A fast-moving moving consumer goods (FMCG) company was experiencing inconsistent fee management across brands working with multiple agencies. This was a time of high tension and high time commitment in negotiating fees. The client wanted consistent agency performance management that was motivating for agencies, and a remuneration model that moved away from pricing inputs and toward rewarded agencies for outcomes achieved.
13% (€65m) in savings and a clear framework to be consistently applied across brands in determining fees and assessing business outcomes.
Assessment – R3 carried out stakeholder and agency interviews.
Methodology – Implemented a standardized methodology for data collection to be analyzed before model implementation.
Roll Out – 100 brands, 60 countries, 15+ agencies, and more than €500m in fee value.