CPG - Avoiding a Loss from Missed POS Forecasts
This leading dental care brand is an international client in multiple markets. As part of a brand extension, they launched a new formula, which missed POS forecasts in the first year. They were faced with writing down the product and managing liquidation. As a result, they had the choice of taking the loss on the bottom line, or cutting other expenses to offset the loss (typically growth-related budgets such as marketing).
- The client turned to Active, who purchased the product at full wholesale value using a prepaid expense (trade credit).
- The client controlled where the product was sold through Active, and shipped direct.
- By using this solution, the client avoided taking any loss on their books and maintained their existing marketing budgets.
- Active partnered with the client’s media agency to place their media campaign.
- Active purchased media as approved by the agency, meeting ALL objectives, parameters, and pricing targets.
- The client was also able to pay for 85% of their media in cash, and the remaining 15% was funded using the prepaid credit.
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