We are leaving in the VUCA world. VUCA is an acronym to summarize 4 words: Volatility, Uncertainty, Complexity and Ambiguity.
Changes in business dynamics, shopper behavior and demands are redefining the marketplace of almost all the businesses.
The business and channel landscape is rapidly fragmenting across an increased variety of selling model; channels are blurring into hybrid formats with e-commerce being the biggest disruptive element.
Manufacturers and retailers will have to differentiate offerings in a way that meets the new demands and does not dilute margins. Many companies are struggling to understand fast enough those consumer, shopper and customer needs and to adapt the marketing mix across the variety of marketplaces.
What is Lean Revenue Management?
Lean Revenue Management is a way to boost your business using the Lean principle in 3 main areas of application:
Value: the first most important area is the understanding of what Value means for your business and all your stakeholders. in an uncertain and volatile world needs might change rapidly and is really crucial to keep your eyes on what really matter for all your business stakeholders: consumers, shopper, customers, society, etc.
Brand: the second area is about the offering definition identifying the perfect assortment/hero SKUs to compete, articulating the brand positioning and optimal PFME (Product Fixed Marketing Expenditure) spend/mix, and defining the in-store model across different channel types
Operations: the third areas looks into the details of how your operation model is aligned with the business requirements. Meeting the needs is a pre-requisites but also be able to achieve the right level of flexibility in order to handle volatility, complexity and ambiguity which might rapidly change the context.