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Marketing

Case 9: Spending Spree In Marketing Department

Case 16: First-Ever Store Branding in the Industry

Case 9: Spending Spree In Marketing Department

Topic

Marketing, Financial Control

Company

A subsidiary of a large corporation

Problem

The marketing costs is very high, marketing spending is very high.

Facts known

Marketing spending purchases has never been audited.

Audit process

Interview and field observation

Findings
  1. Marketing team never search for lower-price contractors.
  2. The same contractors are used again and again without review
  3. Marketing team spending for exactly the same product was about 3 times the costs of the same product bought by sales department
Suggestions
  1. To conduct review on the contractors used by marketing team
  2. Re-assign the purchasing of marketing product to more reliable people.
  3. Conduct impromptu price audit for past projects
Follow up
  • Suggestion 1 and 2 was implemented and the company saved more than IDR12Billions just from carefully choosing contractor for 1 project.
  • Suggestion 3 was not implemented due to insufficient staff in internal audit team.
Engagement

4 weeks

Case 16: First-Ever Store Branding in the Industry

Topic

Marketing, Sales

Company

A Global Decorative Company

Problem

Marketing investment at the consumer level was quite high but because the consumer journey takes a rather long time from awareness to actual purchase due to the infrequency of need for the product. Therefore, the company needs a way to ensure that customers stay aware of the product and consider the product at the point of purchase to increase probability of purchase.

Facts known
  1. The brand is a very trusted brand.
  2. Customers are aware of the brand but it is less suggested by the store due to premium pricing
Audit process
  1. Interview about the marketing strategy to see if there is a hole in the plan.
  2. Store visits
  3. Discussion with stores and sales managers
  4. Stores are owned by independent entrepreneurs and sell multiple product lines and multiple brands.
Findings
  1. There is no ‘reminder’ of the brand in the stores
  2. Stores are willing to have their stores branded by the brand
Suggestions
  1. Full-store branding with the average cost of IDR10,000,000/store
  2. Do it quickly all over Indonesia so that competitors do not have time to a counter-action the move.
Follow up
  1. Company implemented the suggestions and 440 stores were branded fully in 4 months with the cost of almost IDR4billion.
  2. Sales of the product in the stores increased from 15% to 66% in the next 3 months.
  3. The company took over one of the leading competitors in market share in the following year.
Engagement

4 months

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