Confidently build viable pricing, velocity and distribution growth plans…
…for new CPG brands/SKUs in new retail accounts and channels.
NEW: A program that includes hands-on advisory support and online self-help lessons. With downloadable tools and content. For CPG marketing, sales and finance leaders.
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:
Model and expose the unit economics for that brand and set of SKUs.
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 program 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.
Program:
Developing a viable pricing and distribution plan for a new brand or new retail account
Overview
The typical 4-to-6 month modular program and 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.
The program, module and mini-lessons that support Tool 4 are 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.
Core Tools
Module #1
Emerging CPG Brand Growth Pathways
Getting to $100M in Retail Sales
What’s the End Game?
Small Brands Play a Big Role
Growth Pathways in CPG
Module #2
Gross Profit and Trade & Shopper Marketing
Gross Profit 101
Small Emerging Brands & Gross Margin Challenges
The Trade and Shopper Marketing Shift
Trade and Shopper Marketing Spend
CPG GAAP & Gross Margins
Gross Margins & Cost Markups
Module #3
A New Focus on Sales & Marketing Contribution
CPG Sales Contribution
Value Chain Pricing and Margins
Kwik-Formulas for Value Chain Pricing & Margins
Kwik Calculator Tool #1: Pricing, Margins & Sales Contribution
Module #4
CPG Category: Pricing & Profitability Dynamics
Pricing and Volume Sensitivity
Pricing & Profitability Dynamics
Module #5
Distribution Expansion - A Rational Approach
Distribution Expansion & Household Penetration
Rational Distribution Expansion
Measuring Distribution Expansion & Reach
The CPG Retailer Universe
Market Saturation & Distribution Density
Module #6
Velocity Momentum - The Cornerstone of Growth
Velocity Momentum
The Shelf is a Bottleneck (Part #1)
The Shelf is a Bottleneck (Part #2)
Sales Contribution Velocity - A New Metric
Moments of Truth: Brands & Growth
Program Details
Core Tool #1
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.
Core Tool #2
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.
Core Tool #3
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.
6 Modules with 25+Mini-Lessons
Duration
The basic capability-building and hands-on advisory support program is spread over 4 to 6 months.
Format
On-line modules and lessons are delivered on an on-demand basis to accommodate self-paced learning.
Live one-on-one sessions, over the the period, are scheduled in accordance with both pre-planned and ad-hoc requirements of the client company.
Content
Modules and lessons are typically composed of:
Video clips of the presenter and/or presentations.
Downloadable spreadsheet tools and templates.
Downloadable presentation material.
Supporting insights and documents (Also downloadable)
Example: For a typical small emerging brand:
From… $3,950 for the 4-to-6 month program (3-5 participants)
Inclusive of
2 Core Pricing & Profitability Tools
6 Core On-line Learning Modules (25+ Mini-lessons!)
Core Pricing, Velocity, Distribution, Profitability, Brand Growth mini-lessons
Support Tools & Kwik-Calculators
Tools and content downloads and usage licenses.
Ongoing scheduled and ad-hoc live 1-on-1 sessions with the team to support execution.
Bonus tools and insight lessons added continuously.
Contact Manoli for:
More details on the tool capabilities & module contents.
Pricing related to larger groups, larger CPG companies
Pricing related to custom tools, participants and pre-launch brands.
Program Investment
Value
A 10X return when extracting the first incremental $50,000 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 Program Intake
November - December 2024 for the next cohort.
Limited no. of teams/companies per program cohort
Note: Cohorts refers to the limited number of CPG brands and teams that can be on-boarded each month. Program and advisory support sessions are conducted with each company separately. There is no co-mingling of brands and companies.
Join the no-obligation waitlist for the next monthly program.
Or ask a question.