800% growth in four years!

THE SITUATION: 1984
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Circuit City was a small chain of home electronics and appliance super stores located in the southeast. Their recent eighteen-store expansion into the New York market had proven a dismal failure and Circuit City had left the market after closing all its stores.

Now they were about to expand to Los Angeles.

THE PROBLEM
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The Los Angeles market was the largest in the country for home electronics and appliances. And the most competitive. Many doubted that Circuit City would be successful against entrenched competitors like Federated Electronics and Pacific Stereo. And Circuit City’s sales plan required them to achieve 25% greater sales per square foot than their chief competitors.

THE SOLUTION
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screen-circuitcityAdmarketing was selected to be the agency to introduce Circuit City to the Southern California market. Admarketing immediately suggested a change in strategy. No longer would Circuit City rely primarily on price/item advertising in the newspapers. Admarketing would position them as the “Intelligent Choice” with greater selection, greater product knowledge and a host of guarantees to take the worry out of buying. And the campaign would rely primarily on saturating television in the Los Angeles market!

THE RESULTS
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graph-circuitcityThe initial results surpassed Circuit City’s very aggressive plan by over 60%. As a result, Admarketing was named national agency for Circuit City. Circuit City’s national results had been lagging badly but as Admarketing rolled out its first institutional campaign, increases of 15-30% comp were achieved everywhere. By the time Admarketing resigned the account in 1989, Circuit City had achieved over $3 billion in sales annually – a more than 800% increase in 4 years.