Chetan

13020841011
Pranav
13020841026
Priya
13020841029
Shivam
13020841041
Viraj
13020841053

WHAT IS BOOTS?
JESSE BOOTS
'The trust and confidence of your fellows:
A home and everything it means:
The feeling of a job well done,
And the urge to do better
- are these not essential to man's true happiness?'
Edgar Moss, 1940

CASE
OVERVIE
W
4

Background
1883 - Boot & Company Ltd formed.
Boots A well known, retail name in the UK went into Health, Beauty products,
Personal Care
1935 - No7 cosmetics launched by Boots.
Brands Strepsils, Clearasil, Nurofen(1983)
New Services Boots Opticians (1987)
Boots Healthcare International (1991)
Product Retail products of Premium Hair Specialists
75,000 employees in 130 countries (2004)
(2006)- Boots Healthcare International sold to Reckitt Benckiser.
Merged with Alliance UniChem to form Alliance Boots plc,
(2007) - Alliance Boots was acquired by AB Acquisitions Ltd.

UK Hair Care Market

Highly fragmented 60 major hair care brands
No brand had more than 9% market share
Severe price competition
Volume growth higher than value growth
Medium High involvement product
Significant price discounting via Promotional
activity foreseeable

Major Competitors

Consumer Trends

Main purchasers Fashion Conscious Women (25-30

Age Group)
Most Boost customers bought Basic and Premium
brands
Gender/ Occasion based usage

PROMOTIONAL MIX
Advertising
Advertising

Elements
Elements
of
of the
the
Promotional
Promotional
Mix
Mix

Personal
PersonalSelling
Selling

Public
PublicRelations
Relations

Sales
SalesPromotion
Promotion

Direct
DirectMarketing
Marketing

Consists of media and nonSales Promotion media marketing

communications employed for a
predetermined, limited time to
m
stimulate trial, increase
r
o
f
consumer demand, or improve
In
product availability.
GOAL
is
to
d
n
i
enhance and
m
e
e
R
speed up the
d
a
u
s
effectiveness of
r
Pe
the other four.
10

Promotion Alternatives

11

3 for the price of 2

12

Gift with Purchase

13

On Pack Coupon

14

Post sales promotion (for premium

products)
Impact on variables

3 for 2

GWP

On pack
coupon

% Increase in Revenues

100%

70%

50%

% Increase in Profits

-50%

-29%

3%

% of new customer
acquisition

60%

40%

50%

Impact on Brand Equity

Highly
Negative

Partially
Negative

Highly
Negative

15

Post sales promotion (for mass market

products)
Impact on variables

3 for 2

GWP

On pack
coupon

% Increase in Revenues

100%

70%

100%

% Increase in Profits

-200%

-236%

-100%

% of new customer
accquisition

60%

40%

50%

Impact on Brand Equity

Little/No
effect

No effect

Little/No
effect

16

17

Cost for Results

In This Industry Are
Relatively Low.

Sales Promotion
Strategies Target
Consumer, Trade, and
The Sales Force.
Why Are Companies
Spending More and More
Money on Sales
Promotion?
Sales Managers are Under
Great Pressure to
Produce Results
Quickly.

Assessment of Sales
Promotion is
Relatively Easy.

Reasons for the Growth of Sales

18

Yes.. The SWOT Analysis

19

OFFERS AT BOOTS

20

More treats to over 60s

3 for 2 offer

Earn points for

Advantage Card

Boots Parenting Club

Extra Offers Kiosks

Voucher Codes Pro

21

TYPES OF PROMOTIONAL STRATEGIES

22

PROMOTIONS OFFENSIVE STRATEGY

Designed for attracting new consumers.

23

PROMOTIONS DEFENSIVE STRATEGY

Designed for maintaining present consumers.

24

In a Nutshell
Promotion Can:
Offer an
immediate
inducement,
Cause
customers to
try a product,
Persuade
customers to
buy again,
Introduce a
new product or
build a brand
over time.

