Created during a marketing internship under Prof. Sameer Mathur, IIM Lucknow (July 2016)

1. Case Analysis: Boots
Hair Care Sales
Promotion
Harvard Business Case

2. Why Study this Case?

3. SITUATION
To make optimum
sales
promotion
strategy for the
company’s hair
care products in
UK

4. Who is the
Protagonist?

5. Dave Robinson
Director of Personalisation, Boots UK

6. ?

7. • According to Philip Kotler, Sales Promotion is a key
ingredient in marketing campaigns which consists of a
collection of incentive tools.
• These incentive tools are short termed, but designed to
stimulate quicker and greater purchase of
particular products or services by consumers or by
trade.

8. TYPES

9. 1.Consumer Promotion
Incentive tools include: samples,
coupons, cash refunds, offers, price-
offs, premiums, prizes, patronage
rewards, free trials, warranties, tie-
ins, and demos

10. 2.Trade Promotion
Incentive tools include: price-off,
advertising, display allowances and
free goods

11. 3.Business and Sales Force
Promotion
Incentive tools include: trade
shows and conventions,
contests for sales reps, and
specialty advertising

12. But, Robinson’s situation is based on
Consumer Promotion

13. Robinson has to select one of
the 3 sales promotional
alternatives:
1. Get 3 for the price of 2
2. Receive a Gift with
Purchase
3. On-pack coupon worth
50p for Christmas

14. PRIMARY OBJECTIVE OF ROBINSON
•Drive sales volumes .
•Trade-up consumers from lower- valued
brands.
•Retaining or building brand equity.

15. CRITERIA
Points to be considered for selection
• Sales promotion should be profitable.
• Proper maintenance and enhancement of
Brand Equity of products.

16. How to select the most
appropriate option?

17. Let’s try to know about
the company!

18. Boots is one of the
best-known and respected
retail names in the
United Kingdom that
offers health and beauty
products and advisory
services for enhancing
personal well-being.

19. History Sir Jesse Boot
• Started as a shop The British &
American Botanic
Establishment by John Boot in
Nottingham, 1849.
• Later in 1883, his son, Jesse Boot,
re-established the sop as a
private company, “Boot and
Company Limited”, became
CEO and managing director.

20. Brand Mantra of
the company as described
by Sir Jesse Boot
LARGEST, BEST, and CHEAPEST

21. Post-War Regeneration and
New Development, 1945-
1968
• Factory development program in Nottingham begun
following the war.
• In 1959, a new pharmaceutical research building
was established.
• In 1949, a factory for the manufacture of cosmetics
was opened at Airdrie in Scotland.
• The company adopted a new black and white logo.

22. Progress over the years
• In 1913, Boots acquired 560 stores across UK, sales over
£2.5 million a year.
• It employed around 75,000 people and operated in some
130 countries worldwide in 2004.
• International expansion in operations was conducted by
Boots Healthcare International (1991), which
exported healthcare products worldwide.
• Boots Health and Beauty stores were established in Ireland,
Thailand and Taiwan.

23. Brand Year of Launch Target market
segment
17 Cosmetics 1968 Teenagers
Ibuprofen 1969
Medication and
HealthNurofen 1983
Boots Opticians 1987 Eye Health Care
Insurances
1999
Earning sector
Dentistry
Health Care
Chiropody
Boots for Men Men’s Grooming
Internet Technology
Product Mix of Boots

24. UK Hair Care Market
In the mid-90s, the market comprised of brands like :
• Pantene Pro-V and Head & Shoulders by Procter & Gamble
• Alberto VO5 by Alberto-Culver
• Elvive by L’Oreal
In 2000, over 60 major brands of hair care products were available in
the U.K. market.

25. UK Hair Care Market
None of these brands had more than a
9% per cent market share.
Advertising expenditure
associated with the
brand
Brands’ sales(all
the mentioned)
α

26. Major Competitors: Their
Strength and Weakness

27. Brands
• Pantene, Head & Shoulder, Per Plus, Clairol,
Daily Defence
Strengths
• Best selling hair care brand around the
world as per 1995 census.
• Share 8.4% percent of UK’s hair market.
Weaknesses
• Significant presence in mass market
products/basic products but have less or no
professional hair care products.

28. Brands
• Lancôme, Giorgio Armani, Biotherm,
Ralph Lauren.
Strengths
• Global Presence.
• Share 5% percent of UK’s hair market
Weaknesses
• Significant presence in mass market
products/basic products but have less or
no professional hair care products.

29. Brands
• St. Ives, VO5, Consort Hair Care for Men,
and FDS.
Strengths
• St. Ives, VO5, Consort Hair Care for Men,
and FDS.
Weaknesses
• Have less or no professional hair care
products.
• Lesser number of stores.

30. Another important aspect for
analysis is
Consumer
Behavior

31. Consumers of the United Kingdom
are not brand loyal

32. Reasons for
brand disloyalty
• Perceptio: Changing brands give better results than
hanging on to single brand
• Trends in buying behaviour has changed over the
years, consequently affecting the brand
preferences
• Unable to differentiate between available brands
belonging to the same product category
• n

33. Boots’ market base,
according to brand
preferences
• All types of consumers
(children to adults of
all age groups)
Basic
Brands
• Female consumers
(age group 20-35)
Premium
Brands

34. To overcome the previously discussed scenario,
Boots came up with an affluent marketing strategy
Boots’ Competitive Marketing Strategy

35. Set up new market by celebrity endorsements
to create awareness and emotional attachment
Boots sought well-established
hairdressers with high consumer
awareness & premium positioning in
UK

36. One of the most influential and
creative hairdressers. His name
is synonymous with style,
innovation
and success.

38. A popular hairstylist to the stars from
the film, television, fashion, and
music industries.

39. One of the most esteemed and influential names in
British hairdressing. His company’s philosophy is simple
— creating sexy, contemporary catwalk looks within its
salons alongside a salon performance range of hair-care
products to recreate catwalk glamour at home.

40. “At Toni & Guy we create wearable, catwalk-
led hairstyles for people who want easy-care,
trendsetting hairstyles. Be an individual; be
ahead in the style stakes with
Toni and Guy.”

41. • The showman of all hairdressers.
• Has pioneering techniques and cuts.
• Styles include- The Wedge, The Chop,
and The Scrunch.

42. Known worldwide for
hair style and hair care

43. Brand Introduced Distribution Specifies
( No. of salons in
U.K. )
Market
Awareness
Charles Worthington 1996 Only Boots 5 Medium
John Frieda 1996 Widely Available 3 Strong
Nicky Clarke 1998 Widely Available 2 Medium
Umberto Gianni 1999 Widely Available 8 Low
Toni & Guy Jan 2001 Only Boots 250 Strong
Trevor Sorbie Sept 2001 Only Boots 2 Medium
Lee Stafford Sept 2001 Only Boots 3 Low

44. But the Big Question is…

45. Which of the 3 promotional alternatives is
the best option?
Let’s evaluate the alternatives

46. “3 for 2”
Scheme
• Buy 2 products of a
brand and get 3rd
product for free of the
same brand.
• The Least expensive
product will be treated
as free.
Estimated
sales drive
• 300% of what
was obtained
in pre-
promotion
sale.
Competitive
advantage
• Competitor lack the
technology to imitate
the scheme.
• They can implement
the scheme only when
all the 3 products have
same prices.

47. “Gift with Purchase” (GwP)
Scheme
• A product sample is
given along with a
regular purchase.
• Sample size of product
is packed with the
regular sample, so no
extra cost of
manufacturing
additional samples.
Estimated
sales drive
• 170% of what
was obtained
in pre-
promotion
sale.
Competitive
advantage
• No particular
advantage, as the
scheme can be easily
imitated.

48. “50pences off”
Scheme
• Get a 50p off
coupon and
redeem it
during your
first store visit.
Estimated
sales drive
• 150% of what
was obtained
in pre-
promotion
sale.
Competitive
advantage
• No particular
advantage, as
the scheme
can be easily
imitated.

49. HYPOTHESIS

50. Considering the primary
objective of Boots;
• Drive sales value
• Trade-up Customers from lower-
valued brands
• Enhance and maintain brand
equity

51. According to me, first alternative, i.e. “3
for 2” is the most appropriate sales
promotion scheme for the Boots hair care
line of products

52. REASONS • This scheme yields an increase
of 300% of the sales
evaluated during the pre-
promotional event.
• Approximately 60% of these
sales would be to customers
who would not otherwise
have purchased a haircare
product from Boots during the
promotional period.

53. REASONS
Purchase
Product
type 1
Product
type 2
Product
type 3
+ +
Xp Yp Zp
Where p means pences,
If X>Y>Z,
Then purchase price = (X+Y)p
Product types 1,2&3 belong to the same brand

54. This scheme is possible only with
Boots’ sales promotion;
Other competitors can adapt this
scheme only if:
X=Y=Z

55. Demerits of the proposed scheme
The only demerit is that the brand has to offer one
product from its product mix for free(although
cheapest of the combination)

56. Conclusion
“3 for 2” strategy is best
suited promotion alternative
for Boots hair-care product
line in order to effectively
target UKs customers.

57. Hence, we were able to sufficiently analyze the
case and determine the suitable and most
appropriate alternative according to us.

59. Created by Vrushabh Bhaskar, RAIT Mumbai,
during a marketing Internship by Prof. Sameer
Mathur, IIM Lucknow.
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