MeadWestVaco is a leading commercial and consumer packaging supplier operating in over 100 countries ith over 24,000 global employees and current sales revenue of $6.5 billion.
Challenges
- Customers include large and small printers and package goods companies including food, beverage, and pharmaceutical industries
- Pricing and margins were too low for adequate returns
- Price was too dominant in the customer’s purchasing criteria
- There seemed to be as much competition in the value chain as there was with external competitors
Approach
- Identified the core areas of product and service development opportunity and price elasticity trade-offs through printer and end user market research
- Created 8 new Value Delivery System service offerings focused on customer segmentation and end user needs
- Developed pilots to validate customer benefits and business results
- Created “Commitment Alliances” to deliver consistent quality, improved service, and relative immunity to competitors pricing actions
Results
- Created 6 new product and service offerings and associated pricing
- Improved margins and the ability to hold the line on competitive pricing actions
- Developed value chain alliances that strengthened delivery and focused on end user needs
