home case studies
Laithwaites Case Study

m_laithwaites

Client Name Laithwaites The Organisation Laithwaites is the UK's largest mail order and online wine merchant. Established in 1973, it has several million customers. It uses partnerships, direct mail and press to successfully recruit large numbers of new customers every year. The Challenge How do you add new growth into a successful business built on print media? One answer is to add television to the media mix. So in 2005 Lathwaites formed a partnership with the UK TV channels, aiming to replicate the success they had enjoyed with ventures like the Sunday Times Wine Club.

Unfortunately, despite two years' investment, success did not materialise and customers from TV were costing Laithwaites around 100 times more than from print.

We worked with creative agency, Reynolds Busby Lee to audit the TV experience and recommend whether the channel should still be used and, if so, how success might be achieved.

 The Insight

We identified three key issues:

  • The creative format and expression of the offer
  • The media targeting
  • The call handling process

We then tested various options to identify the most effective.

 Our Solution Creative
The previous commercial was edited to express the offer more clearly, recognising that TV does not allow the viewer to contemplate the offer as they would in press.

Media
We broadened the media targeting out from a few niche channels to reflect more closely the profile of wine buyers attracted by print media.

Call handling
We replaced the internal call centre team who were used to dealing with customers with an external team who had a greater focus on initial sales.

We ran three key tests:

  • Firstly a 15 minute infomercial
  • Then a 2 minute long DRTV commercial, and
  • Finally a 90 second conventional DRTV commercial
 The Results
  • Within six months television had become the second largest channel by volume for new customers for Laithwaites
  • It is also the second most cost efficient, both at recruitment and for subsequent profitability
  • Television is now a core element of Laithwaites marketing mix
What we did Added new growth to a business built on print media
 

For our full client list... Click to open

AAP
ActionAid
Arquiva
Aspinall Foundation 
Association of Teachers and Lecturers
Atlas Editions
Bid Chase
Borough Market
Britannica.com
Bullion Vault
Carbon Trust
Care International
Cash4Gold
Christian Aid
Compton & Woodhouse
Direct Wines/Laithwaites
DMA

Early Learning Centre
Exeter Friendly Society
First Bus
Freeview
Friends of the Earth
Good Energy
Guide Dogs for the Blind
Gucci Watches
Hoburne Holidays 
Holiday Property Bond
Jack Wills
Life's 2 Good
Motability
Mothercare UK
myakka
NDCS
PDSA

Petplan
Postcomm
Prestige Cosmetics
Reflect Energy RNID
RSPCA
Salvation Army
Sense 
Spreadex
Tourism Ireland
Unicef
WaterAid
Which?
Wimpy