Boots hair care sale promotion

1. Case analysis :boots hair care sale
promotion
Ashwin Gaikwad
IITM

2. What is boots ?
• Boots, one of the best-known and
respected retail names in the United
Kingdom, provided health and beauty
products and advice that enhanced
personal wellbeing. Besides retailing,
Boots had international sales and
marketing operations and also developed
and manufactured its own products.

3. How was it established ?
• Boots was established n 1849 , by john boot . After his
father's death in 1860 , jesse boot , aged 10 helped his
mother run the family's herbal medicine shop in Nottingham ,
which became Boots can Co. Ltd in 1883 , then Boots pure
drug company Ltd in 1888 . In 1920 , jesse boot sold the
company to the Americian United drug company . However ,
because of deteriorating economic circumstances in North
America Boots was sold back in british hands .

4. Objective
• To drive sale volume
• To trade up consumers from lower- value brands
• retain and build brand equity

5. UK Hair Care Market
• Highly fragmented with 60 major brand
• None of the brands has more that 9%
market share
• sever price competiiton
• volume growth more than value
• significiant price discounting through
promotional activity

7. Post war regeneration and development
• In 1949 new factory for cosmetics
manufacturing at Airdrie in scotland .
• A new power house
• Printing works
• new pharmaceuticals reseach building in
1959 at Nottingham .

8. Associated celebrities and the brands
Name Description Specifics Market Awareness
Charles
Worthington
One of the most
influential and
creative
hairdressers. His
name is
synonymous with
style, innovation
and success
- Five prestigious
London2 salons
tending to more
than 2,000 clients a
week - Celebrity
following on both
sides of the Atlantic

9. John Frieda
Entrepreneurial in
spirit, global in
impact, John
Frieda’s team of
celebrity stylists
(the “House of
Experts”) fuels the
company’s new
product initiatives
with the inside
track on hot, new
celebrity hair
trends.
-
- Three salons in
London, two in
New York and one
in Los Angeles. -
The product range
is targeted for
specific hair types.
Strong

10. Lee Stafford
He is known for
hairstyle and hair
care.
-
- Three salons in
the United
Kingdom
Low
Toni & Guy
“At Toni & Guy we
create wearable,
catwalk-led
hairstyles for
people who want
easy-care, trend-
setting hairstyles.
Be an individual; be
ahead in the style
stakes with Toni
and Guy.”
- 250 salons in the
United Kingdom
Strong

11. summary of the brand’s product ranges

12. distribution and introduction dates

13. Price comparison chat

14. Major competitors
• P & G : 8.4% market share , high brand
awareness , leading brand pantene
• Alberto-culvery : Broad assortment of
shampoos, conditioners and styling
agents, Top brand : st.Ives , VO5 , FDS .
• L'oreal : 5% market share , More than 500
brand & more than 2000 products
• Hair care product retailers : TEsco,
sainsbury & morrisons - major retail
players , superdrug in direct competitor

15. How consumers behave

16. promotion strategies....
• 3 for 2
• GWP
• on-pack coupon(50%off)

17. 3 For 2
Advantages Disadvantages
Consumer would get 3 items for a regular
price buy of 2
would be preceived as a stock clearing
strategy
Consumer would combine any three
items the want
premium products would lose their brand
equity and may sound as some cheap
promotion
Most competitors did not have the
technology at the point of sale to imitate
promotion
Product partners (hair dressers)
may oppose to this strategy for the
dilution of their brand equity
Estimation was that sale will increase 300
%
60% customers - promotional buyers

18. GWP
Advantages Disadvantages
Product sample will given free along with
a regular purchase
Adding the sample would cost
approximately 90% per product + 3%
extra to secure sample to the feature
product
estimated sale would increase by 170%
of the pre-promotional sale
This is a very common strategy used by
most of the retailers which can be
imitated very easily
40% will be just from promotional buyers

19. on pack coupon worth 50%
Advantages Disadvantages
Customers can use their coupons during
the current store visit
this is a common strategy used by most of
the retailers
Estimated sale would increase 50% of the
pre-promotional sales
Form of discounting which can be dilute
the brand equity
50 % of customers just promotionak
buyers
more of a conservative approach
customers would enable multi visits for a
single customer
less estimated sale growth as per the
market research

20. conclusion
• Boots’ aim was to secure market leadership in
the United Kingdom in the hair-care segment.
The celebrity hair-care brands were clearly an
important component of their strategy.
Competitors could not easily copy their strategy
because Boots had contracts with some of the
most prestigious salon brands in the United
Kingdom. He wanted to ensure that the
promotions were profitable, but the importance
of maintaining and enhancing the professional
hair-care brands could not be understated.