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Masco Cabinetry KM Dealer Rollback of Price Restructuring 8/26/2010

Masco Cabinetry KM Dealer Rollback of Price Restructuring 8/26/2010. Rollback Objectives. Moderate the impact on Dealer Channel price restructuring so that large changes in specific door styles are reversed

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Masco Cabinetry KM Dealer Rollback of Price Restructuring 8/26/2010

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  1. Masco Cabinetry KM Dealer Rollback of Price Restructuring8/26/2010

  2. Rollback Objectives • Moderate the impact on Dealer Channel price restructuring so that large changes in specific door styles are reversed • Implement a solution that is the least disruptive to both the customer and to internal resources • Maintain some or all of the $7MM favorable price impact for 2011

  3. Rollback Options • Option 1: Via multiple system factors • Option 1a: Utilize CUST.DISC function to add a discount and or adder to the factor on the account based on door style. This would use the current system functionality of the CUST.DISC module (promotion) • Option 1b: Modify coding to allow for an additional discount/adder table that would be included in the price calculation buildup. • Option 2: Via List Price. Keep existing list price structure, but reposition Dealer styles to approximate pre-restructuring price point.

  4. Rollback Option Scoring Option pros and cons identified in a cross-functional team meeting including Pricing, Finance, 20/20, and Catalog and then validated with senior Dealer Channel Sales Leadership

  5. Scoring Highlights

  6. Rollback Recommendation • Implement Option 2: List Price Change . • Time new price list and 20/20 catalog with start of Masco Cabinetry January 3, 2011 • Suggested by Sales, based on timeline to get in place • 8-9 week project to lead-time to be able to provide pricing 60 days in advance • Continue / expand low end promotion through year-end • Concerted effort on internal and external communication plan • Need a champion

  7. Major Project Components/Timelines • Internal Communication to Sales Force – Jim/John, TBD • Financial Analysis – Pricing/Finance, 1-2 weeks • Price restructuring work – Pricing, 4 weeks • 20/20 catalog development – 20/20, 3 weeks • Price book creation – Catalog, 3 weeks • Communication plan/execution – Marketing (supported by Sales, Pricing, 20/20)

  8. Appendix: Scoring Detail

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