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Re: marketing sofas Can someone tell me how this kind of question fits on the CGF — it doesn’t seem to be related to critical socio-spatial analysis in any way... Or perhaps I’m just not seeing the critical intent behind this posting...
Lawrence


On 19/01/09 2:45 PM, "Hillary Shaw" <[log in to unmask]">[log in to unmask]> wrote:

Quite a lot of geographers end up in the area of marketing so hopefully not really OT...

Seen those DFS TV sofa ads recently - you've probably not missed them if you watch ITV at all.  I estimate there's at least 4 per night, likely more.  At 30 seconds each, peak time, they can cost up to 0.5 million £ a slot.  Let's say that DFS got all these slots for 0.25 million £ each.  That equates to DFS spending £1,000,000 per night, for what's been quite a long time now.  Lets say they make £300 profit per sofa.  So for each night's advertising to pay, they've got to sell some 3,500 extra sofas daily.  There are around 25 million households in the UK, lets say 1 sofa per household, lets assume in the credit crunch that each sofa lasts an average 12.5 years, that's total UK sales of sofas of 2,000,000 per year, or 5,480 per day.

Now either DFS have cornered the entire sofa market, an almost 100% market share, and banned all imports, or they've done a really keen deal on ad rates with ITV.

Or can someone else tell me how this intensive ad campaign can possibly pay off for DFS?

Dr Hillary Shaw
School of Business, Management and Marketing
Harper Adams University College
Newport
Shropshire
TF10 8NB

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Lawrence D. Berg, D.Phil.
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