The challenge
Our client was a new entrant in the competitive FMCG market in Australia which had outstanding production capabilities but a limited distribution network. This resulted in excess stock placed at a value of $150 000 and a resalable value of only $30 000.
Our solution
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Active International identified an alternative remarketing channel through which the stock could be cleared in compliance with the restrictions set out by the client. We were able to issue $150 000 in Trade Credit to the client.
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Thanks to the agency’s collaboration with Active, the Trade Credit was able to be utilised to part-fund media across a number of media suppliers which satisfied the objectives set out by the client.
- Rather than receiving $30 000 in exchange for their excess stock, the client received ongoing cash rebates to the value of $150 000 as the media volume was placed across the preapproved period of time. Through utilising all of the Trade Credit issued, the client created a $120k upside to their business.
The Benefits
- The client was able to clear the excess stock through new approved remarketing channels
- The client was able to part-fund their media across a wide range of media channels
- The client received cash rebates to the total value of $150,000 rather than the resable value of only $30,000
- Received media campaign from a client who would would not have received any bookings otherwise.
- Generated profit from the trading of the media plan
- Deepened relationship with the FMCG client
