx software:
Directly integrated with Verallia’s in-house quoting system (Quo) built around Salesforce via API
Reflected the value-based pricing methodology already developed by Verallia
Set up annual and ad-hoc price negotiation and offers
Effectively rolled-out to the key four Verallia markets: France, Italy, Spain
Verallia is using the following Pricefx capabilities: Analytics, Quoting and
Optimization; integrating them with the company’s existing in-house Salesforce
Created a customised solution to establish an automatic calculation tool
for recommended prices to be used during annual negotiation and proposed prices for ad-hoc quotes to be resubmitted into Verallia’s in-house quoting system
Results and Benefits
With this initiative in place, the Pricefx solution has enabled Verallia to generate the following functional and financial results:
- Pricing strategies defined in Pricefx
- Simulation features for annualnegotiation and budget
- Seamless Integration between Pricefx and new Quotation tool in Salesforce
- Advanced pricing analytics and dashboards in Pricefx and the CRM
- An easy and flexible Pricefx solution (implemented in only 6 months) has enabled Verallia to automate its recommendations of price calculations during annual negotiation and proposed prices for ad-hoc quotes, allowing the company to gain time, efficiency, and consistency in key markets
- Customer and Product segmentations have been refined and their values have increased thanks to the new Value Price model
- Leveraging Pricefx software, Verallia is now able to justify a value-based price increase vs average market segment price, thanks to the product value drivers and customer value drivers in place
- Thanks to the Pricefx platform, Verallia is now able to simulate prices to prepare for its annual budget
This proven success encouraged Verallia to plan further steps in our continued cooperation via deploying Pricefx tools and capabilities in other markets and regions.