贝恩咨询分析方法-Product+Line+Profitability.ppt

* CU7020998JZA Product Line Profitability PLP Steps Understand client’s current PLs and cost collection systems Determine the major activities performed Identify costs and cost drivers for each activity Allocate costs to each product Analyze profitability by product or group of products Make recommendations Key Success Factors Consider strategic and operational alternatives * CU7020998JZA Product Line Profitability Options for Underperforming Products If a product line is unprofitable or profitable but underperforming, there are five alternatives to consider. Can we reduce costs? Can we increase price? Can we increase volume? Should we keep product as a loss leader? Should we drop the product? What is our relative cost position? Where is our relative disadvantage? How price sensitive are customers? How will competitors respond? Will a price increase encourage the entry of new competitors? Have we fully penetrated existing accounts? Have we aggressively targeted new accounts? Is the product an effective loss leader? What will be the cost impact on other products? How will competitors react? How will customers react? * CU7020998JZA Product Line Profitability Kelly’s - Recommendations PLP analysis can provide operational improvement tactics for Kelly’s Jellies. 8-oz jars Gallon buckets Re-negotiate promotion programs with key accounts Lower sales commissions Set higher product price Re-route delivery schedules Increase sales commissions Grow customer base - encourage new accounts * CU7020998JZA Product Line Profitability Agenda PLP overview Applications PLP steps Client example Challenges Key takeaways * CU7020998JZA Product Line Profitability Vulcan* - Background *Disguised client example Bain used PLP analysis to help a $300MM aluminum manufacturer understand where it made money and where it needed to focus its growth initiatives. Coated sheet Foil Uses: RVs, campers, buses,vans, roofing, siding, garage doors, manufactured homes Consumer durables, dis