Boots - Hair-Care Sales Promotion: Harvard Case Study By Shirin Sonali

1. BOOTS –
HAIR-CARE SALES
PROMOTION
BY-
SHIRIN SONALI
CET BBSR
A HARVARDCASE STUDY

2. LET
US

3. ABOUT BOOTS
Target Industries: Healthcare
Beauty
Pharmaceuticals
Employees: 75,000
Operated in 130 countries.

5. DAVID ROBINSON
Head of
Personalisation for
Boots UK.
In-charge of the
Sales Promotional
Strategy.

7. To select
the Best
Promotional
Strategy for its Hair-
Care Products.

8. THE

9. 3 for 2
Gift with
Purchase
(GWP)
On-pack
coupon
(50p off)
1.
2. 3.

10. THE TIME
FRAME

11. THE
CHRISTMAS
HOLIDAY
SEASON ~

12. BOOTS TIMELINE
1849 – John Boots
opens ‘The British
and American Botanic
Establishment’ in
Nottingham.
1883 – Jesse Boots
establishes ‘Boot
and Company
Limited’.
Jesse
Boots

13. PRIMARY OBJECTIVES
Increase Sales Volume.
Trade-up Consumers from
lower-value Brands.
Retaining and
Building Brand Equity.

14. UK HAIR MARKET
Over 60
major hair
care product
brands.
None had
more than
9% market
share.
Overall market
was expected
to grow 1-3%
annually the
next 5 years.
Severe price
competition.

15. OPPORTUNITIES -

16. To be the retail hair-
care expert.
Could use celebrity endorsements.
No celebrity-endorsed
products were yet
available in retail
stores.

17. CONSUMER NEEDS AND BEHAVIOUR
Consumers not very BRAND LOYAL :
70’s –
Gentle
Shampoos
80’s –
Detangling
Shampoos
90’s –
Shiny Hair in
demand
Large Number of
Choices.
No Brand
Differentiation.

18. Target Customer Segment
bought mostly BASIC
BRANDS.
PREMIUM BRANDS
bought as “treats”.

19. CELEBRITY ENDORSEMENTS
To increase BRAND EQUITY and
BRAND AWARENESS.
John
Frieda
Charles
Worthington
Nicky
Clarke
Toni &
Guy
Trevor
Sorbie

20. MAJOR
COMPETITORS -

21. 1)
• Pantene, Clairol, Head & Shoulders, Daily
Defense, PERT plus, Herbal Essences
BRAND
S
• Best-selling hair-care brand in the world by
‘95
• 8.4 per cent share of the U.K. hair care market
PROS
• Almost no professional Hair-care BrandsCONS

22. 2)
• St. Ives, VO5, Consort hair care for men,
FDS
BRAND
S
• Offers a broad assortment of hair-care
products
• has globally acquired diverse firms
PROS
• Almost no professional Hair-care BrandsCONS

23. 3)
• Giorgio Armani, Biotherm, Ralph Lauren,
Shu Uemura, Cacharel, Clarisonic, Diesel
BRAND
S
• Offered women new ways and means to
enhance beauty
• Great promotional strategies
PROS
• Almost no professional Hair-care BrandsCONS

24. HAIR-CARE PRODUCT RETAILERS

25. SO, TURNING
TO THE
AT HAND,
THE
CHOICES

26. 1)
Buy 2 items and get 3rd free of
same brand,
the least expensive item being free.
Few competitors had the
technology to imitate them. Others
could only do a 3-for-2 offer : 3
items being equally priced.
OFFER
COMPETITIVE
ADVANTAGE

27. 2)
OFFER
CONS
An existing product sample
given along with
a regular purchase.
Can be imitated.
Additional Costs expected.

28. 3) ON-PACK COUPON -
OFFER
CONS
Coupon redeemable during
current store visit.
Most competitors used GWPs.
Can be imitated.

30. INCREASE in SALES
3 FOR 2
- To 300% of
pre-
promotional
sales
GWP
- To 170% of
pre-
promotional
sales
50p OFF
- To 150% of
pre-
promotional
sales

31. AFTER
SOLVING THE CASE
ACCORDING
TO THE METHOD
ANALYSIS PROCESS -

32. FROM
THE PROTAGONIST’S
PERSPECTIVE, THE BEST
ALTERNATIVE WOULD BE
“3 FOR 2”.

33. REASONS
5

34. SATISFIES DAVE’S
WANT OF A STRATEGY
WHICH MAXIMIZES
PROFITS AND ALSO
MAINTAINS AND
ENHANCES THE
PROFESSIONAL
HAIR-CARE BRANDS.

35. MAXIMUM
INCREASE OF
SALES, TO 300%,
AMONG ALL THE
STRATEGIES.

36. UNIQUE
PROMOTIONAL
STRATEGY WHICH
CAN’T BE
IMPLEMENTED BY
MOST OTHERS.
HELPS IN BRAND
DIFFERENTIATION.

37. HIGHEST % OF
SALES TO
CUSTOMERS : 60%,
WHO WOULDN’T
HAVE PURCHASED A
BOOTS ITEM DURING
PROMOTIONAL
PERIOD.

38. NO ADDITIONAL
COSTS
INCURRED,
AND AT THE
SAME
INCREASE IN
BRAND EQUITY
& BRAND
AWARENESS.

39. RECAP
ABOUT BOOTS
THE PROBLEM
PRIMARY OBJECTIVES
OPPORTUNITIES
CONSUMER NEEDS AND
BEHAVIOR
MAJOR COMPETITORS
CHOOSING THE BEST
ALTERNATIVE

41. Created By Shirin Sonali, CET BBSR,
During A Marketing Internship Under
Prof. Sameer Mathur, IIM LUCKNOW.