Objectives

Building Brands

Intended to
Change Consumer
Behavior

Can be Used to Build

Brand Images, But
May be Long-Term

Introducing
New Products
Advertising and Promotion
Work Well Together
Here Using
Push & Pull
Strategies

Promotion Cant:
Create an image
for a brand,
Compensate for
a lack of
advertising,
Do much to
compensate for a
negative image,
Reverse a sales
decline.

25

By Prof. Porters Help

Threat of New
Entrants
Threat of Substitute
Products

Bargaining
Power of
Customers

Driv
er
26

Threat of New Entrants

Competitive industry with high capital costs -> Requires
huge economies of scale to survive
Boots already has a great cost advantage; evident from
its intense sales promotion techniques
Efficient distribution channels are already booked by
large players
Lack of awareness in the minds of consumers about the
new brands
Boots has been enjoying the first movers advantage for
over a 100 years
27

Threat of Substitute Products

Supermarkets provide a large range of cost cut products under
1 roof, that too, with food items
Local chemists are now providing free mobility services like
pick-drop etc
Boots sells other brands products which opens possibilities of
imitation -> Low pricing power due to low uniqueness quotient
Boots products are also supplied by their competitors
(Superdrugs) who can match the low prices that Boots offer
Cost of switching from one product to another product is low

28

Bargaining Power of Suppliers

Reputable background -> Tremendous advantage over the
suppliers of being able to dictate the prices
Suppliers do not exert as much power compared to the
buyers
For Boots to switch from one supplier to another will not
be costly, for its a retailing giant
Suppliers of this industry compete for the firm to choose
them as their supplier
Boots also sets up contracts with each of their supplier
before placing an order so prices are fixed
29

Bargaining Power of Customers

In the retailing industry there are often very large
numbers of customers who often do not purchase items
in bulk
But this industry has a lot of competitors. Items sold are
similar among the retailers -> Consumers buying power
very strong
Boots have a wide range of products so therefore most
of the products other than Boots own range can be
purchased from local convenience stores
30

Intensity of Competitive Rivalry

Numerous retailers Pharmacies (Superdrugs), Supermarkets
(Sainsbury, Asda, Tesco, Marks & Spencer) and local
convenience stores etc
As the number of competitors increase and as they become
equal in size and capacity, the rivalry is likely to intensify
Supermarkets have now started in-store pharmacies to provide
customers with their pharmaceutical needs
Supermarkets are introducing non-food items as they have the
expertise and capital required
Local chemists have built a rapport with their customers, so
these customers prefer their local chemists to Boots
31

AIDA Model

32

Real Women.. Ta Dah..!!

33

Dove Real Beauty v/s Boots Real

Women

34

PROMOTION CHANNEL

35

A comparison of Push vs Pull

promotional strategies
Consists of
directing the
promotional mix
to channel
members to gain
their cooperation
in ordering and
stocking the
product.

Consists of
directing the
promotional mix
at ultimate
consumers to
encourage them
to ask the retailer
36
for a product.

Promotion at different stages of the

PLC
1. Introduction wise to use heavy promotion to induce
trials and promote brand franchise
2. Growth promotion should be limited ,if any
3. Maturity Higher promotions required since the brand is
under attack from competitors or product quality or
advertising effectiveness is tapering off
4. Decline Heavy promotions. Used only to retain a set of
loyal customers. Prior to withdrawal of the product, it could
be used as a one time stock clearance from the trade
37

Sales Promotion
Advantages
Price discrimination
Effect on consumer
behavior
Effect on trade behavior
Luring New Customers
with Price
Gaining Community Favor
Providing Information

Disadvantages
Increased price sensitivity
Quality image may
become tarnished
Merchandising support
from dealers is doubtful
Short-term orientation

38

The 10 Commandments of Creative

Sales Promotion
1. Set specific objectives
2. Know how basic promotion techniques work
3. Use simple, attention-getting copy
4. Use contemporary, easy-to-track graphics
5. Clearly communicate the concept
6. Reinforce the brands advertising message.
7. Support the brands positioning and image.
8. Coordinate promotional efforts with other marketing plans.
9. Know the media you work with.
10.Involve the trade.
39

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