Confidently build viable pricing, velocity and distribution growth plans…

…for new CPG brands/SKUs in new retail accounts and channels.

NEW: An online course, with downloadable tools, for CPG marketing and sales managers.  

Small changes in core drivers yield a large impact on Dollar Profits

For Example…

A 5% improvement in Net Price, by setting appropriate prices for your distributor or retailer partners and by managing trade promotion spend in a smarter way, can deliver a 16% change in Sales Contribution Dollars.* (Assuming that other drivers remain constant.)

Collectively, 5% improvements in all the key drivers of profit change can deliver a 42% change in Sales Contribution Dollars.*

But, to achieve profitability growth…

…brand and sales managers need to:

  1. Model and expose the unit economics for that brand and set of SKUs.

  2. Stress-test which drivers can be changed so as to make the tough trade-offs.

Accountability for understanding and managing the profitable growth of a brand and its SKUs does not just rest with the CFO and the finance team.

It starts with the brand and innovation managers who launch the brands and SKUs, and also with the sales and trade marketing teams who then sell those brands and promotional plans into retailers.

Yet, many emerging and mid-scale CPG brands are still only chasing short-term volume goals and race-to-the-bottom promotional deals.

* The results depicted above and below are from a case study of a CPG brand pack family that retailed at $5.99 in about 1000 stores and that was serviced via a distributor network.

* Sales Contribution $ = Gross Revenue $ - Trade Marketing $ - Cost of Goods Sold $ - Direct Selling Expenses $

* Note: Changes in the drivers of profit will yield different sales contribution Dollar amounts, based on the particular unit economics for that brand and route-to-market channel.

The new CPG Growth Academy course offers a solution…

Insights and tools that brand and sales managers can use immediately to win new accounts by setting prices and growth plans that are viable.

Course:

Developing a viable pricing and distribution plan for a new brand or new retail account

Overview

The 4-module course (with tools) helps brand and sales managers to better overcome growth challenges, analyze trade-offs, and gain confidence when:

Setting appropriate retail and wholesale pricing and promotional spend deal levels when entering new route-to-market distributor and retail channels.

Mapping a rational and realistic velocity and distribution growth plan for emerging CPG brands or new brands/SKUs.

Developing a financially viable short-to-medium term cashflow and funding plan for your investors and bankers. (For Executives)

Who Benefits?

Sales, marketing, innovation and FP&A finance leads of CPG companies who are involved in setting and negotiating pricing, trade marketing and direct sales expenses when scoping new account opportunities and/or new product launches.

Module 4 (optional) is particularly suited for senior sales, marketing, innovation, FP&A and executive leaders who are accountable for compiling and analyzing P&L, cash flow and funding outlooks for new accounts and/or new products.

Module #1

CPG Brand Growth and Sustainable Profitability

Explore how CPG brands grow and how changes in pricing, promotions, velocity, distribution and costs impact growth viability.

Module #2

Route-to-Market Pricing and Profitability Analyses

Set SRPs, TPRs and FOBs for direct store delivery (DSD) and direct-to-retailer accounts. Evaluate profitability impacts and trade-offs.

Module #3

36-Month Account Growth and Profitability Outlook

Compile a 36-month pricing, velocity, key account and sales contribution growth plan for a brand/SKU family.

Module #4

36-Month Net Profit, Cash Flow and Funding Outlook

Compile a 36-month net profit, capital expense, cash flow estimate and debt/equity outlook for an aggregate set of brands/SKUs.

Scroll further down for a more detailed breakdown of the current lessons that make up each module

Duration

8 weeks (“part-time”) for all four modules.

About 2 hours per week (Live + On-demand time)

1 live check-in and Q&A discussion session each week.

Format

On-line modules and lessons that are delivered:

  1. Live to cohort-based groups of participants, and/or

  2. On-demand for self-paced learning.

Content

Modules and lessons are typically composed of:

  1. Video clips of the presenter and/or presentations.

  2. Downloadable spreadsheet tools and templates.

  3. Downloadable presentation material.

  4. Supporting insights and documents (Also downloadable)

Analyses tools, training lessons and downloads for CPG Growth Academy

Investment

$1,850 USD (Modules 1, 2 &3)**

+$600 USD (Module 4; Optional)**

Inclusive of all tools, downloads and usage licenses.

