Magazine article Marketing

Food Remains Top for Field Activities

Magazine article Marketing

Food Remains Top for Field Activities

Article excerpt

The food sector continues to dominate the field marketing usage league, while the motor sector takes the top grower title

This year the vast majority of the agencies in the main table -- those accounting for 96% of the total turnover -- have provided information about the business sectors they derive revenue from, so the results should be a fairly accurate indication of the activities field marketing is being used for.

Almost every sector has increased its activity, some more so than others. Food arid confectionery is still by far the top category, reflecting the medium's roots in the merchandising of packaged goods.

The sector has increased by almost one-third to a turnover of [pound]74.3m, while the catch-all category of 'other groceries', which includes bathroom and household products, has nearly doubled, to [pound]29.6m.

Soft drinks and alcohol have also grown steadily, and are becoming significant for agencies such as FDS, which recently picked up a valuable contract with Interbrew.

Yet most interest will be focused on seeing how well the comparative newcomers to the medium have been holding up.

In 1999, financial services grew more than three-fold to a turnover of [pound]15.3m, boosted by FMCG's major contract with Prudential. While the pace proved less hectic last year, it was the third fastest-growing sector, with a turnover increase of 112% to [pound]32.4m.

The top six UK credit card companies are all continuing to actively recruit new card-holders through the direct sales channel, according to SMC Field Marketing's managing director Andy Shipton. "One of the reasons financial service providers use us is that we enable them to negotiate a definitive cost per acquisition," he says. SMC clients include American Express, Bank of Ireland, Bank of Scotland and Morgan Stanley Dean Witter.

The fastest-growing sector in 2000 was automotive, which expanded its use of field marketing by 165% to a turnover of [pound]8.5m.

The Russell Organisation, which services Honda, BMW and Volvo, has profited greatly from this surge. "Cars have as much need of sampling as ice creams and shampoos, and offering test drives is an ideal way to get motorists' attention," says managing director Rob Allen. …

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