Presentation on BOOTS.
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Case analysis of BOOTS under the guidance of Prof.SAMEER MATHUR at IIM LUCKNOW during marketing internship.
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Similar to Presentation on BOOTS.
BOOTS: HAIR-CARE SALES PROMOTION CASE ANALYSIS
1. BOOTS - feel good
2. OBJECTIVE OF THE CASE
3. SALES PROMOTION STRATEGY
4. WHAT IS BOOTS?
5. Situation analysis
6. About the company…
7. COMPANY’S EARLY DAYS
8.
9. The MODERN ERA
10.
11. associated celebrities and the brands.
12. CHARLES WORTHINGTON
13. JOHN FRIEDA
14. NICKY CLARKE
15. UMBERTO GIANNINI
16. TONI & GUY
17. TREVOR SORBIE
18. LEE STAFFORD
19. competitors
20. P&G
21. ALBERTO CULVER
22. LOREAL
23. TESCO
24. MORRISON
25. SUPERDRUGS
26. CONSUMERS – NOT VERY BRAND LOYAL…..WHY?
27. CONSUMER’S VIEW/ PERCEPTION - CHANGING BRANDS GIVE BETTER RESULTS
28. CHANGING TREND IN BUYING BEHAVIOUR - trends in buying behaviour led to changing preferences. Whereas in the
’70s consumers wanted shampoos that were gentle, the ’80s saw a greater
emphasis on detangling, and in the ’90s, shiny hair became more important
29. TOO MANY OPTIONS…-difficult for consumers to identify meaningful differences between the
various brands available in any given store. Consumers had a large number of
choices that varied not only on brand name, but also packaging, advertising, price,
ingredients, consistency, fragrance and so forth
30. DECISION –
31. 3 PROMOTIONAL ALTERNATIVES
32. 3 for 2
33. GIFT WITH PURCHASE
34. and
35. ON PACK COUPONS
36. 3 FOR 2 ADVANTAGES
37. 3 FOR 2 DIADVANTAGES
38. GWP ADVANTAGES
39. GWP DIADVANTAGES
40. ON PACK COUPONS ADVANTAGES
41. ON PACK COUPONS DISADVANTAGES
42. COSTS AND EXPENSES
43. SOME STATS
44. 3 F0R 2 CALCULATIONS
45. 3 F0R 2 CALCULATIONS
46. GWP CALCULATIONS
47. GWP CALCULATIONS
48. OPC CALCULATIONS
49. OPC CALCULATIONS
50. AVERAGE PRICE COMPARISON FOR 100 ML IN TABLE – AVERAGE IS TAKEN OF THE UPPER AND LOWER LIMITS OF THE PRICE RANGE.
51. EXPLANATION
52. EXPLANATION
53. SOLUTION
54. SUMMARY
55. DISCLAIMER
56. THANK YOU
Boots case
Boots is a long-established UK retailer that began as an herbal remedies shop in 1849 and has since expanded into health and beauty products. The document presents a case study on Boots' efforts to promote its line of professional haircare brands. It provides background on Boots' history and operations. The problem is that Boots had failed to profitably link its name to celebrity haircare brands. The case analyzes three promotional strategies - a "3 for 2" deal, a "GWP" gift with purchase, and an on-pack 50p coupon. Based on calculating expected sales and profits under each option, the on-pack coupon is identified as the best strategy to maximize profits during the promotional period.
Sec H_Group 3_Boots.pptx
Boots is a UK-based health and beauty retailer with over 75,000 employees operating in 130 countries. It has two business divisions: international sales and marketing of health products, and product manufacturing. The UK hair care market is competitive with over 60 brands and 1-3% annual growth. Boots' hair care line includes shampoos, conditioners and styling products. For the Christmas season, Boots is considering three promotional alternatives: a "3 for 2" deal, gift with purchase, or on-pack coupons. Analysis shows the "3 for 2" promotion would increase sales 300% and attract the most new customers at 60%, making it the most novel and difficult for competitors to replicate. Therefore, the
Boots Haircare Sales promotion
This document discusses various sales promotion strategies for a hair care company. It provides background on the company's history and objectives of driving sales, retaining brand equity, and securing market leadership in the UK hair care segment. Three promotion strategies are considered: "3 for 2" which allows buying two items at regular price and getting one free; "GWP" which provides a free gift with purchase; and an "On-pack Coupon". Calculations show the "3 for 2" strategy would result in the highest total profit and profit per bottle sold. While "On-pack Coupon" has the highest profit per bottle, "3 for 2" best achieves the objectives of building brand awareness, differentiation, and reaching lower-
Boots Hair care Sales Promotion
Boots is a leading health and beauty retailer in the UK market. To drive sales volume and trade up consumers from low value brands in the competitive hair care market, Boots is considering various promotional schemes. Analysis shows that a "free gift coupon" promotion offering a 50p coupon would be most profitable and effective. It would increase sales by 150% and profit per unit to £1.971, attracting new customers while ensuring repeat visits without additional costs. This strategy best meets Boots' objectives of growing sales volume and maintaining brand equity in the long run.
