Picture the scene. You’re baking a birthday cake. You’ve spent days researching just the right cake and recipe, and bought quality ingredients.
But when making it, you forget to put the eggs in, and it doesn't work. The planning was perfect, but it fell down in the execution.
Revenue Growth Management
It is the same thing with revenue growth management (RGM). Consumer goods companies have been talking about RGM for the last 15 years, but some have failed to achieve their vision for it or attain its potential.
This is often because companies may only focus on one or two of the four RGM pillars of assortment, pricing, promotion, and price pack architecture.
Only focussing on one or two of the RGM pillars is like cooking – planning the meal, finding the right recipe, buying the ingredients, but then forgetting to put a couple of ingredients in when making it, and wondering why it didn’t turn out right.
Post pandemic, there is a greater desire and need to focus on bottom line profit to counteract the issues of growing costs and supply chain constraints. Just growing revenue isn’t enough.
Margin Growth Realisation
Enter margin growth realisation, which is quite literally turning revenue growth management on its head.
Simply put, MGR = RGM + coordinated execution.
MGR ensures coordination between RGM strategies and execution/distribution solutions to drive ‘perfect store’ execution in order to maximise margins.
RGM ensures that as a consumer goods manufacturer, you have the right product, at the right price and promotion. This includes driving capabilities in assortment optimisation, price elasticity, trade promotion management and optimisation.
For margin growth realisation, these RGM ingredients are added to the main pillars of execution: retail execution (sales force automation), sales enablement (CRM), direct store delivery, and e-commerce (order management systems).
MGR is not just the icing on the RGM cake, it’s ensuring all the right ingredients are included for a perfect outcome.
Connecting planning to execution and ensuring those plans are delivered for the consumer is becoming increasingly critical, and TELUS Consumer Goods is in a unique position to support customers in their journey of margin growth realisation.
Visit www.telus.com/ConsumerGoods for more information. [Image Courtesy: Dilok - stock.adobe.com]
This article was written in partnership with TELUS Consumer Goods.