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Revenue management implementation

Managing revenue is not just one of the practices or a new process in the company. It's just a way of doing business and the most effective business development strategy. It includes:

  • price management, promotional mechanisms and discounts,
  • compensation systems for sales and marketing,
  • assortment optimization and differentiation for distinct customer segments.

That is why revenue management is a complex system of connected elements that we diagnose, perform quantitative and qualitative analyzes, work with business experts, recommended solutions and necessary reporting tools to support decision-making.

Price management

Price as a marketing mix element reflects the value of the offer to the customer. Brand, or more specifically, product positioning is the definition of value differentiation factors that should directly determine price positioning.

What we deliver:

  • Pricing strategy resulting from competitive analysis and consideration of competitive offer and anticipated dynamics in competitive environment.
    Benefits: A coherent price strategy that boosts revenue without over-inflating costs
  • Promotional strategy, as a natural extension to the non-promotional offer, tailor-made for the needs of customer segments.
    Benefit: Consciously planned and implemented promotions that allow for scoring predefined goals and managing price incidents.
  • Price policy, i.e. a set of practices and principles that allow for maintaining and improving price competitive offer quality.
    Benefits: A transparent process that enables updating of pricing and promotional strategies and ongoing learning through assessment of past initiatives

Customer Segmentation

Customers’ own business goals, the ability to build strategic partnerships, display brands and products, broadening the offer, implementing your promotional strategy, distribution building potential are criteria that differentiate clients.

What we deliver:

  • Customer segmentation based on differentiation analysis and similarities-based synthesis. This is one of the critical elements that allow you to differentiate your pricing and promotional strategy.
    Benefits: A coherent trade policy, which also includes a discount policy, can only be defined for an actionable segmentation.

Assortment analysis and range optimization

Maximizing the potential for sales growth (and profitability) can only be realized with the right brands, in the right packs, available in the right store formats, best suited to purchasing missions (all of course at the right prices). Understanding consumers and shoppers is the first step to achieving this. 

What we deliver:

  • Data analysis on shopper behavior, shopper research (if needed),
  • Analysis of the current assortment offer in relation to shopper insights,
  • An assortment segmentation defining target customer segments and shopping missions,
  • Product range extension recommendations.

Benefits: Optimal range of products, tailored to the needs of shoppers, thereby leveraging the point-of-sale potentials and maximizing sales.

Discount policy

Product prices reflect their value to the customer. The value provided by the supplier's customer should be reflected in the discounts.

What we deliver:

  • Understanding what value the customers’ operation model represents, which is the key to developing an effective discount policy.
    Benefits: Discount policy supporting strategy implementation, rather than reflecting the internal competition of the sellers, leading to the lack of market price integrity.

Sales and marketing incentive systems

Company incentives are based on the assumption that employees will understand and implement the company's strategy, which will allow them to achieve their bonus goals. In fact, employees do what they do with the least effort to get maximum bonuses, even if it is against the company's strategy.

What we deliver:

  • Analysis of the company's strategy, and defining the conditions that individual employees should meet to support this strategy,
  • Analysis of current motivational systems and the threat report,
  • Recommendation for modifications of incentive systems.

Benefits: The motivational system free of assumptions and supporting the strategy implementations.

Decision Support Tools

Innovation, price policy revision, price promotion effectiveness are all areas of the company's business where key decisions are made.

What we deliver:

  • Reporting systems, including Revenue Management BI systems (Netious Revenue Manager), that support daily work of commercial divisions’ managers. Calculators (tools for pre-evaluation of future initiatives), delivering data-based input to decision making in sales and marketing.
    Benefits: Easily accessible, legible and up-to-date information for corrective action or planning strategic expansion.

Revenue management training online

Business trainings for FMCG are typically offered in the form of separate modules, covering a narrow thematic scope. They may be:

  • Price management basics introducing concepts such as price elasticity of demand, pricing strategies, price sensitivity, price in marketing mix,
  • Finance for non-financiers, explaining concepts such as profit and loss, profitability analysis of customers and products,
  • Category management, based on the understanding of the shopping mission and shoppers’ behavior to optimize the assortment range and in-store display.
  • Negotiations, i.e. soft skills training, without providing tools or business arguments,
  • Market analysis, including competitive (strategic) analysis,
  • Strategic planning, i.e. very general introduction of SWOT technics, but without the necessary reference to the market.

As a result, after the training, participants often fail to translate their knowledge into dealing with real problems in the business and return to previously established attitudes.

What we deliver instead:

  • Netious Market Challenge, is a business simulation game, our proprietary solution that easily integrates the wide range of issues and decision areas that co-existing in the business.
  • Decisions taken by virtual company executives include price management, innovations, marketing investment, inventory management, and production or purchasing planning.
  • Manufacturing, distribution, and retail companies co-exist in a virtual environment to reflect the realities of the market without unnecessary simplicity.
  • All of these with an extensive system of decision areas, internal reports, help pages and (if it is the will of the participants) without time limits. Involvement in simulation is a major factor in the effectiveness of training.
  • Netious Market Challenge is a business simulation that is available online, but can also be part of training programs tailored and tailored to your individual needs.

Benefits: Skilled sales and marketing teams, understanding sales revenue management and profit generating mechanisms.

Outsourcing of revenue management or reporting systems

In many organizations, the pricing manager (or revenue manager) is responsible for implementation of revenue management and of the developed strategy and pricing policy. Even with the support of analysts team, revenue manager is limited in resources and engaged in ongoing, operational work.

What we deliver:

  • outsourcing of any of the elements related to the price and revenue management processes, such as:
    • Support in implementation. Once we have developed the strategy, we will provide tools, guaranteeing integration with existing processes.
    • Price reports. Update and communicate decision support reports using Microsoft Power BI (Netious Revenue Manager).
    • Long-term training programs. We will familiarize sales and marketing teams with revenue management concepts within long-term, advanced, simulation-based training sessions

Benefits: continuity of processes, maintenance and expansion of knowledge base on the effectiveness of revenue initiatives without over-involvement of internal resources