CPG Revenue Management Opportunities During COVID-19

SUMMARY

REVENUE MANAGEMENT OPPORTUNITIES IN A PANDEMIC ENVIRONMENT

This report, part of IRI's "The Changing Shape of the CPG Demand Curve" series, examines how price and promotion trends and sensitivity have changed during COVID-19 in the largest channel, grocery, which has gained share during the pandemic.

Observations:

• Price/mix growth remains well above historical averages.
• Reduced promotions are the main driver of increased price/mix growth but increases in everyday prices and premiumization are also contributing to growth.
• With increased at-home spending, consumers have been trading up to more premium products in grocery and other large-format channels.

Opportunities:

• If manufacturers frequently monitor price elasticity at a granular level, they can capitalize on pricing opportunities in a supply-constrained environment.
• Retailers can attract and retain e-commerce shoppers, who are less price-sensitive and more loyal, with the right targeting, messaging and assortment.

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