Margin Growth Realization
Margin Growth Realization is the next generation of Revenue Growth Management.
Picture the scene. You’re baking a birthday cake. You’ve spent days researching just the right cake and recipe and have bought quality ingredients. But when making it, you forgot to put the eggs in and it didn’t work. The planning was right, but it fell down in the execution.
It’s 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 pack/price architecture.
Only focusing 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 then wondering why the dish didn’t turn out right.
Post-pandemic there is a greater desire to focus on bottom-line profit to counteract the issues of growing costs and supply chain constraints. Just growing revenue isn’t enough.
Streamline your planning, execution and analysis
Enter Margin Growth Realization
Simply put, MGR = RGM + Coordinated Execution.
MGR coordinates between RGM strategies and Execution/Distribution solutions to drive ‘perfect store’ execution in order to maximize margins.
Total sales planning and optimization RGM includes advanced promotion analytics, pricing elasticity and simulation, assortment optimization and scenario modelling. Total sales planning RGM here also assumes the use of trade promotion management (TPM – account plan and contract management, promotions planning, accruals and sales reporting) and trade promotion optimization (TPO – promotion ROI, pre/post-event analysis, simulation and calendar optimization).
For MGR, these RGM ingredients are added to the main pillars of execution: Retail Execution (sales force automation), Sales Enablement (CRM), Direct Store Delivery and eCommerce (order management systems).
MGR is not just the icing on the RGM cake, it makes sure 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 Realization.
