Recent inflationary and supply pressures have forced consumer products companies to explore innovative strategies to drive sustainable growth and maximize profitability. One such strategy that has emerged as a game-changer is Revenue Growth Management (RGM). RGM is a holistic approach that goes beyond traditional revenue-focused strategies by encompassing a cross-functional data-focused mindset that emphasizes collaboration, integration, and coordination across various departments within an organization.  

Companies must recognize that success with RGM isn’t limited to a single department or function, but rather requires a unified effort across their entire organization. By aligning sales, marketing, finance, supply chain, and other key functions, RGM unlocks a company’s full potential, creating a synchronized ecosystem that promotes agility, responsiveness, and adaptability in an ever-evolving market.  

For organizations looking to maximize RGM across their organization, establishing RGM as a Center of Excellence (COE) is a great strategy. As a COE, RGM should be responsible for setting analytical standards and providing thought leadership and strategic guidance for all pricing, promotion, and assortment decisions. Below, we break down five functional areas – analytics, strategy, process, organization, and tools – and how RGM can be seen as a COE for their strategic decision-making: 

Establishing RGM as a Center of Excellence in CPG 

Analytics

• Facilitate the development of advanced analytics and data modeling to optimize decisions around pricing, market mix, price pack architecture, and promotion optimization    
• Enable the necessary analytical personnel and resources to perform best-in-class analysis 
• Work cross-functionally to identify analytical blind spots and ways to close them 

Strategy 

• Set analytical standards, define metrics and key performance indicators (KPIs), and provide thought leadership for all inputs to revenue 
• Define price realization mindset to better optimize base, promotion, channel, and everyday low pricing (EDLP) 
• Coordinate with Marketing and Product teams to build a growth strategy that includes assortment, marketing mix, and trade management 

 Process 

• Own and facilitate ongoing and regular price realization analysis
• Facilitate strategic thinking around price, promotion, and assortment actions through regular knowledge and learning share  

Organization  

• Coordinate cross-functional price, promotion, and assortment realization efforts 
• Ensure incentives are aligned across the organization to drive actions that benefit price realization, profitability, and healthy diversification of revenue inputs 

 Tools 

• Own the management of all analytical systems related to pricing, promotion, and assortment analysis 
• Oversee maintenance of all data inputs (baselines, historical, syndicated, and non-syndicated) 

Clarkston Can Help 

RGM can serve as a catalyst for success in consumer products companies by fostering a cross-functional approach that prioritizes collaboration, integration, and coordination. Institutionalizing RGM as a Center of Excellence may not work for every organization, but for many organizations, establishing RGM as a COE can offer a comprehensive framework that aligns all key functions and departments toward a common goal. 

For guidance on RGM strategy, connect with one of our experts today with leading RGM in CPG expertise.