Aishwarya SaranInformation Alchemist
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For any RGM team, this paradox plays out on repeat: Do you optimize pricing uniformly across markets or adapt to local purchasing power? Standardize trade terms for efficiency or customize for local retail dynamics? The answer isn't choosing sides—it's knowing which brand elements drive recognition and efficiency (packaging, core product, quality standards) versus which elements maximize local market value (pricing models, promotional timing, channel strategies, cultural messaging). TL;DR: The answer lies in the balance.
TL;DR: The answer lies in the balance.
Victor Arias from Mondelez International support this with: "...specific price positioning ...may vary—in some markets it's a very premium brand, in some markets it's mainstream, and we even have examples where excessive promotion drives volume."
Take Kitkat for example:
Same brand. Same quality. Across locations. Completely different strategies.
Nestle demonstrates both local flexibility through adapting positioning for market relevance—and global standardization by maintaining iconic packaging, wafer crunch, and format worldwide.
In Japan it has 400 unique varieties, with flavors like Green tea, Wasabi, Sake, and Sweet Potato Tart. Cross to London—same red wrapper, four-finger snap, classic milk chocolate, and iconic (and unchanged) 66-year-old "Have a Break, Have a KitKat" slogan.
What changed is the local meaning: "Kit Kat" sounds like "Kitto Katsu" meaning "You will surely win," turning chocolate into Japan's go-to exam good luck charm. While it continues to have a global "Have a Break" messaging in major other global countries.
Here's the problem: most RGM playbooks are fighting today's battles with yesterday's weapons.
Answer is simple. Most traditional RGM approaches were designed for more predictable times—when consumers were loyal, competition moved slowly, and markets evolved gradually.
Today's reality? The misalignment between global RGM plans and local market perceptions is creating massive gaps. Headquarters pushes uniform pricing while local teams watch competitors undercut them. Global campaigns launch while local cultural moments get ignored. Brand positioning stays rigid while consumer expectations shift rapidly.
Competitive moves that used to take months now happen in weeks. Market conditions shift overnight.
The old playbook assumed stability. But it simply can't keep up.
And with the kind of investment RGM initiative rollouts require, the stakes couldn't be higher. This leaves virtually no margin for error in getting the global-local balance wrong.
Hence after analysing dozens of successful global RGM implementations, the organizations that have cracked the global-local RGM code don't treat strategic architecture, organizational design, and technology as separate initiatives. We've identified 5 RGM strategies, where each strategy enables and amplifies the other:
Before organizing teams or deploying sophisticated technology, successful companies establish crystal-clear boundaries that define what remains consistent globally and what adapts locally. Think of these as "strategic corridors"—guardrails that maintain brand integrity while enabling tactical flexibility.
The most effective organizations create three distinct layers:
McDonald's nails this by keeping Golden Arches, quality standards, "I'm Lovin' It" consistent worldwide, and staples like (Big Mac, fries) - these generate consistent margins and recognition.
All this, while adapting menus locally—McAloo Tikki in India, Teriyaki burgers in Japan – which drive new customers and visit frequency. Their pricing flexes by market: premium in developed countries, value-focused in emerging markets. Overall maximizing both revenue and relevance with a strategic corridor approach.
It’s a fact that consumer expectations and purchasing power vary dramatically across markets. Large-format packaging works well in developed markets where consumers seek value through volume like the US.
However, emerging economies demand different approaches. As Victor Arias explains in Polestar Analytics’ RGM Roundtable Season 2, "smaller packs rule because there's a huge amount of countryside where you cannot sell a Coke bottle for a dollar—you need smaller packs around $0.25."
But economy is not THE only consideration that has to be considered. Beyond geography and value-per-unit economics, price-pack architecture also serves different occasions and consumption patterns. Brands deploy
This occasion-based segmentation allows companies to capture value across the entire consumer journey.
If you don’t want your upcoming RGM strategies to fall flat, develop a measurement framework that tracks performance taking into consideration tactical execution variations. You can either come up with your own framework or use already established frameworks by RGM advanced organizations like Coca-Cola to navigate this complexity. They leverage models like OBPPC (Occasion, Brand, Package, Price, Customer/Channel) to optimize across every layer of the distribution system.
Success Metrics by OBPPC Element:
They further meticulously optimize each element by targeting specific consumption occasions to ensure promotions align with when and why consumers buy, aligning with brand positioning to maintain brand integrity during promotional activities, matching package configurations to promotional mechanics, pricing for clear value perception, and tailoring by customer and channel dynamics to customize strategies for different retail environments and consumer segments.
Given these lessons, where should RGM actually sit—within sales, marketing, or finance? We’ve discussed the various situations above the importance that local dynamics play.
Then why should the internal governance be treated the same?
Ideally it should be cross-functional & connected, but the answer isn't universal—it depends on your market's data reality. Market maturity creates vastly different data environments. "A lot of emerging markets will not have sufficient data, or it will be very traditional, trade driven...unlike in the US and Europe where you're going to have very granular data," notes Victor.
This data gap drives different organizational needs:
So, place RGM capabilities where they have the most influence and ability to win within that specific market reality—whether that's finance, sales, or marketing depends on local organizational dynamics, data maturity, and team capabilities rather than applying uniform global structures.
Connected Intelligence solutions, like a 1platform backed by Data nexus, address this through unified data architectures. These systems enable real-time P&L simulation, allowing teams to model pricing scenarios within their strategic corridors and see the immediate impact before implementation. All this while having a direct visiblity into RGM practices.
If your organization is data advanced and matured, we strongly recommend taking this a step forward by deploying customizable agents. These agents bridge the gap from organizational design & technology, to determine how quickly and effectively those decisions can be made.
Naturally, many might question the relationship between human judgment and artificial intelligence, which obviously requires careful consideration, particularly in competitive contexts. Justin Beish from Albertsons provides perspective on this balance: "AI will never be held accountable... it can't make a decision unless you tell it what to decide. So it'll never replace human decision... but at the end of the day, a human is gonna have to make that decision."
So creating governance frameworks set algorithmic boundaries that preserve brand positioning while enabling tactical flexibility within the strategic corridors defined in Strategy.
Make Your Own Agent
Get Started with Agenthood AISabina Kay, in RGM Roundtable 2 articulates, that the future of RGM startegy is in: "Balance...it's the balance between price and volume. It's short term versus long term gain...brand equity versus promotional efficiencies...retailer needs versus customer expectation." Together, these capabilities enable ecosystem value creation that benefits all stakeholders while preserving differentiation, directly addressing the business imperative.
Justin Beish frames: "Without a sharp RGM strategy, we're just not going to hit our P&L's." Organizations are simultaneously integrating sustainability considerations into this connected approach, tracking responsible pricing, ethical promotions, and long-term market health optimization.
So, it's really about setting the framework, showing the intent of what you want to do for each category, and then give a little bit more freedom in that framework, for markets to ensure strategies that enable a sustainable volume and margin growth!
Organizations achieving breakthrough results recognize that strategic architecture, organizational intelligence, and technology enablement must function as unified capability rather than separate initiatives. ProfitPulse AI provides this integrated approach-handling cultural adaptation (by leveraging advanced AI models trained on localized data sources—such as customer interactions, sales patterns, and market trends—to generate tailored recommendations), delivering real-time modeling for economic resilience, and preserving brand equity across diverse positioning strategies.
The frameworks exist. The technology is available. The business case is clear. Success depends on integrated execution across all three strategic solutions while maintaining the delicate balance between global consistency and local relevance.
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