BOOTS:HAIR-CARE SALES PROMOTION

CASE ANALYSIS

OUR STORY STARTS WITH OUR HERO

PLANNING HIS SALES PROMOTION STRATEGY

FOR A LINE OF PROFESSIONAL

HAIR-CARE PRODUCTS AT BOOTS

WHO IS OUR HERO??

DAVE ROBINSON

WHAT IS BOOTS

BOOTS UK LIMITED TRADING AS BOOTS,

IS A PHARMACY CHAIN IN THE UNITED KINGDOM AND IRELAND,

WITH OUTLETS IN MOST HIGH STREETS, SHOPPING CENTRES AND

AIRPORT TERMINALS

ABOUT THE FIRM

EMPLOYED AROUND 75,000 PEOPLE

OPERATED IN 130 COUNTRIES WORLDWIDE

ESTABLISHED IN 1883

LETS JUMP INTO OUR HERO’S SITUATION AND HAVE SOME FUNANALYSING THE CASE

WHAT IS THE SITUATION?

SELECTING ONE AMONG THE

THREE PROMOTIONAL ALTERNARIVES

3 FOR THE PRICE OF 2 GIFT WITH PURCHASE 50 % OFF

MORE DETAILS ABOUT THE SITUATION

COMPETITORS

CUSTOMER ANALYSIS

FIRM INITIATIVES

MARKET ANALYSIS

MORE THAN 60 BRANDS

NO BRAND HAS MORE THAN 9 % OF MARKET SHARE

SALES DIRECTLY PROPORTIONAL TO ADVERTISEMENTS

OVER EMPHASIS ON PROMOTIONS

ANALYSIS

LACK OF BRAND LOYALITY

CHANGING CUSTOMER BEHAVIOUR

CELEBRITY ENDORSEMENTS

CREATE AWARENESS AND EMOTIONAL ATTACHMENT BETWEENCONSUMERS AND THE BRAND

ADVANTAGES AND DISADVANTAGES OF 3 ALTERNATIVES

3 FOR THE PRICE OF 2ADVANTAGES

SALES ARE ESTIMATED TO INCREASEBY 300%

3 FOR THE PRICE OF 2ADVANTAGES

60% OF SALES WOULD BE CUSTOMERS WHO WOULD NOT HAVE PURCHASED A HAIRCARE

3 FOR THE PRICE OF 2ADVANTAGES

COMPITITORS DON’T HAVE RESOURCES

TO INSTANTLY COPY THIS STRATEGY

3 FOR THE PRICE OF 2DISADVANTAGES

LOOSING BRAND EQUITY

3 FOR THE PRICE OF 2DISADVANTAGES

EFFECTS LONG TERM SALES FOR ENDORSERS

GIFT WITH PURCHASEADVANTAGES

SALES ARE ESTIMATED TO INCREASEBY 170%

GIFT WITH PURCHASEADVANTAGES

40% OF SALES WOULD BE CUSTOMERS WHO WOULD NOT HAVE PURCHASED A HAIRCARE

GIFT WITH PURCHASEDISADVANTAGES

WOULD COST APPROXIMATELY 90% PER UNIT FOR THE PRODUCT PLUS 3% PER UNIT TO SECURETHE SAMPLE

GIFT WITH PURCHASEDISADVANTAGES

CAN BE COPIED BY OTHER RETAILERS EASILY

50% OFFADVANTAGES

SALES ARE ESTIMATED TO INCREASEBY 150%

50% OFFADVANTAGES

50% OF SALES WOULD BE CUSTOMERS WHO WOULD NOT HAVE PURCHASED A HAIRCARE

50% OFFDISADVANTAGES

EFFECTS BRAND EQUITY AND LONG TERM SALES

FOR THE FIRM AND ENDORSERS

CONCLUSION

3 FOR 2 IS THE BEST STRATEGY TO IMPLEMENT

DISCLAIMAR Created by S.Pavan Krishna, IIT

Madras, During a marketing management internship by

Prof.Sameer Mathur, IIM Lucknow.