BOOTS HAIR CARE SALES SOLUTION

CONTENTS• Objectives• Introduction• Major Competitors• Situation• Promotion Strategies• Proofs and Calculation• The Fourth Option• Conclusion • Summary

OBJECTIVES

• To increase sales volumes for hair care products

• Build brand equity

• To gain the market share

• Considering competitors in Hair Care products and

Retail Stores

• Analyzing different methods of sales promotion

1.

INTRODUCTION 2.

• Best known and respected retail names in United

Kingdom

• Part in other fields like Boots Optician, Boots for

Men, Dentistry, Chiropody etc.

• Boots also had international sales and marketing

operations

• It employees 75,000 people from 130 countries.

Contd…

“Boots and Company Limited”

has transformed into

“Boots Healthcare International”.

TYPES OF BRANDS IN HAIR CARE PRODUCT CATEGORY

PROFESSIONAL BRANDS

•Available in few specific salons and developed by professional hair dressers.

MASS MARKET BRANDS

•It includes brands like L’Oreal etc. and mass marketing is their main aim

BOOT’S ENTRY IN MARKET

• Boots saw an opportunity to be the retail expert in

healthcare category.

• No celebrity endorsed products were available in the

market.

• Boots cultivated relationship with hairdressers and

manufactured the products.

• They paid per unit licensing fee to use hairdresser’s

brand name.

MAJOR COMPETITORS

HAIR CARE PRODUCT CATEGORY

– PROCTER & GAMBLE

– ALBERTO CULVER

– L’Oreal

RETAIL STORE CATEGORY

– TESCO

– SAINBURY

– SUPERDRUG

3.

SITUATION

• Current Boots customers and existing purchasers

were the primary targets.

• No media advertising budget was allocated.

• Signage on 400 Boots store to promote the offer.

• Pre-promotional price £3.99 with 40% retailer

margins on premium brands.

4.

CHRISTMAS SALEPROMOTION STRATEGY???

HOW TO MAXIMISE PROFIT……??

WHAT TO DO… ??

PROMOTION STRATEGIES 5.

• 3 FOR 2

• GIFT WITH PURCHASE (GWP)

• ON PACK COUPON (LIKE 50% OFF)

“3 For 2”

• Consumer can get 3 items for a regular price of 2.

• Sales of unusual products increase.

• Sales would increase up to 300%.

• 60% of the customers would be promotional buyers.

• Competitors did not yet have the technology at point

of sale to imitate this.

“GIFT WITH PURCHASE”

• Free product sample with the given product at

regular price.

• Increase in sales up to 170%.

• 40% would be the promotional buyers.

• Promotion of two products at a time.

• Stock clearance of products with low sales.

“ ON PACK COUPONS ”

• Consumer would be able to redeem the product

during store visit.

• Sales would increase up to 150%.

• 50% of the customers would be promotional buyers.

• Creates multiple visits for a single customer.

Most Preferable – “ 3 For 2”

PROOFS AND CALCULATION 6.

• Retail Selling Price(RSP) - £3.99

• Cost Price = Retail Selling Price * [1 - (40/100)]

Cost Price(CP) = £3.99 * [1 - (40/100)]

Cost Price = £2.39

• Profit = [2 * (RSP)] – [3 * CP]

= [2 * 3.99] – [3 * 2.39]

= £ 0.81 per sale

= £ 243 for 300 units.

(Maximum compared to other strategies)

THE FOURTH OPTION 7.

The Boots should give a group of products(trial

pouches) with 2 Product bought at their regular

prices.

CONCLUSION 8.

• It cannot be imitated by competitors.

• It helps Boots company to push its not selling brand.

• It boosts sales volume and increase their brand

consumption.

• It captures a steady market share.

• It helps getting their product out there.

SUMMARY 9.

• Introduction to Company

• Objectives of sales promotion

• Promotion techniques

• Analyzing the alternatives

• “3 For 2” Strategy

• The Fourth Option

DISCLAIMER Created by Harsh Mansuriya,

GCET, during a Marketing Management Internship under

Prof. Sameer Mathur, IIM Lucknow.