NRM is an approach for maximizing the revenues and profits from a company’s brand and product portfolio over time
FMCG companies have access to more and more internal and external data that can inform the key revenue management tradeoffs
Companies need to get factors right: it's about selling the right brand in the right pack for the right occasion to the right customer at the right price.
Research about Thoughtspot
How Net Revenue Management Boosts the Top and Bottom Line?
For consumer goods companies looking to improve bottom-line growth, the top line is the critical place to focus.
Brand Portfoilio Pricing
If a brand or product has better equity with consumers and a share advantage in a segment, it should also command a price premium.
By reviewing brand strategies and equities, assessing existing price ladders compared with those of the competition, and evaluating brand-price elasticities, companies can set clear strategic brand-pricing guidance across the portfolio and across sales channels.
Pack Price Architecture
Companies aim to provide the right format, pack, and price for each purchase occasion and shopper mission in every channel
The first step toward active mix management is a clear SKU and channel segmentation that is based on profitability and growth potential.
The second step is a disciplined execution plan, structured by account, that is supported by the right incentives.
FMCG companies need to take a much more structured approach to promotions, aligning spending with brand objectives and ensuring rigorous assessment of promotion performance
Trade terms management, is critical for ensuring that FMCG companies capture their fair share of the category profit pool.
Trade terms are among the largest commercial investments FMCG companies make.
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