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BOOTS: Haircare
sales promotion
Boots
“Our mission is to become the world’s
leading pharmacy-led health and
beauty group”
Sales promotion
objectives
Attract consumers
from the lower value
brands
Build and retain the brand equity
Consider the competitors
both in hair care products
and retail stores
Promotional
Activities
3 for 2
GWP
On-pack coupon (50% off)
Major competitors of boots:
P&G.
Alberto culver: 2000 franchised store in us. St. ives, vo5, consort hair
care for men.
L’oreal: société française de teintures inoffensives pour cheveux.
500 brands and more than 2000 products.
It held more than 5% share of the U.K hair care market.
Retailer of similar category.
Tesco
Sainbury
Superdrug started in 1966. (700 stores in U.K).
It has attractive physical facilities.
3 for 2
Advantages Disadvantages
Consumer would get 3 items for a
regular price buy of 2
Would be perceived as a Stock
clearing strategy
Consumers could combine any 3 items
as they like e.g. shampoo, conditioner
and styling gel of same brand
Premium products would lose their
brand equity and may sound as some
cheap promotion
Most competitors did not have the
technology at the point of sale to
imitate this promotion
Product partners (Hair dressers) may
oppose this strategy for the dilution
of their brand equity
Estimation was that sales would
increase to 300 %
60% customers – promotional buyers
Receive agift with purchase (gwp)
Advantages Disadvantages
Product sample would be given free
along with a regular purchase
Adding the sample would cost
approx. 90p per unit for the product
plus 3p per unit extra to secure the
sample to the featured product
Estimated sales would increase by
170% of the pre-promotional sales
This is a very common startegy used
by most of the retailers and can be
easily imitated
40% of the customers would be just
promotional buyers
On pack coupon worth 50p
Advantages Disadvantages
Customers would be able to redeem
their coupons during their current
store visit
This is a very common strategy used
by most of the retailers and can be
easily imitated
Estimated sales would increase by
150% of the pre-promotional sales
Form of discounting which can dilute
the brand equity
50% of the customers would be just
promotional buyers
More of a conservative approach
Coupons would enable multiple
visits for a single customer
Less estimated sales growth as per
the market research
Quantitative analysis
Alternatives 3 For 2 GWP On Pack Coupon
All calculations are done for 1 day
Cost per bottle
(Pounds) 1.4 1.4 1.4
Estimated Sales for 1
Day 300 Units 170 Units 150 Units
Promoitonal Cost per
Unit Production cost
Production cost +
Sample cost
Production cost +
Discount cost
Promoitonal Cost per
Unit (Pounds) 1.4 2.33 1.9
Total Cost (Pounds) 420 396.1 285
Total Revenue
(Pounds) 600 340 300
Net Profit (Pounds) 180 -56.1 15
Presentation by
Jaghadeeshwaran R
Under the guidance of
Dr. Sameer Mathur

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Boots

  • 3. “Our mission is to become the world’s leading pharmacy-led health and beauty group”
  • 5. Attract consumers from the lower value brands
  • 6. Build and retain the brand equity
  • 7. Consider the competitors both in hair care products and retail stores
  • 10. GWP
  • 12. Major competitors of boots: P&G. Alberto culver: 2000 franchised store in us. St. ives, vo5, consort hair care for men. L’oreal: société française de teintures inoffensives pour cheveux. 500 brands and more than 2000 products. It held more than 5% share of the U.K hair care market.
  • 13. Retailer of similar category. Tesco Sainbury Superdrug started in 1966. (700 stores in U.K). It has attractive physical facilities.
  • 14. 3 for 2 Advantages Disadvantages Consumer would get 3 items for a regular price buy of 2 Would be perceived as a Stock clearing strategy Consumers could combine any 3 items as they like e.g. shampoo, conditioner and styling gel of same brand Premium products would lose their brand equity and may sound as some cheap promotion Most competitors did not have the technology at the point of sale to imitate this promotion Product partners (Hair dressers) may oppose this strategy for the dilution of their brand equity Estimation was that sales would increase to 300 % 60% customers – promotional buyers
  • 15. Receive agift with purchase (gwp) Advantages Disadvantages Product sample would be given free along with a regular purchase Adding the sample would cost approx. 90p per unit for the product plus 3p per unit extra to secure the sample to the featured product Estimated sales would increase by 170% of the pre-promotional sales This is a very common startegy used by most of the retailers and can be easily imitated 40% of the customers would be just promotional buyers
  • 16. On pack coupon worth 50p Advantages Disadvantages Customers would be able to redeem their coupons during their current store visit This is a very common strategy used by most of the retailers and can be easily imitated Estimated sales would increase by 150% of the pre-promotional sales Form of discounting which can dilute the brand equity 50% of the customers would be just promotional buyers More of a conservative approach Coupons would enable multiple visits for a single customer Less estimated sales growth as per the market research
  • 17. Quantitative analysis Alternatives 3 For 2 GWP On Pack Coupon All calculations are done for 1 day Cost per bottle (Pounds) 1.4 1.4 1.4 Estimated Sales for 1 Day 300 Units 170 Units 150 Units Promoitonal Cost per Unit Production cost Production cost + Sample cost Production cost + Discount cost Promoitonal Cost per Unit (Pounds) 1.4 2.33 1.9 Total Cost (Pounds) 420 396.1 285 Total Revenue (Pounds) 600 340 300 Net Profit (Pounds) 180 -56.1 15
  • 18. Presentation by Jaghadeeshwaran R Under the guidance of Dr. Sameer Mathur