Bonus tools and insight lessons added continuously.

Ongoing access to the online Pricing-Margin Community network group.

** for a participant of a small or emerging CPG brand. Contact Manoli for pricing related to larger groups, larger CPG companies or for in-house skills development programs.

Value

A 10X return when extracting the first incremental $25,000 of sales contribution by using the tools and insights to set viable SRP, trade marketing spend levels and FOB pricing for new account expansion. These tools are currently being used by clients!

Save over 1,000+ hours of having to build and incrementally improve similar tools yourself.

Next Course

April 2024 for the next cohort.

Limited no. of participants per cohort

Join the no-obligation waitlist for the next course. Or ask a question.

Glossary

CPG = Consumer Packaged Goods

SRP = Suggested Retail Price

TPR = Temporary Price Reduction

FOB = Free on Board

DSD = Direct Store Delivery

RTM = Route-to-Market

COGS = Cost of Goods Sold

FP&A = Financial Planning & Analyses

Modules & Lesson Details

Module #1

CPG Brand Growth and Sustainable Profitability

Explore how CPG brands grow and how changes in pricing, promotions, velocity, distribution and costs impact growth viability.

Lessons

  1. CPG gross margins and sales contribution measures.

  2. Retailer, distributor and brand owner margins and value pools.

  3. The pricing and price promotion profitability ratchet.

  4. Velocity and rational distribution growth.

  5. The trade & consumer marketing dilemma.

  6. COGS, inflation and own/co-manufacturing.

  7. The “golden case” and direct selling expenses.

  8. Hard trade-offs and profitability thresholds.     

Module #2

Route-to-Market Pricing and Profitability Analyses

Set SRPs, TPRs and FOBs for direct store delivery (DSD) and direct-to-retailer accounts. Evaluate profitability impacts and trade-offs.

Lessons

  1. Direct store delivery (DSD) vs. direct-to-retailer pricing.

  2. Highlighting non-promotional vs. promotional dynamics.

  3. Planning for temporary price reductions (TPRs).

  4. Setting realistic velocity and distribution levels.

  5. Front line and every day low pricing (EDLP) for retailers.

  6. Distributor pricing, margins, off-invoice (OI) discounts and bill-backs.

  7. Brand owner economics: Gross profit and sales contribution.

  8. Building and quantifying the trade marketing and digital marketing plan.

  9. COGS: Using the ingredient and packaging cost estimator.

  10. Estimating and dealing with freight and logistics expenses.

  11. Broker fees, commissions and other direct selling expenses.

  12. Using the analyses to determine and negotiate pricing levels.

Module #3

36-Month Account Growth and Profitability Outlook

Compile a 36-month pricing, velocity, key account and sales contribution growth plan for a brand/SKU family.

Lessons

  1. Forecasting and utilizing 36-month plans.

  2. Sales Contribution and fixed costs.

  3. The 36-month volume and sales contribution model.

  4. Utilizing appropriate DSD and direct-to-retailer unit economics data.

  5. Determining and mapping the impact of seasonality throughout the year.

  6. Estimating and setting pricing and inflationary increases or decreases.

  7. Setting velocity and distribution growth parameters.

  8. Stress testing scenarios and assumptions.

  9. Using the model to aggregate across brands, SKUs and/or retailers.

Module #4

36-Month Net Profit, Cash Flow and Funding Outlook

Compile a 36-month net profit, capital expense, cash flow estimate and debt/equity outlook for an aggregate set of brands/SKUs. (Optional)(Best suited for Execs)

Lessons

  1. Estimating and using 36-month cash flow and funding outlooks.

  2. The 36-month net profit, cash flow and funding outlook model.

  3. Aggregating brand, SKU and account data to use in the outlook.

  4. Consumer marketing vs. sales activation spend.

  5. Mapping out human resource staffing levels.

  6. General & administration (non-HR) expenses.

  7. The impact of inventory and other working capital requirements.

  8. Plant and equipment capacity & expense planning. Or co-packing?

  9. The cashflow conundrum and trap.

  10. Modeling debt and equity funding amounts and needs.

  11. Stress testing scenarios and assumptions.

  12. Using the outlook to engage bankers and potential investors.

Join the no-obligation waitlist for the first course. Or ask a question.