2

BOOTS – HAIR CARE SALES PROMOTION

What is Boots

RETAIL AND MANUFACTURING …

• Established in 1883

• 75,000 Employers

• 130 countries worldwide

• Increase sales volumes

• Target consumers from

lower-value brands

• Build Brand Equity

What is the current situation ?

3 for price of 2

Gift With Purchase

On Pack Coupon

Major Market competitors

• Shampoos, Hair Conditioners, Styling Products

• Acquired Richardson-Vicks in 1985

• Best selling hair-care brand by 1995

• 8.4% UK Hair-care market share in 2001

• Top Brands: Pantene, Head & Shoulders, Clairol, PERT

plus

• Hair care, Skin care, Home care• Shampoos, Conditioners, Styling Agents • Multi-Billion Dollar Company • 2000 store locations • Top Brands: St. Ives, VO5, Consort hair care for

men, and FDS etc.

• Hair color, permanents, styling aids, body

and skincare, cleansers, and fragrances

• Markets 500 brands and 2000 products

• 5% share of the U.K. hair care market in

2001

• Extensive advertising

Retail Competitors

• Largest Supermarket chain in UK

• 1,800 stores and 45,000

employees

• Traditional

supermarket

items and

online

shopping

• 2nd Largest Supermarket chain in UK • 700 stores

• Offers wide product assortments- CDs, books, gifts, banking services, and mobile phones

• Provides quality products at the same low price across all of its UK stores

• 400 stores• Taken over Safeway in UK in 2004

• Started in 1966• One of largest health and beauty retailers

• 700 Stores, 10000 Products

• Product ranges from essentials to

premium

So how did Boots compete ?

• Not very loyal to the brands

• Change in buying behavior led to preferences

• Difficult to differentiate the brands

• Varied choices: packaging, advertising, price,

ingredients, consistency, fragrance

• Prefer both basic and premium brands

• Target consumers for Promotion

• No product size variation

• No budget for media advertising

• More flyers and signages

• Effective pricing and margins

3 for price of 2

On Pack Coupon

Gift With Purchase

Promotion Methods

• *All 3 from same brand

• **Least expensive one is Free Item

• Not many could implement this offer

• Sales Per Day Increase: 300%

• Contribute 60% consumers

• Sample Product given

with regular purchase

• Sales Increase with this

promotion: 170%

• 40% sales to boot

shoppers

50p off option- Conservative Approach

Redeem the coupon

Sales Increase: 150% of Non-promotion sales

50% sales from Boots Customers

Efficient Strategy : “3 for price of 2”

• About the Company Boots

• Define the case situation

• Major Market Competitors

• Retail Competitors

• Boots Consumer Analysis

• Promotion Strategy

• Sales Promotion Methods

DISCLAIMER

These slides were done by B V Dinesh, IIT Hyderabad, as part of an Internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.