white paper

Navigating Through Inflationary Times

What strategies can we expect from consumer goods leaders and retailers in 2022?

Revenue growth management will become a vital resource: pack, product and promotion are also important parts of negotiations and can create a more holistic view of the impact of price increases on the broader category

Executive Summary

 

Thanks to unparalleled pressures in the cost of raw materials, energy and labour, we have embarked into the most inflationary environment seen for many years.

 

Although retailers are generally more receptive to price increases, suppliers still need to be more considered and savvy instead of wildling the blunt instrument of broad price increases.

 

Revenue growth management will become a vital resource: pack, product and promotion are also important parts of negotiations and can create a more holistic view of the impact of price increases on the broader category.

 

Price elasticities can vary enormously within different markets, different categories, different channels, and different retailers. Modelling and forecasting, therefore, can gauge the impact by channel and by customer.

 

Suppliers need to ensure that any changes – be that in terms of price, pack, format, or promotions – are being monitored to ensure that they are being executed correctly.

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