boots quantitative analysis
DESCRIPTION
Boots Hair Salon Case AnalysisTRANSCRIPT
Shampoo
Only Boots
Charles Worthington 1.95 4.875 3.48Toni & Guy 1.75 4.375 3.13
Trevor Sorbie 2 5 3.57Lee Stafford 1.6 4 2.86
Widely AvailableJohn Freida 1.95 4.875 3.48Nicky Clarke 1.6 4 2.86
Umberto Giannini 1.6 4 2.86Average Values 4.45 3.18
CompetitorsPantene - - -L'Oreal 0.5 1.25 0.89
Conditioner
Avg Price(250 ml)
Only Boots
Charles Worthington 2.5 6.25 4.46Toni & Guy 2 5 3.57
Trevor Sorbie 2 5 3.57Lee Stafford 1.6 4 2.86
Widely AvailableJohn Freida 2.1 5.25 3.75Nicky Clarke 1.8 4.5 3.21
Umberto Giannini 1.8 4.5 3.21Average Values 4.93 3.52
CompetitorsPantene -L'Oreal 0.5 1.25 0.89
Gel
Average Price (100ml)
Average Price (250 ml)
CP to retailer(40%
margin)
Average Price (100ml)
CP to retailer(40%
margin)
Avg Price(250 ml)
Only Boots
Charles Worthington 3.3 8.25 5.89Toni & Guy
Trevor Sorbie 3.33 8.325 5.95Lee Stafford
Widely AvailableJohn Freida 2.1 5.25 3.75Nicky Clarke 1.8 4.5 3.21
Umberto Giannini 1.8 4.5 3.21Average Values 6.17 4.40
CompetitorsPantene 1.86 4.65 3.32L'Oreal - - -
Average Price (100ml)
CP to retailer(40%
margin)
Shampoo
3.17 1.712.84 1.533.25 1.752.60 1.40
3.17 1.712.60 1.402.60 1.402.89 1.56
- -0.81 0.44
Conditioner
4.06 2.193.25 1.753.25 1.752.60 1.40
3.41 1.842.92 1.582.92 1.583.20 1.73
- -0.81 0.44
Gel
CP to Manufacturer
(8% to 12% Margin)-
Assume 10%
Avg Profit per unit
CP to Manufacturer
(8% to 12% Margin)-
Assume 10%
Avg Profit per unit
5.36 2.89
5.41 2.92
3.41 1.842.92 1.582.92 1.584.00 2.16
3.02 1.63- -
CP to Manufacturer
(8% to 12% Margin)-
Assume 10%
Avg Profit per unit
3 for 2 scheme
Premium brand Pounds Mass market brand
Avg cost 3.99 Avg costRetailer margin 1.596 Retailer marginCP to retailer 2.394 CP to retailerManufacturer margin 0.2394 Manufacturer marginCost of production 2.1546 Cost of production
Before promotion
No. of bottles sold 100 No. of bottles soldTotal Revenue 159.6 Total Revenue
After promotion
No. of bottles sold 200 + 100 No. of bottles soldRevenue/bottle 1.064 Revenue/bottleTotal revenue 319.2 Total revenue
% increase in revenue 100 % increase in revenue
3 for 2 scheme
Pounds
20.51.5
0.151.35
Before promotion
10050
After promotion
200 + 1000.3333333
100
100
Total avg price for (Shampoo + Conditioner + Gel)Total Avg cost for manufacturing (Shampoo + Conditioner + Gel)Base= 100 units
60% new customersSale post scheme= 300 units
3:2 Promotion SchemeTotal profit without scheme (100 units)100*1.56Total Profit with scheme (300 units)(200*5.184) - (300*2.89)
Break Even point
40% new customersSale post scheme= 170 units
GWP (93 pence - additional cost)Total profit without scheme
New Avg Profit per unit after scheme (avg profit per unit -0.93)Total Profit with scheme
Break Even point
50% new customersSale post scheme= 150 units
Coupon (50 pence off)Total profit without scheme
Total Profit with scheme
Break Even point
4.45 + 6.17 + 4.93 = 15.552.89 + 3.2 + 4 = 10.09
3:2 Promotion SchemeTotal profit without scheme (100 units)
156Total Profit with scheme (300 units)
170
156/(170/3)*100 = 276 units
GWP (93 pence - additional cost)100*1.56 = 156
1.56-0.93 = 0.63170*0.63 = 107.1
156/((107.1/170)*100)*100=248 units
Coupon (50 pence off)100*1.56 = 156
150*(1.56-.5) = 159
156/((159/150)*100) *100= 148 units