Revenue Management In Consumer Goods

Revenue Management is about managing and exploiting commercial opportunities in the market, and it is becoming more crucial than ever.

The reality CPG companies are facing today - the growth of online, the growth of direct-to-consumer, and the internationalization of retail and consumer buying behavior - are creating massive commercial risks, but also opportunities. Many of the key issues are nested within revenue management.

Consumer goods companies need a new playbook in revenue management – we offer that playbook. We provide a unique toolkit across all relevant dimensions of channel management, price setting, terms and conditions management, as well as promotional effectiveness. The result - sustainable financial benefit and distinct competitive edge in the marketplace.

What is the Revenue Management Challenge?

eCommerce is creating a massive price management challenge. Price differences of 50% and more are not rare with accelerating price deflation as a result. This is as much a commercial risk as it is a brand equity risk.

International buyers such as Amazon and Alibaba are increasing in number and scope. Partnering of leading retail groups to exploit international arbitrage is accelerating. Our research indicates that more than 20% may be at risk.

Legislative change is increasingly tipping the balance to favor the internationalization of purchasing at the consumer level. Our analysis suggests consumers are recognizing and exploiting their new opportunities.

What Can We Do For You?

Our Oliver Wyman Toolkit

Based on many years of experience in helping leading players in their industries to improve revenue management capabilities, we developed a comprehensive toolkit to bring to our clients.