Ensuring Effective Broker Services Engagement

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By: Madhavankutty T -- Senior Research Analyst

27 June, 2013

Ensuring Effective Broker Services Engagement
WHITEPAPER

? Broker service agencies provide services like headquarter sales, retail merchandising, data gathering and in-store promotion support to manufacturers in the Consumer Packaged Goods (CPG), Food Beverage and Tobacco (FBT) and other consumer product industries across different classes of retail trade like grocery, drug, mass merchandiser, club, convenience, value, consumer electronics, home improvement and specialty and have gained increased prominence as partners for CPG and FBT companies with the growing focus on shopper centric marketing. ? This white paper explores the U.S. broker services landscape, current engagement models and some of the key challenges involved in the selection of such agencies, while providing some pointers for meeting the challenges. Introduction Significance of Effective Broker Services to Brand Impact in the Store Environment ? Forces like rising power of big-box retailers, shift in consumer preferences away from traditional marketing channels, and intense competition have induced companies in the consumer packaged goods, food and beverages and consumer care industries to shift their marketing budgets more towards shopper-centric marketing. ? This shift has been supported further by impact of multi-channel shopper marketing on shoppers? purchasing decisions across categories, making it a major spend category with an annual spend about 55 Billion USD in the US alone (2012). ? In this scenario of growing relevance of shopper-centric marketing within the marketing mix, execution at the store-level gains paramount importance. And broker services agencies that provide retail merchandising, headquarter sales, in-store support and data collection become central to shopper marketing campaigns fulfilling their promised value.