Client Background

• Client - An industry-leading American multinational manufacturer of cereal and convenience foods
• Industry – Packaged food processing
• Area of Operations – Cereals, snacks, beverages and specialty foods
• No of employees – 10,000+
• Annual revenue – $10+ billion

Challenge

The food-manufacturing sector, struggling through a low-growth environment, challenged industry players to build sustainable bottom-line growth by thinking differently. A leading multinational manufacturer of cereal and convenience foods decided to leverage advanced analytics to develop a price pack architecture solution that would help it maximize price realization. By gaining an advanced understanding of consumer preferences in Tier 2/3 cities, the company hoped to design new demand-based product variations and build its customer base with customers who traditionally stayed outside. This initiative would also enable the company to identify the right pack sizes at the right price points for the right customer segments, while discontinuing pack sizes that were dragging down profit margins.

Solution

Wipro developed a price-pack architecture framework that combined consumer insights, competitive dynamics, and capabilities, enabling the company to ideate, simulate, and test results, with advanced analytics generating powerful insights on volume lift and paving the way for more accurate revenue and profitability forecasts. These insights also helped the food manufacturer decide whether to discontinue items or perform product variations to boost market penetration and increase profit margins.

Wipro also moderated discussions with senior stakeholders from the business transformation organization, finance, and sales and marketing teams to validate the process frameworks. By breaking down organizational silos and reviewing the framework analyses, the business team was better positioned to evaluate revenue gaps and concentrate on the company’s distribution efforts.

Business Impact

This unique architecture improved product packaging and helped the food-manufacturing leader gain market share and category growth. Based on actionable analytics, the company was able to execute channel-wise discounts for optimal product pricing, discontinue packs that were performing poorly and pulling down margins, and introduce new low-cost pack sizes for Tier-2/3 cities in the APAC region. This directly resulted in a 2% increase in incremental revenue and a 2-5% margin improvement year over year in the APAC region.