Boots ± Hair Care Sales Promotion

Abhishek Saha Arnab Chowdhury Jeevitha P R Solomon Dheeraj Kalyan VBH Manish Anand Saurabh S Yadav

Nurofen ‡ New Services ± Boots Opticians (1987) ‡ Boots Healthcare International (1991) ‡ Product ± Retail products of Premium Hair Specialists . Clearasil. Personal Care ‡ 75.Background ‡ Boots ± A well known. retail name in the UK ‡ Into Health. Beauty products.000 employees in 130 countries (2004) ‡ Brands ± Strepsils.

Sales Promotion Objectives ‡ Timeframe ± Christmas Season ‡ Drive Sales Volumes ‡ µTrade-up¶ customers from lower value brands ‡ Retaining and Building brand equity .

UK Hair Care Market ‡ Highly fragmented ± 60 major hair care brands ‡ No brand had more than 9% market share ‡ Severe price competition ‡ Volume growth higher than value growth ‡ Medium ± High involvement product ‡ Significant price discounting via Promotional activity foreseeable .

Pioneer in promotions Alberto-Culver Revolutionized Ad-slots Increased product base by Global acquisitions Wide product-range Product Retailers Tesco.Major Competitors P&G 8. Morrisons ± Traditional Supermarket Superdrug ± Value Retail .4% Market Share Leading Brand: Pantene High Consumer Awareness L¶Oreal 5% Market Share Portfolio of over 500 brands and 2000 prod. Sainsbury¶s.

Gentle Shampoos 80¶s Detangling 90¶s ± Shiny Hair ‡ Main purchasers ± Fashion Conscious Women (25-30 Age Group) ‡ Most Boost customers bought Basic and Premium brands ‡ Gender/ Occasion based usage .Consumer Trends 70¶s .

) purchase .Promotion Alternatives Christmas Promotional Activities 3 for 2 Gift with On-Pack Coupon Purchase The item with the 50p off on minimum price An existing products which the would be the free sample would be customer would one (competitors bundled along with be able to redeem didn¶t have POS the regular immediately tech.

3 for the price of 2 Pros Consumers could combine any items of their choice Cons Choice of free item limited to the same brand and not the Brand House Boots had the Point-ofSales technology to implement it Skeptical customers would think that Boots is trying to µpush¶ its stocks Estimated Sales increase is 300% of Prepromotions Price Sensitive consumers would prefer a price discount instead of µin kind¶ Incentive for Bulk-buying customers .

Gift with Purchase Pros No additional designing. packaging cost Cons No actual µmonetary¶ savings Estimated 40% sales to Boots shoppers who would not have otherwise purchased a hair-care product Creates excitement among customers regarding the µgift¶ Discerning buyers would not be able to choose their gifts Skeptical customers would think that Boots is trying to µpush¶ its stocks Incentive for Bulk-buying customers .

.On Pack Coupon Pros Actual savings in monetary terms for the price sensitive consumer Cons No differentiation with competitors Estimated high usage of coupons as customers would indulge in holiday season shopping anyway Consumers need to remember to carry the coupons with them for purchase Time-tested and easy to implement ± no µhi-tech¶ implementation reqd.

Post sales promotion (for premium products) Impact on variables 3 for 2 GWP On pack coupon % Increase in Revenues 100% 70% 50% % Increase in Profits -50% -29% 3% % of new customer acquisition 60% 40% 50% Impact on Brand Equity Highly Negative Partially Negative Highly Negative .

Post sales promotion (for mass market products) Impact on variables 3 for 2 GWP On pack coupon % Increase in Revenues 100% 70% 100% % Increase in Profits -200% -236% -100% % of new customer accquisition 60% 40% 50% Impact on Brand Equity Little/No effect No effect Little/No effect .

Open to Questions .

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