Revenue Modling

As channels become more fluid and markets more competitive, guaranteeing the correct price positioning and commercial policy is essential in realizing an organization’s commercial and marketing strategies.

Connecting Revenue Management to Strategy: Designing Commercial and Trade policies which enable the organization’s strategy and goals regarding brand positioning, market share and profitability, within their current context is also difficult. It requires deep knowledge of company product positioning and client base.

Aligning Commercial Policy with Sales Objectives: Protecting the sales goals and avoiding disruptive price conflicts between clients requires a harmony between commercial conditions and sales targets and incentives which is hard to achieve.

Optimizing Trade Spend: Allocating trade spend based on customer needs and resource optimization, rather than “gut feeling” truly engages a company in thinking sell through rather than sell to its clients.

Monitoring Revenue Management Processes through a Clear Governance: Implementing and sticking to a documented governance to limit “out of policy” approvals which disrupt positioning or profitability is easier said than done. A company must evolve its revenue management process structure over years. Biting off more than one can chew is a common mistake and can jeopardize the whole concept of Revenue Management.

We support both products and services companies in:

Price-to-Consumer Strategy Redesign: How to position your products or services from a consumer-centric perspective and capture opportunities considering your marketing and commercial strategies and the market's reality;

Commercial Policy Redesign:How to structure your organization's Commercial Policy based on your Go-to-Market strategy, to balance price architecture between channels and regions to ensure that the commercial team is equipped with simple and effective price levers;

Trade Spend Optimization: How to define your optimal level of investment and measure return, to provide direction on future trade spend allocations;

Governance and Processes Redesign: Design the governance and processes related to Revenue Management to monitor the outcomes of the defined pricing, commercial policy, and trade spend strategies, and react to make adjustments;

Deployment Strategy: Evaluate the best implementation strategy, defining how to phase price changes, when to pilot, and how to "sell" the renewed offering, considering the risks, the impacts (in clients and consumers), and the complexities of each change. This may involve us assisting you in executing pilots and waves of implementation.

Enabling Tools: We are not software or research sellers; we understand the company's needs, evaluate tools in the market, and recommend what we find to be the best investment for the company's moment and need.

Re-Create Revenue Management as a Strategic Enabler: Set product positioning, price-to-consumer, and commercial policy as direct activations of Marketing and GTM strategies, ensuring coherence across the organization.

Improve Top-Line Results: Drive volume through clear positioning, brand recognition, and the right price-to-customer for the company portfolio.

Improve Bottom-Line Results: Protect margin through effectively capturing opportunities along the value chain and optimize resource allocation in promotions and discounts based on ROI.

Increase Monitoring Capability: Bring visibility over market prices, competitor behavior, and opportunities along the value chain, defining the best way to capture and analyze information.