Boots: Hair Care Sales Presentation
-
Upload
rishab-dev-bhaskar -
Category
Education
-
view
79 -
download
2
Transcript of Boots: Hair Care Sales Presentation
![Page 1: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/1.jpg)
HAIR CARE SALES PROMOTION
ACASESTUDY
![Page 2: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/2.jpg)
?
?
![Page 3: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/3.jpg)
• Founded in 1849 by Mr. JohnBoot
• In Nottingham• Mary Boot -> 1860 to 1877
• Jesse Boot -> 1877
• Established in 1883
![Page 4: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/4.jpg)
![Page 5: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/5.jpg)
• Goodbrandimage• “LargestBestCheapest”• Sales>2.5Million(By1913)• 75,000+Employees(By
2004)• 130Countries(By2004)• Largevarietyofproducts• PopularbrandslikeStrepsils,
Nurofen,Clearsil etc
![Page 6: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/6.jpg)
![Page 7: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/7.jpg)
“TOSELECTAPROMOTIONSCHEMEFORBOOSTINGCHRISTMASSALES”
![Page 8: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/8.jpg)
![Page 9: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/9.jpg)
THREESCHEMES:
• Get“3for2”
• GiftWithPurchase(GWP)
• OnPackCoupon
![Page 10: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/10.jpg)
![Page 11: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/11.jpg)
LET’SNOTFORGET!
![Page 12: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/12.jpg)
MARKETRESEARCH!!!
![Page 13: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/13.jpg)
![Page 14: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/14.jpg)
GoodsCompetitors:• Pantene(Proctor&Gamble)• L’oreal• AlbertoCulver
![Page 15: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/15.jpg)
RetailCompetitors:• TESCO• Sainsbury• Morrisons• Superdrug
![Page 16: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/16.jpg)
COMPARINGCOMPETITORPRICING
(Source:HarvardCaseStudy:BOOTSHAIRCARESALESPROMOTION)
![Page 17: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/17.jpg)
WHATNEXT?
![Page 18: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/18.jpg)
ANALYZINGPROMOTIONOPTIONS
![Page 19: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/19.jpg)
3FOR2:• Select3items,getthecheapestone
free• Increaseinsales:300%ofPre
promotion• 60%purchasefromcustomerswho
wouldnotpurchaseregularly.
• Disadvantage:Couldmakethebrandlookcheap,andcoulddilutebrandequity
![Page 20: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/20.jpg)
GIFTWITHPURCHASE:• Attachingsamplesizeofotherproduct
fromsamebrand• Increaseinsales:170%ofPre
promotion• 40%purchasefromcustomerswho
wouldnotpurchaseregularly.
• Disadvantage:Additionalcostforsample
![Page 21: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/21.jpg)
ONPACKCOUPON:• Givingasmallcouponworth50p
redeemableduringtheircurrentstorevisit
• Increaseinsales:150%ofPrepromotion
• 50%purchasefromcustomerswhowouldnotpurchaseregularly.
• Disadvantage:Conservativeapproach,andbrandswouldbeusingthisorGWPastheirmajorpurchase.
![Page 22: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/22.jpg)
COSTvsPROFIT(ForEachoftheSchemes)
![Page 23: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/23.jpg)
BASICANALYSIS:• PrePromotionalPrice(PPP):£3.99(Assume£4)• RetailMargin:40%
• ActualcosttoManufacturer:60%ofPPP:£2.4
• Manufacturer’sMargin:8%-12%(Assume10%)
• ActualProductionCost(x)• EquationfromData:(10%ofx)+x=£2.4
• Productioncost(x):£2.1818
![Page 24: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/24.jpg)
Analysing“3for2”:• Boostinsales:300%(IncludingfreeItem)• CostPriceofallItems:300x2.18(No.XManufacturingCost)
£654• SellingPriceofallItems:200x4(£800)• ProfitGenerated:SellingPrice(SP)– CostPrice(CP)
:£800- £654:£146
• ProfitPerBottle:Profit/NoOfBottles:£146/300:£0.48666
![Page 25: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/25.jpg)
Analysing“GiftWithPurchase”:• Boostinsales:170%(IncludingfreeItem)• CostPriceofallItems:170x(2.18+0.90+0.03)
£528.7(Costofmanufacturingandcostofattachingsample)
• SellingPriceofallItems:170x4(£680)• ProfitGenerated:SellingPrice(SP)– CostPrice(CP)
:£680- £528.7:£151.3
• ProfitPerBottle:Profit/NoOfBottles:£151.3/170:£0.89
![Page 26: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/26.jpg)
Analysing“OnPackCoupon”:• Boostinsales:150%(IncludingfreeItem)• CostPriceofallItems:150x(2.18)
£327• SellingPriceofallItems:150x(4- 0.5)(£525)
(0.5reductiononSellingpriceforcouponcompensation)
• ProfitGenerated:SellingPrice(SP)– CostPrice(CP):£525- £327:£198
• ProfitPerBottle:Profit/NoOfBottles:£198/150:£1.32
![Page 27: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/27.jpg)
Inferences:
• MaximumProfit/Bottle:“OnPackCoupon”(£1.32)
• MaximumNoofBottlesSold:“3for2”(300(200sold))
• MaximumNoofNewCustomers:“3for2”(60%)
![Page 28: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/28.jpg)
BeforeWeDrawa
![Page 29: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/29.jpg)
What
WASour
ACTUALGOAL?
![Page 30: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/30.jpg)
MAJORGOALS:
1. SecureMarketLeadership
2. EnsurePromotionsarePROFITABLE
3. MaintainProfessionalHairCareBrandValue
![Page 31: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/31.jpg)
Also,
DON’TFORGET
![Page 32: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/32.jpg)
KEYPARAMETER:
(LowLevelsofStockpiling)
![Page 33: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/33.jpg)
SO,
WINDINGUPOurPresentation,
![Page 34: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/34.jpg)
BESTSOLUTION:“3for2”• Sincethecompany’smaingoalwastodrivesalesandgain
marketleadership• Itmaximizedtheamountofnonregularcustomerspurchase
(By60%)• Stockswouldgetoversoonaswell,aseachcustomerwould
buy3products,wherehe/shewouldusuallybuyone.• Thefactthatthewholesystemoflowestitemfreecouldnot
beimitatedbyothercustomerswasahugebonus• Thissolutionmaximizesbrandequityaswell,asitisdriving
moresalesaswell.
![Page 35: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/35.jpg)
BUTREMEMBER:THEREISNOTHINGABSOLUTELYRIGHTINMARKETING
![Page 36: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/36.jpg)
ALTERNATIVESOLUTION:“OnPackCoupon”• Onpackcouponhasaperfectmixofthetwogoalswewant• Itmaximizesprofit(Actually,Thebestoptionofthethree)• Increasesthepercentageofnonregularcustomers(By50%)
(Whichisbasicallythesecondbestoption)• DoesnotdiluteBrandImage,asthesamepromotionismost
likelybeingofferedbyotherbrandsaswell• IncaseofBOOTSproductsbeingofferedinothershops,the
schemecouldalsobeappliedthere(Unlikethe“3for2”option)
• Comparingthistothe“3for2”offer,thisisaconservativeapproach.
![Page 37: Boots: Hair Care Sales Presentation](https://reader031.fdocuments.us/reader031/viewer/2022022411/58ec51461a28ab7c048b46b5/html5/thumbnails/37.jpg)
TheseslideswerecreatedbyRishab DevBhaskar,undertheguidanceofProf.SameerMathur,IIMLucknowasapartofaninternship.