When it comes to battling inflation, it’s the execution phase of a revenue growth management plan that really matters.
Amid fluctuating commodity costs, manufacturers need to create a cross-functional plan that brings together the whole business in order to succeed. Of all the factors that enable brands to grow profitably within the context of fluctuating commodity and supply chain costs, which are some of the most important to execute?
Here we outline some best practice execution tactics to help combat inflation:
Communicate the plan
Inflation is a huge challenge, and requires cross-functional engagement and a big team effort to overcome. In light of this, a strong communication strategy within your revenue growth management (RGM) plan is crucial to ensure you gather momentum and engagement. Leadership buy-in is a sensible first step. Get them on board early and ensure they understand the rationale behind the RGM project to act as essential sponsors and advocates. Then, ensure you have a regular forum in place to celebrate success and provide context on the challenges being faced. Share wins among communities as widely as possible to build positive momentum.
Share learnings
It’s common knowledge that sharing insights internally, what’s working and what’s not, will help businesses overcome challenges at a faster pace. Markets can leverage learnings and best practices from others that have demonstrated success. In FMCG, these often come from those operating in a competitive environment, such as emerging markets. The level of inflation we’re currently experiencing is so unprecedented that sharing learnings on-the-go from counterparts is a crucial quick win strategy. Once identified, these can be used to create best practice sell-in materials for your sales teams.
Negotiate with confidence
A significant part of executing your plan and mitigating the effects of inflation will be implementing cost price increases (CPI). Negotiation tactics are essential here, and can determine the outcome for success. Enable your sales teams to do this with confidence, and supply them with the training and capability to put through price increases when required. Read more here on building your story and negotiating with customers.
Monitor performance
Once you’ve implemented your plan, monitor performance. Ensure that everything is still running as it should and you are on track to achieve what you set out to do. Track performance and share KPIs in regular forums or town halls. Track competitors, even if you are a category leader, and look broadly and see how things are moving.
Check out more ‘Busting inflation’ reports, webinars and event-replays here and stay up to date with the latest revenue management trends in this area.
Continue to build your revenue management capability. Find more resources for revenue management teams here with more articles, webinar replays and upcoming events.
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