This ppt has been made during my marketing management internship with Prof. Sameer Mathur, IIM Lucknow.

1. Richard Ivey Business School Case Study

2. WHAT is this case study about?

3. Hair-care sales promotion of

4. BOOTS ???

5. Boots is one of the best-known and
respected retail names in UK
providing health and beauty products

6. HOW does BOOTS function in hair-
care sector ?

7. BOOTS brings celebrity endorsed products
to their retail stores and manufactures
products in partnerships with celebrity
hairdressers

8. WHO is the protagonist in the case
study?

9. Dave Robinson
(Marketing manager of BOOTS)

10. WHAT is the challenge?

11. To select one of the 3 promotional
alternatives for a line of hair-care
products by BOOTS

12. 3 for 2
Buy any 2 same brand products and get the third
product free (the least priced)
Alternative 1

13. Gift with Purchase (GWP)
A product sample along with a regular purchase
Alternative 2

14. On-pack coupon
Coupon redeem option during the current store
visit
Alternative 3

15. Alternatives at a glance
3 for 2
Gift with
purchase
On-pack
coupon

16. WHAT is the situation ?

17. The promotion period is defined
as ONE MONTH starting
December 1st
𝟏
𝟒 Time

18. No media advertising budget
allocated for the promotion.
𝟐
𝟒 Budget

19. No consideration for any
variation in product-sizes
because of the added cost and
complexity involved
𝟑
𝟒 Product-size variation

20. 1. Changing shampoo brands
produce better results !!
Consumer belief and dilemma
2. Difficulty in identifying
meaningful differences in
various brands
𝟒
𝟒 Consumers

21. WHO are the competitors ?

22. Proctor and Gamble
• Complete range of hair-care brands
including Head and Shoulders, Daily
Defense, PERT plus and Herbal essence
available.
• In 1995, P & G’s Panteen Pro-V became
the best-selling hair brand in the world.
• It held a 8.4% share of the UK hair-
care market in 2001
𝟏
𝟒

23. Alberto-Culver
• Complete range of hair-care, skin-care and
home-care products.
• Offer a broad assortment of shampoors,
conditioners and styling agents.
𝟐
𝟒

24. L’Oreal
• Present worldwide.
• The group marketed over 500 brands and
more than 2000 products in all sectors of
the beauty business..
• A market share of 5% in the UK hair care
market in 2001.
𝟑
𝟒

25. Hair-care product retailer-
Tesco, Sainsbury’s
and Morrisons
𝟒
𝟒(𝟏)
Tesco is the larget supermarket chain
with more than 1800 stores followed
by Sainbury’s with 700 stores and
Morrisons with 400 stores

26. Hair-care product retailer-
SUPERDRUG
𝟒
𝟒(𝟐)
Over 700 stores in UK and provide a
wide assortment of 10,000 products.

27. BOOTS Market Analysis

28. BOOTS affiliated brands

29. BOOTS price comparison
chart

30. Which alternative to choose?

31. 3 for 2
• Estimated increase in sales per day by 300%.
• Approximately 60% new customers.

32. GWP (Gift with Purchase)
• Estimated increase in sales per day by 170%.
• Approximately 40% new customers.

33. On-pack coupon
• Estimated increase in sales per day by 150%.
• Approximately 50% new customers.

35. Average prices for the alternative “3 for 2”.
Charles
Worthington
John
Frieda
Nicky
clarke
Umberto
Gianninni
Toni &
Guy
Trevor
Sorbie
Lee
Stafford Pantene Loreal
1.95 1.95 1.6 1.6 1.75 2 1.6 0.5
2.5 2.1 1.8 1.8 2 2 1.6 0.5
3.3 2.43 3.33 1.86
2.75 2.15 2.65 2.3 1.9 1.86 1.6
2.7 3.9 5.15 3 2.75 2.5 1.51
10 7.5 10
10.1 13.5 12 20 16.85 7
6.65 5.65 5.15
Assuming all combinations of 3 are equally likely for every
brand, we get the following cost per product (100ml bottle)
Charles
Worthington
John
Frieda
Nicky
clarke
Umberto
Gianninni
Toni &
Guy
Trevor
Sorbie
Lee
Stafford
2.4 2.0 1.6 1.9 2.1 2.0 1.6

36. Depending on the market awareness, the sales from each brand has
been given a relative rating of 1, 2 and 3 for Low , Medium and Strong
awareness respectively
This brings the cost per unit product to
Quantity Price (in Pounds)
For 100 ml bottle 2.2
For 250 ml bottle 5.5
EXHIBIT 3
EXHIBIT 6

37. Price and sales increment per product for the 3
alternatives
Alternatives Price ( in Pounds) Sales increment
Price for 100%
sales increment
3 for 2 550 300 0.545455
GWP 93 170 1.827957
On-pack coupon 50 150 3

38. ASSUMING the ratio of price per product for given sales (100%)
and new customers is 2:1 and finding weighted average
Alternatives Weighted Average
3 for 2 1.01
GWP 1.04
On-pack coupon 1.06

39. BOOTS should opt for ON- PACK Coupon
option.

40. THANK YOU

41. This presentation had been created by Saurabh Kumar, IIT Madras,
during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.