The core objective of every industry is to maximize revenue growth over the long term by selling the right product to the right customer at the right time for the right price and with the right pack.
The changing shopper behavior has made it important for the Consumer Goods Companies to embrace the transformation and adapt to omnichannel selling which results in increased price pressure. Even in these scenarios, temporary price reductions (TPRs) remain one of the most common promotion tactics for CPGs, resulting in a steady increase in trade promotions budgets.
Pricing Society’s research shows that trade promotions spend use up 13-20% of revenue or 67% of total marketing investment for many CPG companies.
The core principles of Revenue Growth Management are to align price to the customer’s perception of value and strive for a deeper micro-segmented understanding of the consumer and the factors that influence their purchasing behavior. The strategic revenue growth management sees trade activities as one of the many levers to shape consumer path-to-purchase.
TekLink’s Growth Management Solutions are designed to address some of the key challenges faced by our customers in the consumer goods industry. Growth Management integrates decision making around pricing, trade promotion, and product range at the consumer as well as at enterprise-level, across all channels to drive profitable revenue growth.
As per Forrester Research, “A CPG company that can effectively utilize Growth strategies can see up to a 3-5% increase in the margin”.