Margin Growth Realization

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 revenue growth management (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 revenue growth management RGM pillars of assortment, pricing, promotion and pack/price architecture.

Only focusing on one or two of the revenue growth management (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.

Enter Margin Growth Realisation

Simply put, margin growth management = revenue growth management + Coordinated Execution.

Margin growth realisation coordinates between revenue growth management strategies and Execution/Distribution solutions to drive ‘perfect store’ execution in order to maximise margins.

Total sales planning and optimisation RGM includes advanced promotion analytics, pricing elasticity and simulation, assortment optimisation and scenario modelling. Total sales planning revenue growth management 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 optimisation (TPO – promotion ROI, pre/post-event analysis, simulation and calendar optimisation).

For margin growth realisation (MGR), these revenue growth management (RGM) ingredients are added to the main pillars of execution: Retail Execution (sales force automation), and Sales Enablement (CRM).

Margin growth realisation (MGR) is not just the icing on the revenue growth management (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 Realisation.