How to Establish an Optimized, Unified RGM Strategy

Uncertainty often pushes organizations to take stock of what is working and what needs to change. With goods and services costing 2.7% more in 2024 than in 2023, and more pricing and supply chain uncertainty on the horizon, it’s clear CPGs may need to, once again, revamp their approach to revenue growth management. 

A next-level, unified, and integrated RGM approach can connect all the levers of a company’s revenue strategy — including pricing, promotion, assortment, and trade spend — under one cohesive umbrella, according to Anindya Ghose, a professor at the Stern School of Business at New York University.

“Instead of having each department operate in its own silo, companies using a unified RGM framework bring everyone together, so decisions are made with a complete view of how they affect overall profitability and market share,’’ Ghose tells CGT. “More CPG companies are gravitating toward this approach because it helps them adapt quickly to market shifts.”

For example, a brand can look at how a change in its promotional strategy might impact not just short-term sales, but also how it affects brand image, channel relationships, and supply chain efficiency, he says. “In highly competitive categories, where brand loyalty can be thin and cost pressures are rising, a unified RGM strategy can be the difference between staying profitable or losing traction.”

Brands can no longer afford to ignore fragmented RGM processes. Learn how they can more effectively leverage all the data at their disposal.