Consumer Products and Retail Advisory

The Consumer products and Retail segment is challenged by limited consumer spending, constrained growth and volatile input costs. At the same time, the industry is undergoing a fundamental digital transformation of the whole value chain as well as a transformation of consumer needs, purchasing behavior and experience expectations.

EY helps clients reignite growth while optimizing sales and marketing investments and returns, enabled by realistic and implementable growth strategies and advanced commercial analytics.

We are independently recognized for taking a unique, end-to-end perspective on business challenges in the consumer products and retail sector. We will be at your side providing: Deep sector expertise of our more than 1000 Consumer products and Retail professionals in Europe; Pragmatic and implementation focused solutions; Collaborative methods of working.








Ondřej Žák

CZ Consumer Products & Retail Leader
+420 730 191 792
Ondrej.Zak@cz.ey.com

LinkedIn

Jan Fanta

Partner, Advisory Lead
+420 731 627 209
Jan Fanta@cz.ey.com

LinkedIn

Peter Málik

Advisory Partner, EY Slovak Republic
+421 233 339 506
Peter.Malik@sk.ey.com

LinkedIn

Our Services

  • Commercial Transformation

    Profitable Growth and Innovation
    We help our clients develop strategies to grow their business across multiple markets and channels, while simultaneously controlling and reducing their cost base to meet internal priorities and external investor expectations.

    Marketing and Sales Effectiveness
    We help Clients build sales and marketing capabilities to achieve their vision across the products, categories, channels and customers where the most profitable opportunities exist.

    Integrated Commercial Analytics
    We provide commercial analytics that tell you what is happening now, predict what will happen next and help you optimize your revenues and costs for increased profit contribution and enterprise value. We currently offer two solutions: EY Cash for Consumer product companies and Retail DNA for Retailers.

  • EY Cash: Solution overview

    EY and Microsoft created EY Cash as a modular analytical tool aimed at increasing the ROI of trade investments

  • Retail DNA: Solution overview
    2018-Retail-DNA

    Analytical solution for Retailers
    Retail DNA can accurately predict next likely customer actions, thus enabling the marketing team to develop and deliver the right personalized offers. Retail DNA is built on the MS Azzure platform to combine human expertise and creative brain power with machine-learning effectiveness.



Case studies

1. How can you optimize price positioning across stores & products?

Client: One of the largest EMEA Home improvement retailers

The Challenge:
The company has been facing increasing competitive pressure and smaller margins.

How EY helped
EY provided an integrated version of promotional and pricing data to the company’s headquarters after collecting data from various European countries. We evaluated the promotional investment across the market, as well as different store clusters and time periods, and assessed the price and percentage cut-price sensitivity at 800,000 SKUs. By running more than 5 million scenarios across products we also helped the client identify improved price positioning:

  • Price and percent cut-price elasticities for all 800,000 modelled products
  • More than 5 million EDLP flattening and price change simulation scenarios
  • Price investment evaluations for all SKUs and Bricks

2. How can you optimize Trade Investment and Structure

Client: A Global FMCG company

The Challenge:
The company was under pressure to reduce expenses in trade spending while driving profitable growth.

How EY helped
EY evaluated the client’s Gross-to-Net performance in 60 global markets and more than 20,000 trade events globally to identify opportunities for capturing value.

EY identified the optimum trade tactic combinations for 300 products over 10 product categories, and ran more than 1500 different promotional scenarios to identify opportunities. For markets where the data footprint was strong enough to evaluate the promotional ROI and identify areas of over-investment we also designed a road-map for longer term capability development along with a centralization of the analytics capability.

3. How can you better Prioritize, Plan, Execute, Evaluate & Learn from in-store promotions?

Client: Food Company

The Challenge:
The company faced challenges in creating a consistent planning, execution and evaluation procedure for in-store promotional activities across retailers.

How EY helped
EY tailor made a scenario tool that helps account managers plan their promotional calendar by providing a variety of options:

  • Planning consistency of promotions across different accounts
  • Reporting at a national level helps understanding of total impact of promotional changes
  • Understanding the benefits and expected performance of potential future promotional plans
  • Identifying trade investment opportunities by evaluating more than 3000 promotional events

4. How can you redefine your commercial process after a significant change in the legal environment?

Client: Local branch of global beverage company

The Challenge:
The company was trying to set up new trade terms to reflect significant changes in the legal environment, and facing intensifying pressure from competition as well as customer demands to create a single base pricelist.

How EY helped
EY has performed a detailed analysis of current trade terms across customers and channels and based on the outcome we:

  • Built a model to simulate the financial implications of changes in the pricelist
  • Prepared argumentation for retailer negotiation on the new trade terms
  • Identified gaps in the commercial policy

5. How can you align the trade terms of two formerly independent companies?

Client: Local branch of global FMCG company

The Challenge:
The client needed help in aligning the trade terms of two formerly independent companies, comparing the efficiency of trade terms of both companies, reviewing the commercial contracts of both companies and proposing solutions for closing the main NSV gaps.

How EY helped
EY compared the contracts of both companies with the same retailers and analyzed the trade terms with the largest retailers with a particular focus on unconditional / conditional terms and their set-up.

We delivered:

  • Gap report detailing opportunities for term renegotiations with the now improved market position
  • A single version of the truth to help both companies optimize their future contracts
  • Recommendations in terms of trade investment level

6. How to improve the profitability of flagship products?

Client: Local branch of global FMCG company

The Challenge:
The client needed to assess the profitability of their flagship products and compare this with the competition.

How EY helped
EY performed a customer profitability analysis of key products as well as a market assessment for all categories based on market share, elasticity and discount depth and intensity.

We delivered:

  • Recommendations on price changes based on competitive activity
  • Focus areas for term renegotiations with customers based on the profitability analysis