As executives become aware of the power of pricing strategy, their ability to generate long-term profits will depend on whether they resist, accept, or accelerate five trends.
Our Revenue Growth Management Approach
BCG’s approach to revenue growth management is uniquely comprehensive. It enables clients to uncover valuable opportunities by answering such questions as, Who are our customers and shoppers? What role do our brands play in their purchase behaviors? How can we and our retailers both maximize benefits from the value generated?
Our framework hinges on three key elements:
- Strategy. We start by helping clients craft the right net revenue management strategy—one that reflects the need to tailor and execute revenue growth management actions by market. Our revenue management consultants bring localized expertise to create such strategies for a wide variety of markets.
- Levers. We deploy five levers in concert to translate clients’ net revenue management strategy into actions that can swiftly improve performance and unlock new value.
- Enablers. Our revenue management consultants know that decision-support tools account for just 10% of a client’s success in net revenue management; the other 90% stems from strengthening key capabilities. For this reason, we reinforce our approach to net revenue management in CPG and FMCG with five enablers to help clients build the revenue growth management capabilities vital for ensuring ongoing success.
Why Clients Choose BCG for Revenue Growth Management
Our net revenue management consulting teams work shoulder-to-shoulder with clients to design and implement new methodologies and tools and to rapidly deploy revenue growth management actions to deliver bottom-line impact. And from day one of each engagement, we focus on enabling clients to build the capabilities that are vital for maximizing net revenue—long after the engagement ends.
To achieve this, we bring deep industry knowledge and unparalleled data analytics capabilities to each engagement. Our qualifications for net revenue management in FMCG and CPG include in-house expertise in digital technologies, advanced analytics, and artificial intelligence. Lead by BCG X, BCG's tech build and design unit, offerings such as Growth AI—recognized in POI’s 2023 Enterprise Planning Vendor Panorama Report—combine historical data and consumer insights with world-class machine-learning algorithms.
Revenue Growth Management Client Success Stories
A Global Food and Beverage Company. A leading player in the food and beverage business wanted to strengthen its revenue growth management capabilities. We helped the company launch a phased program across the five value-driving levers: brand portfolio pricing, pack price architecture, active mix management, promotion management, and trade terms management. Our revenue management consulting teams focused on enabling the client teams to learn how to execute the analytics themselves. The program produced a triple-digit increase in the company’s profitable top-line growth, along with the codification of reusable net revenue management playbooks, differentiated by country and market.
A Food and Beverage Business. A leading global food and beverage enterprise wanted to unlock new value by deploying next-generation revenue growth management solutions, including partnering with a key retailer to use AI to drive value for both companies. Our revenue management consultants helped the client activate an AI-driven analytical engine, which featured automated promotion recommendations and calendars tailored to each company’s strategic and business constraints. Close collaboration and data sharing, along with savvy change management (such as training on the new ways of working that the partnership required) helped deliver impressive results—including a 3% to 5% uptick in category retail sales and an improvement in margins of 300 basis points.
Raising Revenue Growth Management to the Next Level
We augment our core approach to revenue growth management with next-generation capabilities. For example, through the sophisticated use of AI and advanced data and analytics, we help clients develop decision support tools that enable frontline teams to tackle their toughest net revenue challenges.
CPG companies that excel in net revenue management can move from merely identifying net revenue challenges and opportunities to predicting them and taking action. And as AI enablement and machine autonomy increase, the need for manual intervention decreases—boosting efficiency and effectiveness.
Book
Game Changer: How Strategic Pricing Shapes Businesses, Markets, and Society
It’s time to look at pricing decisions in a new light. Game Changer: How Strategic Pricing Shapes Businesses, Markets, and Society not only exposes the flaws in current pricing models, it also explains how the right pricing strategy can change the trajectory of your business, your industry, and in many cases, society as well. A Wall Street Journal and USA Today bestselling book.
Our Latest Thinking on Net Revenue Management in CPG and FMCG
Article
January 30, 2025
Article
February 12, 2024
The models and applications for generative AI can unlock more of their transformative potential if their developers devise smarter pricing strategies rather than defaulting to familiar tech-industry options.
Article
August 29, 2023
Business leaders have long wanted to make pricing simpler, more rewarding, and less frustrating. BCG’s Strategic Pricing Hexagon consolidates disparate pricing ideas into one master structure.
Article
January 3, 2023
Consumer packaged goods companies have many options for balancing volume and profit in a downturn, but they need the right tools to make the changes stick.
Meet Our Revenue Management Consulting Experts
