- Case study
Digital pricing: The perfect solution for a major aircraft manufacturer
And the multimillion-dollar payoff has this firm flying high
A global aircraft manufacturer
To achieve an additional $100 million yield from new price optimization strategies
Challenge
Our client, a global manufacturing giant with annual revenue of around $13 billion from aftermarket services, used an in-house group to set prices and sell spare parts for the bigger machines that it manufactures. One of the client’s key objectives this year was to upgrade its pricing strategy to achieve an overall impact of $100 million. But it faced real challenges:
Solution
The situation called for the client to move away from legacy systems and processes. Under this new approach, the value proposition to the end customer plays a key role in determining prices. With these insights, Genpact helped the client re-engineer its pricing strategy along with developing a continuous feedback loop for monitoring the impact of these pricing actions on key process metrics.
A deep dive into analytics
Our first task: Get the lay of the land. To do that:
Establishing the right pricing models
Our next step was to digitally calculate optimal prices.
Impact
A structural change to contracts with customers, partners, and distributors heralded the arrival of a new era – one that prices our client’s products optimally. Here’s the proof: