boots: hair care sales promotion
TRANSCRIPT
![Page 1: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/1.jpg)
Boots : Hair care sales promotion
![Page 2: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/2.jpg)
ABOUT USType Private limited company
Industry PharmaceuticalsHealthcare
BeautyPhotography
Founded 1849; 167 years ago,Nottingham, United Kingdom
Founder John BootHeadquarters Nottingham, United KingdomArea served United Kingdom, Republic of IrelandKey people Simon Roberts, managing director,
Boots UK and IrelandBrands No. 7 and Seventeen – Makeup
Soltan – Sun creamAlmus – Generic drugs
Number of employees 70,000 (UK)1,900 (Ireland)
![Page 3: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/3.jpg)
How we evolved ??
Early days
Post-War Regeneration and New Development, 1945-
1968
The Modern
Era
![Page 4: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/4.jpg)
PRESENT SITUATION
In order to secure market leadership in face of severe competition, it needsto adopt promotional strategy.
![Page 5: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/5.jpg)
The Major Competitors
![Page 6: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/6.jpg)
BRANDS
• Pantene, Clairol, Head and Shoulder, PER plus, Daily Defense.
STRENGTHS
• Best selling hair care brand around the world as per 1995 census.
• Share 8.4% percent of UK’s hair market
WEAKNESS
• Significant presence in mass market products/basic products but have less or no professional hair care products.
![Page 7: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/7.jpg)
BRANDS• St. Ives, VO5, Consort Hair Care
for Men, and FDS.
STRENGTHS
• Offer Broad Assortment of Hair Care Products.
WEAKNESS
• Have less or no professional hair care products.
• Lesser number of stores
![Page 8: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/8.jpg)
BRANDS
• Lancôme, Giorgio Armani, Biotherm, Ralph Lauren.
STRENGTHS
• Global Presence.• Share 5% percent of UK’s hair
market
WEAKNESS
• Significant presence in mass market products/basic products but have less or no professional hair care products.
![Page 9: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/9.jpg)
Retailers of similar category
![Page 10: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/10.jpg)
TESCO : largest super market chain in U.K
SAINSBURY’S : 2nd largest in U.K
MORRISON’S : provides high quality at low prices
![Page 11: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/11.jpg)
CONCLUSION FROM ABOVE MARKET STUDY1. Increase awareness
about its professional hair care products.
2. Differentiate its products with others through packaging or sales strategy.
![Page 12: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/12.jpg)
WHAT’S THE AIM
![Page 13: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/13.jpg)
To make sales promotion strategy for Company’s Hair-care Products UK Stores
![Page 14: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/14.jpg)
OBJECTIVES
Sales volumes should
increase
Build and retain the
brand equity
Consider competitors from both, hair care
products and retail stores
Attract consumers from lower
value brands
![Page 15: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/15.jpg)
WHAT’S THE SITUATION ??
![Page 16: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/16.jpg)
ToFinalize
APromotionStrategy
Among TheseThree
![Page 17: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/17.jpg)
Promotional Alternatives
3 for 2GWP (Gift With Purchase)On-pack Coupon (50p off)
![Page 18: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/18.jpg)
So, Let’s Place Our Self In Place of Dave Robinson and Remember the words of Philip Kotler for How to Analyze a Market?
![Page 19: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/19.jpg)
Analyze Customer needs and Behavior
See competitors in
the market
Propose a solution and target your segmented customers
![Page 20: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/20.jpg)
1.
Advantage Disadvantage
Cheap promotion
Stock clearing strategy
Receive one free
Promotional buyers 60%
Increase in sales 300%
![Page 21: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/21.jpg)
2.
Advantage Disadvantage
Additional packing
Common strategy
Free product sample
Promotional buyers
40%
Increase in sales 170%
![Page 22: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/22.jpg)
3.
Advantage Disadvantage
Less estimated sales
Dilute brand equity
Conservative approach
Promotional buyers
Multiple visits
![Page 23: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/23.jpg)
FOLLOW THE CASE ANALYSIS PROCESS TO DEDUCE THE FITTING SOLUTION
SITUATION
QUESTIONS
HYPOTHESIS
PROOF AND ACTION
ALTERNATIVES
![Page 24: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/24.jpg)
Select a model to increase sale for lower brand hair care products that would be most profitable to the company at the same time maintaining and enhancing the professional hair care brands.
