Unveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptx
Boots hair care
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3. CaseStudy of boots salespromotion
• This case study is all about the sales promotion of
hair care products by boots stores in UK.
• It is analyzed by taking account into three
criterions. they are hair care products market,
retailer market competitors and three strategies
to choose one for having profit.
• In this case we have to study those three
strategies and decide which one is profitable to
boots as per their objective.
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14. NAME Description Specifications Market
Awareness
Toni & Guy
“At Toni & Guy we create wearable,
catwalk-led hairstyles for people who
want easy-care, trend-setting
hairstyles
- 250 salons in the
United
Kingdom Strong
Trevor Sorbie
showman of all hairdressers. His
pioneering techniques and cuts —
the Wedge, the Chop, and the
Scrunch are now part of everyday
salon parlance.
- Two salons in the
United
Kingdom
Medium
Lee Stafford
He is known for hairstyle and hair
care.
-three salons in the
United
Kingdom
Low
Professional Hair care Products Brand descriptions
15. NAME Description Specifications Market
Awareness
Charles
Worthington
One of the most influential creative
hairdressers and name is synonymous
with style innovation and success
-Five prestigious salons
tending to more
-Celebrity following on
both sides.
Medium
John Frieda
Entrepreneurial in spirit, global in
impact fuels company with inside track
on hot and new.
- Three salons in London,
two in New York and one
in Los Angeles.
- The product range is
Targeted
Strong
Nicky Clare A popular hairstylist to the stars from
film fashion and music
-Salons in London and
Manchester Medium
Umberto
Giannini
One of the most esteemed and
influential names in British
hairdressing. His company’s
philosophy is simple — creating
sexy, contemporary catwalk looks
within its salons alongside a salon
performance range
- Eight salons in the
United
Kingdom
Low
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18. Procter and Gamble
Hoffman-La Roche developed Pantene as a shampoo and
launched it in Europe in 1947 which refers o panthenol
Procter & Gamble acquired Richardson-Vicks in 1985, and in 1991, the product
was reformulated as the Pantene Pro-V (Pro-Vitamin) line and rolled out as a
global brand
By 1995, it became the best-selling hair-care brand in the world with
a lineup that included shampoos, conditioners and styling products for all
Different hair types
It held a 8.4 per cent share of the U.K. hair care market in 2001
19. ALBERTO-CULVER
Alberto-Culver’s acquisition of Sally Beauty Company in
1969 has grown from a handful of franchised stores to
over 2,000 store locations.
Alberto-Culver offered a variety of products for hair-care, skin-care and
Homecare . Some of its top brands included: St. Ives, VO5, Consort hair care for
men and FDS etc.
The company’s most famous claim to fame was when, in 1971, its founder,
Leonard Lavin, forced television networks to abandon their 60-second
commercials with the introduction of 30-second ones.
In the recent past, the company, in order to increase its product base, has
globally acquired diverse firms.
20. L’Oreal
L’Oréal began in 1907 when a young French Chemist, Eugene Schueller,
developed an innovative hair-color formula. He called his new perfectly safe hair
dye “Auréole.”
A few years later, via agents and consignments, they were distributed
in the United States, South America, Russia and the Far East.
The group marketed over 500 brands and more than 2,000 products in all
Sectors of the beauty business: hair color, permanents, styling aids, body and
Skincare , cleansers, and fragrances
It held a five per cent share of the U.K. hair care market in 2001.
21. HAIR CARE PRODUCTS RETAILERS
Retail involves the process of selling consumer
goods or services to customers through multiple channels of
distribution to earn profit.
The organization or person who do retailing is called Retailer.
In UK ,there exists a competition between these retailers as a
part of our case study.
23. BRIEF DISCUSSION ABOUT RETAILERS
• Tesco is the first leading store having more than 1800 stores and 45,000 employees.
• Sainsbury’s is having 700 stores and ranked second next to tesco.
• Both tesco and sainsbury’s include traditional super market items and online shopping as
well as CD’s,books,DVD’s etc.,
• Morrisons is also having 400 stores providing the best quality with the best rate.
24. • Superdrug is established in 1996.
• Superdrug had grown to become one of the largest health and
beauty retailers, with almost 700 stores in the United Kingdom.
• Superdrug is featured with 25% of the shop with pharmacy.
• Superdrug launched hundreds of private label products each year.
25. CONSUMERS PERSPECTIVE
• First, there was a general belief by U.K. consumers that changing shampoo
brands produced better results than continually using a single brand.
• Second, trends in buying behavior led to changing preferences . They are:
-70s consumers wanted shampoos that were gentle
-’80s saw a greater emphasis on detangling,
-’90s, shiny hair became more important
• Third , it was difficult for consumers to identify meaningful differences
between the various brands available in any given store.
26. BACK TO BOOTS SITUATION….
• Current Boots consumers and existing purchasers of mass-market
brands were the primary target for the promotion.
• No media advertising budget was allocated for this promotion, although it
would be highlighted in flyers distributed by the store.
• There would also be signage within the store to promote the offer, and
approximately 400 Boots stores would include signage visible on the
exterior of the store.
• Average pre promotional price of professional brands is £3.99 with retail
margins of forty percent.
• Average pre promotional price of mass marketing brands is £3.99 with
retail margins of about twenty five percent.
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28. LET US ANALYZE OUR ALTERNATIVES TO FIND OUT
WHICH GIVES THE BEST AMONG THE THREE???
“3 FOR 2”
“GWP (GIFT WITH PURCHASE)”
“ON-PACK COUPON (50P OFF)”
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31. “3 FOR 2”
Advantages:-
Consumer can get 3 items for a regular price of two.
Hence sales of unusual products also increases.
Estimation was that sales would increase to 300% of pre-promotion
60% of the customers would be just promotional buyers.
DISADVANATGES:-
This will have clear cut indication of sales clearance which could
impact potential customers.
Premium products would lose their brand equity and may sound
as cheap promotion
Product partners may oppose this strategy for the dilution of their
brand equity
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33. “GWP (GIFT WITH PURCHASE)”
Advantages:-
Product sample would be given free long r=with regular purchase.
Additional packaging is used to pack that sample along with existing..
Estimation was that sales would increase to 170% of pre-promotional sales.
40% of the customers would be just promotional buyers.
DISADVANATGES:-
Adding sample would cost approximately 90p per unit for the product plus 3p
per unit extra to secure the sample to featured product.
This is very common used strategy used by most of retailers and can be easily
imitated.
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35. CONCLUSION….
• Considering the advantages and disadvantages, it would be better for the
boots company to adapt 1st strategy i.e., ‘3 for 2’ for the following reasons
It cannot be easily imitated by the competitors as it is more
concentrated in the increase of sales as per market research.
This also helps boots company to push its non selling brands
Hence this offer increases or boosts sales volume and increase
their brand consumption.
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37. PRESENTED BY
• N.MADHAVI
• (ACHARYA BANGALORE B-SCHOOL
• BANGALORE)
• UNDER THE GUIDANCE OF
• PROF.SAMEER MATHUR
• (IIM LUCKNOW)
