Case study: Boots Hair Care Sales Promotion

Hair Care Sales

PromotionCase Study

Company Profile

PHARMACEUTICALS HEALTHCARE BEAUTY PHOTOGRAPHY

John

Boot

HEADQUARTERS IN NOTTINGHAM, UNITED

KINGDOM

1849Founded In

Aim to make the best promotion strategy for company’s hair care products

Dave Robinson,Director Bootshas to formulate aMarketing Strategy for hisCompany!!!

3 for 2 50 p off

Gift with Purchase?

WHICH ONE TO CHOOSE ?

Analyze target

customer needs and

behavior

Check for

competitors

Propose a

solution

Lets continue…

• Product innovation• Strong customer loyalty• Strong brand image• Offers multiple products

• Increased promotional spending

Broad range of products

• Less stores• Less professional products

• Innovation• High Quality products• Effective Distribution strategies

Very expensive products

2.Focus on market differentiation.

1.Focus on increasing brand awareness.

• Purchase 3 products of the same brand & Get the cheapest one free!!• It was estimated that the sales per day would increase to 300% of the pre-promotion sales.• The company had a competitive advantage as the competitors lacked the technology to imitate this promotion.

• Redeem the 50p off coupon on your first visit to the store.• It was expected that the sales will increase to 150 % of the non promotion sales.• The competitors used different promotion methods, therefore the company had a competitive advantage.

• In this strategy, a product sample was given as a gift with any regular purchaseEstimated sales were 170% In this strategy, a product

sample was given as a gift with any regular purchase• Estimated sales were 170% of the pre-promotion sales.

•

of the pre-promotion sales. In this strategy, a product sample was given as a gift with any regular purchase• Estimated sales were 170% of the pre-promotion sales.

• In this strategy, a product

sample was given as a gift with any regular purchase• Estimated

sales were 170%

of the pre-promotion sales.

FOR THE

Case analysis Process

To select the best profitable sales

promotion strategy for the company.

1.What should be the Brand’s promotion strategy?

2.How should the brand differentiate it’s products form the Competitors?

The best promotion strategy for boots will be “3

for 2”

ACTION

Maximum return

Strategy not easy to

The company may face problems due to the additional cost it will have to incur, on providing a free bottle to every customer who opts for the scheme. But, overall the company will make a profit which will be large Enough to cover these expenses. Thus, ‘3 for 2’ will be the perfect choice.

50p off

coupon

Gives 150 % increase in sales which is less than the estimated 300%. Strategy adopted by it’s competitors. As compared to the ‘ 3 for 2’ strategy, it doesn't provide variation in products.

Cost intensive for the company, since giving

gifts will result in additional expenses of that product.Offers 170%

increase in sales, which is less

than ‘3 for 2’ strategy.Easy to imitate for

it’s competitors

The Best Strategy for the company is ‘3 for 2’.

This Presentation is created by Nishchay Misra, University Of Petroleum And Energy Studies, Dehradun during Marketing Management Internship under Prof. Sameer Mathur, Indian Institute Of Management, Lucknow

Prof. Sameer Mathur