boots: hair care sales promotion. case study
TRANSCRIPT
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Hair Care Sales
PromotionCase Study
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Company Profile
PharmaceuticalBeauty
Healthcare John Boot
1849FOUNDED IN
HEADQUARTERS IN NOTTINGHAM, UNITED
KINGDOM
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Dave Robinson, director ofpersonalization in BOOTS is in a dilemma !!!
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WHICH
ONE TO
CHOOSE ?
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Analyze target customer needs and behavior
Check for competitors
Propose a solution
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No properbrand differentiation
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• Product innovation• Strong customer loyalty• Strong brand image• Offers multiple products• Increased
promotionalspending
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Broad range of products
• Less stores• Less professional
products
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• Innovation• High Quality
products• Effective
Distributionstrategies
Very expensive products
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2.Focus on market differentiation.
1.Focus on increasing brand awareness.
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• 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.
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• 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.
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• In this strategy, a productsample was given as a gift with any regular purchase
• Estimated sales were 170%of the pre-promotion sales.
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FOR THE
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What’s that?
• Situation• Question• Hypothesis• Proof &
Action• Alternatives
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To select the best profitable sales promotion strategy for
the company.
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The best promotion strategy for boots will be “3 for 2”
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ACTION
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Maximum return
Strategy not easy to
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There are
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L ERNATIVESHE
NALYZING
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Gives 150 % increase in sales whichis 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.
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Cost intensive for the company, since givinggifts will result in additional expenses of thatproduct.
Offers 170% increase in sales, which is lessthan ‘3 for 2’ strategy.
Easy to imitate for it’s competitors
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The Best Strategy for the company is ‘3 for 2’.
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• Boots: Company Profile
• Products
• Company’s target
• Competitors
• Case Analysis Process.
Situation
Questions
Hypothesis
Proof & Action
Analyzing Alternatives
• Result
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Created By Manu Pant, Symbiosis School of Economics, Pune, during a marketing internship under Prof. Sameer Mathur, IIM Lucknow.