Boots hair care sales promotion
This presentation deals with the challenge of selecting one of three promotional alternatives — get three for the price of two (“3 for 2”), receive a gift with purchase (“GWP”), and an on-pack coupon worth 50p — for the Christmas season.
The primary objective of the promotion is to drive sales volume and trade-up consumers from lower-value brands, while retaining or building brand equity.
Boots: Hair care sales promotion
Boots is a UK-based health, beauty, and pharmaceutical company seeking to increase sales of its hair care products. It is considering three promotional strategies: 3 for 2, gift with purchase (GWP), or on-pack coupons. The document analyzes each alternative based on expected sales, promotional costs, and net profit. Based on the analysis, the 3 for 2 strategy is identified as the best option. It is estimated to increase sales by 300% at the lowest promotional cost per unit and highest net profit. While GWP and coupons could increase sales as well, they would incur higher promotional costs per unit and have lower net profits. Therefore, the analysis concludes the 3 for 2 strategy is the best strategic plan
Boots hair care
Boots: Hair care Sales promotion
The case involves the study of the the Boots Company and its competitors. It also involves the issue of choosing between the three alternative strategies to attract consumers and enhance its sales.
Boots hair care sales promotion
Boots is a major UK retailer that sells health and beauty products. It wants to increase market share in the hair care segment. Three promotional strategies are considered: buy 3 products for the price of 2 ("3 for 2"), receive a gift with purchase (GWP), or receive a 50p coupon. Quantitative analysis shows "3 for 2" generates the highest net profit of £478.80 for premium brands and £150 for mass market brands, making it the best strategy.
BOOTS : Hair-care Sales Promotion
This document discusses a sales promotion strategy for Boots' hair care products. It analyzes Boots' UK competitors and retailers. Boots plans to use celebrity endorsements to create brand awareness and loyalty. Three promotion alternatives are considered: 50p off each product, buy 3 products for the price of 2, or buy 2 get 1 free. While 50p off each product would maximize profits, buying 3 products for the price of 2 would maximize sales volume, which is Boots' primary objective. The promotion will run for 1 month to drive sales and upgrade consumers from lower-priced brands.
Boots- Hair care sales promotion
This case study is about Boots a premium wellness company functioning in 130 countries and the problem is to identify the best promotional strategy for its hair care products.
The sticky sales promotion strategy
This document discusses different sales promotion strategies that Boots could implement to increase sales of its hair care products. It analyzes three options: a "3 for 2" deal where the least expensive item is free when 3 are purchased, a "gift with purchase" offer where customers get a product sample with their purchase, and a "50p coupon" that customers can redeem on their current store visit. The document evaluates the advantages and disadvantages of each option both qualitatively and quantitatively. Based on estimated sales increases and profits generated, it determines that the "3 for 2" deal is the best strategy for Boots to choose.
Boots Hair-care Sales Promotion
Boots, a UK-based health and beauty retailer, was considering promotional strategies to increase sales of its hair care products. Its head of personalization, David Robinson, was tasked with selecting the best strategy. The options considered were a 3 for 2 deal, gift with purchase, and on-pack coupons. Testing showed the 3 for 2 deal increased sales by 300% over pre-promotion levels, more than the other options. It also provided Boots a unique competitive advantage over rivals. The summary concludes the 3 for 2 deal was determined to be the best alternative as it maximized profits while maintaining and enhancing the hair care brands.
SCENT-300 Marketing Plan
This document introduces a multi-level marketing company called Scent-300 that sells perfume products. It outlines the traditional marketing model versus their direct sales network marketing model. It then details the company vision, products offered, different membership packages to become a distributor, and various ways to earn income including direct sales, referrals, team bonuses, and leadership ranks. The goal is to recruit others and build a sales organization in order to earn a substantial full-time income.
BOOTS: HAIR-CARE SALES PROMOTION
• Plan a sales promotion strategy for a line of professional hair-care products at Boots.
• primary objective was to drive sales volumes and trade-up consumers from lower-value brands, while retaining or building brand equity.
• collaboration with UK’s top celebrity hairdressers → an important component of their strategy
Boots hair care promotions
Boots is considering sales promotion strategies to increase profits from its premium hair care brands. The strategies considered are a '3 for 2' offer, gift with purchase, and on-pack coupons. Analysis shows the '3 for 2' strategy would generate the highest sales and profits while attracting new customers and maintaining brand equity in the long run. It satisfies the objectives of securing market leadership, ensuring profitable promotions, and enhancing the hair care brands. Therefore, the '3 for 2' strategy is recommended.
