“Mastering Negotiation Strategies with Multinational Retailers in FMCG”

Challenge

In an increasingly competitive retail landscape, major multinational retailers like Carrefour, Casino, etc exert significant pressure on suppliers to reduce prices and increase margins due to price transparency across markets. The challenge was negotiating better terms with these retail giants while preserving profitability and ensuring the products reached the right market segments.

Action

A specialized negotiation strategy was developed, which involved detailed market analysis and customer segmentation to understand the retailers’ leverage points. The team focused on building long-term relationships rather than just transactional negotiations. Tailored value propositions were created, showcasing how products aligned with the retailers goals of differentiation and customer satisfaction. Additionally, a win-win approach was employed to ensure mutual benefits—balancing cost savings with exclusive promotions and marketing support.

Results

The negotiation strategy resulted in more favorable trade agreements with retailers, securing prime shelf space and promotional visibility across Europe. The enhanced relationship with multinational retailers not only led to a 15% increase in retail orders but also improved the perception of the brand as a premium supplier, opening doors to other major retail chains across the region.