Resources Connection, Inc. (RGP): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at a company, Resources Connection, Inc. (RGP), that's clearly making tough calls after seeing its full fiscal year 2025 revenue drop by 12.9% to $551.3 million. Honestly, this isn't just about weathering a storm; it's a deliberate, high-stakes pivot toward higher-margin consulting work, like their digital transformation programs, which is already showing up in the numbers with Q1 FY2026 gross margin jumping to 39.5%. So, how is Resources Connection, Inc. (RGP) retooling its Product, Place, Promotion, and Price strategy-the core of its marketing mix-to make this shift stick and reverse that revenue trend? Let's break down the 4Ps to see the real game plan below.

Resources Connection, Inc. (RGP) - Marketing Mix: Product

The product element for Resources Connection, Inc. centers on professional services delivered across distinct, yet integrated, service lines. You're looking at a portfolio designed to address immediate resource gaps and execute complex, long-term business change initiatives.

Core offerings span three primary brands or service categories, though the internal reporting structure includes more segments. The main service pillars are On-Demand Talent, Consulting (which incorporates the Veracity business), and Outsourced Services (which includes the Countsy focus area for some functions). The company also reports an Europe and Asia Pacific segment and an 'All Other' segment which includes Sitrick communications services.

Here is a breakdown of the reported revenue by segment for the fourth quarter of fiscal year 2025, which ended May 31, 2025:

The strategic shift is clearly leaning toward high-value Consulting work. Engagement areas seeing increased demand and revenue contribution include digital transformation, supply chain management, and CFO advisory services. This focus is supported by acquisitions, such as CloudGo, which serves as an accelerator for the global digital consulting business.

The Outsourced Services segment, which provides finance, accounting, and human resources services, showed positive momentum, growing revenue by 4% year-over-year in Q4 FY2025. This growth benefited from engagements with AI start-ups and scale-up enterprises.

To empower its digital transformation and service delivery capabilities, Resources Connection, Inc. launched rIQ, a proprietary AI accelerator. This platform was announced on September 30, 2025.

• rIQ is built on the ServiceNow platform.
• The platform blends Generative AI with human expertise to automate workflows and reduce costs.
• rIQ offers seamless integration with existing large language models (LLMs) and is compatible with ServiceNow's Now Assist.
• The architecture includes pre-built connectors for over 30+ enterprise systems.

The product strategy is centered on integrating specialized talent and high-value consulting, increasingly powered by proprietary AI tools like rIQ, to meet complex client needs.

Resources Connection, Inc. (RGP) - Marketing Mix: Place

You're looking at how Resources Connection, Inc. (RGP) gets its high-impact solutions into the hands of its global clientele. The 'Place' strategy for a professional services firm like Resources Connection, Inc. (RGP) is less about physical shelf space and more about the strategic positioning of its operational centers and the accessibility of its expert talent pool.

The physical footprint supporting Resources Connection, Inc. (RGP)'s global distribution of services has recently centralized. You should note the move of the global headquarters to Dallas, Texas, which became effective in November 2024. This shift was executed to establish a more central operational hub for worldwide service and support, moving from the previous Irvine, California location.

Resources Connection, Inc. (RGP) maintains a structure designed for global reach and local responsiveness. This distribution network is characterized by a mix of fixed and flexible locations to serve its blue-chip client base effectively.

Here are the key metrics defining Resources Connection, Inc. (RGP)'s current distribution network as of late 2025:

• Global headquarters relocated to Dallas, Texas, effective November 2024.
• Operates globally with approximately 41 physical practice offices and multiple virtual offices.
• Engages with over 1,600 clients annually across the world.
• Maintains deep penetration, having served 88% of the Fortune 100 as of May 2025.

To give you a clearer picture of the scale and focus of their distribution strategy, consider these core placement statistics:

The firm's distribution model heavily relies on serving the largest enterprises. This focus on the top tier of the market dictates where their resources are deployed and how their physical offices are strategically placed to support these major accounts. Honestly, serving 88% of the Fortune 100 means the 'Place' strategy is about being where the biggest decisions are being made, even if the talent is delivered virtually.

The structure supports their integrated offerings-On-Demand Talent, Consulting, and Outsourced Services-by ensuring that the necessary operational support is accessible from the new central hub in Dallas, Texas, while the consulting teams operate where the client needs them. You can see the scale of their reach:

• The Dallas location serves as the central hub for global support.
• The 41 physical offices supplement the virtual office network.
• Client engagement volume is reported at over 1,600 annually.
• Penetration into the top tier of the market is extremely high at 88% of the Fortune 100.

