Area / 01
Pricing and price-pack architecture
Elasticity per SKU, estimated with log-log models and first differences by customer and sub-market, and the result split into price, volume and mix.
Solution · Decision module · RGM
Price, promotion and mix, decided on the same P&L.
The Revenue Growth Management module decides where and how to create profitable demand: pricing and price-pack architecture, promotions, portfolio and assortment, channel and commercial incentives. Each analysis declares the data it needs, the P&L lines it touches and the caveat that comes with it.
Area / 02
Promotion
Lift and return of each promotion against a non-promotional baseline, so promotions that only move volume between weeks become visible.
Area / 03
Portfolio and assortment
ABC classification and a whale curve of which customers and SKUs make money and which lose it. The whale curve needs customer margin, and says so when it is missing.
Area / 04
Channel and incentives
The gap between territory potential and sales execution, and simulations of what an incentive plan will make the field do.
Decisions it covers
The commercial decisions, as math.
DecisionQuestion it answersMethod
Price
Where can price move without losing more volume than it gains?
Elasticity per SKU · price, volume and mix decomposition
Promotion
Which promotions pay back, and which only shift demand?
Promotion lift and return against a baseline
Assortment
Which SKUs and customers create value, and which consume it?
ABC classification · whale curve
Field execution
Is the gap in the territory or in how it is worked?
Territory potential against execution
Incentives
What will this commission plan make people do?
Attainment simulation
In development: causal marketing mix modelling, trade spend net of funds, and cannibalization. Today's media analysis is a descriptive triage and is labeled that way.
Commercial data in. Owned pricing and promotion decisions out.
It reads
- 01Sell-in and sell-outBy SKU, customer and period
- 02Price lists and discountsList, net and promotional
- 03Promotion calendarWhat ran, where and when
- 04Sales team and territoriesWho covers what
It returns
- 01Elasticities per SKUWith intervals
- 02Promotion returnsAgainst a baseline
- 03A value map of the portfolioWhat to keep, fix or cut
- 04Ranked decisionsEach with owner and contract
From the field
All cases →
Where this has been used.
Data everywhere, decisions nowhere.
R$22–42Mgross profit a year at national scale
R$4.4–8.55Mone-time cash from stock parked at the distributor
97%of revenue covered by the rebuilt mapping
60% vs 32%forecast error, official against a naive average
Media decided on 10% of the sales.
232%of sales credited to one channel by the old attribution
60%of the media budget below an ROI of 1
+15%digital sales from reallocating the same budget, model estimate
Start with
RGM
A Value Tree in RGM sizes the money in price, promotion and mix in 14 days.