Costs rising faster than price
Input and operating costs keep climbing while pricing power thins. The gap has to be closed with mix, pack architecture, and smarter promotion — not blanket increases.
Revenue Growth Management · Consumer Packaged Goods
Input costs are up, shoppers are trading down, and yesterday's pricing and promotion playbooks are quietly leaking margin. GrowthEngine rebuilds your RGM engine — pricing, pack architecture, mix, and trade promotion — from the ground up, with AI at the core rather than bolted on the side.
Built for the realities facing modern consumer goods leaders
The macro picture
Sustained input-cost inflation, volatile commodities, and a value-seeking shopper have compressed CPG margins from both ends. List-price increases are losing their headroom, private label is winning share, and retailers are demanding more for less. The growth that used to come from "take a price increase" now has to be engineered — surgically, by pack, channel, and occasion.
The hard truth: most RGM functions were built for a low-inflation, spreadsheet-driven world — 43% of CPGs still run pack-price architecture in Excel. They react slowly and treat pricing, promotion, and mix as separate workstreams. In today's market, that costs you points of margin every cycle. RGM mentions in top-100 CPG earnings calls have doubled, and two-thirds of profitable growers have already invested in RGM systems.
Input and operating costs keep climbing while pricing power thins. The gap has to be closed with mix, pack architecture, and smarter promotion — not blanket increases.
Roughly a fifth of revenue flows through trade promotion, and a large share of those events return less than they cost. It's the single biggest pool of recoverable margin in the P&L.
Pricing, promo, mix and assortment decisions are made in disconnected tools on quarterly cycles. The market moves weekly. The operating model has to change.
The five levers
We pressure-test all five — and rebuild the one with the most trapped value first. For most CPGs, that's trade promotion.
Trade spend is often the second-largest line on the P&L and the least governed. Australia is one of the most heavily promoted grocery markets in the world, yet an estimated A$11.3bn in promotional discounting each year generates little to no incremental sales. We bring AI-driven promo optimisation, post-event ROI measurement, and guardrails that kill value-destroying events and scale the winners — typically lifting trade ROI by 10–15% and turning trade from a cost centre into a growth lever.
AI-modelled price elasticity by SKU, channel, and occasion — so increases land where demand can bear them and hold where it can't.
Engineer the right sizes at the right price points across channels to defend value perception and unlock entry and premium tiers.
Shift volume toward higher-margin SKUs, packs, and channels with decision science that sees the whole portfolio at once.
Right-range the shelf: cut the tail, protect hero SKUs, and win the categories that drive trips and baskets.
Our thesis
Most "AI for RGM" today is a model bolted onto a process designed for a spreadsheet era. It speeds up a broken workflow. The real prize comes from redesigning the workstream around what AI makes possible: continuous, granular, connected decisions.
We rebuild RGM as an always-on decision engine — where elasticity, promotion, mix, and pack decisions are made together, weekly, at SKU-store granularity, with humans setting strategy and guardrails while the system does the heavy analytical lifting. McKinsey puts the global generative-AI prize for CPG at US$160–270B in annual profit; the operators capturing it are redesigning the workstream, not bolting AI onto the old one.
How we engage
A rapid, data-driven RGM diagnostic across all five levers. We quantify the trapped margin and rank it by speed-to-value.
We build the business case and pick the first workstream to rebuild — usually trade promotion — with a clear ROI target.
We redesign the workstream AI-native: models, data, governance, and the operating rhythm that makes it stick.
Prove value, then roll the engine across levers and markets — with your teams owning it, not dependent on us.
Who we are
GrowthEngine is a specialist Revenue Growth Management consultancy for consumer packaged goods. We combine deep commercial RGM expertise with modern AI and decision science — and we build engines your teams own, not dependencies on us.
We work shoulder-to-shoulder with commercial, finance, and revenue teams to turn the theory of "AI-driven RGM" into governed, measurable margin in the P&L. No 200-slide decks that gather dust — working systems and a clear scoreboard.
— Sam Ford, Founder
Book a 45-minute strategy call. We'll walk your RGM picture, pinpoint the biggest recoverable margin pool, and show you what an AI-native rebuild looks like for your business.
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