Case study on a hair-care company, Boots.

1. Boots Hair Care Sales Promotion
HARVARD BUSINESS SCHOOL CASE STUDY

5. PROBLEM STATEMENT

6. SELECT ONE OUT OF THREE PROMOTIONAL
ALTERNATIVES
 Get three for the price of two (3 for 2)
 Receive a gift with purchase
 On-pack coupon worth 50 pounds

7. Criteria For Decision Making
 Sales volumes should increase for its hair care
products.
 Attract consumers from the lower value brands.
 Build and retain the brand equity.
 Considering the competitors both in hair care products
and retail store.

9. Get three for the price of two (3 for 2)
Advantages:-
* Buyers would get 3 items for a regular price
buy of 2.
* Consumers could combine any three items
as they like & product with the least price would
be offered free.
*Estimation was that sales would increase
to 300 % of pre-promotional sales.

10. Disadvantages:-
*Premium products will lose brand
equity
* Clear cut indication of stock-clearing
strategy.

11. Receive a gift with purchase (GWP)
 Product sample would be given
free along with a regular purchase.
 Additional packing would be used
to pack the free sample along with
the existing one.
 Estimated sales would increase by
170% of the pre-promotional sales
 40 % of the customers would be
just promotional buyers

12. × This is a very generic
strategy used by most of
the retailers and can be
easily copied or imitated.
× Adding the sample would
cost approximately 90p per
unit for the product plus 3p
per unit extra to secure the
sample to the featured
product

13. On-pack coupon worth 50 pounds
 Customers would be able to
redeem their coupons during
their current store visit
 Sales are estimated to
increase by 150% of the pre-
promotional sales.
 Coupons would enable
multiple visits for a single
customer.

14. × This is a very common strategy
and can be easily imitated.
× Again this strategy is one of
the form of discounting which
can dilute the brand equity.
× It is more of a conservative
approach.
× The option has less estimated
sales growth as per market
research.

16. Adopt the first strategy: Get three for the price of
two (3 for 2)……… WHY GO FOR IT?
 Cannot be easily imitated by competitors
 Highest estimation of increase in sales (upto 300%) as per the
market research.
 Will help the company to push through the brands that are not
selling.
 Will attract consumers to go for the second or third product.
 Thus, it will drive the company’s sales volumes and increase their
market share.

18. Disclaimer
Created by Ankit Malhotra, SSCBS DU, during a
marketing internship by Prof. Sameer Mathur, IIM
Lucknow.