The document presents a promotional strategy analysis for Boots' hair-care products, exploring three options: '3 for 2', gift with purchase (GWP), and on-pack coupon. It concludes that the '3 for 2' strategy yields the highest sales and profit potential, while acknowledging its weakness in focusing solely on premium brands. The analysis emphasizes the effectiveness of the '3 for 2' option but also recognizes GWP as a strong alternative due to lower losses in mass-market brands.

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

10. MASS-MARKET BRAND COMPETITORS

11. COMPETITIVE RETAILERS

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’

19. PROOF
AND
ACTIONS

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)