Revenue Growth Management (RGM)
Definition
RGM is the structured approach CPG brands use to identify and activate all the commercial levers—price, pack, promotion, and trade terms—to drive sustainable revenue growth across customers and channels.
It’s often supported by shopper insights, syndicated data, and predictive analytics to find “where to play” (high-potential pockets of value) and “how to win” (the optimal mix of pricing, promotion, and assortment strategies).
How It's Calculated
Example
A great real-world example of Revenue Growth Management is Coca-Cola’s introduction of mini cans. As consumers became more health-conscious and started buying less soda, Coca-Cola couldn’t rely on volume growth alone. Instead, they launched 7.5oz mini cans at a higher price per ounce than their standard 12oz cans, positioning them as a premium, portion-controlled option. By shifting their product mix toward these smaller packages, supporting them with targeted marketing, and avoiding deep discounts, Coca-Cola was able to increase revenue per case and boost profitability even as overall volume remained flat. This strategic use of pack-price architecture, pricing, and mix management is a textbook example of how RGM drives sustainable growth.
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