Revenue Growth Management

Profit margins for consumer-packaged goods (CPG) players are shrinking, battered by such forces as price volatility and channel disruptions, including shifts to e-commerce and direct-to-consumer sales. BCG helps CPG companies fight back by revolutionizing their approach to revenue growth management.

In a hypercompetitive market, 20% to 40% of the CPG profit pool is at risk. Many CPG and fast-moving consumer goods (FMCG) players are turning to revenue growth management to boost their top and bottom lines. They’re also striving to build the capabilities essential for strengthening net revenue on their own.

So what is revenue growth management? Revenue growth management—also known as net revenue management—isn’t just another pricing program. Rather, it’s a savvy way to handle net revenue, which is essential for funding operations and production. Successful revenue growth management hinges on taking an approach that is holistic and specific to both CPG and FMCG.

Our Revenue Growth Management Approach

BCG’s approach to revenue growth management is uniquely comprehensive. It enables clients to uncover valuable opportunities by answering such questions as, Who are our customers and shoppers? What role do our brands play in their purchase behaviors? How can we and our retailers both maximize benefits from the value generated?

Our framework hinges on three key elements:

  • Strategy. We start by helping clients craft the right net revenue management strategy—one that reflects the need to tailor and execute revenue growth management actions by market. Our revenue management consultants bring localized expertise to create such strategies for a wide variety of markets.
  • Levers. We deploy five levers in concert to translate clients’ net revenue management strategy into actions that can swiftly improve performance and unlock new value.
  • Enablers. Our revenue management consultants know that decision-support tools account for just 10% of a client’s success in net revenue management; the other 90% stems from strengthening key capabilities. For this reason, we reinforce our approach to net revenue management in CPG and FMCG with five enablers to help clients build the revenue growth management capabilities vital for ensuring ongoing success.

Why Clients Choose BCG for Revenue Growth Management

Our net revenue management consulting teams work shoulder-to-shoulder with clients to design and implement new methodologies and tools and to rapidly deploy revenue growth management actions to deliver bottom-line impact. And from day one of each engagement, we focus on enabling clients to build the capabilities that are vital for maximizing net revenue—long after the engagement ends.

To achieve this, we bring deep industry knowledge and unparalleled data analytics capabilities to each engagement. Our qualifications for net revenue management in FMCG and CPG include in-house expertise in digital technologies, advanced analytics, and artificial intelligence. Lead by BCG X, BCG's tech build and design unit, offerings such as Growth AI by BCG—recognized in POI’s 2023 Enterprise Planning Vendor Panorama Report—combine historical data and consumer insights with world-class machine-learning algorithms.


Revenue Growth Management Client Success Stories


Raising Revenue Growth Management to the Next Level

We augment our core approach to revenue growth management with next-generation capabilities. For example, through the sophisticated use of AI and advanced data and analytics, we help clients develop decision support tools that enable frontline teams to tackle their toughest net revenue challenges.

CPG companies that excel in net revenue management can move from merely identifying net revenue challenges and opportunities to predicting them and taking action. And as AI enablement and machine autonomy increase, the need for manual intervention decreases—boosting efficiency and effectiveness.


Our Latest Thinking on Net Revenue Management in CPG and FMCG

The Unified Theory of Strategic Pricing - Hero

The Unified Theory of Pricing

Business leaders have long wanted to make pricing simpler, more rewarding, and less frustrating. BCG’s Strategic Pricing Hexagon consolidates disparate pricing ideas into one master structure.

Meet Our Revenue Management Consulting Experts

Subscribe to our Pricing and Revenue Management E-Alert.