Barriers to RGM Success
What's working and what do we need to change?
The most pressing barrier to RGM success is data harmonisation and processes. This is followed by the skills and capabilities of people, and joint third is technology & tools and insights generation. In comparison to last year, data access is much less of an internal barrier than it was previously, however the skills and capabilities of people plus insights generation have become a larger barrier than they were previously.
Respondents receive a similar level of support for RGM levers from their organisations as they have done in the last two years. However, pricing analytics and planning is now ranking higher than before for partial support, and lower than before for full support. Despite all the efforts made on profitability and pricing, volume growth seems to have the largest leap in priority from 2021 to 2023. With cost justified pricing coming to an end, and inflation easing, switching to strategic pricing, category growth and profit expansion is the best way forward.
Across assortment, price, promotion and trade terms, it is common amongst CPGs to leverage internal teams rather than use external providers to process data and produce one-off studies or insights on a continuous basis. However, around 30% are still heavily utilising excel to produce these insights, and 50% use business intelligence systems, since companies believe internal assets are important factors to generate competitive advantage, but in doing so face data harmonisation and processes challenges.
1 in 2 CPGs believe retailers have a high capability to deploy RGM for their own organisations. This is even stronger amongst the bigger revenue CPG companies (58%), and only 57% believe they have full, or very good visibility of the key drivers behind the margins they generate for their retailers.
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