BOOTS: HAIR CARE SALES PROMOTIONHarvard Business School Case

General Information about BOOTS

Present Situation of BOOTS

Haircare Industry: General Overview

BIG CONCEPTSales of the Brands were directly proportional to Advertisements Expenditure.

Customers Mind Space: UK Hair Care Market

▸ Not Brand Loyal▸ Changing preferences of

consumers.▸ Difficult to identify differences in

multiple brands.▸ Lucrative market share of

professional brands.

Competitive Strategy: BOOTS

▸ Celebrity Endorsements▸ Collaboration with celebrity Hair

Dressers.▸ Design new formulations with help

of celebrity Hair Dressers.

Customers Mind Space: UK Hair Care Market

▸ Not Brand Loyal▸ Changing preferences of

consumers.▸ Difficult to identify differences in

multiple brands.▸ Lucrative market share of

professional brands.

1.TRANSITION HEADLINE

Let’s start with the first set of

slides

Let’s start with the first set of

slides

1. Drive Sale Volumes

Let’s start with the first set of

slides

1. Drive Sale Volumes2. Increase Market Share

Let’s start with the first set of

slides

3. Increase Brand Equity

Decisions Made

1.Target current BOOT customers.

2.Target exisitng purchasers of mass-market brand.

3.No media advertising budget. Flyers will be distributed by stores

4.Product placing at end of aisle or mid-aisle

BOOTS: Product Specifications

▸ Average Bottle Size: 250ml▸ Pre-promotional price: ₤ 3.99▸ Premium Brand retail margin: 40%▸ Mass-market brands retail price: ₤

2 and retail margin: 25%

Different Sales Strategies

1. 3 for 2 Strategy

▸ All three items should be of the same brand.

▸ Least expensive among them would be free.

▸ Competitors do not have this technology to implicate the same strategy.

▸ Increase in sales: 300%▸ Increase in customer database:

60%

2. Gift with Purchase

▸ Free product sample along with regular purchase.

▸ Sample addition cost: 93p per unit▸ Increase in sales: 170%▸ Increase in customer database:

40%

3. On-pack Coupon (50p off)

▸ Redeem coupon during current store visit.

▸ Increase in sales: 150%▸ Increase in customer database:

50%

Analysis of Different Sales Strategies

Assumption100 customers enter the BOOTS store per day, before the promotion period begins.

Let’s start with the first set of

slides

Premium Products

1. 3 for 2 Strategy

▸ Cost of Production: £ 2.39▸ Profit over 3 bottles: £ 0.81▸ Number of sales: 300 per day▸ Profit over sales per day: £ 243▸ Profit over December: £ 7533

2. Gift with Purchase

▸ Cost of Production: £ 3.32▸ Profit over single sale: £ 0.67▸ Number of sales: 170 per day▸ Profit over sales per day: £ 113.9▸ Profit over December: £ 3530.9

3. On-pack Coupon (50p off)

▸ Cost of Production: £ 3.32▸ Profit over single sale: £ 1.1▸ Number of sales: 150 per day▸ Profit over sales per day: £ 165▸ Profit over December: £ 5115

Let’s start with the first set of

slides

Best Strategy:

7,533£Total Profit post sales.

60%New Customers.

300%Increase in sales TOTAL

SUCCESS!

Mass Market Products

1. 3 for 2 Strategy

▸ Cost of Production: £ 1.5▸ Profit over 3 bottles: -£ 0.5▸ Number of sales: 300 per day

This strategy results in a huge loss to the company. Therefore no further analysis of this strategy

2. Gift with Purchase

▸ Cost of Production: £ 1.5▸ Profit over single sale: -£ 0.43▸ Number of sales: 170 per day

This strategy results in a huge loss to the company. Therefore no further analysis of this strategy.

3. On-pack Coupon (50p off)

▸ Cost of Production: £ 1.5▸ Profit over single sale: £ 0▸ Number of sales: 150 per day

This strategy results in no profit no loss to the company.Therefore no further analysis of this strategy.

Alternatives

1.One major weakness being neglecting huge losses from mass-market products2.One important alternative which can be taken is using the On-pack strategy. This ensures No LOSS!

SUMMARY

CREDITSSpecial thanks to all the people who made and released these awesome resources for free:

▸ Presentation template by SlidesCarnival▸ Photographs by Death to the Stock Photo▸ Wikipedia▸ Boots Official Website▸ Google Images▸ Marketing Management by Philip Kotler▸ Marketing Management Course by Udemy▸ HBR Business Case▸ CW London official website

HELLO!I am Sumit RajanStudent at BITS GoaYou can find me at @sumit.rajan3001

This presentation is a part of my work during an internship under Professor Sameer Mathur from IIM Lucknow.

THANKS!Any questions?You can find me at sumit.rajan3001@gmail.com