Strategic revenue-margin optimization for a leading Moroccan edible oil producer
Developed a fact-based pricing and margin strategy, enhancing transparency, boosting revenue by 7–16%, and driving sustainable growth
Project challenge and objective
The client needed to enhance profitability in an increasingly competitive market. Key challenges included:
● Market shifts: Consumer preference moving from large packs to smaller SKUs.
● Competitive pressure: Price wars reducing margins and profitability.
● Inefficient pricing strategy: Prices set without differentiation across SKUs, channels, or competitor positioning.
● Opaque discount structure: Manual, non-transparent discounting impacting financial clarity.
Objective: Develop a fact-based revenue-margin strategy that ensured both sustainable pricing and controlled top-line growth.
Strategic approach & methodology
A multi-layered approach was used to develop the revenue-margin framework.
1. Shopper-based price architecture
● Conducted on-the-ground surveys to understand consumer behavior, price sensitivity, and competitor positioning.
● Assessed optimal occasion-based pricing & pack strategy (OBPPC).
2. Optimized gross-to-net discount structure
● Analyzed markups across trade channels (modern trade, traditional trade, wholesale).
● Developed a structured, high-integrity trade terms model.
3. Financial transparency & governance
● Evaluated invoicing, discount registration, and financial reporting gaps.
● Introduced clear reporting mechanisms for revenue-margin tracking.
4. Capability development roadmap
● Outlined key initiatives, required capabilities, and expected economic impact.
Solution & expected results
By implementing these strategic changes, the client:
● Optimized pricing structures for current and innovative product formats.
● Enhanced financial transparency through structured discount control.
● Developed clear principles for revenue-margin decisions and trade terms.
Impact
The initiative had a direct financial uplift:
● Volume growth: +8–17%.
● Revenue increase: +7–16%.
● Gross profit growth: 2–3x improvement.
Additional benefits included:
● Introduction of premium offerings (e.g., glass packaging).
● Refined trade terms to strengthen distribution and store-level influence.
● Long-term pricing governance for sustainable category growth.