Finance: draft 13-week cash view by Friday.

Resources Connection, Inc. (RGP) - Marketing Mix: Promotion

Promotion for Resources Connection, Inc. (RGP) centers on validating its expertise and unique model through industry accolades and direct engagement with top-tier executive leadership. This approach is designed to build credibility that supports their client-centric, collaborative model, which is a key differentiator from traditional large consultancies.

The firm's promotional narrative heavily features its industry recognition as a testament to its quality of service. For example, Resources Connection, Inc. (RGP) was named to Forbes' America's Best Management Consulting Firms 2025 list. Furthermore, the company was recognized on Forbes' America's Best Midsize Employers 2025 list.

The execution of a brand refresh and technology transformation initiative is also a promotional point, signaling forward movement and investment in modern delivery. For the full fiscal year ended May 31, 2025, the company reported technology transformation costs of a certain amount, with a $1.4 million decrease in these costs compared to the prior fiscal year. Following this, in the first quarter of fiscal 2026, technology transformation costs saw a further $1.9 million reduction compared to the prior year quarter, associated with implementation during fiscal 2025.

The sales strategy explicitly targets the highest levels of client organizations to secure complex, high-value work. This focus is reflected in the company's stated goal of becoming an increasingly trusted partner for larger transformations. The promotional messaging highlights the firm's success in reaching this echelon of client.

The promotion strategy emphasizes the depth of relationships and the scope of the firm's operational footprint, which supports the C-Suite targeting. The firm's structure is designed to address these complex needs.

• Client-centric model differentiation from large consultancies.
• Brand refresh and technology transformation initiative execution.
• Leveraging recognition: Forbes' America's Best Management Consulting Firms 2025.
• Sales targets the C-Suite for system migration and data modernization.

The average bill rate enterprise-wide increased to $125 constant currency in Q4 fiscal 2025, up from $120 a year prior, showing pricing power that supports high-value engagement promotion. The Consulting segment led this with a 13% increase in its average bill rate for that quarter. Still, the firm's Q1 fiscal 2026 revenue was $120.2 million, with an average bill rate increase of only 2.2% year-over-year, suggesting a focus on securing volume for these high-value projects remains a near-term challenge.

Finance: draft updated bill rate vs. volume analysis for next week's strategy review.

Resources Connection, Inc. (RGP) - Marketing Mix: Price

Price, for Resources Connection, Inc. (RGP), is directly tied to the perceived value delivered through its professional services, especially as the company executes its transformation strategy.

The full fiscal year 2025 annual revenue was $551.3 million, representing a 12.9% decrease year-over-year.

The pricing strategy emphasizes value-based pricing to drive higher-value engagements. This focus is intended to support higher bill rates, which is a key lever for profitability when billable hours are constrained. For instance, management noted that as they execute this strategy and move up the value chain, they expect more upside in bill rates, particularly in the consulting business.

The impact of this pricing focus is visible in segment-specific bill rate changes:

• Average bill rate for the Consulting segment increased 11.1% in Q1 FY2026 compared to the prior year quarter.
• In Q3 FY2025, the Consulting bill rate increased +12.8% year-over-year (or 13.5% constant currency).
• The On-Demand Talent segment saw a smaller average bill rate increase of 0.4% (or 0.7% constant currency) in Q1 FY2026.

Enterprise-wide, the average bill rate for fiscal year 2025 was essentially flat, increasing only 0.8% on a constant currency basis. However, for the most recent reported quarter, Q1 FY2026, enterprise-wide average bill rates increased 2.2% year over year, reflecting continued pricing discipline.

The company's focus on pricing power directly impacts its profitability metrics, as demonstrated by the margin expansion:

The pricing strategy and cost discipline also influence the capital structure, which affects financing options and credit terms indirectly by strengthening the balance sheet. As of the Q1 FY2026 report, Resources Connection, Inc. maintained zero debt and had $77.5 million in Cash and Cash Equivalents. Furthermore, the company reset its cash dividend to $0.07 per share from $0.14 per share to preserve approximately $9 million+ in annual cash for growth and repurchases.

Specific bill rate data points from recent quarters include:

• Q3 FY2025 consolidated average bill rate rose to $123 (or $124 constant currency) versus $119 year-over-year.
• Q1 FY2026 revenue was $120.2 million.
• Q1 FY2026 SG&A expense was $47.9 million.

You see the pricing power translating into better margins, even with revenue headwinds. Finance: draft 13-week cash view by Friday.