Strategic Revenue Management Framework
CPG manufacturers need a fusion of retailer data, advanced analytics, and tailored revenue growth management capabilities to address heuristic decision-making and organizational complexity for effective growth.
The Challenge
A leading food sector Consumer Packaged Goods (CPG) giant grappled with understanding the key drivers behind its sales performance, hindering effective revenue management. They lacked reliable data to make informed decisions about trade promotions, including optimal expenditure allocation, effective strategies, and profitable investments.
Mu Sigma’s Approach
Leveraging proprietary tools muUniverse and muPDNA (Problem DNA), we identified core issues, including fragmented data silos and varying trade outcomes across retail partners. Drawing from our extensive experience with CPG brands and retailers, we developed a comprehensive Strategic Revenue Management (SRM) framework to address these challenges.
The solution revolved around an SRM platform with a solid foundation in both data and analytics.
Data Foundation: Integrated multiple data sources into a cloud-based data lake, enabling the acquisition, integration, analysis, and storage of over two million data rows.
Analytical Foundation: Implemented machine learning-based models for thorough sales driver analysis and an optimization and scenario builder, facilitating optimal promotional planning and scenario modification for enhanced decision-making.
Insight Consumption: Deployed a suite of user-friendly tools for flexible planning, analysis, visualization, and automation of insights, including support for third-party tools and analysis.
Business Impact
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$15M
Yearly Profit Increase
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Better Decisions
For revenue management
Mu Sigma is a pure-play decision sciences company that believes the big D is Decisions, not data. Our integrated ecosystem of products, services and cross-industry best practices, Mu Sigma enables better decision-making for more than 140 Fortune 500 clients. Mu Sigma's unique interdisciplinary approach and application of AI, ML, computer vision and more drive innovation in solving high-impact business problems across sales, marketing, finance, operations, and supply chain. With over 3,800 decision scientists and experience across 12 industry verticals, Mu Sigma has been consistently validated as the preferred Decision Sciences and Analytics partner.
The firm's is derived from the statistical terms "Mu" and "Sigma," which symbolize a
probability distribution's mean and standard deviation, respectively.
