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Revenue Management

in the Wake of
Economic Recovery
Paving the Road for Trade Promotion Success
The COVID-19 pandemic has deeply impacted
the FMCG sector and exposed fault lines
which create significant barriers to revenue
management and trade promotion effectiveness.
Growth-oriented companies will fast-forward digital transformation programs
to equip their organizations with the right trade promotion management
processes, capabilities and technologies to win during the recovery phase.

2
COVID-19 and the Trade
Investment Disruption
The COVID-19 pandemic has positively impacted CPG manufacturers. The
majority has shown growth in three key performance metrics: volume,
profitability, and revenue.

41.6% 39.4% 38% 80%

volume profitability revenue


of CPG’s also indicated their
2020 total trade spend was
lower or the same as 2019,
breaking a growth trend from
previous years.

3
Trade Promotion to Spur
Growth in 2022
As organizations look ahead to 2022, revenue and profitability growth remains the
priority, with a focus on increased trade promotion effectiveness as a key growth driver.

Revenue and profitability growth will remain Promotion Effectiveness is a


the priority for most players, while volume key growth driver
growth is placed as the smallest priority.

58% 58% 45%

revenue growth profitability growth increased trade


promotion effectiveness

4
Paving the Road to Trade
Promotion Success
To deliver growth through trade promotion effectiveness, FMCGs must overcome barriers.
FMCG’s face three top barriers to TPM success: data harmonization, processes, and people
skills & capabilities.

Harmonize Processes People:


Data Skills & Capabilities

5
To face these challenges, FMCGS state their intent
to invest in improving and scaling TPM processes,
analytics and tools.

What are your organization's investment intentions


over the next 12-18 months?

45% of companies indicate most aspects of


TPM are highly time consuming/ requires a lot
of effort, specifically citing promotion planning 47% of companies say they will
as the most laborious aspect. invest to 'review and improve
their TPM processes'.

1/3 43% of companies say they will invest


in embedding new AI driven
analytics into existing TPM
solutions and processes.

Only 1 out of 3 companies believe they


get full support for TPM processes.

42% of companies say they will scale


existing trade promotion
solutions across business units and/
or regions.
6
The evolution of the KAM role
The speed with which companies
overcome data barriers and
invest in better trade promotion
processes, capabilities and
AI-driven analytics will be
contingent on the evolution of
key account managers’ role from
customer/channel focused to
store/shopper segment-oriented

7
FMCGs need to quickly reshape and adapt their commercial practices to win
in post-pandemic. Technology and AI can help FMCGs to step change reve-
nue management, by leveraging big data, streamlining processes, empowering
people, enabling revenue management practices from insights to action, and
scaling capabilities across the organization.

About Kantar’s Sales Performance Platform


Our Technology assets dedicated to the FMCG companies, the Sales Performance Platform, support the entire revenue management
process, from insights to action, through extensive analytics, insights, optimization, Management, and execution capabilities.
Our mission is to help FMCGs drive successful digital transformation programs aimed at creating value and driving growth by enabling
the right revenue management capabilities at speed and scale across the entire organizations.

To access the full “Revenue Management in the Wake of Economic Recovery” survey report, write to
salesperformance@kantar.com

To learn how Kantar industry experts and solutions can help your FMCG organization to drive successful
digital transformation and fast-track growth post-pandemic, contact us below growth in post pandemic,
contact us below.

About Kantar: Kantar is the world’s leading evidence-based insights


and consulting company. We have a complete, unique and rounded
understanding of how people think, feel and act; globally and locally in
over 90 markets. By combining the deep expertise of our people, our data
resources and benchmarks, our innovative analytics and technology, we
help our clients understand people and inspire growth.

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