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Embed productivity to drive out costs and invest in growth: New insights, new approach: transforming net revenue management in India

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Getting the best value we can from our promotions and trade spend – what is known as net revenue management (NRM) – is common sense. But achieving a step-change improvement in NRM has meant transforming our processes, systems, data and our people’s capabilities.

NRM is a key element of our productivity programme, which is focused on every day efficiency and driving out cost across our business. Our overall productivity goal is to deliver £700 million in savings, two thirds of which will be reinvested in the business, and 175bps in operating margin improvement over the three years ending 30 June 2019.

Our NRM work in India is a great example. With 29 separate states, each with distinct sets of regulations for alcohol sales and promotion, India presents a complex picture on both spend and value. This amount of price regulation underscores the importance of getting our trade promotion spend right.

Using customised dashboards, we are ensuring that our data and analytics are cutting edge and give us insight into where we can improve effectiveness. To date, we have implemented our NRM programme in 11 of our clusters in India. We have trained over 100 people in the sales teams and equipped them with the data they need to best focus their spend on brands and locations.

We are just at the beginning of our NRM journey and are continuing to embed this culture across our business.