Boots: Hair care sales Promotion. Case study
Transcript of 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.