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Friday, 21 January 2011

What's the best production strategy for retailers and FMCG brands?

Constantly small vs. infrequently large?

Some clients invest the majority of their annual marketing budget in one or two “blockbuster” TVCs rolled out across multiple markets. Budgets are typically very high and handled entirely by the network agency of record. Other clients spread the risk more evenly through regular output of lower cost communications – we see this with retailers and clients with large FMCG portfolios. These brands understand that a constant flow of engaging content keeps them top of mind for consumers.

I believe that the “small and constant” strategy presents the greatest opportunity for clients looking to innovate their production processes. It offers a chance to de-couple some or all elements of production from their network agency into niche specialist suppliers, but at low risk. In contrast, the cost saving benefits can be disproportionally high and so pave the way for the adoption of this approach across other communication platforms.

Key take-outs for clients are:
  • Start in areas where the stakes are low
  • Partner with leading marketing procurement consultants
  • Identify best-in-class niche suppliers, free from vested-interest agency relationships
  • Step out of your comfort zone and make it your mission to learn
  • Constantly refine ways of working through learnings from previous projects

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