Revenue Growth Management in CPG: Game Changing Factors

February 2, 2022by Marktine Technology

To succeed, CPG companies need to understand their consumers better, plan their trade promotions more effectively, and drive profitable brand growth across channels. This requires a central, data driven decision making process leveraging analytics continuously in every step to make better and faster decisions.


How disciplined use of RGM can create value in the CPG industry?

For the most holistic, continuous and customized approach to revenue growth management, CPG companies should invest in building a RGM platform. Let us explain why:

  1. Promotional Strategy:
    Companies can capture and track historical data, supporting all business functions and activities, from packaging, production, marketing promotion and pricing all the way through the channel. Harnessing the data streams originating across consumer touch points is critical. Effective and efficient management of promotions across all channels is extremely important for market share growth and brand relevance.
  1. Determining Price:
    RGM is the new method of defining price tactics and discounting strategies. Ever since conventional data collection has been superseded by RGM, organizations can easily collect and archive an immense variety of data for faster decision making. Companies can leverage this new perspective to enable surgical or adaptive pricing and promotion strategies that deliver higher revenues, lower costs and sales force efforts more efficiently.
  1. Trade Spending:
    An effective trade spending strategy requires close coordination between manufacturers, retailers and distributors to agree on a category profit pool. Today, CPG marketer’s need a way to build performance indexes using historical trade data, accounting for spend by category, brand and retailer. A high-performance RGM platform uses advanced analytics to help you derive true insights from rapidly evolving sales and trade data. The results provide you with the information you need to make critical marketing decisions.
  1. Brand Positioning:
    Successful brands align their brands with the needs of target consumers and generate credibility, relevance and meaning for those consumers. CPG brands are focusing more on differentiating their product proposition, focusing on product features and benefits. To clearly convey that differentiation in today’s cluttered marketplace, they need to strengthen their brand positioning.
  1. Marketing mix optimization:
    Mix optimization is the process of evaluating and optimizing marketing campaign, through statistical analysis. It helps companies to avoid overspending or under-investing in areas with growth potential. In order to ensure that business growth is smooth and consistent, marketers must evaluate the productivity of their promotional campaigns. This is where marketing mix optimization comes into play. Mix optimization helps marketing teams generate new ideas and test them before implementation. It is a complex process that requires inputting data, running algorithms and then interpreting results to arrive at actionable conclusions.


Wrapping up:

Revenue growth management (RGM) at scale is a new and different approach to creating value. The approach involves using data to create linkages between consumer needs, along the full supply chain, to growth opportunities.

With a strong focus on the CPG industry and the role of CPG companies in driving growth through creating linkages with consumer demand, our team of experts across disciplines works with clients to integrate their spending data, achieve design-first alignment, and launch continuous analytics programs.