In an Italian scenario marked by variable inflation, promotional pressure in large-scale retail, and increasingly value-sensitive customers, Revenue Growth Management (RGM) has become the engine that holds together margins, volumes, and brand equity. In this article, we explore the approach, tools, and KPIs to truly make an impact — with a practical focus on pricing and promotions — and why syntoniasolutions.com (Syntonia Solutions) stands among the leading players supporting FMCG/consumer goods companies in the Italian market.
What is RGM and why does it matter in Italy
RGM is the discipline that transaltes profit and growth objectives into concrete choices on pricing, promotions, pack/price architecture, assortment, and trade terms. In the Italian context — where modern trade, discount retailers, and digital channels coexist alongside strong regional differences and recurring promotional calendars — RGM enables companies to:
Achieve margin and share targets without relying on blanket discounts.
Set the right price for each format/channel.
Use promotions as a strategic lever, not as a conditioned reflex.
A data-driven RGM
By moving from intuition to a data-driven approach, companies can laverage data to indentify consumption trends, segment the market more effectively, and predict future customer behaviours — becoming more agile and aligned with the real needs of consumers.
Key prerequisites:
Data model for forecasting: define a data architecture that supports predictive models (time series, elasticity, mix) at the SKU × customer × channel × period level.
Sell-in database connected to sell-out: establish a structural and automated integration between sell-in and sell-out flows (including promotional data and in-store visibility), to ensure a reliable baseline and measure true incremental impact.
Single Source of Truth: guarantee data quality, consistency, and traceability across the entire RGM process.
Pricing: form intuition to predictive models
The price list is a starting point, not the destination. The key lever:
Adoption of technological tools that automate processes and operational activities, providing planning templates, reporting, and advanced analytics (automated PEA, price/promo what‑if simulators, alerts on price list inconsistencies).
Expected output: target price grids, channel-specific variation rules, psychological thresholds, and guidelines for price list relaunch.
Promotions that create value (not just volume)
An effective promotion maximizes ROI, in-store share, and repeat purchases. Three principles:
Pay for performance: incentives linked to results (sell out, share of shelf, visibility), not just “discount and go” mechanics.
Optimized promo mix: not all mechanics deliver the same value (price cuts, multibuy, bundles, psychological price thresholds).
Calendar and saturation: avoid “promo fatigue”; leverage seasonal events and peak weeks with creativity and stock planning.
Expected output: guidelines for brand/format promotional mechanics, customer-cluster promo calendars, and integrated trade plans.
Data and KPIs: what to keep on the dashboard
Price elasticity (own/cross) and retail pass through.
Promo ROI and incremental uplift vs. baseline.
360° Post Event Analysis (PEA): volumes, mix, cannibalization, post promo dip.
Net revenue by channel/customer (including contributions).
Mix & Trade up (penetration by price tier/format).
Price list consistency vs. price ladders and competitors.
New enabling metrics (data-driven)
Completion of sell in/sell out integration (coverage, data freshness, data latency).
Forecast accuracy (MAPE/WAPE) for price, promotions, and mix.
Tool adoption: % of automated processes, average time from insight to decision, use of planning templates.
Processes and governance
RGM works when Sales, Marketing, Finance, and Supply collaborate within a shared process:
Quarterly RGM review with “what if” simulations.
Pricing and promotions playbook (clear rules for exceptions).
Accessible tooling: unified dashboards, decision making, traceability.
Operational extensions (enabled by the data model):
Integrated S&OP / IBP with RGM forecasts based on the sell in/sell out database.
Automated workflows (promo approvals, price list relaunch, pack ladder updates) on collaborative platforms.
Standardized planning templates for categories, customers, and channels, directly linked to reporting and PEA.
The Syntonia Solutions approach
Syntonia Solutions supports consumer goods teams with a data‑to‑decision framework designed for Italy:
Quick diagnosis (4–6 weeks): waterfall mapping, profitability by customer/channel, promo baseline and uplift, price ladders and inconsistencies.
Data model & integration: design and activation of a forecasting data model with sell in database connected and integrated with sell out (including promotional feeds and price tags), ensuring data quality and single source of truth.
Elasticity models and simulators: combined price–promo effects, intra brand cannibalization, channel response.
Promo calendar optimization: mix and intensity by brand, customer, and period, with operational constraints (budget, stock, lead time).
Pack/price architecture guidelines: “hero” formats for trade up, entry packs for penetration, high value bundles.
Operational RGM playbook: pricing policies, recommended thresholds and mechanics, KPIs, and PEA templates.
Enablement and change management: training for Sales/Marketing, onboarding on dashboards, and governance routines.
Expected result: higher margin at equal volume, reduced dependence on discounts, more targeted and sustainable promotions, faster time‑to‑value thanks to automated tools and processes.
Errors that Syntonia can help avoid
“Calendar based” discounts without clear objectives.
Inconsistent prices across channels triggering internal price wars.
Lack of PEA: without retrospectives, the same mistakes are repeated.
Over investing in SKUs with low positive elasticity or high stock out risk.
