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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.

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.

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.

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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 AI. This includes BCG GAMMA, which provides world-class machine-learning algorithms; BCG Platinion, which helps clients develop a single source of truth through integrated and rapidly updated datasets; and a set of digital innovation and immersion centers.

Our Latest Thinking on Net Revenue Management in CPG and FMCG

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Revenue Growth Management Client Success Stories

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A Global Food and Beverage Company. A leading player in the food and beverage business wanted to strengthen its revenue growth management capabilities. We helped the company launch a phased program across the five value-driving levers: brand portfolio pricing, pack price architecture, active mix management, promotion management, and trade terms management. Our revenue management consulting teams focused on enabling the client teams to learn how to execute the analytics themselves. The program produced a triple-digit increase in the company’s profitable top-line growth, along with the codification of reusable net revenue management playbooks, differentiated by country and market.

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A Food and Beverage Business. A leading global food and beverage enterprise wanted to unlock new value by deploying next-generation revenue growth management solutions, including partnering with a key retailer to use AI to drive value for both companies. Our revenue management consultants helped the client activate an AI-driven analytical engine, which featured automated promotion recommendations and calendars tailored to each company’s strategic and business constraints. Close collaboration and data sharing, along with savvy change management (such as training on the new ways of working that the partnership required) helped deliver impressive results—including a 3% to 5% uptick in category retail sales and an improvement in margins of 300 basis points.

Meet Our Revenue Management Consulting Experts

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