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Boots Hair Care Sales Promotion
HARVARD BUSINESS SCHOOL CASE STUDY
PROBLEM STATEMENT
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
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.
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.
Disadvantages:-
*Premium products will lose brand
equity
* Clear cut indication of stock-clearing
strategy.
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
× 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
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.
× 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.
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.
Disclaimer
Created by Ankit Malhotra, SSCBS DU, during a
marketing internship by Prof. Sameer Mathur, IIM
Lucknow.

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Boots case study

  • 1. Boots Hair Care Sales Promotion HARVARD BUSINESS SCHOOL CASE STUDY
  • 2.
  • 3.
  • 4.
  • 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.
  • 8.
  • 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.
  • 15.
  • 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.
  • 17.
  • 18. Disclaimer Created by Ankit Malhotra, SSCBS DU, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.