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PROJECT REPORT ON

ANALYSIS OF
BUSINESS OF
ALLIANCE BOOTS

SUBMITTED BY: ANUBHA GIRDHAR

DECLARATION
This Project Report entitled ANALYSIS OF BUSINESS OF ALIANCE BOOTS I,

hereby declare that this is my original work and has not been submitted elsewhere.

Date: December 17, 2009 Signature of student

Anubha Girdhar

CERTIFICATE
Certified that the Project Report entitled “ANALYSIS OF BUSINESS OF

ALIANCE BOOTS submitted by ANUBHA GIRDHAR is her own work and has

been done under my supervision.

Date: 17th December 2009 (Signature of the Supervisor)

METHODOLOGY
The main focus of this project is making an analysis of alliance boots-a leading health

and pharmaceutical company in UK.

The data is collected by visiting boots stores and by using various search

engines. The project starts with the history of alliance boots, then discussing about the

various products of boots, financial performance of alliance boots, strategies of alliance

boots, the SWOT and the PEST ANALYSIS of alliance boots and finally the conclusions

and recommendations.

The data collected is complied effectively to form meaningful information

about alliance.

NEEDS AND OBJECTIVES


The objective is to effectively study the leading health and
Pharmacy Company of UK-alliance boots. Alliance boots has the
highest market share in health and beauty in UK.
In this project the history of alliance boots, the products of
alliance boots, and the strategies of boots, the SWOT and the
PEST analysis of alliance boots are very thoroughly discussed.
Thus along with it analysis of the company, the marketing
environment of alliance boots is discussed in detail.
After studying the company in detail our own
recommendations would to be provided.

CONTENTS

TABLE OF CONTENTS PAGE NUMBER


• Methodology…………………………………………..01
• Acknowledgement……………………………...…......02
• Introduction………………………………….…..…....03
• Need and Importance of the study…….………..…....05
• Objectives of the Study ………………………….…...06
• Biography of Rabindranath Tagore……………..…..07
• Travels by Tagore………………………………….....15
• Political views of Tagore…………………………......19
• Life stages of Tagore…………..…………..………....22
• Woks by Tagore………………………………….…..29
• Pictures by Tagore……………………………….…..44
• Manuscript by Tagore……………………...……......45
• Where the mind is without fear…………...………...46
• Evaluation of the poem……………………………...48
• Conclusion…………………………………………....50
• Bibliography……………………………………….....51

Alliance Boots
Type Private
Founded Alliance Boots 2006
Boots 1849
Alliance Unichem 1997
Founder(s) Jesse Boot - Boots
Merger - Alliance UniChem
Headquarters Zug, Switzerland
Key people Stefano Pessina (Executive Chairman), Andy Hornby (CEO)
Industry Pharmaceuticals
Healthcare
Beauty
Products Boots
Alliance Pharmacy, No 7 – Makeup, Soltan - Sun cream
Almus - Generic Drugs
Revenue £17.1 billion (08/09)[1]
Operating EBITDA £1.25 billion (08/09)
income
Net income No figures
Employees 110,000
Subsidiaries The Boots Company
Alliance UniChem
Boots Contract Manufacturing

Mission, Values & Culture


Alliance Boots Group's mission is to become the world’s leading pharmacy-led health
and beauty group.

Boots members have one shared purpose – to help customers look and feel better than
they ever thought possible.
Boots believe in making a difference and are proud of the contribution they make to the
well-being of the communities they are part of. Their values are:

Partnership

Includes respect, understanding and working together. Together we can achieve more.

Trust

The essence of the way we do business. We are trusted because we deliver on our
promises.

Service

We hold ourselves to high standards of care and service, for our customers and our
people.

Entrepreneurship

We are innovators, seeking new challenges and having a winning spirit.

Simplicity
We’re proud of being lean, efficient, uncomplicated and easy to do business.

Ethos of Boots

“Care and the opportunity to grow. Care for its people, care for its customers, care for its
community and environment.”

1. Their purpose is to help its customers look and feel better than they ever thought
possible.
2. Boots customers are at the heart of its business. They're committed to providing
exceptional customer and patient care, be the first choice for pharmacy and
healthcare, offer innovative products 'only at Boots', with great value its
customers love.

3. Its people are its strength and they tell them that Boots is a great place to work.
Boots aim to always be the employer of choice, attracting and retaining the most
talented and passionate people.

4. Boots is committed to offering its customers innovative and fantastic new


products.

5. Boots do this through its brand expertise along with its strong product
development and sourcing capabilities.

6. Many of their product brands, such as No7 skincare and cosmetics, hold market
leading positions in the UK and are growing fast in both profile and market
penetration.

7. Almost all of their innovative, unique products are developed in their own product
development, testing and customer evaluation facilities in Nottingham.
These unique facilities provide them with a significant skills and resource base to
evolve and grow their product portfolio giving its customers innovative and
fantastic new products.

Boots History
Early Days

Boots has its roots in the mid-19th century when John Boot, an agricultural worker,
moved to Nottingham to start a new business. He opened a small herbalist store on
Goose Gate in 1849, from which he prepared and sold herbal remedies. His business
soon proved popular, especially with the working poor of Nottingham's new industries,
who could not afford the services of a doctor. After John's death in 1860, his widow,
Mary, continued trading, with the help of her young son, Jesse, who became a full partner
when he was 21. The store continued to flourish, and, in 1877, Jesse took sole control.

Jesse Boot

"Health for a Shilling"

Jesse's talent for business was soon evident. He expanded the range of products he sold
to include proprietary medicines and household necessities. He adopted a strategy of
buying stock in bulk and selling his goods much cheaper than his competitors, advertising
under the slogan "Health for a Shilling". Customers flocked to buy his affordable
products and his turnover increased rapidly, allowing him to move into larger premises
on Goose Gate in 1881. This was followed by yet more shops in Nottingham and then, in
1884, Jesse's first shops outside the city, in Lincoln and Sheffield. In the same year he
also employed his first qualified pharmacist to dispense medicines, and oversee the
recruitment of others, enhancing the professional reputation of the company. Jesse's
policy of superior goods at competitive prices delivered with expert care, meant that the
Boots name quickly became synonymous with quality, value and service.

"Largest, Best and Cheapest - Branches Everywhere"

Jesse had ambitions for Boots to be a nationwide chain and so he began acquiring new
premises and also some chains of chemists. The store network grew rapidly: in 1890 he
had just 10 stores and by 1914 this had risen to over 550 stores throughout England,
Scotland and Wales. The range of products sold also expanded beyond traditional
chemists lines - from stationery, to silverware and picture framing, as well as the
introduction of new services like Booklovers Libraries and Cafes in the larger stores.
Many of these new lines and services were fostered by Jesse's wife, Florence, whom he
had married in 1886 (they went on to have three children together - John, Dorothy and
Margery). The growing retail side of the business was partnered by a growth in
manufacturing of Boots own brand products and research into new pharmaceuticals and
chemicals. Sites on Island Street and Station Street in Nottingham housed Boots growing
factories, warehouses, laboratories and offices.

"Boots Care"

The wellbeing of their employees was very important to Jesse and Florence and they
provided welfare, education, sports and social facilities for their growing retail and
manufacturing workforce. Full time welfare professionals were employed and a surgery
was established at the Island Street site to care for the health of employees. A Day
Continuation School (later renamed Boots College) was opened to provide extended
academic and vocational education for younger employees. Jesse and Florence enjoyed
organising and hosting social events and outings for staff in the early days of the
business - whether it was trips to the seaside or tea parties and musical concerts at their
house on the banks of the River Trent. As the number of employees grew, they fostered
and helped fund the establishment of numerous sporting and social clubs and societies,
with the belief that healthy and happy employees would make Boots a happy and
productive place to work.

"Chemists to the Nation"

Following the First World War, Jesse, who was approaching his 70th birthday and
increasingly incapacitated by arthritis, decided to retire and in 1920, he sold Boots to the
United Drug Company of America. During the next 13 years of American ownership
Boots continued to prosper and grow: a new manufacturing site was acquired at Beeston
in 1927 and in 1933 the 1000th Boots store was opened. In 1933 the United Drug
Company sold its holding in Boots to a group of British financiers led by John Boot,
Jesse's son. Under John's Chairmanship the company continued to develop: the first
overseas store opened in New Zealand in 1936; key brands No7 and Soltan were both
launched in the 1930s. John believed passionately that Boots should offer exceptional
customer service and introduced new initiatives such as 24 hour opening times to serve
the public better. He also continued his parents' tradition of staff welfare - improving
working conditions, reducing hours and introducing pensions for all employees.

"

No7 launched in 1935

Alliance Pharmacy
Pharmacy History

Company Origins

The origins of Alliance Pharmacy date back to the 19th century with the birth of Edgar
Moss in 1879. During the course of his life, Edgar built up a network of pharmacies
throughout Middlesex, Surrey and Buckinghamshire.
Edgar was born in Staffordshire on 30th June 1879, the second youngest in a family of
six. His childhood was plagued by severe ill health and he received only a limited
education. Just before the age of 20, and eager to fill the gaps in his learning, he enrolled
in evening classes, whilst continuing to work full-time during the day. The money he
earned allowed him to move on to further studies, and at the age of 23 he graduated from
Manchester College of Pharmacy with just enough funds left for a telegram home and a
return ticket to Manchester.

After qualifying Edgar held a number of different management roles stationed throughout
the country. This wealth of experience spurred him on to venture into business on his
own.

