Cathedral City

Award: Bronze

This paper’s about profitable growth, comparing promotions and advertising, or short-term uplift and long-term loyalty, in achieving it. It demonstrates the impact of loyalty on profit, and shows how advertising can increase loyalty, even in a commoditised market, whereas promotions reduce it. It shows how a new advertising campaign and redistributing budgets to increase advertising and reduce promotions, while keeping overall A&P spend flat, delivered: a 20% sales increase (or £17.8m); a 40% increase in full price sales; and most importantly, a 52% profit increase. The advertising more than paid for itself, increasing profits by between £690k and £2.73m.

Media used: TV

For the complete case study visit the WARC website.