Improving price management in washing machine business segment at Company A

Abstract

Currently, company A has confronted the decline of consolidated operating income when the sales volume still increases. The matter is that the development in sales performance did not accompany by profit growth. In the other words, the company has surfaced the trouble of revenue leakages, especially, the matter in price management. The purpose of finding the issues that company A are challenging, the author conduct meetings as well as in-depth interview with the Operational Head, Product Manager, Sales Managers, and some customers in 2019. Through the interview of company A’s employees, using the figures and data from the organization, relevant literature, and advice from the Operational Head, the main problem was determined as lack of price management. In the direction of lacking price management, three possible causes have been discovered are delegating pricing decisions, dynamic price promotion, and lack of price management process and procedure. Following investigating and in-depth interviews, the key cause is identified to solve is lack of price management process and procedure. This study focuses on identifying the main problem and finding the key cause, whereby proposing solutions to help company A improve the business results.