Inappropriate pricing strategy in Groupe SEB Vietnam

Abstract

Groupe SEB is one of the global leaders in small domestic appliances over the world with notable brand names include All-Clad, Krups, Moulinex, Rowenta, Tefal. In Vietnam, after mergers and acquisitions (M&A) Asia Vina Fan since 2015, Groupe SEB confirmed and expected to build up the strong manufacturing and merchandise system in Home comfort category. However, Groupe SEB’s business result has shown the down trend in recent years in term of revenue and operating profit margin. Few possible problems have been discussed by conducted in-depth interview and validated by theory-formed to see main problem is due to price structure model and specifically is pricing strategy, pricing structure. Consequences from wrong pricing setting may lead to some effects that impact to revenue and therefore net profit is not as good as expected. The main cause lead to the problem is walked through and confirmed via theory formed as well as some in-depth interview. This is mainly from price setting from Price waterfall structure. From there, some alternatives solutions are researched and offered from the current situation of Groupe SEB. The solution is also focused more on how to see the leak in price from waterfall model and design some action plan in this study.