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Making Room for a New Product Line

Challenge:

A Consumer Electronics company was launching an updated line of electronics and was sitting on inventory of last year’s model. Selling the inventory of the old stock into the marketplace would significantly disrupt the launch of the new product line, so the manufacturer was faced with having to sell it off-shore and risk the possibility of a liquidator selling it back into the Canadian market.

Solution:

Active purchased the inventory at full wholesale value using Trade Credits, and worked with its extensive global network to locate a retailer in South America that would purchase the goods for sale within its stores. The manufacturer shipped the goods direct to the retailer to ensure they were delivered to the proper buyer and not re-routed in any way.

Execution:

Working with their agency, Active placed pre-budgeted agency planned broadcast, online, and out-of-home advertising. Media was purchased per existing guidelines, specifications, pricing and added value, and the manufacturer was able to use their Trade Credits as partial payment for the media. 

Benefits:

  • Client realized above market value for excess inventory and dated products
  • The manufacturer was able to launch its new line of electronics into the Canadian market without having to deal with the drag effect that the older product would have caused – in both pricing and demand.
  • Increased media budgets through the Trade Credit program, further driving retailer support and consumer awareness.
  • Media placement according to established media plans.