Marketing
One of the greatest challenges facing portfolio companies today is to reconcile two apparently contradictory ideas. The first is that CEOs and CFOs strive for certainty and predictability in the future revenues and profits of the business. The second is that successful marketers need to take risks to deliver the desired results and need to experiment with various ideas. However, not all risks are equal. Whilst it is impossible to eliminate uncertainty, it is possible to calculate and then assess which risk to take.
With the average FTSE 250 Company now spending over 17% of turnover on sales and marketing, the need to demonstrate the value created and the risk associated with these activities has never been more critical.
These challenges, combined with the recent economical downturn have left many marketers struggling to answer three critical questions.
1. By its very nature, marketing is very risky but how do I make outcomes more certain?
2. How can I ensure that I’m spending my marketing budget effectively?
3. If I need to reduce spend quickly, where do I cut costs and can I maintain performance?
Sussex Savings is happy to recommend and introduce best in breed consultants whose success has been recognised throughout many portfolio companies within many sectors. These include well known brands within Consumer packaged goods, Electronics, Telecoms, Automotive, Financial Services and Pharmaceutical industries.
Using their application of advanced analytical techniques and latest software, they focus on empowering companies and allowing them to:
- Measure and control their marketing risks
- Increase their revenue and profits from the same spend levels
- Reduce their spend levels without damaging revenues (typically 9%-12%)
- Improve their revenue (typically 3%-8%) and profits (typically 4%-24%)
- Incorporate the software into their due diligence phase to assist in the purchase or selling of a company
- Utilise the software to determine the effects of strategy, pricing and promotions on other brand owned products and also competitor’s products.
As an example: If the marketing spend is 15% of revenue, which is £12m, then you could cut approx. £1.32m (11% from the budget and maintain the same revenue through reallocating spend to the most effective activities.