First store

Despite the uncertain wartime conditions throughout the country, Edgar decided to
purchase his first store in 1915 at 48 High Street, Feltham. Negotiations were rushed and
his initial inspection of the property took place by candlelight due to blackout restrictions.
The decision by Edgar to leave behind an established position and pour all his savings
into this venture required not only immense courage but also confidence in his own
experience and ability. Years later, he commented that he considered it 'the greatest
business risk I have ever taken...for I was sinking the whole of my resources and taking
with me a wife and young son into an uncertain future.'

With the help of his wife Gertrude, Moss worked hard to make the shop a success. He
had clear ideas for the development of his business and believed in applying the same
ethics to his store as he himself had been brought up on - hard work, honesty, best value,
efficiency and civility. What he did not realise was that his first store in Feltham would
prove to be the cornerstone of a business that would bear his name for the next 90 years.

Early expansion

The 1920's saw Edgar embark on a period of steady expansion. He opened his second
shop in 1921 in Hayes and within just two years had doubled the number of his stores.
With an increasing store network, Moss acquired a disused army hut in which to operate
his central warehouse.

From the outset Moss wanted his stores to be known for their service, price and quality.
He also offered a range of services to his customers, from two penny libraries to post
office services. Open to trying new ideas Moss extended his business to include a car hire
service which later formed the basis of his transport division.

In 1934, with a network of 10 stores, Edgar took the decision to convert his business into
a private limited company under the name E Moss Ltd. Joining him on the board was his
son, Harold who became Managing Director. Edgar felt that this new status would offer
his employees a chance to share in their prosperity. Within two years the company had
relocated to Fern Grove in Feltham, with a new head office and central warehouse better
equipped to handle the growing demands of the business.

During the 1950s, the company, keen to tap into the increasing popularity of
photography, took the decision to expand this side of the business. In 1954 E Moss Ltd
opened their first photographic shop in Staines. It carried an extensive range of stock, had
a demonstration room at the rear and a specialist photographic manager and was greeted
with enthusiasm by local amateur photographers.

A Caring business

Employee welfare was of great personal interest to Edgar Moss and he was keen to
encourage a team spirit, believing firmly that a happy workforce was a productive one.
He looked on the staff as members of the Moss family and sought to secure the best
working conditions for everyone. On visits to his stores, Edgar would always have a kind
word to say to everyone.

During the early 1930s, staff events such as dinner dances and theatre-trips were
arranged. With a staff of just under 30, Edgar and his wife would also invite them to
parties at their home in Walton-on-Thames.

A staff pension scheme was begun in 1945, followed a few years later by a profit sharing
scheme and a marriage 'dowry' that was paid to female staff on their wedding day. In
1964, the company provided a life assurance cover equivalent to more than 2 years'
salary, without any cost to the employee The next year saw the introduction of the
Employees Trust Fund which issued shares to Managers and Pharmacists in relation to
their length of service. More recently, Moss Chemists instituted an in-house continuing
education course for pharmacists.

Harold Moss

With the death of Edgar Moss in 1958, his son Harold became Chairman. By that date he
had nearly 30 years experience within the business, joining it in 1929 as a store manager
and qualified pharmacist. Harold continued many of the policies initiated by his father -
proceeding, like him, with steady caution. In 1960 Harold's wife, Marjorie, joined him on
the board as he believed her "feminine viewpoint" was of great value.
During his first decade as Chairman, Harold concentrated on store refurbishments and
head office and warehouse expansion. He was well aware that modernisation and
improved efficiencies could improve sales and profit.

In 1969 the company set up an industrial sales division to supply medical and surgical
items to local factories. Within a few years the company was supplying national
companies such as Debenhams and Marks and Spencer. They also secured an exclusive
account with British Airways to carry a Moss first aid kit on each of their aircraft. It was
also around this time that the company opened its first concession, a toiletry and cosmetic
section within a local department store.

Throughout his career Harold held a number of key representative roles within the
pharmaceutical profession and it was for this work that he was awarded an OBE in 1969.

The company celebrated their Diamond Jubilee in 1975. Harold had retired a year
previously, though he remained Chairman of the Board until his death in 1981.

Recent years and Alliance Pharmacy (MERGER)


During the mid 1980's the company began to develop units within national
supermarket chains and by 1991 Moss had pharmacies within 31 Asda stores. The
company also went back to basics and opened a pure pharmacy store, which gave
customers longer opening times. In 1990 the company celebrated its 75th anniversary of
Moss Chemists with a dinner at the Apothecaries Hall in Blackfriars and a staff trip to
Alton Towers.

At the end of 1991, E Moss Ltd became part of Unichem Plc. The company embarked on
a period of rapid expansion, acquiring an average of 65 branches per year.

In 1997 the company merged with Alliance Santé to become Alliance Unichem. That
same year, the company celebrated the opening of their 500th store in Battle, Hastings.
Over the next ten years the network of stores was nearly doubled in size and the shops
were re-branded under the name Alliance Pharmacy.

In 2006 Alliance Unichem merged with The Boots Company PLC to form Alliance
Boots, an international pharmacy-led health and beauty group. In June 2007 Alliance
Boots was acquired by AB Acquisitions Limited (a company jointly controlled by certain
funds advised by KKR and Stefano Pessina) and its shares were delisted from the London
Stock Exchange.

Boots Heritage
At the heart of business is Boots commitment to its customers and patients. From the
humble beginnings of both Alliance Pharmacy and Boots, key figures have had the vision
to push boundaries and seek new solutions.

Timeline

Year Event
John Boot opened a herbalist shop in Goose Gate, Nottingham.
1849
1850 Jesse Boot was born in Nottingham.
1871 John's widow, Mary Boot, and son, Jesse began trading as M & J Boot,
Herbalists.
1877 Jesse Boot took over control of the shop.
1879 Edgar Moss was born in Staffordshire.
1883 Boot & Company Ltd formed.
1884 Boots first pharmacist appointed
1885 Development of Boots manufacturing facilities around Island Street, Nottingham.
1888 Company renamed Boots Pure Drug Company Ltd.
1892 Flagship Boots store opened at Pelham Street, Nottingham.
1898 Boots Booklovers' Library established.
1902 Edgar Moss qualified as a pharmacist.
1915 Edgar Moss bought his first pharmacy business in Feltham.
1920 Boots Pure Drug Company Ltd sold to the United Drug Company of America
1921 Edgar Moss opened his second Moss pharmacy in Hayes.
1923 Edgar Moss opened his first warehouse in Feltham, in a corrugated iron army hut.
1926 John Boot became Chairman of Boots Pure Drug Company Ltd.
1928 Harold, son of Edgar Moss joined the Moss company as qualified pharmacist and
manager of Southall store.
1929 Boots D1 Soap factory, the first building on the new Boots Beeston site,
Nottingham, completed.
1931 Jesse Boot died at the age of 81
1933 Ownership of Boots returned to the UK.
1934 E. Moss Ltd formed. Harold Moss became Managing Director.
1935 No7 cosmetics launched by Boots.
1936 First Boots branch in New Zealand opened.
E. Moss Ltd moved premises to Fern Grove, Feltham.
1939 Soltan sun care range introduced by Boots.
1947 Boots established companies to carry out wholesale businesses in Australia,
Canada, Pakistan and the Far East.
1948 Inauguration of the National Health Service.
1949 New Boots factory opened at Airdrie in Scotland to manufacture cosmetics.
New Boots factory near Bombay in India went into production.
Edgar Moss retired from E. Moss, but continued as a Governing Director.
1951 First self-service Boots stores trialed in London.
1953 John Boot retired as chairman of Boots.
1954 E. Moss Ltd opened its first photographic store in Staines
1958 Edgar Moss died at the age of 79
1968 New Boots The Chemists Headquarters office, D90 opened at Beeston.
Launch of 17 cosmetics by Boots.
Fern Grove Head Office and warehouse extensions completed by E. Moss.
1969 Boots launched Ibuprofen (Brufen) in the UK.
E. Moss Ltd. established an Industrial Sales Division
1971 Company renamed The Boots Company Ltd.
Acquisition of Crookes Laboratories Ltd by Boots.
1974 Harold Moss retired from the E.Moss business.
1982 Company renamed The Boots Company plc.
New Boots factory opened at Cramlington, Northumberland.
1983 Nurofen launched, following the approval of Ibuprofen as an over the counter
analgesic.
Boots opened their first in-store optical practice.
1984 Boots (Retail Buying) Hong Kong Ltd established.
Moss became the sole supplier of medical supplies to British Airways
1985 Boots received the Queen's Award for Technological Achievement for the
discovery and development of ibuprofen.
1987 Boots Opticians Ltd formed, with the acquisition of Clement Clarke Ltd and
Curry and Paxton Ltd.
Boots Opticians became the UK's second largest retail optics chain.
1989 Natural Collection launched by Boots.
1990 Boots Contract Manufacturing and Boots Healthcare International established.
1991 UniChem Plc acquires Moss Chemists. The company begins a period of rapid
expansion, acquiring an average of 65 branches per year.
1992 Electronic Point of Sale (EPOS) computer installation completed in all Boots
stores.
1994 Moss acquires the Selles Pharmacy chain based in the Hull area.
1995 Boots Pharmaceuticals sold to BASF.
Botanics skincare range launched by Boots.
1996 First Boots store in the Irish Republic opened, in Dublin.
1997 UniChem Plc merges with Alliance Santé to become Alliance UniChem making it
one of the - largest pharmaceutical distributors in Europe.
Boots Advantage Card launched.
1998 Acquisition of Hayes, Conyngham and Robinson, and Connors, making Boots the
largest retail pharmacy chain in Ireland.
1999 Moss Chemists re-launches itself as Moss Pharmacy.
2000 Bootsphoto.com launched - a new, complete e-photo service.
2001 Boots Opticians offer the world's first disposable hearing aid, Songbird.
Moss relocates its head office to Fern House, Feltham.
2002 Boots renamed Boots Group plc.
2003 Online shopping channel renamed boots.com.
2004 Moss begins development of its new Advanced Pharmacy Management System.
The new system - is compliant with the new NHS contract and covers the
requirements of not only England and Wales but also Scotland.
2005 Moss Pharmacy announced that its network of 878 community pharmacies were
to be re-branded as Alliance Pharmacy.
Alliance Pharmacy announces the acquisition of Bairds Chemists in Northern
Ireland. Bairds is the largest multiple - pharmacy chain in Northern Ireland
2006 Boots Healthcare International is sold to Reckitt Benckiser.
Boots Group merged with Alliance UniChem to form Alliance Boots plc, an
international pharmacy-health and beauty group.
2007 Alliance Boots was acquired by AB Acquisitions Ltd.

Boots Stores
Boots help its customers look and feel better than they ever thought possible.

They have combined two retail businesses in the UK, Alliance Pharmacy and Boots, and
developed a multi-format strategy focused on giving its customers more of what they
want and need in the right place, cared for by its friendly, professional people.

They're currently embarking on a major expansion of the Boots brand by rebranding our
community pharmacies, Alliance Pharmacy as customers local Boots pharmacy'. They
will continue their traditional focus on healthcare and dispensing, with the addition of
Boots healthcare and Boots own brand product range. This is the largest expansion of the
Boots brand ever.

Its larger Boots health and beauty stores offer destination shopping with a wide range of
products including all Boots leading brands and our flagship stores also offer beauty halls
with beauty consultants and premium cosmetics. Boots airport stores have targeted ranges
to meet the needs of its customers when they're travelling.
And they will reach even more of customers where they want by continuing to acquire
new pharmacies, putting pharmacy at the heart of our communities.

Boots dedicated teams located in Feltham and Nottingham support its stores and
customers.

Boots store formats are:

Flagship store: Boots widest range of products and services, big on new beauty.
Local pharmacy: Healthcare-focused community stores. Work closely with Primary Care
Trusts.

Health and Beauty: Edge of town, convenience and high-street stores.

Airport: for travelling customers' last minute needs.


PHARMACY
Mission

Boots mission is to provide its customers and patients with great healthcare products and
services, which help them look and feel better than they ever imagined.

They aim to be the first choice for healthcare, reaching its customers and patients in new
ways and with real convenience. From its local pharmacies to its largest flagship stores,
from care homes through to prison services, Boots aim to give a great pharmacy
experience.

Healthcare in Boots is not just about dispensing prescriptions, but also about offering
expert advice to all its patients and customers, ensuring they get top quality patient care
in a location that is convenient to them. Working closely with the NHS, Boots is about
providing easy access to quality healthcare services across the UK, ensuring that its
patients get what they need at a time and a place that is convenient to them.

About pharmacy business


From 1849 when John Boot first opened a store selling herbal remedies to the poor, to
1915 and Edgar Moss’s purchase of his first shop in Feltham, pharmacy has always been
the heart of their business.

Their mission is to become the world’s leading pharmacy-led health and beauty retailer,
they never shy away from change – especially when that means pioneering better
pharmacy services. The merger of Alliance Pharmacy and Boots created a business that
operates in 15 countries, dispenses 160 million prescriptions a year and welcomes 22
million people through its doors each week. To make sure that their customers continue
to receive the level of care that’s made them famous, they’ve restructured their business
in a way that guarantees pharmacy stays their number one focus.

What does this mean for the customers, there’s a whole new pharmacy concept for
customers to experience. Located in the heart of communities and close to GPs’
surgeries, these new, bright and spacious pharmacies will help customers engage more
closely with their customers than ever before. Now you can provide the level of care and
sense of community associated with a local pharmacy, whilst delivering a faster and more
reliable service. ‘ local Boots pharmacy’ also features the interactive Boots Advantage
Card technology, plus the mix of products, own brand medicines and exclusive ‘No 7’
and ‘Botanics’ lines that people love.

Customers love the health & beauty and flagship stores too. They’re modern, bright and
easily accessible. Or, if customers love meeting loads of different people every day, then
boots airport stores are exactly fabulous thing. They provide travellers with all they could
possibly need from a pharmacy.

Pharmacy opportunities at Boots

With the launch of our new ‘local Boots pharmacy’ – this is an exceptional time to join
them. Most of the new stores feature modern facilities such as face-to-face dispensing
areas and consultation rooms. These separate prescription from retail customers and help
customers to deliver a more personalised and informal service. Now one can spend more
time than ever using expert knowledge performing MURs, blood pressure readings and
diabetes tests. But boots don’t intend to leave their commitment to customer care and
community pharmacy there. With their flagship, health and beauty and airport stores,
there’s so much more variety for customers to experience. To help boots grow to become
the world’s best pharmacy-led health and beauty retailer, they’re always on the look out
for talented and passionate people to join the team. With over 2,900 pharmacies across
the UK and Republic of Ireland, customers immediately benefit from the support network
and expertise that makes them such a leader in the field.

Working with the NHS

Boots is a key partner of the NHS. Pharmacy leaders and the Government have agreed
new ways for pharmacists to work more closely with the NHS to design new services to
meet the specific needs of the community. These are listed in our 'Pharmacy Services'
section.

Many of its pharmacy teams work closely with primary care organisations, meeting local
healthcare needs, and with its national voice they're helping to shape Government
thinking about the nation's health.

Expanding the role of pharmacy

Boots is committed to extending the role of pharmacy professionals in line with the
Government priorities. Its team of pharmacists and dispensers are passionate about
providing expert advice and healthcare services and pride themselves in having great
teams to deliver all customers’ healthcare needs. These professionals are at the very heart
of our business.
Services offered by Boots Pharmacy

Prescriptions

Repeat Prescription Service

The Repeat Prescription Service is offered in most of its pharmacies providing customers
with a simple and convenient way to get their repeat medication.

Its customers can order their next supply of repeat medication in the pharmacy when they
collect their current supply, saving them an unnecessary trip to the surgery. Its pharmacy
team will order the repeat prescription from the surgery on the patient's behalf, collect it
and have the medicine ready and waiting to collect when they next visit our pharmacy.
For added convenience, medicines can also be delivered to the customers.

Ordering Online

At Boots they feel it is important that their customers can order their prescriptions just as
easily from the comfort of their own home, which is why they have an online ordering
service for both NHS and private prescriptions.
Midnight Pharmacy

Boots have a nationwide chain of 'Midnight Pharmacies' with extended opening hours. So
right through until midnight its customers can benefit from having their prescriptions
dispensed, buying medicines and receive professional advice from a pharmacist all until
midnight. Midnight Pharmacies are conveniently sited in most major cities and towns,
and are within a 30-minute drive for most of the UK population.
Other Pharmacy Services

As a key partner of the NHS, Boots is able to deliver specific services that are designed to
meet the specific needs of its customers and patients in their local communities. Boots
aim to be the first choice for all healthcare needs and offering the following types of
services is just one way that we can extend its expertise to its customers.

Medicines Check Up

The service (also known as a medicines use review) involves a consultation with the
pharmacist to discuss your medication. This includes all prescribed medicines, such as
tablets, liquids, creams and inhalers, along with any purchased from a pharmacy, health
shop or supermarket (for example, vitamins, supplements or pain killers). It gives an
opportunity to ask any questions customers may have about how and why they should be
taking the respective medicines and any problems this is causing.
This service is currently available in England and Wales and is aimed at patients taking
more than one medicine or who have a long-term condition.

Minor Ailments Service

This service is for people who don't pay for their prescriptions and allows them to receive
advice and medicines for a range of minor ailments, free of charge without having to visit
their GP first. Examples of minor ailments covered as part of the service include
headache, hay fever, coughs and colds.

This service is currently available in Scotland and Northern Ireland and from selected
stores in England and Wales.

Drug user service

Our services for drug users reduce the risk of contracting infections, causing harm and
reduce psychological problems. Substance misuse has a major impact on individuals,
families and the community.

The service helps to engage users in drug treatment and reduce drug related harm and
crime via supervised consumption of heroin substitutes and by offering needle and
syringe exchange schemes. Supervision prevents diversion of legally prescribed
methadone onto the black market.

This service is available from selected pharmacies across England, Wales and Scotland.

Locally commissioned services

Many of boots pharmacies will also offer a range of services commissioned locally by
NHS primary care organisations.

NHS and Boots Pharmacy Service

- Stop smoking service


All the boots pharmacies are able to provide customers with the advice and support
needed to help them stop smoking. Where necessary, boots pharmacists can identify the
most suitable nicotine replacement therapy (NRT) for its customers. NRT has been
shown to double a person's chances of quitting smoking.

In some of their pharmacies customers can have a Smokerlyser test to measure how much
carbon monoxide they have in their breath and in our larger flagship stores customers are
able to have a 'real lung age' test.

NRT and other products are available to purchase in all its pharmacies. Many of its
pharmacies also offer NHS-funded stop smoking services.

- Weight Loss programme

The Weight Loss programme is a pharmacist-led professional programme, designed to


help the customers lose weight and feel better. The programme has been designed by
experts and is based on a tried and tested approach that can double a person's chance of
achieving a 10% loss in body weight over 12 months, compared with trying to follow diet
and exercise recommendations on their own.

It is aimed at individuals with a BMI of 28 or more needing medically significant weight


loss.

• An initial consultation and assessment with a Boots pharmacist who is fully


trained to give advice relevant to the customer's weight loss needs

• An effective weight loss medicine with detailed instructions on how the medicine
works and how to take it

• Ongoing reviews and discounts on related products - the customer's progress on


the programme can be carefully monitored and to help them get started they will
enjoy discounts on the Shapers range and exercise equipment

• Access to an ongoing weight loss support service - that will provide the customer
with ongoing advice and motivation to help support them through our Weight
Loss Programme
- Hair Retention programme

The Hair Retention programme is a Pharmacist-led professional programme. It is only for


men over 18 and up to 70 years old with a qualifying level of hair loss due to male
pattern baldness. The programme is based on clinically proven results. In clinical studies,
9 out of 10 men with male pattern baldness kept their hair, whilst untreated men
continued to lose their hair.

The programme involves the following:

• An initial consultation and assessment with a Boots pharmacist who is fully


trained to give advice relevant to the customer's specific hair retention needs

• An effective hair retention medicine with detailed instructions on how the


medicine works and how to take it

• Follow-up reviews with a Boots pharmacist - the customer' progress can be


carefully monitored using digital photographs, so their hair pattern and its
thickness can be assessed objectively

• Discounts on selected Boots hair care products - to help its customers make the
most of their hair and keep it in tip-top condition

Weight Loss and Hair Retention services are available from larger Boots stores.

NHS services are provided under different legislation in England, Wales, Scotland and
Northern Ireland.

Care Sector Services


Care homes services

Being a customer of Boots means being able to access expert healthcare advice. It is
incredibly important to boots to also focus on those patients who cannot physically get to
one of our stores. These people deserve exactly the same standard of care that they would
offer a patient in-store, so boots dispense prescriptions to care homes across the county
as well as offering them healthcare advice and support.

Health Club

The Boots Health Club is free to join and is available to UK residents aged 60 or over.
Boots Health Club members can receive advice, information and exclusive, money off
coupons relevant to their specific health concern.

Boots opticians
About Boots Opticians

Boots Opticians was formed in 1983, with the first Optical Services practice opening in
Nottingham, this was followed in 1984 by a further 5 stores: Peterborough, Leeds,
Mansfield, Luton and Derby.

Since then it has expanded to 286 practices nationwide offering a wide range of services,
including eye examinations, digital retinal photography, glasses, contact lenses and
accessories.

This year boots opticians are celebrating their 25th anniversary, having completed over
21 million eye examinations in our history. Its people have spent the last 25 years
dedicated to helping every one of us see better. In fact, all its Optometrists, Opticians and
Customer Service Assistants are committed to giving every patient the very best possible
eyesight.

In the last year a lot has changed at Boots Opticians, it has re-launched every single one
of its 286 practices, and they now look brighter, cleaner and have a wider choice of
glasses than ever before.
Products offered by Boots Opticians

o Mens Glasses
o Womens Glasses
o Designer Glasses
o Sunglasses
o Childrens Glasses
o Contact Lenses

Men and women glasses

Boots offer men and women glasses in many brands, in many designs and at
different prices as per the needs of its customers.

Children glasses vary in shape and size far more than adults. Boots therefore need
its younger customers to come into practice so as to get the right size and
therefore best fit for each child.

Contact lenses are available at great prices from a name customers can trust. It carry’s a
range of the most popular brands, such as Acuvue Advance, Acuvue Oasys and Acuvue
Advance for Astigmatism, as well as the Boots branded lenses..

With more choice of designer brands than any other glasses website in the UK, there
really is no better place to buy some of the latest frames from some of the top designer’s
brands like GANT,Eyeware,Lulu,steeper,ghost,diesel,bench,Gucci,guess etc

Apart from the providing these products, Boots provide Boots Corporate Eye care
services to the employees of the different organizations at affordable prices.
Boots Hearing care
The Company
Boots is one of the largest providers of hearing aids in the UK. The Company was
established in 1961.Company has a national network of centres across the UK and with
close association with the world's leading manufacturers of hearing aids, it offer a
comprehensive range of products, including the very latest technology,

When a customer purchase a hearing aid from Boots Hearing care and David Ormerod
Hearing Centres the customer are not just purchasing a product, they are gaining support,
service and commitment from a company that has over 40 years experience in providing
hearing care.

It operates out of over 200 centers in the UK.Its centers are located across the UK in
selected Boots stores, NHS Hospital Audiology Departments and high street stores.

Boots hearing care service includes free 5-minute hearing test, free full hearing
assessment, fitting, aftercare and an extensive range of quality digital hearing aids that
will improve customers hearing, quality of life and also offer customers great value for
money.

• Free membership
• Half price hearing aid batteries for life
• 15% off catalogue maintenance items and accessories
• 10% off extended warranty
• Free postage on all orders over £10

Hearing Aid Accessories

Hearing Aid Accessories


Hearing Aid Care Kit (In-The-Ear)
Hearing Aid Care Kit (Behind-The-Ear)
Cleansing Tissues
Cleansing Tissues
Air Puffer
Drying Beaker
Drying Capsules for ITE
Cleansing Stick
Cleansing Beaker
Cleansing Tablets for BTE ear mould
Otoferme Crème
Earol (olive oil spray) for wax removal
Phonak Smart Guards
Cerustop Wax Guards
Nano Care Wax Guards

Boots Insurance
• Boots Health Insurance
• Dental Plan
• Travel insurance
• Child Trust Fund
• Travel Services

Boots health insurance


Health insurance is all about knowing you’ll get the treatment you need, when you need
it. With Boots Health Insurance, you’ll have high quality cover you can trust, for you and
your family

With Boots Health Insurance we believe it’s only fair that people who look after
themselves in day-to-day life should pay less for their health insurance cover – the less
you claim and the more you do to look after yourself, the lower your health insurance
should be

Key benefits:

High quality cover you can trust


Full cancer cover
Large network of hospitals
Help reduce your premiums by living healthily

Dental Plans

The teeth are one of your most precious assets and preserving their strength for the
duration of your life should be a priority. That's where Boots Dental Insurance comes into
the picture!

Boots recognise that going to the dentist could cause you - and your bank balance -
distress. So they've devised three dental insurance plans, each of which is designed to
make going to the dentist more affordable.

Three levels of cover


Great value prices
Easy and quick to apply

*Boots dental plans are designed to help cope with the cost of dental bills. There
are three plans to choose from:
 Core - this dental cover is designed to repay 100% of any NHS dental charges
incurred in England and Wales and contribute towards your private dental costs
 Private Level 1 - this plan aims to contribute towards your private dental costs
 Private Level 2 - this plan offers you a greater level of reimbursement towards
your private dentist costs

So if customers are looking for a comprehensive plan for them or their whole family,
Boots Dental Insurance could be higly beneficial.

Travel Insurance

Boots multilingual team are on hand 24 hours a day, 7 days a week, should customer
require emergency medical treatment on a holiday. They can help customer to
understand the treatment they require and will work with the team in the hospital to help
make sure everything happens smoothly. And in most cases, boots settle the bill directly
with the hospital.Customers can visit the boots store to get teir advice on how to plan for
t.heir holidays.Their are flexilble travel insurance like City break (up to 5 days cover)

 Single trip (10, 17 or 24 days cover)


 Multi trip (annual cover)
 Gap year (3,6,9 or 12 months cover)
 Winter sports

One can purchase travel cover for individual,couple and family. Kids are covered free of
charge when you buy a Boots Family Travel Insurance Policy.

Child trust fund


The principle of Baby Bond® is simple. One pay in money for their child and the money
is invested with the aim of building a lump sum. Nobody can touch the money but the
child and then only when they are 18. There's no personal tax to pay either on the growth
of the account or on the final payout. The good news is that with child’s Baby Bond®
could pay out a great deal more, family and friends can make additional contributions -
regular, one-off or both - which can help the account grow into a really meaningful
amount.

Travel services

Whether one is off on a weekend trip to France, two weeks in Portugal's summer sun or
spending a year backpacking, one can trust Boots to cater for all your travel money
needs.

With expert advice available, boots staff is on hand to help customers make the right
choices when it comes to foreign currency and travelers cheques. With Boots one can be
sure to travel with complete peace of mind. Boots travel money is convenient and hassel
free.

Boots photography

Boots Photography is a specialist:

• Children's Photographer
• Family Photographer
• Newborn Photo
• Maternity Photographer
Memories like children are precious.Those moments can be captured eith the specialist
children photographer.Free flowing creativity where one can see one’s child playing,
laughing and feel comfortably in front of the camera.
Wedding photography that captures beautiful and contemporary photographs to tell the
story of the Bride and Groom's wedding day. Boots dont like to generalise its style as
they shoot the contemporary glamour shots, photojournalistic or documentary style to
capture the emotions as well as the treasured family photos.
What is special about the boots photos is that it provide various packages like being the
model of the day etc,all these beautiful memories can be treasured for the years to come.
Boots have packages and products to cater for all budgets.

Boots, the UK's after teaming up with photobox I now the the UK's number one online
community for photo printing and personal publishing, to provide online photographic
services to Boots customers for the first time. With this move, Boots and Photobox
together aim to lead both the on and offline photographic space by bringing innovative
digital services such as printing digital images, personalized photobooks and greeting
cards to Boots' nationwide audience.

Boots provides photo editing and personalised product creation. All Photobox products
including the latest exclusive photobooks, canvases, home accessories and gifts will be
available directly from the Boots.com website.

Boots, the original pioneer of in store photo printing, has brought convenience and trust
to the high street photographic arena for more than three decades. Boots now has around
2,600 stores from local community pharmacies to large destination health and beauty
stores across the.The move will provide the customers with the very best service and
products that the web has to offer in the photographic market." Boots customers will now
be able to enjoy a fantastic online photographic service.
Boots beauty products
Boots, the wildly popular British cosmetics and skincare brand, was developed way back
in 1849, but it has finally made its way stateside.

Now, the Boots products are available to the masses nationwide in more than 1,500
Target stores and 500-plus CVS outlets.

Mission
Boots is dedicated to developing effective and innovative beauty
products that deliver results for women and men across the globe.
Boots believe that beauty products should be accessible and
affordable for all and are proud of the contributions they make to the
well-being of the communities they serve.

Purpose
Boots customers are at the heart of their business. Boots is committed to offering
products that pair quality ingredients with groundbreaking science and technology,
creating innovative skin care and cosmetics

The most popular brands of boots are:


• No 7: An insanely popular cosmetics and skincare brand.
• Botanics: A makeup, skin care, bath, and body line derived from plant extracts from
the Royal Botanical Gardens of Kew in London.
• Time Dimensions: A skincare line geared toward anti-aging.
• Mediterranean: A bath and body care line made from natural, wholesome, and
organic ingredients.
• Feel The Difference: A collection of vitamins and supplements that help to cleanse
and purify your skin.

Be confident in your beauty Replenish your body, revive


The UK’s best-selling make up your mind
and skin care brand, loved by Nourishing and natural-based
women around the world. products for your face, skin and
body created using powerful plant
extract.

Solve your everyday skin


concerns
Simple, effective skin and body
care products with proven
results, from our skin care Become part of a beauty
experts. tradition
Vintage beauty must haves, from
the archives of 1800's England to
your modern day boudoir.

Fight aging effortlessly


A 3-step solution to rejuvenate
your skin, helping you look Indulge in the exotic
younger. Luxurious bath and body care to
soften smooth and delight your
senses.

Thus boots is one of the most trusted brands in health and beauty products moreover its
products are not tested on animals but on men and women who trust boots. No7 the
number 1 cosmetics and skin care brand in the UK; 1 in 3 women in the UK have a No7
product in their makeup bag.

ALLIANCE BOOTS STRATEGY


Strategy and Strategic Planning are not just about being in the best market – they are
about being in the market that has scope for growth, that is lucrative and that is in line
with the internal strengths of the organization.

Boots’ strategy during the past few years has been to create shareholder value by
investing to become a more modern, efficient and competitive health and beauty retail
business.

To implement this strategy, Boots has sought to:

1.reinforce its comprehensive beauty and toiletries offering and grow its own-brand and
exclusive product ranges such as “No 7”, “Soltan” and “17”, which Boots believes helps
to differentiate its products from those of its competitors

2. offer better value for its customers by, in particular, reducing prices on its products
(particularly in its toiletries category) and to grow its “Advantage Card” membership

3. open new stores, mainly in edge-of-town locations, and modernise its stores to improve
their convenience and accessibility

4. offer expert customer care including by investing in training of its pharmacists

5.Invest in supply and IT field.

Alliance Boots financial Results


Preliminary results announcement for the year ended 31 March 2009

“Strong growth in revenue, EBITDA and trading profit”

Alliance Boots, the international pharmacy-led health and beauty group, today reports
preliminary results for the year ended 31 March 2009 which demonstrate that the Group
has continued to perform well in 2008/09, despite the increasingly challenging business
environment.

Highlights:

Group

• Continued strong financial performance

• Revenue, including share of associates and joint ventures, up 15.5% to £20.5


billion

• EBITDA, including share of associates and joint ventures, up 11.3% to £1,245


million

• Trading profit, including share of associates and joint ventures, up 11.6% to £953
million

• £100 million merger cost synergy target achieved 18 months ahead of schedule

• Secure financing and robust financial position

Health & Beauty Division

• Revenue up 4.4% - up 2.9% in constant currency

• Trading profit up 11.6%

• Boots UK
- Revenue up 3.2%
- Like for like revenue up 1.3%
- Over 450 stores now trading as “your local Boots pharmacy”

• Boots Opticians merger with Dollond & Aitchison completed after year end

Pharmaceutical Wholesale Division

• Challenging markets

• Revenue up 17.8% - up 3.8% in constant currency

• Trading profit up 4.4%

• Division-wide business improvement programme underway

• Key acquisitions in Germany and France

Associates and joint ventures

• Share of post tax earnings of associates and joint ventures up 25.0% to £75
million

Cash flow

• £1,045 million cash generated from operations

To assist in understanding the performance of the Group, all references to year on year
performance (unless otherwise stated) are based on comparative pro forma financial
information for the year ended 31 March 2008 as if the acquisition of Alliance Boots plc
by AB Acquisitions Limited on 26 June 2007 had taken place prior to 31 March 2007.

Financial summary
£million
Revenue 17,195
EBITDA 1,096
Underlying depreciation and amortisation (255)
Trading profit 841
Share of post tax earnings of associates and joint ventures 75
Underlying net finance costs (705)
Underlying tax credit 25
Underlying profit 236

A reconciliation of underlying profit to statutory profit for the year is set out below:

£million
Underlying profit 236
Amortisation of customer relationships and brands (80)
Net exceptional items before tax (58)
IAS 39 timing differences (60)
Tax credit on items not in underlying profit 63
Profit for the year 101

1
EBITDA comprises trading profit before underlying depreciation and amortisation.
2
Underlying depreciation and amortisation excludes depreciation and amortisation
within exceptional items and amortisation of customer relationships and brands.
3
Trading profit comprises profit from operations before exceptional items, amortisation
of customer relationships and brands, and share of post tax earnings of associates and
joint ventures.
4
Underlying net finance costs comprise net finance costs adjusted to exclude
exceptional items and IAS 39 timing differences.
5
Underlying tax credit excludes tax on exceptional items, amortisation of customer
relationships and brands, and IAS 39 timing differences.
6
Underlying profit excludes exceptional items, amortisation of customer relationships
and brands, IAS 39 timing differences and related tax.
7
Net exceptional items mainly comprised costs in relation to the Pharmaceutical
Wholesale Division restructuring programme, merger synergies and the second phase
of integration projects, impairment of goodwill, investment in associate and an
available-for-sale investment, and discounts on the repurchase of acquisition
borrowings.

Commenting on the results, Stefano Pessina, Executive Chairman, said:

“I am pleased that Alliance Boots has again reported strong growth in revenue, EBITDA
and trading profit. This reflects the underlying strength of our two core business
activities, the importance of health and wellbeing to both individuals and governments,
and the benefits from transforming our Group.

The Group’s financial position remains strong, reflecting a focus on profit generation and
working capital management, combined with secure long term funding arrangements. We
have a strong cash flow and in addition are benefiting from historically low interest rates.

Since our year end, Alliance Boots has continued to perform well, reflecting the markets
in which we operate and the further benefits we are generating through transforming the
Group. As a result we remain confident about our prospects for the year ahead.

This is a great Group with great brands and market leading positions in attractive
markets. We are fully committed to the development and growth of Alliance Boots and
believe that we are on track to become the world’s leading pharmacy-led health and
beauty group.”

A glossary of key terms is provided at the end of this announcement.

The Group’s 2008/09 Annual Review, together with the Consolidated Financial
Statements, will be published on our website (www.allianceboots.com) on 28 May 2009.
In addition, the Group’s Corporate Social Responsibility Report 2008/09 will be
published on our website at the end of September 2009.

Industry insights

Boots Current Position

A Consumer Insights report produced in 2008 revealed the following information about
Boots' position in the personal care market:

Boots' share of shoppers:


2004 53%
2008 50%
ANALYSIS
• The share of boots has declined because customers prefer to go to the
supermarkets to buy the products, as they can get all the products under one roof
there, rather than going to the specialized retail outlet like boots.

• Alliance Boots is taking a cautious approach to the rebrand, trialing the store
format and assessing consumer feedback. To maximize its potential, the company
'needs to rebrand the Alliance chain and finish refurbishing its own high street
stores at a much faster rate before competitors grab the initiative'

Drivers of loyalty amongst Boots loyal shoppers - why they shop there

Range of goods offered 69%


Price (compared to rivals; offers etc) 27%
Convenience (location etc) 23%
Facilities 11%
Quality 11%
Service 9%
Layout 4%
Ambience 4%

Analysis
The main reason why customers prefer to go to boots is because it provides better range
of goods than its competitors.27% of the shoppers believes that the price of
boots products is cheaper than its competitors. Boots stores are located at very
convenient locations, one can find boots store at a distance of every half an
hour in London.11% of the customers visit boots because of the facilities it
provides like repeat prescription service, midnight pharmacy, home delivery
and specialized boots consultants at boots store to guide the customers related
to drugs.11% of the customers believe that the quality at boots is better than its
competitors and only 4% of the customers come to boots because of its layout
and ambience.
The competition: where people using Boots for main source of personal care shopping
also shop:
Superdrug 23%
Tesco 16%
Body Shop 10%
Sainsbury's 9%
Asda 9%
Morrison 6%
M&S 5%
Debenhams 4%

SWOT ANALYSIS OF ALLIANCE BOOTS

STRENGHTS
Service and range: Boots' key retail proposition

In other ways, the company is investing in marketing to differentiate its offer and build
loyalty, through offering a broad range of heath and beauty products and services. The
notion of customer service, though, is crucial to this proposition.

• In healthcare: this is the core of Boots' service strength. The firm is trying to
reposition Boots as the complete healthcare provider.

• It has recruited more healthcare specialists to offer advice, running combined


trials with GP surgeries. It has opened its first GP surgery in Poole and has
earmarked another 150 potential sites for more.

• Boots plans to double the number of pharmacies opening to midnight and increase
the Measured Dose Service to care homes.

Pharmaceutical Wholesale Division

• Alliance Boots ranks as one of the top three pharmaceutical


wholesalers/distributors in almost all Western European markets in which it
operates.Its Pharmaceutical Wholesale businesses provide high core service levels
to pharmacists in terms of frequency of delivery, product availability, delivery
accuracy, timeliness and reliability at competitive prices.
• It also offers its customer’s innovative added-value services which help
pharmacists develop their own businesses.
• It consistently delivers high standards of efficiency and effectiveness.The Boots
offering is differentiated from that of competitors due to the product brands which
we own and “only at Boots” exclusive products, together with our long
established reputation for trust and customer care.

• Boots stores are located in convenient locations and put the pharmacist at the
heart of healthcare. Its pharmacists are well placed to provide a significant role
in the provision of healthcare services, working closely with other primary
healthcare providers in the communities we serve.
• Boots responded to the threat in the external environment with a carefully
articulated move into services associated with its mainstay – pharmaceutical and
medical products. The services move was to enter into health and beauty lines,
turning boots into a different sort of hub, hinging on lifestyle and not just
medicines. There were trends in the market that went in line with the strategy that
Boots chose to adopt – Boots had its branding right and all it had to do was to put
up a different facet.

Weakness

 Boots lacked the resources and expertise to become a Services Major.

 Personal health care and lifestyles required expertise in operations and


simultaneous production and consumption, which Boots lacked.

 Inevitably, Boots fell off its once dominant market position.


 2000- 54%
 2009- 50%

Opportunities

In addition it is trying to stretch its service strengths in healthcare to the beauty market:

• With higher investment in its beauty offer, featuring exclusive brands and own-
brands, for example 'Model Me' by Toni and Guy, the continued development of
No.7, and its beauty spa trial.
• The company is trying to improve its beauty proposition by recruiting beauty
consultants to stand on shop floor and offer advice.

• Overall, the strategy is to extend Boots' range beyond the reach of the
supermarkets.

• Trialing a beauty spa under the brand 'UR Beautiful', it will have its own entrance,
separate from the main store. It will carry bespoke products. These features have
also been incorporated into top-performing stores and on-line. The idea is to
bolster Boots' brand authority with a unique product, targeting aspirational
women. The firm envisages another 20 spas across the UK.

Threats

Boots had an excellent market position; it was in this position that the company had to
deal with changes in the external business environment. There were supermarket
chains like TESCO that entered the personal care and pharmaceutical market with lofty
ambitions and stores that encompassed every product line that the customer would deal
with. Naturally, super market stores encroached on the niche that Boots was ruling and
these large retailers had much more to offer than just drugs, drawing in crowds from all
parts with a comprehensive product package, all under one roof.

PEST ANALYSIS OF ALLIANCE BOOTS

Political environment
Political environment means the impact of government policies on the business. Recently
the government gave a proposal to allow major supermarket players to open hundreds of
pharmacies in their stores with a view to increase NHS services and improved
community services and healthcare. Moreover if the new pharmaceutics were prepared to
open 100 hrs a week, they would be given license to open pharmacy even quickly. This
deregulation is giving boots a nightmare as it would enhance the competition, will lead to
lowering the prices plus they have to open the stores for longer duration. Thus boots is
coming up with new strategies to survive like repeat prescription service, delivering
medicines and specialist boots pharmacist to guide the customers about medicines.
The government is also focusing on healthy lifestyle and is coming up with
various health promotion strategies for example it endorsed several ideas through WHO.
Thus pharmacies like Boots are participating in government led programmes to spread
heath awareness to the people. Thus government heath promotion strategies are indirectly
helping boots and other pharmacies to enhance their sales.

Economic environment
The economic environment plays a major role in running the business profitably. The
recent recession in the whole world has badly affected the business. With most of
business suffering losses, boots has managed to proof that it is a recession proof sector.
Foreign holidays, fancy nights out and new cars are among the many things that Britons
have sacrificed in the face of the worst recession for decades. But there is one thing that it
seems much of the population cannot go without – make-up. A recession does not change
people's insecurities about the way they look, but the sales of inexpensive cosmetics have
increased.
Similarly the pharmacy business of boots is also recession proof. As people can
cut their expenditure on clothing and other unimportant things but they cannot sacrifice
their health.
But unlike beauty and pharmacy sector of boot, its optical segment is not recession proof,
as there is a huge drop in sale designer glasses and contact lenses etc.
Social environment
A person’s social environment includes their living and working conditions, income
level, educational background and the communities they are part of.
With the government through NHS spreading health awareness to the people, they are
spending more on health and awareness and so the boots is taking advantage of this
awareness, with boots claiming that its sales are increasing every year as people are
getting more heath conscious. Swine flu is making a lot more health aware to people, thus
pharmacy sector of boots is outperforming.
Even beauty products, with the life expectancy increasing the sales of No 7-anti
ageing cream is increasing. With more and more women working, income level is
increasing, they are ready to spend on beauty products to look good, so this sector is
again doing very well.
Even the sale of designer opticians of boots in increasing as with high income level in
UK, people prefer designer glasses.

Technological environment
The Boots Centre for Innovation provides support and funding for the development of
pioneering products and technologies. We are particularly interested in ideas and
products that focus on the following consumer needs:

Improve ways to diagnose, treat and monitor key aspects of health, beauty and wellbeing
through use of devices
Support positive ageing through products and devices for mind and body
Minimise the complications of living with chronic conditions
Improve digestive health, particularly issues related to stress, poor diet and obesity
Improve and maintain the health, look and feel of skin
Minimise the severity and duration of pain
Improve quality of sleep for everyone, including pregnant women, babies and the elderly
Create more convenient methods of taking and using medicines and health products
Improve the health and appearance of teeth and gums
Improve the health, appearance and comfort of eyes
Boots has implemented the demand Forecasting and Replenishment system to find the
right balance of inventory that will be required to meet a desired service level, so users
can understand what, how much, when and how to order. They reduce inventory and
maximise customer service levels by optimising distribution of safety stock, reduce
unnecessary out-of-stock situations, and help maximise profits by allowing users to take
advantage of deal buying opportunities.

Boots advanced reporting functionality allows users to filter large amounts of data and
generate reports, whether on forecast accuracy, out-of-stocks, overstocks, service levels
or supplier performance. Alliance Boots saw immediate, marked improvements in service
levels which exceeded anything the company had been able to achieve previously.
Quicker and more accurate forecasts had a very positive impact on the replenishment
process with stock-outs being reduced considerably. With much clearer visibility into
available purchasing deals, the company has significantly improved its 'investment
buying' approach. Alliance Boots also reported it had reduced the number of days'
inventory it holds in the UK from 14 to 13, a statistic which represents a substantial fall
in its UK stockholding requirements. This represented a saving of around £20 million,
compared to a pre-implementation projected saving level of approximately £10 million
for the first full year of system operation in the UK.

Alliance Boots' project team's high energy levels and unwavering commitment to the
objectives of their supply chain re-engineering exercise have resulted in the establishment
of an advanced supply chain solution infrastructure to support their transformation
strategy as as well as immediate and impressive bottom line benefits well as immediate
and impressive bottom line benefits.
Competitive analysis of alliance boots
Major competition with super drugs.

1.It was claimed that prices of products offered by super drugs were far lower than the
alliance boots and described a price comparison of 1,048 everyday health and beauty
products, 960 of which were cheaper and Superdrug, 84 the same price and 4 cheaper at
Boots.
2. Super drug will launch the biggest ever January sale offering price cut of over
90%.Sale will include a range of products including winter health and vitamins, everyday
toiletries such as shampoo and toothpastes as well as branded nappies for less than a
pound.
3. Boots rival super drug has launched anti ageing creams whose prices are much cheaper
than that of boots.

The Competitive Threats


2.The non-food sector

The most obvious and perhaps serious threat to Boots is posed by the march of the
supermarket retailers into the non-food shopping sector.
A report on 2008 Verdict research, published on www.utalkmarketing.com indicated that
in the last few years far more shoppers have started to use supermarkets to buy non-food
items:

2003 % of shoppers using 2008 % of shoppers using % Change


Retail Sector
supermarkets supermarkets 2003-08
All non-food 45.1 62.1 +17.0
Personal care 31.7 44.2 +12.5
Homeware 9.7 20.4 +10.7
Clothing 11.4 20.3 +8.9
Music and
14.5 19.9 +5.4
Video
Electricals 4.8 11.4 +6.6
Footwear 3.2 7.4 +4.2
DIY 1.2 1.9 +0.7
The figures demonstrate the extent to which the supermarkets have tightened their grip on
the £177bn UK non-food market of which they now take a share of £19.7bn or 11%.
The great danger to Boots is that just under half of consumers use the grocers for personal
care products. Its main market rival is already feeling the effects. In personal care, all of
the big four grocers, (Tesco, Sainsbury's, Asda and Morrisons), have larger market shares
than Superdrug.

A high street Superdrug store © Biz/ed images


So why do the supermarket retailers seem able to grab market share from the specialists
in the non-food sector? The grocers offer:

• Convenience with very competitive prices


• Non-food products for people who happen to be there anyway for food shopping
• But what most supermarkets are doing is much more advanced
• Many actively understand what their consumers want and tailor their offers
accordingly

The result has been a better deal for the consumer. The supermarkets have increased
competition which has helped keep prices down.
Two key things will help drive the growth of the grocers into non-food:

1. The premiumisation of their offer, which will see supermarkets selling a


greater range of higher priced merchandise. This will help them attract a wider
spread of consumers and allow them to take more business from specialist players.
2. The growth of the internet as a sales channel for non-food items: grocers
are actively involved in this space and, because of their comprehensive delivery
networks, could leverage an advantage over smaller specialist players who can find
it difficult to accommodate shoppers' delivery requirements.

Supermarkets offer health and beauty products in convenient locations © Biz/ed images
Utalkmarketing quote Verdict's Director of Consulting, saying: "Today's supermarkets
are no longer simple grocers. They are cathedrals of consumption, the department stores
of the modern age. We expect them to build on this position over the next few years and
that will certainly make life difficult for other specialist players."
The pharmacy sector

There has been state support for the wider proliferation of pharmacies in the UK. The
government has given encouragement to doctor services being set up out of hours. Some
of the larger supermarkets now offer in-store pharmacies.
In February 2008, Sainsbury's announced that they were piloting a new scheme to move
into the pharmacy sector. Two of its Greater Manchester stores were to offer a family
doctor operating out-of-hours clinics, between 6.30 and 9.00 pm on Monday and
Thursday and 11.00 am to 3.00 pm on Saturdays.
The supermarkets are thought to be offering a new method of organising doctors' visits.
The Sainsbury's plan was for patients to book appointments through their normal surgery,
but to attend the clinic in the supermarket. Asda has also been considering something
similar.
According to an article in Brand Republic in March 2008, pharmacy is a fundamentally
important part of the brand; representing one quarter of sales, it is the foundation of
Boots' authority and credibility.
'Boots stores are mostly located on high streets but its presence in edge of town retail
parks is rapidly increasing. Over the last three years, 48 such stores have opened, as well
as a flagship London store on Oxford Street. Overseas, Boots is working closely with
other major retailers in their local markets, to open Boots branded "implants" within their
stores. There are currently 758 implants in 13 countries. Boots also has 96 standalone
stores in Thailand.'
According to analysts, Boots' pharmacy-led health & beauty retailing business operates in
nine countries. It comprises more than 3,200 retail outlets, of which over 2,900 have a
pharmacy. Analysts suggest that although Boots is opening stores, it is finding it hard to
grow market share. Some fear that it will also start losing prescription revenue to the
supermarkets.
A pharmacy in a large supermarket © Biz/ed images

Other competitors are Tesco, Sainbury, Asda, Waitrose etc

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is at the very heart of boots. Boots has a long
history of publicly reporting performance. Boots CSR programme is based on four key
areas of activity - Community, Environment, Marketplace and Workplace.
Community
Boots believe that it has a valuable role to play in promoting the health of the nation, by
forming innovative partnerships with charities and making our expertise and support
widely available - not just through its stores but wherever they can help build
healthier, happier communities

Charitable giving

Boots Charitable Trust is an independent registered charity wholly funded by the business
and administered by a part-time Appeals Officer.

Boots fund registered charities benefiting people who live in Nottinghamshire. Boots
will also fund small voluntary organisations whose income and expenditure are both less
than £5,000 per year.

The Trust's current funding priorities are as follows:

Health

Community Healthcare (community health care services, home care, after care, sufferers
of medical conditions and disabled people, continuing care).

Health education and prevention (promoting knowledge and awareness of specific


diseases or medical conditions).

Life long learning

Helping people of any age to achieve their educational potential (supplementary schools,
literacy and numeracy projects, community education, vocational/restart education for the
unemployed, alternative education for excluded school pupils).
Community development

Helping groups to respond to problems and needs in their communities or networks. This
could include groups such as councils for voluntary services and self help groups.

Social care

Personal Social Services (organisations assisting individuals or families to overcome


social deprivation (for example people who are homeless or disabled and their carers,
lone parent and childcare groups and other family support groups)).

Social preventative schemes (activities preventing crime, dropping out and general
delinquency and providing other social care outreach work, social health and safety
awareness schemes).

Community social activities (activities to promote social engagement for vulnerable


people, mitigating against isolation and loneliness).

Community healthcare

As a trusted pharmacy-led health and beauty retailer, boots want to make a positive
contribution to the health of its customers and their families. Boots extend this
commitment to the wider community. Working with non profit organizations,
charities etc it is spreading awareness about community healthcare.

Skin cancer which is very common in uk with over 78000 cases reported in uk ech year,
so boots spread awareness through its experts consultants regarding how to be safe in
the sun.

Boots is helping young people to quit smoking, through its awareness campaigns. Boots
even created a web based source to make teenagers aware of the consequences of
smoking.

Education
Helping to inspire young people

Boots inspire young people to start learning about healthy living using its website.

Lifestyle Lounge

The Lifestyle Lounge is site for teenagers aged 16+. It tackles popular teenage lifestyle
issues such as hair, skin, contraception, travel, fitness and eating disorders. It has become
a source of information and advice on topics that aren't always easy to speak to an adult
about.

Change One Thing Schools

Change One Thing Schools is a free website for secondary schools; targeting 11-14 year
olds. The interactive site aims to encourage young people to think about their health. It
focuses on healthy eating, being active and the effects of smoking, and helps students to
develop the skills they need to make healthy choices. An action plan will help students
who want to make a healthy change.

Work experience

Boots provide internship to students helping them know more about the corporate culture.

Employee fundraising and volunteering

Significant fund is raised by the employees of Boots to support their various charity
partnerships like Breast Cancer Care, The Eve Appeal and BBC Children in Need.
Employees of Boot pay directly from their salaries to the various charity organizations of
their choice.
Boots employees also participate in a wide range of community activities in company
time, sharing their expertise and knowledge with local schools, charities and voluntary
organisations.

Thriving communities

Building thriving and sustainable communities through partnership sits at the heart of
Boots UK's long term business strategy, Boots believe that it can contribute more to the
external environment by working collectively with others. Some of its partners are local
authorities; transport companies etc.Boots is also working to develop effective town
centre development. Like developing effective Retail Crime Partnerships’; and ‘car
parking and managing access to out of town centres’.

Environment

Reducing the impact on the environment has been an integral part of boots culture and
operating practices for many years. Its belief that sound environmental management
makes good business sense has stood the test of time - and boots have been determined to
develop their business without compromising the ability of future generations to meet its
needs.

Boots environmental policy


Boots looked at how each aspect of its business affects the environment and they’ve
drawn up a list of priorities and areas where they’ll commit their efforts.

• Products and services-Boots reduce the environmental impact of its products by


designing them so that they are very efficient.

• Climate change-reduce both direct an indirect emissions of energy.

• Waste minimisation
Boots’ will make the best use of resources, particularly in areas like packaging, water
efficiency and recycling.

For boots environmental management goes far beyond just obeying local legislation and
preventing pollution. Boots strongly believe that good environmental practice is good for
business, a fundamental corporate responsibility and a key contributor to sustainable
development.

Biodiversity

Maintaining the earth's biodiversity is a key aspect of sustainable development and


involves all sectors of society. Many aspects of commercial operations have a potential
impact on biodiversity. For Boots the two key areas of impact arise from their sourcing of
raw materials and from the sites where boots operate.

Boots take account of protected species and habitats, as required by national and
international legislation, and encourage opportunities to promote biodiversity. Boots have
developed a Biodiversity Action Plan through which they establish its policies and
ongoing objectives and targets to manage its biodiversity impacts.

Chemicals
The impact of chemicals on human health and the environment has long been a matter of
concern for manufacturers and retailers when considering product formulation,
development and manufacture. All Boots products are in some way made or processed
using chemicals; boots simply cannot exist as a business without them. Boots ensure that
chemical is used in an ethical and a safe manner. While safety will always be our first
priority in their decision making processes. Applying its precautionary approach requires
judgments to be made about the nature and level of threat to human health and the action
that should be taken, if any, to lessen or eliminate the potential harm. This is beyond
legal compliance. After much development work since 2001 for an EU chemicals
regulation, REACH finally came into force on 1st June 2007 and will take a projected 15
years for full implementation.

Energy and climate change

Energy

Boots have a long history of actively managing the efficient use of energy, including the
use of electricity, steam and heat from successive combined heat and power energy
centres on the Nottingham Support Office site since 1915/16.

Boots is really pleased when its hard work was rewarded with an independent Energy
Efficiency Accreditation from The Carbon Trust for the high standard of its energy
management systems and the work it has carried out over the last 3 years to reduce
energy consumption in its stores.

Climate change

Boots believe that addressing the impact of climate change is an issue of paramount
importance, recognising that a healthy planet, healthy lifestyles and healthy business are
all fundamentally linked to each other. Boots continue to work with partners such as The
Carbon Trust investigating the potential for renewable energy generation in Boots stores.
The most cost effective renewable technology for a Boots store could be wind turbines,
provided that they’re located on stores with appropriate prevailing wind conditions to
deliver the necessary energy production and associated cost benefits.

Packaging

Using only the right amount

Product development teams at Boots put a lot of effort into ensuring that only the
optimum amount of packaging is used. Boots aim is to provide aesthetically pleasing and
easy-to-use Boots products that have the right amount of pack protection from the point
of manufacture right through to their use by the consumer. At the same time boots aim to
ensure that the environmental impact of packaging is minimised and that at the end of its
life it can be efficiently recovered or recycled.

Product sustainability

Boots aim is to take an holistic approach to product sustainability embracing the whole
product lifecycle, from concept and design, through to customer use and final disposal of
packaging and waste product. This life-cycle approach is the Product Journey.
Boots made a major shift to deliver new products and services with lower environmental
impact across their life cycle, whilst at the same time boosting competitiveness. From the
initial risk assessment through to a specific tool to assess the sustainability profile of any
particular product, Boots aim to build a complete picture of what the impacts are, how
they can manage these, and at the same time enhance the positive sustainability features
inherent in the product. Boots take the expert advice to develop sustainable products and
has partnership with various universities to dismantle exiting boots products and suggest
proposals for improvement.

Transport

The movement of goods from manufacturer to warehousing to retail shops generates


carbon dioxide, a direct contributor to climate change. Boots is committed to reducing the
amount of carbon dioxide produced from transport operations and to reduce the fuel used
and to increase the amount of product they carry per load. Boots is using double decker
trailer fleet to make three journeys instead of 4 and thus reducing the carbon footprint.
Boots is also using new vehicles instead of outdated vehicles which are more fuel
efficient. Boot is also continuing its policy of 'back loading' - using vehicles to deliver
products to shops, and then collecting bulk products destined for the warehouse from its
suppliers on the return journey .Boots have also reduced smaller shipments with larger
shipment at one time and have reduced the use goods imported via airways to reduce
carbon footprints.

Waste and recycling

Over the last few years the need for the UK to reduce it's reliance on landfill has become
more critical as existing landfill sites are becoming full and new sites are not being
developed. The use of landfill has also been linked to climate change as the gases
released from such sites can contribute to climate change if they're not captured / treated.
In addition, the way in which waste is managed has become increasingly complex.
For many years Boots has been a leader in the management of waste and recycling
activities within the retail sector, and has a sound record in waste minimisation that has
placed us in a good position for dealing with new legislative requirements. Boot has
operated a recycling facility on our Nottingham site for the last 50 years. Boots continue
to focus on reducing the reliance on landfill, and have set an aspirational target to reduce
like-for-like waste to landfill by 20% by the end of March 2013.

Marketplace

Doing business with fairness and integrity

Boots have always believed that running a successful business and providing a socially
valuable service can and should go hand in hand. So it's part of boots heritage to treat its
customers fairly and act with integrity in everything they do, rather than seizing on the
quickest and easiest way to turn a profit. And it's why Boots go the extra mile to ensure
that its suppliers are running their businesses ethically and sustainably.

Cause related marketing


Boots is working in partnership with national charities to increase awareness of the
causes like breast cancer care, children in need and the eve appeal that its customers and
its people relate to, as well as raise funds and support its key objective of reinforcing
Boots reputation as trusted experts in the field of healthcare.

Healthy living
Healthy living is high on the Government’s agenda. Taking effective action on diet and
exercise now will help to tackle heart disease, cancer, diabetes, stroke, high blood
pressure, high cholesterol and a whole range of factors critical to our health and
wellbeing. Boots believe that it has a role to play in helping to address concerns over
unhealthy diets and rising levels of obesity. Boots want to use its expertise to help its
customers make positive changes and live healthier lives. This goal is reflected in both
the range of products that they offer and the way that they develop them:.

• Boots nutrition labelling is clear and informative*.

• Boots offer products to support breastfeeding mothers and a range of baby and
toddler foods and drinks.

• Boots offer an extensive range of vitamins and nutritional supplements to


complement a healthy diet.

• Boots have expert solutions to help its customers manage their weight.

• Boots help its customers make positive changes in their lives to improve their
health such as stopping smoking and being more active.

Supply chain management


Boots ensure that its suppliers follow consistent ethical standards. So ensuring that all its
products are produced by suppliers who treat their workers fairly and show a responsible
attitude towards the environment.
Workplace

Boots employ just under 70,000 people in its UK pharmacy-led health and beauty
retailing business. Its people and the care they give to its customers are the reason for its
success. Making sure Boots is a rewarding and supportive place to work makes sense
both from a business and an ethical point of view.

Cultural diversity
Within the United Kingdom our culture, working patterns and buying habits continue to
change rapidly alongside our changing demographics. Our family and societal norms are
also changing dramatically and probably more rapidly than many anticipated. At Boots
they fully understand that it is essential for them to attract and actively court diverse
employees and customers from all sectors of the community so as to remain competitive.
Employee forums
For over 50 years Boots have been running staff consultative bodies. "the forum"
provides an effective way for everyone to be part of the business and have their views
listened to, debated and put into action if appropriate. Boots hold forum meetings four
times a year. At the forum meeting representatives receive presentations about current
'hot topics' and are given information to help them answer questions they've received
from their constituents all over Boots.

Some recent improvements the forum has influenced

• new uniforms for shop colleagues

• new refund policy

• Health and safety

In 2008 the safety teams that supported the retail operations in Boots the Chemists and
Alliance Pharmacy combined and expanded. The new, integrated retail safety team has a
number of Regional Safety Advisors based at various locations around the country. This
new structure allows them to respond more quickly and effectively to incidents and issues
in stores than was previously the case with more centralised structures. Currently safety
training is delivered in a number of different ways: face to face; using audio visual
material; using booklets on specific topics (e.g. manual handling); or using material
posted on our stores intranet. Of these, the intranet material is probably the most widely
used and of most general relevance.

Training and development


Boots continues to recognise the importance of training and developing of its people. Not
only does this enable the people to fulfil their potential at work and help to make Boots a
great place to work, but it is also a vital component in its desire to be the world's best
pharmacy-led health and beauty retailer. Boots make a significant investment in the
development of a range of training resources and materials aimed at helping its people be
the best that they can be from the moment they join us for their induction. Boots is
continually at the forefront of training for healthcare professionals, creating a range of
innovative initiatives that are widely viewed as the benchmark for retail pharmacy.

Women at work
Boots has a long tradition of being a great place for women to work. More recently boots
have been among the pioneers of flexible working practices such as job sharing, career
breaks and term-time working. Women form about 80% of our customers and our
workforce, so it makes sense for Boots to make it a better place for women to work. The
company will continue to develop processes that will attract potential employees.

Workplace health
Recognised as a trusted pharmacy-led health and beauty retailer, taking measures to
improve the health and wellbeing of the people underpins who boots are as a business.

Key successes have been:

• Participation from wide ranging parts of Boots - Human Resources, Policy,


Safety, Occupational Health, Marketing and Healthcare.

• Creation of a healthy workplace brand – My Health

• Real and ongoing consultation with our people.

• Integration of workplace health activity with the company's marketing campaigns


for customers.
• ‘Change one Thing’ campaign People Packs. These contain health information,
free engagement tools such as a pedometer, healthy fruit snack and details of how to
sign up to a people programme for extra support on getting fit or giving up smoking.

• A range of Healthy Living events.

• Confirmation from boots people that the areas they wanted support with are:
exercise, healthy eating/weight loss, stopping smoking and work/life balance.

• Winning a Government Health and Wellbeing Award for boots activities.

• Active participation in Business in the Community ‘Business Action on Health’


Campaign.

CASE STUDY

The Views of 'Real' Consumers

The threats to Boots' position in the health and beauty sector are clearly real enough. The
company, post-merger, and under new ownership and management is clearly on a path to
beat off the challenge posed by the supermarket grocers. But what do 'real' consumers
feel about Boots? In the following narrative, a female consumer in her early forties, tells
all:

"Boots do well at converting people once getting them into the shop, but they are losing
their proportion of shoppers on several fronts: supermarkets, other niche specialists and
department stores.

"There are products that some shoppers do not feel comfortable buying in a supermarket
(or feel uncomfortable having other people seeing in their grocery trolley). It is
sometimes rather nice to spend time concentrating on just one category of the shopping,
have a good look at the options. An average-size branch of Boots sells a wider range of
toiletries and personal care products than a big supermarket; the main reason people are
loyal to Boots is the breadth and quality of their ranges. The concept of the Advantage
card being for treats could be extended to treating yourself to spending some time making
sure an important element of your shopping is right for you.

"You can't ask supermarket assistants for advice on personal care or health products like
you can ask the staff in Boots. They are increasing the numbers of staff on the shop floor
available to give advice. We are encouraged to spend time reading food labels so we put
the right stuff in us; surely it is just as important to spend time finding the right stuff to
put on our bodies, as what goes on the outside ends up going through to the inside.

"Though I use the stores regularly, my general awareness of Boots online offer was of
some web site that offered health advice. I was unaware of a lot of services offered and
certainly did not know that you can shop online, or the range of things offered that are not
in the stores. The web site has just been updated and seems still to have glitches. I tried to
sign up to the Health Club and went around in circles, never managing to find a page
where you signed up.

"The senior management has been changed wholesale on past year or so, with a chap at
the top who has a reputation for delivering on his promises (according to the private
finance company that bought Boots). They are making sweeping changes in store format
and investing money all over the place, in both people and supporting systems.

"They are well-placed to face down the supermarkets though it won't be a walk-over. One
key to their success will be a marketing campaign that gets people through the door,
especially men:

"Men don't like supermarkets in the same way as women, who will browse and be
inspired by what they happen to see. Men need a list and will stick to it. Men tend to
focus on one task at a time, but a supermarket shop means having to think about too
many wildly different things; and it takes too long because so much is involved. A trip to
Boots for his bathroom supplies is a more manageable male proposition.

"The trick is to know he is going and add to his list; I managed infant milk powder and
contact lens fluids last time!"
Conclusion

The Future Shape of the Market

Verdict found that the health and beauty market in the UK was roughly evenly split
between the supermarket grocers and the specialists in 2006. The specialists such as
Boots, Superdrug, Lloyds Pharmacy, Body Shop and others accounted for around 40% of
the sector. The grocers took around 44%.

Of the specialists, Boots were the market leader, with around 25% of their share,
followed by Superdrug with over 7%, then Lloyds Pharmacy and Body Shop with
between 1 and 2%.

In the supermarkets' share, the biggest player was Tesco, with nearly 20%, then Asda and
Sainsbury, with between 8 and 9% each, followed by Morrisons with just over 5% of the
grocers' total share.

The research takes the top ten segments of the health and beauty sector and analyses their
prospects for growth between 2008 and 2011. Some of the highlights are outlined below:

Top Ten Segments:


Health and Beauty Category 2006 Value £bn % Change 06-11
Over-the-counter medicines 2.1 12%
Babycare 2.0 8%
Skincare 1.8 36%
Other 1.7 7%
Paper products 1.7 12%
Haircare 1.4 8%
Bathroom toiletries 1.3 5%
Perfumes 1.1 20%
Men's Toiletries 1.9 33%
Dental Care 0.7 20%