Rethinking Revenue Growth Management: A holistic Approach

Over the past decade, many consumer-packaged-goods (CPG) companies have mastered the fundamentals of pricing, promotions, assortment, and trade investment. A core principle of Revenue Growth Management (RGM) – next practice for sustainable profitable growth in the Industry - is to align price to the consumer’s perception of value. Following an Outside-In-Approach RGM is the capability of the manufacturer to sense, predict and shape the consumer path-to-purchase in order to optimize product, assortment, price, place, pack, promotion and availability with shopping occasions for profitable revenue growth.

The mission is

• to bring transparency to the value chain,
• to understand sensitivities and buyer motivations,
• to develop a clear vision of RGM along a roadmap,
• to get the best out of the sales prices for retail and industry,
• to structure list prices again in a market-oriented way and to give them a guiding character,
• to steer trade terms into strategic business drivers with a high business contribution,
• to sharpen the value proposition to shoppers and retailers,
• to align processes with the RGM idea and change ways of working,
• to focus sales and annual negotiations on value selling in the day-to-day business, and
• to provide all enablers as a foundation through IT skills in order to fill RGM with life.