Why not go for the full value growth potential? Why to leave money on the table?

By working with our FMCG clients and peers, we observe some major confusion and missed opportunities. Many FMCG companies don't benefit from the full "Revenue Growth Management".
But what is actually "Revenue Growth Management" or "Net Revenue Management" in FMCG world?
RGM is not a function, role or a tool, it is a cross-functional approach to managing the top line of the P&L as to deliver sustained value creation for consumers, trade partners and your company.
There is both STRATEGIC RGM (long term vision) and TACTICAL RGM (short term optimisations).
LEVERS:
RGM optimizes the value performance of mainly (but not only) these 4 levers:
✅ Pricing
✅ Trade Promotions
✅ Mix / Assortment
✅ Trade Terms
Each lever should be pulled in sync with the strategy and with each other.
ENABLERS:
In order to consistently deliver against the growth vision, several broad organizational enablers such the ones below (but not only), need to be in place:
✅ KPI's
✅ Capabilities
✅ Commercial processes
✅ Tools etc. etc.
These enablers need to be "fit for purpose" to unlock the full potential of the RGM approach.
Just as an example, it is rather unlikely that you will succeed in embedding the RGM approach in your company if you incentivize your Commercial teams (or parts of them) on volume share performance...
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