Covid has created entirely new shopping trends for many consumers.
The CPG industry continues to change rapidly creating many challenges for Consumer Packaged Goods companies and agencies including unpredictability in demand, rapid e-commerce/Amazon growth, changing consumer preferences, and increased brand switching due to brand availability. Sales and marketing agency capabilities along with channel and geographic coverage models are changing and adjusting constantly creating an opportunity for CPG companies to explore coverage options.
The sales agency industry has transformed itself over the last five years as the trend toward national client coverage has seen many CPG companies explore local and regional representation.
An effective tool designed to determine the most operative route to market via sales agencies to maximize client distribution across the desired coverage channels is a well-executed RFI (request for information) followed by an RFP (request for proposal). It is essential for CPG clients to gain an update and clear understanding of coverage models within their existing sales agency/agencies while exploring alternative capabilities, coverage models, and costs within:
- Alternate channel
Conducting a two-phase approach (Phase one – RFI, Phase two, RFP) will allow the CPG client to:
- Identify and engage with the top sales agencies across the desired channels;
- Leverage the total commission base for broader services and greater results;
- Position a portion of sales commissions to KPI bonus attainment;
- Minimize client management points of contact thus allowing for deeper agency penetration, training, and development.
PHASE ONE – RFI
With agency acquisitions and capabilities changes and adjustments, an RFI should be developed in advance of a formal RFP to gain familiarity with the current agency market gathered in a formal, structured, and comparable way.
RFIs reduce the time and costs involved in evaluating potential agencies and help ensure that participating agencies are directly aligned with the needs of the client. Its primary objective is to determine which agencies should move to the next phase and receive an RFP.
An effective RFI is a solicitation to a broad base of potential agencies for the purpose of developing strategy, building a database, and preparing for an RFP.
PHASE TWO – RFP
PHASE TWO – RFP
Upon completion of the RFI process, the CPG client will possess a wealth of information with regards to the various agencies and their channel coverage at the headquarter and retail levels; their business intelligence, marketing and category management capabilities, customer penetration, reporting, and technology. With this knowledge, the client can determine if an RFP is needed and the agencies to be included.
The RFP provides an opportunity for the participating sales agencies to fully understand the scope of the RFP, ask questions for greater comprehension, and showcase all in-scope capabilities in written and in-person presentations.
The entire process inclusive of the RFI and RFP can be conducted within an eight to fourteen-week period. Simpactful has full capabilities around the RFI/RFP process and is focused on leveraging our experience to help our clients achieve outstanding results throughout the process and all the way through to agency appointment(s), transitions, and training.
To learn more about this training and other Simpactful resources and capabilities, please contact us at: email@example.com, Woody Norris at: firstname.lastname@example.org, or Jack Buller at: email@example.com