Summary in the area of sales and marketing support outsourcing
In the past year, companies have sought optimization of commercial activities. Increasingly, outsourced complex sales processes, which objective was to verify prices, reduce costs and benefit from synergies. Increased activity was seen primarily in the area of outsourcing sales representatives, while the demand for promotion, tasting and animation services has been reduced.
Leading role of service quality
Last 12 months resulted in a significant change in the approach to outsourcing the merchandising service. Market shelves support in large networks declined in 2012 by about 10 percent. This was mainly due to the policy of many discount chains, which focus on products with high margins and, consequently, a gradual reduction of the assortment. On the other hand, FMCG manufacturers increasingly entrust external sales representatives in the field of comprehensive management: from the shelf, overall management of the commodity in the department, to the service of products withdrawn from sale.
It has been also observed that Clients are tired of low quality of service. The advertised tenders indicate decreasing importance of the price and increasing role of procedures, labor standards and transparency.
These two tendencies have amounted to the development of Cursor sales representatives team by 50 per cent. covering all the modern trade points in Poland. This way the company supports projects, which increasingly require extensive field structure (e.g. commercial audits). The number of such procurements managed by Cursor is growing rapidly.
Optimizations in logistics for marketing
In the past year, companies, still carefully but more frequently than a year ago, have been outsourcing warehousing and POSM management. As a result, the market has increased by several percent. Cursor won eleven contracts involving POS Materials storage area and logistics service. Mainly for companies in the following industries: insurance, pharma, FMCG, high technology, alcohol production and industrial manufacturing. Some of the Clients, concerned about savings, decided to use simpler marketing materials: a smaller size and fewer components, which enabled self assembly, without the need to outsource the service.
Promotions at the back of a supermarket
The year 2012 was successful for the area of promotions, tastings and animation. For the last few years, we observe a systematic decrease in the budgets for these activities. The market is certainly not supported by the fact that retailers are increasingly restricting free access to promotional services in the shops.
Although, the importance of a single activity in increasing sales decreases, companies advance multi-step and complex projects. This year Cursor has developed several significant field activities for beer companies, beverage companies and bus operators. Their total value amounted to several million. In addition, the company was responsible for a number of events for Nałęczowianka brand during Tour de Pologne and other sport events.
The globalization of market purchases
Last year saw a continuation of changes in the outsourcing of purchasing processes. We see here a centralization – creating the business unit involved in the procurement of goods and services for the entire region. This allows the cumulation of orders and as a result a more attractive price. Such circumstances allow using providers with a stable position on the market and large capital. To meet the demand of the market in 2012, Cursor incorporated into the structure resources and expertise of Multitex company, which specializes in comprehensive outsourcing of buying processes. The acquisition allowed supplying materials to companies such as Lindt, T-Mobile, Hochland and Colgate-Palmolive to increase the effectiveness of sales. Cursor now also provides promotional items to foreign markets, including: Italy, France, The Czech Republic and Sweden. Projected revenues from this area of activity for 2014, should exceed 25 million.
Optimistic outlook 2013
This year should bring a boom in the outsourcing of sales and marketing support. Optimizing the use of resources and the growing importance of efficiency measures will result in an increased interest in outsourcing of specialized services. In 2013, we will observe further development of the technology used in the industry, enabling the automation of sales representatives management, reporting, and execution of tasks. In addition, sales representatives will increasingly work for non competing Clients. A visible trend is increasing globalization of the processes in the sales market.
CEO of Cursor