Chaired by Sir Paul Judge, Chairman of the Marketing Standards Setting Board, representatives from British businesses awarded M&S and RKCR/Y&R the Grand Prix, the, top effectiveness award in British advertising.

The 4,000 word campaign paper submitted by RKCR/Y&R proved that it helped save the ailing high-street chain, returning it to the black and to its former position as a national treasure, as well as resisting takeover bids and causing a national stampede on hot chocolate puddings.

M&S’s problems peaked in July 2004, following months of consecutive sales declines and negative press coverage, when Philip Green, owner of Arcadia group, made a final offer of 4.00p per share with his Revival Acquisitions company.

Under CEO Stuart Rose, M&S resisted the takeover bids and with agency RKCR/Y&R launched the Your M&S and Not Just Food, M&S Food campaign in August 2004.

Focusing on food and womenswear, the adverts restored public confidence in M&S and communicated its overhaul of more stylish, affordable clothes, improved service and store refurbishment.

By September 2005 confidence had returned, M&S was more stylish – enter Twiggy – a perfect metaphor for a national treasure making a spectacular come-back, flanked by Erin O’Connor, Laura Bailey, Noemie Lenoir and most recently Lizzie Jagger. The inspired use of celebrity gave M&S star quality.

The effectiveness of the campaign translated into

renewed public confidence, revitalised the brand and drove profitability

It:

• Generated an additional 18m customer visits over the course of 2005
•  M&S smashed expectations by announcing Q4 2005 increases in UK sales of 9.1%, against a backdrop of mounting gloom on the high-street with March 2006 sales 1.4% lower than in 2005
• Generated positive press coverage worth over £6m in 2005
• At the time of writing the M&S share price is 6.64p per share, considerably higher than the 4.00p Revival Acquisitions takeover offer
• M&S announced sharp rise in full-year profits up from £505.5m to £745.7m in April 2006, this compares to Philip Green’s Bhs which suffered a 60% fall in annual profits from £106.7m to £42.2m

Items featured in adverts which were runaway bestsellers included:

• a cream three-quarter-sleeve blouse worn by Twiggy in the February ads sold more in one week than any other product in the history of M&S
• the £119 travel bags which the girls carry in the ad had to be re-ordered to cope with demand
• caused a national stampede on hot chocolate puddings – sales increased by 288% following the infamous advert
• Sales of pannacotta saw the greatest increase of 1207%, sales of roast potatoes increased by 454%, basil pesto sales increased by 367%, and 246% more channel island cream sold following the ad campaign

Tess Alps, Chief Executive, Thinkbox, TV marketing body said: “The stunning turnaround of M&S was underpinned by root and branch investment, from product ranges and retail design to customer service. But without advertising, many people would never have known about these improvements. This paper proves, beyond doubt, the role that advertising played and its significant ROI encouraging reappraisal, generating footfall and making the advertised products fly so fast off the shelves that some sold out. Even the city recognized the immense contribution of advertising.”

Laurence Green, Convenor of Judges, Planning Partner, Fallon London, said: “The IPA Effectiveness Awards is the annual call to the ideas industry to stand up and be counted commercially. Yet again the response is robust: every one of the winners demonstrates not just that advertising and branding works, but that it can be absolutely central to the fortunes of the organisations involved.”

Effectiveness Agency of the Year was awarded to DDB London. DDB London won a total of eight awards one gold, six silvers and one bronze for their respective campaigns for Volkswagen Golf (with MediaCom), Felix, Kwik-Fit (with MediaCom), Monopoly Here & Now (with Tribal DDB), Tropicana, Teacher Recruitment, Volkswagen Golf GTI MK5 (with Tribal DDB) and More 4.

In total six gold awards, 16 silver, eight bronze and 13 special prizes were presented.

For a full list of the winners visit the IPA website.

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