A Major Retail Chain

Thursday, 3 July 2003

A retail chain with over 50 stores throughout Australia requested a marketing audit to review the effectiveness of its marketing with particular attention to the effectiveness of its substantial advertising and promotion budget.

The diverse promotion media mix included TV, radio, in-store catalogues, letterbox drops, newspaper advertisments and direct mail advertising.

The marketing audit determined that although the company was trading profitably and effectively, there were important deficiencies in the use and application of available marketing techniques affecting most stores.

The bottom line was that the retail chain could increase its gross revenue by as much as 12.5% at no extra cost by adopting the recommendations for a more cost-effective strategic approach. We made our presentation of the recommendations to the annual meeting of all the store managers and advised the media remix including revised weighting of media budgets, the adoption of best practice, etc.

Over the following 12 months the chain had a 18% increase in gross revenue dispite spending 20% less in promotion (a saving of 20% of $4.5m). This is proof that spending the right amount in the right media to the right audience with the right message not only saves money - it produces results.

"Thank you for your detailed report and presentation at our annual conference which was well received. I have no hesitation in recommending your company to the board of directors for your involvement in our future marketing considerations." - National Manager.


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