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| Improving Value Capture through Price and Mix Management at DuPont |
| Company: | DuPont | | Presenter: | Mike Dubnansky | | Delivered At: | Organic Growth and Innovation | | | Length: | 60 Minutes | | Description: | Building on baselining work in 2003, DuPont embarked on an ambitious value capture 'mega-project' in 2004 as part of it’s Marketing & Sales Effectiveness initiative. The project, called "Price - Value Capture", focuses on enhancing value capture for existing business through improvements to a business' product (offering) and customer mix, and price management process. Individual projects are run at the business unit level and are generally confined to a specific geographical region, where perceptions of value and price are relatively similar (additional scope reductions may apply). Each project represents a baseline at the business unit level. Following a thorough analysis of both quantitative and qualitative data, project teams develop plans consisting of discrete pricing actions and more involved improvements that take the form of "child" Six Sigma projects, each with it's own specific benefit. Returns (as earnings) on these projects are typically in the range of 1.5 to 3.5% of addressable revenue.
DuPont has run 15 of these projects in 2004 and will continue to leverage and institutionalize this capability across the company in 2005.
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