Boots: Hair care sales Promotion. Case study

Hair Care Sales

PromotionCase Study

Company Profile

PharmaceuticalBeauty

Healthcare John Boot

1849FOUNDED IN

HEADQUARTERS IN NOTTINGHAM, UNITED

KINGDOM

Dave Robinson, director ofpersonalization in BOOTS is in a dilemma !!!

WHICH

ONE TO

CHOOSE ?

Analyze target customer needs and behavior

Check for competitors

Propose a solution

No properbrand differentiation

• Product innovation• Strong customer loyalty• Strong brand image• Offers multiple products• Increased

promotionalspending

Broad range of products

• Less stores• Less professional

products

• Innovation• High Quality

products• Effective

Distributionstrategies

Very expensive products

2.Focus on market differentiation.

1.Focus on increasing brand awareness.

• Purchase 3 products of the same brand & Get the cheapest one free!!• It was estimated that the sales per day would increase to 300% of

the pre-promotion sales.• The company had a competitive advantage as the competitors lacked

the technology to imitate this promotion.

• Redeem the 50p off coupon on your first visit to the store.• It was expected that the sales will increase to 150 % of the non

promotion sales.• The competitors used different promotion methods, therefore the

company had a competitive advantage.

• In this strategy, a productsample was given as a gift with any regular purchase

• Estimated sales were 170%of the pre-promotion sales.

FOR THE

What’s that?

• Situation• Question• Hypothesis• Proof &

Action• Alternatives

To select the best profitable sales promotion strategy for

the company.

The best promotion strategy for boots will be “3 for 2”

ACTION

Maximum return

Strategy not easy to

There are

L ERNATIVESHE

NALYZING

Gives 150 % increase in sales whichis less than the estimated 300%.

Strategy adopted by it’s competitors. As compared to the ‘ 3 for 2’ strategy,

it doesn't provide variation in products.

Cost intensive for the company, since givinggifts will result in additional expenses of thatproduct.

Offers 170% increase in sales, which is lessthan ‘3 for 2’ strategy.

Easy to imitate for it’s competitors

The Best Strategy for the company is ‘3 for 2’.

• Boots: Company Profile

• Products

• Company’s target

• Competitors

• Case Analysis Process.

Situation

Questions

Hypothesis

Proof & Action

Analyzing Alternatives

• Result

Created By Manu Pant, Symbiosis School of Economics, Pune, during a marketing internship under Prof. Sameer Mathur, IIM Lucknow.