Net Revenue Management

Case Study: Net Revenue Management
Net Revenue Management for Healthmax, an FMCG company active in the Shampoo business.
Problem 1: As a category Manager, measure the performance of the Healthmax
Approach: Investigating the dataset, YOY growth, creating the calculated columns such as units YTD, value YTD (Year to date), units MAT (Moving Annual total), value MAT
🎯 Key insights: Shinez and Starbust are the brands of HealthMax and Starbust’s Market Share increased by 10.86% in March 2023 compared to 2022.
Problem 2: Calculate Brand Portfolio Pricing to identify the correct price for the consumers and use Mix Management techniques to help HealthMax launch a new product and expand into a new category
Approach: Net sales, Gross Margin, Gross profit, and Net sales contribution have been calculated to find the profitability matrix. Based on Sales Growth from the 2018 baseline, unlocking the product type that has the most opportunities to become a launching product subcategory. A new product type retail price and price per ml has been calculated.
🎯Key Insights: Starbust Ultrasoft (150ml +200ml) has a combined profitability of 19% and has chosen to be the new launching product with different pack sizes.
Problem 3: Optimize Net Revenue using Trade Terms Management (necessary to manage discounts or investments most profitably). Develop Pack Price Architecture to develop a new pricing strategy for the small new shampoo bottle and forecast next year’s growth.
Approach: With the help of the Starbust and Shinez dataset, new pricing strategies have been evaluated. Using the Promotion Analysis dataset, Baseline Sales (Values Sales without promotion), Uplift, and ROI have been calculated. Using the estimated FY 2024 calculation and using forecast statistical functions Forecast Net sales 2024 has been calculated.
🎯Key Insights: Forecasted sales in 2024 have an increase of $ 311,124 compared to 2023. Buy 2, get 20% off Promotion approach has 12% ROI and it can drive the growth of the business.