Developing An RGM Journey Roadmap
Uncovering revenue growth opportunities to guide future strategy.
HOW WE DID IT
Eagle Foods approached Acosta seeking to evaluate its current progress against best-in-class Revenue Growth Management (RGM) tools and strategies. With the prevailing inflationary environment and shifts in shopper behavior, their objective was to develop a roadmap and prioritize RGM initiatives to uncover future growth opportunities.
In a recent Acosta Group survey of over 100 executive leaders at top CPGs, we saw that the majority of companies have at least begun their RGM journey. According to a McKinsey analysis of numerous company annual reports, companies that do RGM well have been better able to meet consumer expectations and align pricing strategies across channels, which typically has led to a 4 to 7 percent gain in annualized gross margins.
Our RGM capability assessment for Eagle Foods allowed us to identify numerous opportunities for improvement, enabling the client to prioritize areas that needed immediate attention. Industry-wide, each manufacturer has strengths and opportunities in the various RGM pillars that can be addressed to drive profitable growth. Most popular areas today include strategic pricing and promo and trade effectiveness.
As a result of the RGM capability assessment, the Eagle Foods team aligned internally and secured funding to undertake future RGM projects, which they recognized as a highly valuable win. This continued focus on RGM will enable the Eagle Foods team to understand how to adjust their pricing and trade fund management to grow sales and maximize profit.
“Acosta was a great partner to work with for our RGM capability assessment. They proved to be very knowledgeable in the field and provided a very thorough, clear assessment that has enabled our organization to build a roadmap we can feel confident in as we continue our RGM journey.”
