A Client had two consulting companies covering three major automotive brands when EVP was named exclusive consultant across all three brands. Once the business was awarded, the Client challenged EVP to reduce costs in the first year by 20%.

EVP launched a Cost Control Summit to identify potential savings opportunities. The Summit team included client marketing and purchasing, agency account directors, print and broadcast production, and EVP.

The Summit team identified 10 potential ideas and developed action plans for implementation. Final savings categories included: targeted average costs-per-spot, running footage, residuals, computer imaging for print, preferred rates for prepress, retouching and storage.

SHORT & LONG TERM RESULTS

EVP, Client & Agency collaborated to:

• Develop target costs for spots of different levels (launch, running footage, etc.).
• Extend use of client’s Reverse Auction tool to photography.
• Develop a ‘break out team’ led by EVP to focus on furthering the Client’s efforts to use CGI-created product in place of original photography.
• Reduce prepress and retouching rates for print ads and collateral.
• Develop a policy against the production of one-offs to push the advantages of packaging opportunities.
• Develop new best practices for evaluation of creative and bidding process which included identification of Cost Drivers at creative presentation.
• Identify $24MM in potential savings during the year of the Cost Summit.

A Client asked its Agency for estimated costs to run two commercials (:60 and :30) on the internet and in an industrial setting. Based on the talent count, the Agency provided costs for each spot. EVP reviewed the estimate and backup numbers.

EVP determined the Agency had used Screen Actors Guild (SAG) minimum scale rates in their calculations and that there were no mathematical errors. However, numbers were unusually high due to the large talent count in each spot.

We determined the :30 commercial was a cut-down of the :60. If industrial and internet usage were paid for the :60, then no additional payments were necessary to run the :30 at the same time. The Agency was not aware of this SAG rule.

RESULTS

• Due to EVP’s knowledge of the Screen Actors Guild’s Commercial Contract, the client ran the :30 spot on the internet and in an industrial setting without spending the $93,394.00 the Agency had initially estimated.

A Client requested EVP’s participation in pursuing a Request for Proposal (RFP) to leverage their annual budget of $5 million across multiple brand products and agency partners for Digital Retouching and Computer Generated Imagery (CGI).

EVP worked with the Client to assess the marketplace and select a small group of preferred suppliers in exchange for preferential pricing and services. EVP conducted a thorough assessment of a wide group of qualified vendors with the Client and Agency partners, evaluating process efficiencies and price points, eventually narrowing the field to three chosen partners.

SHORT & LONG TERM RESULTS

• 30% savings in first year of the 3-year program
• 5% savings projected for years 2 and 3 of the 3-year program
• Vendors selected are considered Best-in-Class
• Program was well received by all agency partners due to the thorough qualification and assessment process
• With anticipated volume, the selected vendors can continue to invest in new technology
• Savings over the three year period is aggregated at 18%