Retailers might be keen to cut costs, but they need to be realistic about what can be delviered, says Julia Collis


The Christmas trading season is already well under way and once again we are seeing an enormous uplift in the number of field marketing promotions that brands, particularly in fmcg, are asking us to do.

This is especially the case this year, with the recession meaning that rates for most marketing ­services have plunged. Yet some potential clients are seeking savings in excess of 30% on some jobs which just isn't profitable or practical for the agency. It's got to the point where we are starting to turn down work.

The other day, a client phoned in telling us what he would be prepared to pay for a cash & carry job with all the bells and whistles. By the time we'd covered our costs including all the necessary insurances, equipment and due diligence it would mean we would make a grand profit of 0.01%. We said 'thanks, but no thanks'.

Scrimping on costs to get a job in can have a devastating effect on the results of a field marketing activity. Drastic cost-cutting can lead to short cuts and a demoralised field team.

Ironically, for retailers and brands prepared to invest wisely in field marketing and understand the pricing models offered by agencies, there's never been a better time to use our services in terms of value for money and quality of staff.

In times of recession the calibre of promotional workers tends to be exceptional. British Airways' intention to make 2,000 cabin crew staff redundant will undoubtedly boost our own industry. Experienced air cabin crew make great brand ambassadors because they're very presentable and excel at dealing with the public.

In terms of value, we offer a lot more than mystery shoppers, leggy lovelies and carefully stacked shelves these days. When field agencies are treated as a strategic partner we can offer brands and retailers in-depth knowledge, expertise and technology in areas, which can yield more than 4 x ROI per pound spent. This value is enhanced the closer brands and retailers work with agencies.

Invest in it wisely and field marketing can be a powerful strategic tool, not just just a commodity to be bought as cheaply as possible.

Julia Collis is MD of The Bailey Group.

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