Profit and growth upgrade
For producers, distributors and retailers whose sales grow faster than their profit. Your P&L, line by line: where margin leaks, and a plan to win it back.
Sound familiar?
- Revenue grows, operating profit doesn’t.
- Trade terms and promotions rise every year, and nobody can say which ones pay back.
- Price increases go through, then get given back in promotions.
- Too many products, too little focus.
- A new product or brand needs a launch plan the P&L can carry.
Start with where the money goes
Every project starts from your P&L. This example shows where €100 of gross sales typically goes for a consumer-goods brand. The orange line is usually where there is the most to win back.
Where €100 of gross sales goes
Illustrative P&L for a consumer-goods brand in the region
Of the €9 spent on promotions, how much bought sales you would not have had anyway? Most companies cannot say. It can be measured, by retailer, brand, product and type of promotion.
What we work on
Pricing
List prices, price architecture across pack sizes and channels, and price increases that stick.
Promotional investment
The return on every promotion by retailer, brand, product and type, measured with the Consult1 ROPI tool.
Trade terms
Front and back margin, rebates and fees, in line with Serbia’s new trade practices law.
Portfolio and category
Which products earn and which only take space, and how the category is built with retailers.
Brands and launches
Brand strategy, new products and new brands, with a launch plan the P&L can carry.
Organisation
Sales structure, targets, incentives and appraisal systems that reward profit, not only volume.
How it works
You decide after each phase whether to continue.
Phase 1
Analyse
- Your P&L from gross sales to operating profit, by customer, channel and brand.
- The return on promotional investment and trade terms, customer by customer.
- Prices and portfolio compared with the market.
- A roadmap with the value of each lever and the order to pull them in.
Phase 2
Agree
- Decisions on prices, terms, promotion calendar and portfolio, agreed with your team.
- Customer negotiations prepared together with your team.
- Targets and incentives aligned with the plan.
Phase 3
Confidence bridge
- Hands-on support for your team’s implementation, where most plans stall.
- Monthly tracking of each lever against the plan.
- A quarterly review with management.
- Corrections before small leaks become big ones.
Related reading
How to understand whether your promo pricing investment is paying
Trade spend is often the biggest single cost in a consumer-goods P&L. How to tell whether your promotions pay back.
It’s Revenue Management time!
How Unilever and others grew revenue through pricing and mix, and why it is time for revenue management.
Where do you want your business to be in twelve months?
In a 30-minute call we look at your situation, and you get an honest answer on whether and how Consult1 can help.