FMCG Marketing Budget Optimisation

🎯 The Challenge

Market-leading FMCG client’s marketing budget was already under pressure and they felt there was a lack of transparency and waste in high non-working budget expenses.

A newly appointed CMO inherited consolidated agency services through a major holding group. While this arrangement can be highly efficient and client was reasonably satisfied with work quality, they suspected significant inefficiencies were draining their marketing budget and limiting campaign potential.

Key Pain Points:

• Lack of transparency in agency cost structures
• Suspected over-resourcing and inefficient workflows
• Limited working budget constraining smaller brand support
• Campaigns for major brands needed more continuity and scale
• Performance incentives could be strengthened to help drive agency value & delivery optimisation

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🚀 Strategic Methodology

PHASE 1: DISCOVERY & BASELINE

🔍 Value Creation Diagnostic 

• Comprehensive data analysis of agency charges over last 18 months
• Stakeholder interviews (marketing & agency teams)
• Reviewed workflows between client & agency, & within agency to improve efficiency & speed to market
• Marketplace benchmarking of agency charges and FTE rates
• Production cost analysis with detailed TV benchmarking
• Opportunity assessment detailing cost saving and efficiency initiatives

📋 Project Classification Framework

• Categorised work by degree of origination, scale, volume of channels & executions needed
• Established cost forecasting, reporting and cost management system
• Created KPI's and compliance framework for deliverables, fees and rates

PHASE 2: VALUE CREATION STRATEGY

📈 Project & Services Resource Plan Optimisation

• Mapped business requirements to a tiered project classification matrix
• Workshopped practical, efficient FTE resource plans with agency, marketing & procurement teams
• Implemented head-hour utilisation and project progress tracking system
• Negotiated new cost structures and KPI's
• Implemented 'new ways of working' & agency demand management with marketing to prioritise the projects + align them to the project classification framework to improve cost forecasting & control

💰 Performance-Based Remuneration (PBR)

• Designed win-win fee structure: base rate + tiered agency bonus upside
• Created KPIs linking incremental agency profit to business results
• Established accountability and efficiency incentives

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🏆 Transformational Results

💸 IMMEDIATE FINANCIAL IMPACT

🔻 35% REDUCTION in non-working budget costs reinvested into working budget

📈 20% INCREASE in effective media budget

💰 SIGNIFICANT FUNDING unlocked for additional brands and campaign support & activations

 OPERATIONAL IMPROVEMENTS

• Multi-brand support: Smaller brands now properly resourced
• Streamlined workflows: Faster speed-to-market achieved
• Enhanced integration: Better cross-agency discipline coordination
• Cost transparency: Agency Fees and Production cost management system implemented
• Future-proofing: Spot-checking service for ongoing cost control

📊 BUSINESS OUTCOMES

• More campaigns executed across brand portfolio
• Increased marketplace impact through higher working budget
• Optimised ROI on total marketing spend
• Agency partnerships optimised into a performance-driven / value contribution relationship

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💡 Key Success Factors

✅ Data-driven approach with benchmarking
✅ Collaborative methodology engaging all stakeholders
✅ Win-win negotiation creating mutual value for client and agencies
✅ Systematic implementation with ongoing monitoring
✅ Performance accountability through structured KPIs

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🤝 The Bottom Line

$4.2M+ in additional working budget generated while refining and maintaining service quality and improving efficiency

Strategic optimisation of agency relationships & commercial arrangements demonstrates delivery of substantial value, while setting the stage for improved creative output, productivity and market impact

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📞 Ready to Optimise the Value from your Marketing Budget?

Contact John to discuss how great results can also be achieved for your organisation.