Dave Robinson is planning a sales promotion strategy for Boots, a UK pharmacy chain, to promote its line of hair care products. He must choose between three promotional alternatives: buy 3 products for the price of 2, receive a gift with purchase, or take 50% off. The document analyzes the hair care market, Boots as a company, and each promotional option's potential to increase sales and attract new customers, as well as disadvantages like reduced brand equity or high costs. It concludes the "3 for 2" option is best as it could increase sales 300% while competitors may be slow to copy the strategy.

1. BOOTS:
HAIR-CARE
SALES
PROMOTION
CASE ANALYSIS

3. OUR STORY STARTS WITH
OUR HERO
PLANNING HIS SALES
PROMOTION STRATEGY
FOR A LINE OF
PROFESSIONAL
HAIR-CARE PRODUCTS
AT BOOTS

4. WHO IS OUR HERO??
DAVE ROBINSON

5. WHAT IS BOOTS

6. BOOTS UK LIMITED
TRADING AS BOOTS,
IS A PHARMACY CHAIN IN THE
UNITED KINGDOM AND IRELAND,
WITH OUTLETS IN MOST HIGH STREETS,
SHOPPING CENTRES AND
AIRPORT TERMINALS

7. ABOUT THE FIRM
EMPLOYED AROUND 75,000 PEOPLE
OPERATED IN 130 COUNTRIES WORLDWIDE
ESTABLISHED IN 1883

8. LETS JUMP INTO
OUR HERO’S SITUATION
AND HAVE SOME FUN
ANALYSING THE CASE

9. WHAT IS THE SITUATION?

10. SELECTING ONE
AMONG THE
THREE PROMOTIONAL ALTERNARIVES
3 FOR THE PRICE OF 2 GIFT WITH PURCHASE 50 % OFF

11. MORE DETAILS ABOUT THE SITUATION
COMPETITORS
CUSTOMER ANALYSIS
FIRM INITIATIVES
MARKET ANALYSIS

17. MORE THAN 60 BRANDS

18. NO BRAND HAS MORE THAN
9 % OF MARKET SHARE

19. SALES DIRECTLY PROPORTIONAL
TO ADVERTISEMENTS

20. OVER EMPHASIS ON PROMOTIONS

22. LACK OF BRAND LOYALITY

23. CHANGING CUSTOMER BEHAVIOUR

25. CELEBRITY ENDORSEMENTS
CREATE AWARENESS AND EMOTIONAL ATTACHMENT BETWEEN
CONSUMERS AND THE BRAND

26. ADVANTAGES AND DISADVANTAGES OF 3
ALTERNATIVES

27. 3 FOR THE PRICE OF 2
ADVANTAGES
SALES ARE ESTIMATED TO INCREASEBY 300%

28. 3 FOR THE PRICE OF 2
ADVANTAGES
60% OF SALES
WOULD BE CUSTOMERS
WHO WOULD NOT HAVE
PURCHASED A HAIRCARE

29. 3 FOR THE PRICE OF 2
ADVANTAGES
COMPITITORS
DON’T HAVE
RESOURCES
TO INSTANTLY COPY
THIS STRATEGY

30. 3 FOR THE PRICE OF 2
DISADVANTAGES
LOOSING BRAND EQUITY

31. 3 FOR THE PRICE OF 2
DISADVANTAGES
EFFECTS LONG TERM
SALES FOR ENDORSERS

32. GIFT WITH PURCHASE
ADVANTAGES
SALES ARE ESTIMATED TO INCREASEBY 170%

33. GIFT WITH PURCHASE
ADVANTAGES
40% OF SALES
WOULD BE CUSTOMERS
WHO WOULD NOT HAVE
PURCHASED A HAIRCARE

34. GIFT WITH PURCHASE
DISADVANTAGES
WOULD COST APPROXIMATELY
90% PER UNIT FOR THE PRODUCT
PLUS 3% PER UNIT TO SECURE
THE SAMPLE

35. GIFT WITH PURCHASE
DISADVANTAGES
CAN BE COPIED
BY OTHER RETAILERS EASILY

36. 50% OFF
ADVANTAGES
SALES ARE ESTIMATED TO INCREASEBY 150%

37. 50% OFF
ADVANTAGES
50% OF SALES
WOULD BE CUSTOMERS
WHO WOULD NOT HAVE
PURCHASED A HAIRCARE

38. 50% OFF
DISADVANTAGES
EFFECTS BRAND EQUITY
AND LONG TERM SALES
FOR THE FIRM AND ENDORSERS

39. CONCLUSION
3 FOR 2 IS THE BEST STRATEGY TO IMPLEMENT

41. DISCLAIMAR
Created by S.Pavan Krishna, IITMadras, Duringa marketing
management internshipby
Prof.Sameer Mathur, IIM Lucknow.