How local and regional FMCG companies (food + beauty) can regain control of margin and growth with modern TPM/RGM

1. Market context

The FMCG market in Europe — especially in food and beauty — has changed fast. Costs are higher, retailers push harder on price, consumers switch channels quickly, and e‑commerce keeps growing. Because of this, promotions have become one of the biggest and least‑controlled parts of the P&L.

For local and regional champions (100–900+ million EUR), this means one thing: every euro spent on trade must work harder.

2. The common problems we see

Across Germany, France, Spain, Italy and the Nordics, companies face very similar issues:

• Heavy promotions, unclear results No single source of truth about which promotions actually drive incremental volume.
• Trade terms based on history, not strategy Discounts and bonuses often come from old negotiations, not current customer value.
• Decisions made on intuition, not data Excel dominates, and teams lack tools to simulate pricing and promo scenarios.
• Different channels, different rules Retail, pharmacy, e‑commerce, discounters, horeca — each works differently, but the company has no unified model.
• Margin pressure keeps growing Trade spend increases faster than sales, and nobody sees the full picture.

3. Business impact

Without a structured TPM/RGM approach, companies experience:

• hidden margin losses,
• promotions that don’t deliver incremental volume,
• weak negotiation power with retailers,
• chaotic planning,
• and slower growth than their potential.

Many strong local brands end up playing defensively, even though they could lead their categories.

4. What modern TPM/RGM changes

A modern approach gives companies something global giants struggle with: speed, clarity, and agility.

Key benefits:

• Full transparency of trade spend You know exactly where money goes and what it returns.
• Promo ROI becomes standard Every promotion is evaluated and compared.
• Stronger retailer negotiations You negotiate with data, not assumptions.
• One model for all channels and countries Retail, pharmacy, e‑commerce, horeca — one framework, different parameters.
• Margin growth without cutting investment The goal is to invest smarter, not less.

5. Why this matters for 100–900+ million EUR companies

Companies in this range are in a unique position:

• Too big to run promotions “by feel”,
• Too small to afford the waste that global giants tolerate.

This is the perfect moment to build a scalable, data‑driven TPM/RGM model that:

• strengthens negotiation power,
• protects margin,
• accelerates growth,
• and creates an advantage over slower, more bureaucratic global players.

6. Typical entry points

Most collaborations start with one of these:

1. Promo effectiveness assessment → quick audit of promo ROI, identification of losses and quick wins.
2. Trade terms clean‑up → structuring discounts, bonuses and support into one clear model.
3. Building or aligning TPM/RGM processes → planning, approval, simulation, post‑event evaluation.

These steps bring immediate value and open the door to broader transformation.

7. Why this approach works

Because it combines:

• data,
• process,
• technology,
• and new ways of working.

This is not an IT project. It is a growth project that directly impacts P&L, margin and long‑term competitiveness.

8. Summary

Local and regional FMCG companies in Europe have huge potential, but often lose margin and visibility because promotions and trade terms are not managed strategically. Modern TPM/RGM helps them:

• regain control,
• make better decisions,
• negotiate from a position of strength,
• and grow faster than the market.

In today’s environment, agility beats size — and companies in the 100–900+ million EUR range can turn this into a real competitive advantage.