Cathedral City: It's not just how many customers you have - IPA Effectiveness Awards Case Study 2006

Brief Description: 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 ;---(TAGS)--- Full Title: Cathedral City - it's not just how many customers you have, it's the quality of those consumers that counts. "See it, want it". ; Number: 2006/49 ; Brand Name: Cathedral City ; Client: Dairy Crest ; IPA_ProductCoding: Food (Dairy products - milk, cream, yogurt, cheese, eggs) ; Agency: Grey London ; Author: Simon White ;