Pricing strategy and implementation plan for B2B business of a leading European telecom operator
Telecommunications, Information technology, Media & Electronics (TIME)

We successfully delivered aligned use cases and business requirements, allowing the transformation project to move ahead and the development of a new order management system.


Challenge

The client was facing severe price pressure, especially in the B2B market.

Arthur D. Little had supported the client in defining a target B2B portfolio, but a common pricing strategy to govern pricing and margin distribution of complex deals was lacking.

Current pricing was complex and product oriented, and misaligned with the target portfolio.

Approach

Arthur D. Little performed an in-depth situation assessment, including internal and external interviews and customer perception analyses.

Arthur D. Little used a three-step approach to help telecom operators successfully operationalize new pricing strategies. Our team thus developed a pricing strategy for the B2B business, working side-by-side with an extended client core team to test and apply the concepts.

New governance structures and ways of working were detailed to support the new pricing strategy, as well as a short-term and a long-term road map for implementation.

Value

The coherent pricing strategy covered both product and deal pricing, providing the client with an efficient tool to manage margins and align the sales organization’s incentives with the target portfolio.

Arthur D. Little’s approach to successful strategic pricing

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