The document analyzes promotional strategies for Boots' new hair care line. It discusses the company background, competitor analysis, and three potential strategies: a "3 for 2" deal, giving a free product with purchase ("GWP"), and an on-pack coupon. Through calculating estimated sales and profits for each strategy, it hypothesizes that "3 for 2" would be most effective in driving volume while retaining brand equity. Calculations of monthly profits support this, showing "3 for 2" as the most profitable option. The conclusion recommends implementing "3 for 2" first to gain benefits and brand equity using Boots' technological expertise.

2. AGENDA:
• About the company
• Situation
• Analysis of situation
• Hypothesis
• Proof
• Conclusion
• Recap
• Disclaimer

5. THE COMPANY:
• It is a UK based company dealing in health, beauty and
pharmacy.
• Established in 1849 by JOHN BOOT
• After his death the company was named as BOOT and
Co. ltd. in 1883 and then Boots Pure Drug Company
ltd. in 1888.
• Later it was sold to American United Drug Company.
• After economic crisis it was returned to British hands.

6. • Boots is a professional hair care retailer
developed in collaboration with celebrity hair
dressers of UK.
• Robinson has to select one of the three promotional
strategies.
• His primary objective was to drive sales volumes and
trade up consumers from lower value brands while
retaining brand equity.

7. COMPETITOR ANALYSIS :
• Most major retailers
carried a variety of
professional and mass
market hair care products.
• The major competitors are
Tesco, Sainsbury’s and
Morrison.
• The major players in drug
retailers are Boots and
Superdrug.

8. DECISION OPTIONS
The three decision options given in the case are:
1. “3 FOR 2” : in this customers can buy 3 products at
the price of two.
2. “GWP”: in this customers will be given a product
sample free along with purchase.
3. On-pack Coupon(50p off) : 50p off any product
during the store visit.

9. POSSIBLE CRITERIA:
• Driving SALES & VOLUME in the current season.
• TRADE UP current consumers from low value
brands.
• Secure Market Leadership in hair care segment
ultimately.

11. “3 for 2”
According to me this might be the best
promotional strategy.

14. WHAT CAN BE INFERRED
From the previous table it can be inferred that :
• If 100 bottles were being sold before the
promotional scheme then after the scheme 300
bottles were sold.
• Similar interpretations can be applied for GWP
and On Coupon scheme.
• Hence overall profit can be increased.

15. PROOF OF HYPOTHESIS:
• The profit per product is 0.81£ in 3for 2 promotion scheme.
• Per day profit is 300* 0.81£ = 243£
• For total December 31 * 243£ = 7533£ (considering consumers will
go for premium products)
• Even if we consider there would be at least one mass product out of
three, the 300% increase in sales and 60% in consumer will offset
this.
• Moreover the firm has PIONEER TECHNOLOGY which stops the
competitors from copying the strategy and this proves to be
advantageous for Boots.

16. Contd…
• The profit per product is 0.67£ in GWP.
• Per day profit 30*0.67£= 113.9£
• Profit in total December 31*113.9£ =3531£
• In this case if more customers go for mass market
products the company will suffer losses.
• This strategy can easily be copied by competitors.

17. Contd.
• Profit per product 1.10£ in 50p off on – coupon redeem
scheme.
• Per day profit 300* 1.10£= 165£
• Profit in total December 31*165£= 5115£
• In this case even if customers go for mass product market,
the company will not suffer loss but the profits will be
decreased.
• This strategy can also be easily copied.

18. CONCLUSION
• According to the hypothesis 3 for 2 is the best strategy in
order to increase market sales.
• Hence after calculating estimated profits the schemes
should be applied in the following preference:
1. 3 FOR 2
2. 50p Off Coupon
3. GWP
With its technological expertise Boots should implement 3for
2 scheme in order to reap benefits and brand equity.

19. RECAP
• About the company
• Situation
• Analysis of situation
• Hypothesis
• Proof
• Conclusion

20. DISCLAIMER
The presentation has been created by Narayani
Pandey SRMSWCET Bareilly under the
guidance of Prof. Sameer Mathur IIM, Lucknow.