HAIR-CARE SALES PROMOTIONHAIR-CARE SALES PROMOTION

A PRESENTATION BYSUNKISHALA CHAITANYA NIT JAMSHEDPUR

CONTENTS: COMPANY DETAILS

SITUATION

QUESTION

HYPOTHESIS

PROOF AND ACTION

ALTERNATIVES

ABOUT COMPANYIndustry Pharmaceuticals

HealthcareBeautyPhotography

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 Ireland, till July 2016

Brands No. 7 and Seventeen – MakeupSoltan – Sun creamAlmus – Generic drugs

Number of employees 70,000 (UK)1,900 (Ireland)

COMPANY HISTORY

• John Boot first established it as ‘ The British and American Botanic Establishment’ in 1849 to provide physical comfort to needy.

• In 1860 John Boot son established it as ‘Boot and Company Limited’ with himself as chairman and managing director.

• Motto-Large , Best and Cheapest.

Increase its sales volume by promotions

PATROGONIST OF HAIR-CARE SALES PROMOTION OF BOOTS

DAVE ROBINSON

MASS-MARKET BRAND COMPETITORS

COMPETITIVE RETAILERS

What are the decision options ??

3 for 2

GWP (Gift With Purchase)

On pack coupon (50p off)

“3 FOR 2”:

• sales per day would increase to 300 % of pre-promotion sales during the deal period.

GWP (Gift With Purchase):

• sales during the promotional period would be 170 % of sales that would have occurred without the promotion.

On-pack Coupon (50p off):

o Sales would increase to 150 per cent of non-promotion sales

‘3 for 2’

PROOF AND ACTIONS

PROFIT FOR EACH PRODUCT ANALYSISTYPE BRANDS COST TO

COSTUMER

COST TO RETAILERAfter 40% retail margin

PROFIT ON TYPE

SALESHIKE

NEW CUSTO-MER SALES

TOTAL PROFIT

RANK

3 FOR 2 PREMIUM

MASS-MARKET

2*3.99=7.98

2 * 2=4

3*2.394=7.182

3*1.5 = 4.5

0.798

-0.5300% 60%

2391

GWP(GIFT WITH PURCHASE)

PREMIUM

MASS-MARKET

3.99

2

2.394+0.9+0.03=3.324

1.5+0.9+0.03=2.43

. 666

-0.43

170% 40%113.22

2

On-pack Coupon(50p off)

PREMIUM

MASS-MARKET

3.99-0.5=3.49

2 – 0.5= 1.5

2.394+0.5=2.894

1.5+0.5=2

.596

-0.5150% 50%

89.43

According to me , the best option to adopt in the promotional strategy is “ 3 for 2 “.

“3 for 2” strategy has highest sales volumes & profit compare to other strategies.

“3 for 2” strategy has also highest new consumers visited to BOOTS during promotional period.

Greatest weakness of my HYPOTHESIS is the profit is considered only with respect to premium brands.

STRONGEST

??

The strongest alternative to my hypothesis is “ GWP ” because its loss with respect to mass market brands is low compared to other two.

Profit with this strategy also reasonable.

New customers visiting to BOOTS is also reasonable.

COMPANY DETAILS

SITUATION

QUESTION

HYPOTHESIS

PROOF AND ACTION

ALTERNATIVES

Created by SUNKISHALA CHAITANYA,NIT JAMSHEDPUR , during a Marketing Internship under Prof . SAMEER MATHUR,IIM LUCKNOW. (See www.IIMInternship.com)