BOOTS: HAIR CARE SALES PROMOTION

<a href='http://www.freepik.com/free-vector/big-sale-banner-and-a-man_797080.htm'>Designed by Freepik</a>

THE PRESENT CASE?? HAIR CARE??

SALES??

PROMOTION??

MARKETING??

CASE STUDY ON

• The case deals with sales promotion and growth of boots store across UK.

• Hair care product market is analyzed, major competitors present in retail sector and mass marketing brands are reviewed and a few proposed strategies are discussed.

• Keeping the objectives of the firm in mind one of the three strategies need to be selected.

LOOKS INTERESTING

OBJECTIVES:

Increase sales volume for hair care products.

Trade-up consumers from lower-value brands.

Retain orbuild brand equity.

MARKET LEADER!!!

ABOUT BOOTS

New logo looks

better!!

• Established by John Boot In 1849.

• One of best known retail names in the UK with an employment of about 75000 in 2004.

• It also has a reputed name in manufacturing and international sales and marketing operations.

• The Boots online store today boasts of a wide range of healthcare products, beauty, toiletries and a plethora of other products.

Hair Care Products Market in UK• Highly fragmented with over 60 brands of hair care products.

• None had more than 9% market share.

• Characterized by severe price competition.

• Major competitors included - Procter and Gamble, Alberto-Culver, L'Oréal

OPPORTUNITY FOR BOOTS• Boots wanted to be a hair care expert and saw great promise in the

market.• Celebrity endorsements were to be used to promote products.• Boots cultivated relationships with well established hairdressers.• Launched latest ranges of products.• Realized that it had not been able to sufficiently link its name with the

products and hence missed on maximizing profitability.• The brand kept on growing.

THE COMPETITORS..

From over 60 available mass marketing brands few were the leaders.They included: • Procter & Gamble• ALBERTO-CULVER• L’ORÉAL

8.4% market share by 2001.• Pantene became the best-selling hair-care brand in the

world by 1995.• Many other products with high consumer awareness.

2000 store locations in the US, UK and other countries.• Has globally acquired diverse firms.• Variety of hair care products.

5% share of UK hair care market in 2001.• Offers more than 2000 products over 500 brands.• Present worldwide through subsidiaries.

HAIR CARE PRODUCT RETAILERS

Retail marketing offers a large scope for profits and hence stiff competition prevailed among many retail stores across UK.

Major competitors included:• Tesco• Sainsbury's• Morrison's • Superdrug

Largest supermarket chain in the US.• More than 1800 stores and 45000 employees.

Second largest store in the US.• Wide product assortments.• More than 700 stores.

Quality products at low price.• Over 400 stores.• Took over Safeway in UK.

Major hair care competitor with almost 700 stores.• One of largest health and beauty retailer.• Launched hundreds of private label products each year.

CONSUMERS PERSPECTIVE

A general belief that changing shampoo brands produced better results than continually using a single brand.

Trends in buying behavior led to changing preferences.

It was difficult for consumers to identify meaningful differences between the various brands available in any given store.

Consumers had a large number of choices.

ANY BRAND WOULD DO

PRESENT SCENARIO

Signage within and outside the stores along with flyers.

No media advertising.

One month promotional period.

Present Aim: Attract current consumers and

mass market brand purchasers

INTERESTING..

SUGGESTED STRATEGIES.

.

3 FOR 2

On-pack Coupon

(50p off)

GWP (Gift With

Purchase)

• Under this offer consumers can buy three products for the price of two.

• Any three items could be combined to redeem the offer.

ADVANTAGES• Customers could combine any three

items they liked.• Would help Boots push non selling

brands.• Difficult to imitate due to lack of

technology.• Upto 300% sales with 60% new buyers.

DISADVANTAGES

• May sound to some as stock clearance sale.• Loss of brand equity for premium products.

Consumers would be given free product sample along with regular purchases.

ADVANTAGES

• Free product samples, which if liked by people would be consumed further.

• Upto 170% sales with 40% promotional buyers.

DISADVANTAGES

• Easily imitable and is used by competitors.

• Additional costs associated like packaging and securing the two items together.

ON-PACK COUPON

DISADVANTAGES

• Conservative approach.• Upto 170% sales with 40%

promotional buyers.• Less increase in %sales comparatively.• May lead to brand dilution.

ADVANTAGES

• All customers would be able to redeem coupon within current visit.

• Upto 150% sales with 50% promotional buyers.

CONCLUSION• Considering all pros and cons it is felt that “3 for 2” is the best

promotional strategy and would largely benefit the firm.

I liked the “3 for 2 plan” Yes I like it too

SUMMARY• Details if case study.• About Boots and its objectives.• Hair care product market in UK.• Opportunity for Boots.• Its competitors.• Hair care product retailers.• Consumer perspective.• Present Scenario.• Pros and cons of the three strategies to select final one.• Conclusion

DISCLAIMER• Created by Arpit Aggarwal from IIT Roorkee

• Under Prof Sameer Mathur, IIM Lucknow.