Guest Blog: Unlocking Margin Recovery with RGM: A Case Study in Central America Company

Guest Author: Jose Leonel Tovar

In today's competitive business landscape, companies face increasing pressure on margins due to rising costs and market competition. A structured Revenue Growth Management (RGM) approach can be a game-changer in tackling these challenges effectively. This article explores a real-world application of RGM in Central America Company, demonstrating how a strategic approach can unlock quick wins for margin recovery.

The Challenge: Margin Decline in a Competitive Market 

A poultry company in Panama was facing a downward trend in margins. The root cause? Rising raw material costs that were not fully passed on to pricing due to aggressive market competition. As a result, volumes began to decline, and profit margins suffered. This situation demanded an urgent and structured approach to pricing and margin optimization.

The Solution: Implementing a Practical RGM Approach

To address this challenge, a dedicated team conducted a deep-dive diagnostic on pricing and margin performance. The goal was to identify actionable quick wins while laying the groundwork for long-term RGM strategies.

The approach included:

• RGM Maturity Assessment – Evaluating existing revenue management practices and benchmarking against best-in-class capabilities.

• Stakeholder Engagement – Conducting interviews to identify gaps and opportunities.

• Market Analysis – Observing trade execution and price positioning in competitive environments.

• Portfolio Optimization – Analyzing product performance to identify “Margin Killers” and “Stars.”

• Quick Wins Execution – Implementing immediate actions such as price adjustments, SKU rationalization, and promotional optimization.

The Outcome: Lessons Learned and Best Practices 

While specific financial results cannot be disclosed, the applied RGM strategy led to measurable improvements in pricing structure and overall profitability. Key takeaways from this case include:

1. A Data-Driven Approach is Essential – Comprehensive margin diagnostics uncover hidden opportunities for quick wins.

2. Agility in Execution Matters – Swift implementation and continuous monitoring ensure sustained benefits.

3. Cross-Functional Collaboration is Critical – Success in RGM requires close alignment between commercial, finance, and operational teams.

4. RGM is a Continuous Journey – Beyond quick wins, embedding RGM capabilities is necessary for long-term success.

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About the Author

Jose is an economist with 15 years of experience working at multinational companies developing and executing capabilities to achieve profitability growth through pricing, business intelligence and commercial strategy.