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Dispute over Pricing: Edeka and the Delivery Boycott by Brand Manufacturers
Germany’s largest retailer Edeka wants to remain steadfast in the fight over the pricing of brand manufacturers. Currently, there are 17 corporations that do not supply Edeka, said CEO Markus Mosa. According to a current report by the news channel ntv from April 26, 2023, it is said that the “greed” of the international food corporations is not yet subsiding. Suppliers to the Edeka association, which consists of 11,000 stores, include corporations such as Procter & Gamble, Mars and Pepsi as well as parts of Henkel, Schwartau and Unilever.
The pricing of the brands is even less comprehensible than last year, as many raw materials for detergents, but also wheat, oils and fats have become cheaper again, says Mosa. The branded goods industry maximizes its results and prefers to forego delivery. The background is a dispute that has been smoldering for months between retailers and leading brand manufacturers over prices.
It’s about power issues: Who can assert themselves in the pricing strategy?
“Constructive cooperation between suppliers and trade looks different”, says pricing expert Prof. Dr. Hans-Christian Riekhof. “When a retail group reports that there is a delivery boycott by 17 well-known brand manufacturers, then this is a phenomenon that we do not encounter every day – and that consumers also register in view of the gaps on the shelf.”
Obviously, one of the parties feels disadvantaged and cannot agree with the prices or conditions offered – there is no negotiation result. Riekhof: “In negotiation management, this is called ‘BATNA’ (Best Alternative to No Agreement). It’s about power issues: who has the upper hand and can ultimately assert their ideas?”
What do the pricing strategies for own brands look like?
Retailers like Edeka have already started years ago to make themselves more independent of the brand manufacturers by building up their own brands. However, predominantly in the lower price ranges, Riekhof continues. He recommends that retailers urgently review the pricing strategy for their own brands.
“From our pricing projects for retail, we know that the price gap between the retail brand and the manufacturer brand can be significantly reduced from the customer’s perspective. Here are untapped profit potentials for retail. Good that the manufacturers force the trade to review their price architecture.”
(Read also Riekhof on Pricing on the subject of price architecture).
Links
Read full article:
https://amp.n-tv.de/wirtschaft/Edeka-meldet-Lieferboykott-von-17-Herstellern-article24079771.html
Photo:
Tara Clark/pexels.de
19.04.2022 │ Pricing as a Strategic Success Factor at Hansgrohe
In a company like Hansgrohe, there are some special challenges for pricing. Vertical pricing strategies must be designed from distribution partners and specialist dealers to craft businesses. Frederik Wurr, Senior Project Manager Global Sales Pricing, introduces the company Hansgrohe and reports on pricing processes in practice.
Date: 19.04.2022
Time: 18:00 – 19:30
Location: PFH Private University Göttingen, Weender Landstraße 3-7, 37073 Göttingen
Please register at Riekhof@nullpfh.de
Information about Hansgrohe/Homepage
https://www.hansgrohe.de/
Pricing-Newsletter No. 41 (2020): Complex Pricing Systems – Should You Simplify Your Pricing System?
13.07.2017 │Timmendorfer Beach – Lecture “Value Creation through Intelligent Pricing Strategies”
The Economic Juniors of Lübeck, Ostholstein and Segeberg invite you to the speaker event “Strategic Pricing – Value Creation through Intelligent Pricing Strategies” on Thursday, July 13, 2017. Admission is at 6:30 PM. The event at Landhaus Carstens, Strandallee 73, in 23669 Timmendorfer Beach, includes two lectures: At 6:45 PM, Prof. Dr. Marc Oliver Opresnik (Opresnik Management Consulting, FH Lübeck and European Business School London) starts with the lecture “Negotiation Management”. Subsequently, from 7:45 PM to 8:15 PM, Prof. Dr. Hans-Christian Riekhof, (Managing Partner of UNICconsult Strategy Development GmbH, International Marketing PFH Private University Göttingen) gives the lecture “Strategic Pricing – Value Creation through Intelligent Pricing Strategies”. Afterwards, from 8:30 PM-9:00 PM, a Come Together with buffet (finger food) is planned. Venue: Landhaus Carstens Strandallee 73 23669 Timmendorfer Beach Date: Thursday, July 13, 2017 Admission: 6:00 PM
19.04.2017 │Hamburg – Lecture “Strategic Pricing”
The topic “Strategic Pricing – Value creation through intelligent pricing strategies” is the focus of the lecture by Professor Dr. Hans-Christian Riekhof, to which the Business Club Hamburg invites to the Hanseatic city on Wednesday, April 19.
There are enormous value creation potentials in pricing
The price has a higher influence on the operating profit than quantities or cost changes. However, the importance of strategic pricing is massively underestimated by most companies. Empirical studies clearly show that there are enormous value creation potentials in pricing. Too few companies have developed a long-term pricing strategy, too few companies consistently use the levers of price enforcement, and only a few companies have price controlling that deserves this name.
How to build high pricing competence
Dr. Hans-Christian Riekhof knows pricing from his own management experience. He was, among other things, division manager at Beiersdorf and marketing director in the Otto Group in Hamburg. The professor for International Marketing at the PFH Private University of Göttingen and consultant of renowned companies in strategy and marketing topics is also author and editor of various books on strategy, marketing and retail business. Most recently, his book on “The 6 Levers of Strategy Implementation” and the 3rd edition of the book on “Retail Business” he edited were published. In his lecture, he reports entertainingly and practically, which levers can be used to increase pricing competence, which building blocks and processes belong to a long-term pricing strategy. Using case studies and practical examples, it is shown how companies build high pricing competence instead of getting involved in every price war. After the event, a joint conclusion with interesting discussions and culinary delights is planned. Venue:
Business Club Hamburg
Elbchaussee 43
22765 Hamburg Date:
Wednesday, April 19, 2017
19:00 – 22:00 hrs Costs:
The participation in this event is associated with a cost contribution (including buffet at the end) of 20 euros per person. Drinks will be charged according to consumption. Further information and registration at: http://www.bch.de/veranstaltungen/prof-dr-riekhof-strategisches-pricing-wertschoepfung-durch-intelligente-preisstrategien/
05.04.2017 │Bremen – Lecture “Strategic Pricing – Stepchild of Marketing?”
Is strategic pricing the stepchild of marketing? Prof. Dr. Hans Christian Riekhof will speak about the value contribution of intelligent pricing strategies on Wednesday, April 5, 2017. The lecture of the Marketing Club Bremen at the Atlantic Hotel at the racecourse starts at 6.30 pm.
In many companies, it is primarily about two aspects: on the one hand, brand and corporate communication, on the other hand, product management. Pricing is often assigned a subordinate role. This is all the more surprising as the empirical studies by Prof. Dr. Hans Christian Riekhof, who teaches International Marketing at the PFH Private University of Göttingen, clearly show that there are enormous value creation potentials in pricing.
Location:
ATLANTIC Hotel at the racecourse
Ludwig-Roselius-Allee 2
28329 Bremen
For more information, visit: www.marketingclub-bremen.de