New entrant in the market

Challenge

Our client was a new entrant in the competitive FMCG market in Australia which had outstanding production capabilities but a limited distribution network. This resulted in excess stock placed at a value of $150 000 and a resalable value of only $30 000.

Solution

  • Active International identified an alternative remarketing channel through which the stock could be cleared in compliance with the restrictions set out by the client. We were able to issue $150 000 in Trade Credit to the client.

Execution

  • Thanks to the agency’s collaboration with Active, the Trade Credit was able to be utilised to part-fund media across a number of media suppliers which satisfied the objectives set out by the client.
  • Rather than receiving $30 000 in exchange for their excess stock, the client received ongoing cash rebates to the value of $150 000 as the media volume was placed across the pre-approved period of time. Through utilising all of the Trade Credit issued, the client created a $120k upside to their business.

The Benefits

  • The client was able to clear the excess stock through new approved remarketing channels
  • The client was able to part-fund their media across a wide range of media channels