Kids Port Canada was part of the US group, Global Healthtex, manufacturer of quality clothes for kids. The company’s annual media spend of $500,000 supported retail sales of $10 million. Despite increased advertising spending, sales remained flat.
To achieve maximum sales impact through the most effective allocation of advertising
J. Gottheil Marketing measured the effect of Kids Port advertising on its sales figures by carefully analyzing an entire year’s worth of sales figures and advertising expenditures. What J. Gottheil found was a tendency to advertise when Kids Port sales were down and to cut back when sales were strong. This is a common strategic error. J. Gottheil believed that when sales are strong, well-crafted advertising will make them even stronger. However, if sales are down, no amount of advertising will drive purchase, unless other initiatives run concurrently. So, J. Gottheil carefully shifted the company’s advertising spend to different points in its sales cycle.
J. Gottheil Marketing was able to take sales peaks to new heights and increase annual Kids Port sales by over $500,000. This significant uplift in sales was achieved without any additional advertising spend or changes to the existing creative and/or media plans.