The right choice at the right time || Boots: Hair care sales promotion
The document discusses potential sales promotion strategies for Boots hair care products: buy 3 get 2 free (3 for 2), gift with purchase (GWP), and 50p off coupon. It analyzes the estimated sales increase and profits for each. 3 for 2 yields the highest sales at 300% but lowest per-bottle profit. 50p off coupon yields the highest per-bottle profit but lower total sales than 3 for 2. While 50p off is most profitable, the document notes profit is not the only factor; the goal is to increase sales and customer base by enticing customers from lower-value brands. Therefore, 3 for 2 may be the best strategy to meet Dave Robinson's target of driving sales volumes and trading up consumers
Boots hair care sales promotion
This document discusses potential sales promotion strategies for a hair care company's UK stores. It analyzes the potential daily and monthly profits of three promotion options: 3 for 2 deals, gift with purchase (GWP), and coupons. The GWP strategy is determined to have the highest potential monthly profit of £5,115. The document aims to help choose the best promotion strategy and increase sales beyond what normally would have occurred.
Boots hair care sales promotion strategy
Its a case analysis of Boots hair-care sales promotion strategy as a part of a marketing internship by Prof. Sameer Mathur, IIM Lucknow
Boots
Boots is a well-known retail brand in the UK that originated in the early 19th century selling herbal remedies. [1] Jesse Boot took over the family shop in the late 1800s and established Boots as a private company. [2] After World War 2, Boots expanded through new factories and research facilities. [3] In modern times, Boots continues to develop popular product lines and remains one of the largest retail chains in the UK.
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The right choice at the right time || Boots: Hair care sales promotion
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Presentation on BOOTS.
- 1. HAIR-CARE SALES PROMOTION HAIR-CARE SALES PROMOTION A PRESENTATION BY SUNKISHALA CHAITANYA NIT JAMSHEDPUR
- 2. CONTENTS: COMPANY DETAILS SITUATION QUESTION HYPOTHESIS PROOF AND ACTION ALTERNATIVES
- 3. ABOUT COMPANY Industry Pharmaceuticals Healthcare Beauty Photography Founded 1849; 167 years ago ,Nottingham, United Kingdom Founder John Boot Headquarters Nottingham, United Kingdom Area served United Kingdom, Republic of Ireland Key people Simon Roberts, managing director, Boots UK and Ireland, till July 2016 Brands No. 7 and Seventeen – Makeup Soltan – Sun cream Almus – Generic drugs Number of employees 70,000 (UK) 1,900 (Ireland)
- 4. COMPANY HISTORY • John Boot first established it as ‘ The British and American Botanic Establishment’ in 1849 to provide physical comfort to needy. • In 1860 John Boot son established it as ‘Boot and Company Limited’ with himself as chairman and managing director. • Motto-Large , Best and Cheapest.
- 7. Increase its sales volume by promotions
- 8. PATROGONIST OF HAIR-CARE SALES PROMOTION OF BOOTS DAVE ROBINSON
- 13. What are the decision options ?? 3 for 2 GWP (Gift With Purchase) On pack coupon (50p off)
- 15. “3 FOR 2”: • sales per day would increase to 300 % of pre-promotion sales during the deal period.
- 16. GWP (Gift With Purchase): • sales during the promotional period would be 170 % of sales that would have occurred without the promotion.
- 17. On-pack Coupon (50p off): o Sales would increase to 150 per cent of non-promotion sales
- 18. ‘3 for 2’
- 20. PROFIT FOR EACH PRODUCT ANALYSIS TYPE BRANDS COST TO COSTUMER COST TO RETAILER After 40% retail margin PROFIT ON TYPE SALES HIKE NEW CUSTO- MER SALES TOTAL PROFIT R A N K 3 FOR 2 PREMIUM MASS-MARKET 2*3.99=7.98 2 * 2=4 3*2.394=7.182 3*1.5 = 4.5 0.798 -0.5 300% 60% 239 1 GWP (GIFT WITH PURCHASE) PREMIUM MASS-MARKET 3.99 2 2.394+0.9+0.03=3. 324 1.5+0.9+0.03=2.43 . 666 -0.43 170% 40% 113.22 2 On-pack Coupon (50p off) PREMIUM MASS-MARKET 3.99- 0.5=3.49 2 – 0.5= 1.5 2.394+0.5=2.894 1.5+0.5=2 .596 -0.5 150% 50% 89.4 3
- 21. According to me , the best option to adopt in the promotional strategy is “ 3 for 2 “.
- 22. “3 for 2” strategy has highest sales volumes & profit compare to other strategies. “3 for 2” strategy has also highest new consumers visited to BOOTS during promotional period.
- 25. Greatest weakness of my HYPOTHESIS is the profit is considered only with respect to premium brands.
- 26. STRONGEST ??
- 27. The strongest alternative to my hypothesis is “ GWP ” because its loss with respect to mass market brands is low compared to other two. Profit with this strategy also reasonable. New customers visiting to BOOTS is also reasonable.
- 28. COMPANY DETAILS SITUATION QUESTION HYPOTHESIS PROOF AND ACTION ALTERNATIVES
- 29. Created by SUNKISHALA CHAITANYA,NIT JAMSHEDPUR , during a Marketing Internship under Prof . SAMEER MATHUR,IIM LUCKNOW. (See www.IIMInternship.com)