The principals remain the same in Revenue Management however, the CPG industry has had to respond very quickly to the changes in consumer behavior amidst COVID-19. CPG leaders are faced with many questions around what to do for the balance of 2020.
Historically, Sales would inform Supply Chain what they planned to sell. COVID-19 / panic purchasing seems to have reversed roles… Supply Chain is dictating to sales what they have available to sell. Simplification of the supply chain network has prompted minimized production down time for efficiency and sticking to core SKUS. Removing certain promotions and display vehicles have helped to increase efficiency in the supply chain. Flyers and promotions have slowed down. We are not seeing the same lifts from flyers that we saw pre-COVID-19. The main question is now, “What will the new consumption norm be?” as consumer behaviors continue to evolve.
Now is the time to focus on your RGM strategy and use analytic capabilities to plan for the remainder of 2020 and beyond. Cornerstone Capabilities leading edge analytics provides an array of solutions to help CPG companies navigate through this strange time. We are able to pivot fast in terms of our predictive capabilities through the COVID weeks. We are tracking the events ongoing and constantly updating and refreshing coefficients every 4 weeks for full categories, all products, and all markets. Our Curve software is a “One-Stop-Shop” for everything from understanding Market Dynamics, setting Price & Promotion Strategies, through to Scenario Planning & Trade Spend Optimization.
Planning Your RGM Strategy