Boots hair care sales promotion

2. The Main Player
Category& Operations Manager,Boots

4. Dave Robinson is planning his sales promotion strategy for a
lineof professional hair-care products atBoots

5. His primaryobjectivewas todrive sales volumes
andtrade-up consumers from lower-value brands,
while retaining or buildingbrandequity.

6. Robinson’s challenge isto select one of
three promotional alternatives
Robinson realized that the alternative he selected would have
immediate effects on both costs andsales as well as long-term
implications for the brands involved.

10. Oneof thebest knownretail names inUK.
Provided health and beauty
products.

11. Owned globaldifferentiated brands in the self-
medicationmarket.

12. Employed around 75,000 peopleand operatedin
some 130 countries worldwide in 2004.

13. In 1849John Boot, anagricultural laborer opened ‘The
British and American Botanic Establishment’ to provide
physical comfort to the needy.

14. Jesse, his son, took sole control of the shop in
1877,and,in 1883,established it as aprivate
company ‘Boot and CompanyLimited’.

15. Boots introduced new services
BootsOpticians
Insuranceservices
‘Boots for Men’ stores
BootsHealth and Beautystores

20. None had more than a nine percent market share.
In 2000,over 60major brands were available in the U.K.
The overall market was expected togrow by
between one per cent and three percent peryear
for the next five years.
Severe price competition meant that
volume would grow more quickly than value

22. Boots desired tobuild a new
market byusing celebrity
endorsements tocreate
awareness and create an
emotional attachment between
consumers and the brand.
Celebrityhairdressers had their own branded products,but distribution was
limited to their own salons.
Nocelebrity-endorsedproducts were available in retail stores.

27. One of themost influential andcreative hairdressers.
Fiveprestigious London salons tending to more than 2,000
clients a weekFive prestigious London salons tending to more
than 2,000clients a week
MarketAwareness- Medium

28. Entrepreneurial in spirit, global in impact
Three salons in London, two in New York
and one in Los Angeles.
The product range is targeted for specific
hair types.
Market Awareness- Strong

29. A popular hairstylist to the stars from the
film, television, fashion, and music
industries.
Salons in London and Manchester
Market Awareness- Medium

30. The company’s
philosophy is simple — creating
sexy, contemporary catwalk looks
Eight salons in the United
Kingdom
Market Awareness- Low

31. Create wearable, catwalk-led hairstyles
for people who want easy-care, trend-
setting hairstyles.
250 salons in the United Kingdom
Market Awareness- Strong

32. Showmanofallhairdressers
Twosalons in theUnited Kingdom
Market Awareness- Medium

33. Heis known for hairstyle and hair
care.
Threesalons in the United
Kingdom
MarketAwareness- Low

38. MASS
MARKET
BRAND

39. Hoffman-La Roche developedPantene in 1947
Richardson-Vicks acquiredPantene in 1983
Procter &GambleacquiredRichardson-Vicks in 1985, andin 1991, the product
was reformulated as the Pantene Pro-V
By 1995, it becamethe Best-selling hair-care brand
Itheld a 8.4 per cent share of the U.K.hair care market in 2001.

41. In1955, Leonard Lavin found Alberto
Culverin Illinois
Globally acquired diverse firms.
Forced television networks to abandon their 60-
second commercials with the introduction of30-
secondones.

42. French Chemist, Eugene Schueller, developed an
innovative hair-color formula “Auréole.”
The company startedexporting
its productsas early as 1912
The group marketed over 500brands and more than 2,000
products in all sectors of the beautybusiness. It held a five per cent share of the U.K. hair care
market in 2001.

44. Themajor competitors in the supermarketsegment were Tesco,
Sainsbury’sand Morrisons

45. Tesco was the largest supermarket chain in the
United Kingdom with more than 1,800 stores and
45,000 employees.

46. Morrisons had 400 stores and prided itself on
providing quality products at the same low price
across all of its U.K. stores.

47. Sainbury’s was the second largest with 700stores.
Both Tesco and Sainsbury’soffered a wide product assortment that included traditional supermarket items and online
shopping, as well as CDs,books, DVDs,wine, flowers and gifts,kitchen appliances, banking services, and mobile
phones.

49. Consumerswerenot Brand
Loyal

51. Therewas a general belief by U.K. consumers that changing shampoo brands
produced better results than continually using a single brand.

52. Trendsin buying behaviorled to changing preferences.

53. Consumershad a large number ofchoices that varied not only on brand name,but also
packaging, advertising, price,ingredients, consistency,fragranceand so forth.

54. Most Bootsconsumersboughtboth
basicandpremium brands.
Customers used premiumbrands as a“treat”
whenconsumerswantedto lookandfeel their
best.

57. ALTERNATIVE

58. BestAlternativeis“3 for2”offer
Salesperdayandnumberofcustomersis increased more
thanthe othertwoalternatives
3 for 2 FWP 50Poff
Increasein sales perday 300% 170% 150%
Increasein numberof
customers
60% 40% 50%

59. Boots’aim was to secure marketleadership inthe United Kingdom inthe hair-caresegment.
Boots’ aimwas to secure market leadership in the United Kingdom inthe hair-care segment.
Boots’ aimwas to secure market leadership in the United Kingdom inthe hair-care segment.

60. DISCLAIMER
Created by Bhupendra
Vishwakarma, UIT-RGPV during
a marketing internship by prof.
Sameer Mathur, IIM Lucknow.