![Page 25: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/25.jpg)
1. Which promotion strategy to incorporate keeping in mind the cost to the company and its brand equity.2. Since consumers are not brand loyal, so how to effectively differentiate the promotion strategy from other major brands so as to get at least the estimated sales as predicted.
![Page 26: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/26.jpg)
BOOTS TARGET MARKET
Current Boots customers and purchasers of mass market brands.
![Page 27: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/27.jpg)
Since Boots primary objective is to trade up consumers from lower value brands and to drive sales volume, while retaining or building brand equity.
So, I believe the best promotion strategy would be “Get 3 for price of 2”.
![Page 28: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/28.jpg)
The reason behind choosing the above strategy is….
![Page 29: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/29.jpg)
REASON 1:-
Since it involves maximum increase in the total sale viz. 300%, which is our primary aim.
![Page 30: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/30.jpg)
REASON 2:-Since the technology to implement this strategy is with few or no other company, hence it would be unique as customer will be able to differentiate it from other competitors.
![Page 31: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/31.jpg)
REASON 3:-Second aim was to maintain or enhance the brand equity, this will enhance using the above strategy since we are using sales promotion for all value brands and with this the customer inflow is increasing and hence automatically the incoming new customers(apart from regular boots customers) will try its premium products and since the products are better than any other product in market due to its professionalized manufacturing process thus will lead to a satisfy or even a happy customer and people have value for their money and hence will increase brand equity and its professional hair care products will penetrate into the lower income market too.
![Page 32: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/32.jpg)
REASON 4:-
Cost : With this strategy there will be no increase in cost, nothing from packaging to manufacturing new samples as gifts.
![Page 33: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/33.jpg)
ANALYZING ALTERNATIVES
![Page 34: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/34.jpg)
=> Although 170% increase in sale, but 93% of product price would be spent in offering sample product as gift along with the purchase.
=> Since above strategy incur more costs with lesser sales and above that offering competitors equal opportunity to adopt the model thus diluting the differentiating itself strategy. So, this strategy is less likely to be adopted.
![Page 35: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/35.jpg)
=> This strategy is comparatively good since it ensures customer to buy more than one product hence increase sale. => But, since it offers a 50p off on the same product, so in that way no customer would be inclined to buy two bottles of the same product at a price of 1.5 of original cost of 1 bottle or 3 bottles at a cost of 2 bottles, which is equivalent to the first strategy but more sales and offering variation in products thus more alluring to the customers.=> Above all this model is mostly used by other competitors too, thus is less likely to be adopted.
![Page 36: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/36.jpg)
AnalysisAlternatives 3 for 2 GWP One pack
couponCost/bottle [£] 1.4 1.4 1.4Estimated sales/day
300 170 150
Promotional cost/unit
Production cost Production cost + sample cost
Production cost + discount cost
Promotional cost/unit [£]
1.4 2.33 1.9
Total cost [£] 420 396.1 285Total revenue [£] 600 340 300
Net profit [£] 180 -56.1 15 all calculations for one day
![Page 37: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/37.jpg)
3 FOR 2 GWP 50P OFF0
50
100
150
200
250
300
350Better Visual Analysis
sales during thepromotional period = % of sales that would have occurredwithout the promotion.
![Page 38: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/38.jpg)
CONCLUSION
FROM THE CASE ANALYSIS I WOULD SAY THAT THE “3 FOR 2” WAS A BETTER STRATEGIC PLAN BY BOOTS FOR THE PRODUCT GROWTH & DEVELOPMENT.
![Page 39: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/39.jpg)
Thank you
![Page 40: Boots: Hair care sales promotion](https://reader034.vdocuments.site/reader034/viewer/2022042722/58a5a48f1a28ab1a628b49af/html5/thumbnails/40.jpg)
DISCLAIMER
Created By Tanmay Garg, NIT Surat, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow