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Introduction Boots The Chemist (BTC) also known as Boots UK Limited, commercially known as Boots and previously known

as The Boots Company is a leading pharmacy chain in the United Kingdom, with outlets in most high streets throughout the country. Boots is also available in the Republic of Ireland, Norway and other territories. The company has been a subsidiary of Alliance Boots, since 31 July 2006 after Boots Group plc merged with Alliance UniChem plc and combines the former Boots the Chemist Ltd and Boots Stores Ltd. (Wikipedia, the free encyclopaedia) In this case study will concentrate and focus on marketing and logistics in retail sector. We found that retailers have no control over timing of seasonal events and its usually very difficult to forecast likely demand with normal level of accuracy. In contrast, promotional events are planned by retailer and supplier.So they usually get challenges on managing events and promotions. Case Study In this case we have to identify and list the logistics challenges of mounting promotions and events at a retailer such as BTC. Our case study highlights the logistics challenges of managing promotions and events in retail sector. The timing of such event is one of the critical success factor required. What is Sales promotion? Promotion includes all promotion-tools other than advertising, personal selling and publicity. It includes trade fairs and price cuts (especially during special period such as Christmas or Idd el Fitri). Sales promotion is good when a company intends to clear old stocks or wants to bring new stocks, change of season and change of fashions. (Lucy Mboma, 2004.) Sales promotion it consists short term incentives to encourage the purchase or sales of a product or service. (Philip Kotler, 2006: 469) Challenges/ Issues Items on promotion are not on the shelf Display aids and promotional material missing There were issues in distribution. Deliveries were scheduled at different times of day from normal deliveries.

There was a high reliance on good luck for all elements to come together prior to the start of the promotional period. Inevitably some products, display aid and show material arrived late. Consumer dissatisfaction Sales lost

Solutions Dedicated promotions team was created within categories. The team masterminded the overall promotional plan and was responsible for delivery of products, display aids and show material Sales forecasting bases on historical data of product line by individual store Designing of shelves display by merchandising team. Redesigning of end-to-end supply chain

Bases on solutions given above, BTC could have done better by considering following decisions in developing it sales promotion program. Lean principles As we have observed in this case that, consumer only purchased their requirements based on their use. The retailers like BTC have no control over timing of seasonal events. In order to manage this situation well, the company should apply lean principles for effective delivery of products, display aids and show material from their supplier to national warehouse(NDCs), regional distribution centers(RDCs) up to the shelf in their stores. By implementing pull production the company will improve the supply of products to its end customers. Pull production basically means that production and purchasing activities are based on signals from the followon process. That is, materials are supplied when needed, avoiding work in progress and speeding the flow of materials through the system. This ensures that work is performed only when required. There is no waiting time and hence this reduces the production cost which in turn reduces the cost of the finished products. The main concern in this concept is availability of the right material at right time. (Rahul V. Alteker, 2009)

In BTC case study by this lean approach. The lead time will guide the time to place orders to supplier. The company logistic team will have better understanding of the total time needed for order to be processed and when exactly will be delivered and be available on shelf. This then will be used to calculate replenishment plan especially on seasonal events and promotions Agile approach Another observation under this case study was that demand was unpredictable during seasonal event such as valentine, mothers day, summer holiday and Christmas. By using agile approach the company will thrive and prosper in an environment of constant and unpredictable change. Agility is not only to accommodate change but relish the opportunities inherent within a turbulent environment. (Rahul V. Alteker, 2009) The following solutions also should be considered by BTC team to improve the promotion events
a) In order to define the full sales promotion program the company

should have decided on the size of the incentive. A certain minimum incentive is necessary if the promotion is to be successful, a large incentive will produce more sales response.
b) The company must set conditions for participation. Incentives might

be offered to everyone or only selected groups. E.g. 50 shillings off coupon could be given out in package, at the store.
c) They should decide how to promote and distribute the promotion.

Each distribution method involves a different level of reach and cost.


d) The length of the promotion is also important. If the sales promotion

period is too short, many prospects (who may not buy during that time) will miss it. If the promotion runs to long, the deal will lose some of its act now force.
e) Evaluation. The most common evaluation method is to compare

sales before, during, and after a promotion. (Source: Philip Kotler, 2006) Conclusion:

In my conclusion logistics have greater effects in marketing process. This case have demonstrated how important is to consider logistics when planning seasonal events and promotions

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