Revenue growth management: promotion burnout instead of sales growth?
How companies squander millions in the market – and what a smart RGM approach can really do about it
Table of contents
Introduction
Targeted increase in profitability
Rising costs, complex price dynamics and increasing competition pose considerable challenges for consumer goods manufacturers and retailers. A leading global cosmetics group was faced with stagnating sales and falling margins. Thanks to a targeted Revenue Growth Management (RGM) program, the company was able to significantly increase its profitability within two years and at the same time sustainably strengthen its market position.
Deniz Koc - The expert behind the transformation
Deniz Koc is an experienced management consultant with 25 years of professional experience, including more than a decade as an independent expert in the field of revenue growth management (RGM). After several years as a freelancer, he moved to a renowned strategy consultancy for some time before returning to self-employment. Today, he supports international consumer goods manufacturers in the development and implementation of holistic RGM strategies.
His core expertise lies in the development and implementation of RGM strategies, with a particular focus on pricing, promotion efficiency, product range optimization and customer profitability. He supports his clients not only in strategic alignment, but also in the digitalization of RGM processes and the selection of suitable tools and AI solutions. Especially at a time when AI-supported systems are increasingly penetrating pricing and promotions, Deniz offers clear guidance in the jungle of tools and ensures that technology supports the strategy in the best possible way.
Deniz has proven that he can quickly analyze complex challenges in the area of sales and profit optimization and address them with effective, measurable measures. His ability to lead and motivate teams and his intuition for economic dynamics make him a sought-after expert in demanding environments.
As an independent consultant, he helps companies to fully exploit their sales potential and build long-term competitive advantages. He is particularly valued for his clearly structured approach, which delivers visible results quickly while enabling sustainable change.
Challenges
Margins under pressure
In the FMCG industry, competitive pressure and costs are constantly rising, while margins are coming under increasing pressure. Although many companies already use comprehensive price analysis tools and reporting systems, they often struggle with inefficient promotions, suboptimal assortments and a lack of clear pricing strategy. Studies show that up to 30% of promotional expenditure does not result in a sustainable increase in profits and often even destroys margins.
At the cosmetics group, inconsistent pricing strategies and a lack of coordination between sales, marketing and category management led to inefficient use of the budget. Competitive pressure increased, while margins continued to fall.
Solution approach & procedure
Strategically implementing revenue growth management
To ensure sustainable profitable growth, Deniz developed a structured RGM program consisting of four clearly defined phases:
- Diagnosis & potential analysis: Comprehensive analysis of current pricing, promotion and product range strategies and identification of untapped potential. Workshops with key departments identified quick wins that could be implemented immediately.
- Strategy development & piloting: Development of a clear RGM strategy with specific targets and KPIs. Piloting of new pricing models and promotion concepts in selected markets for validation and adaptation prior to rollout.
- Implementation & scaling: Comprehensive implementation of optimized pricing and promotion management, supported by modern analysis tools and agile working methods. Training and close support for the internal teams ensured efficient implementation.
- Sustainable anchoring: Introduction of an RGM governance framework to ensure long-term results. Building internal competencies through training and continuous development of strategies as well as support in the selection and introduction of suitable digital RGM tools and AI-based systems.
Results & successes
Making success measurable
Deniz’s RGM approach enabled the cosmetics group to significantly increase its margins within two years. Concrete successes included:
Sales growth: 8% increase in net sales through targeted product range optimization and pricing strategies.
Margin improvement: Increase in gross margins by an average of 5 percentage points through more effective promotion management.
Increased efficiency: Reduction of inefficient promotional expenditure by 25%, freeing up funds for strategic initiatives.
Sustainable capabilities: Building internal capabilities that ensured RGM was embedded in the company for the long term.
Lessons Learned
Successful revenue growth management is based on three pillars: transparency, clear strategy and consistent implementation.
Early, measurable success promotes acceptance within the company and lays the foundation for sustainable change. It is important that RGM not in isolationbut as Part of the corporate strategy is understood and anchored.
Why consultingheads
Deniz Koc's successful implementation of a comprehensive revenue growth management program illustrates how important it is to bring in the right expert at the right time.
Speed and precision. We know that time is often the decisive factor for the success of a project. That’s why we provide you with tailor-made profiles of independent consultants, freelance experts and interim managers within 36 hours – hand-picked and tailored to your specific requirements.
Expertise and international network on-demand. Thanks to our global network of highly qualified consultants with a deep understanding of the industry and a proven track record, we can find exactly the right experts to understand your challenges and tackle them in a targeted manner. This diversity of international experience enables us to staff even complex projects with the necessary cultural and technical expertise – always available and precisely tailored to your requirements. Deniz Koc is a perfect example of this:
A consultant with in-depth experience in the strategic and operational implementation of revenue growth management – from pricing strategy and promotion efficiency to tool selection and digitalization. He understands the requirements of international FMCG companies as well as the dynamics of private equity-driven transformation programs and combines structured strategy work with measurable implementation expertise
Project-based staffing with flexible, hybrid team structures. Instead of relying on permanent teams, consultingheads offers the opportunity to deploy experts from a broad network as required. By combining internal and external resources, we create customized solutions that optimally staff each project phase. This flexibility ensures that precisely the expertise required for the success of a program is integrated – without the restrictions of rigid team structures.
Results-oriented instead of overhead-driven. With consultingheads, companies get access to first-class consulting without the high overheads of traditional consulting firms. Our business model is designed to ensure maximum efficiency – so that your budgets flow directly into implementation and not into costly overhead structures.
Value on personal fit. We not only look at the technical aspects, but also attach particular importance to the personality and working methods of our experts. After all, the success of a project depends largely on how well the team works together.
Results that convince. Just as a targeted RGM program achieved significant sales increases, margin improvements and more efficient promotion budgets in this case study, we also attach great importance to solutions that have an immediately noticeable effect – sound, implementable and with a clear focus on results
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