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Case analysis :boots hair care sale
promotion
Ashwin Gaikwad
IITM
What is boots ?
• Boots, one of the best-known and
respected retail names in the United
Kingdom, provided health and beaut...
How was it established ?
• Boots was established n 1849 , by john boot . After his
father's death in 1860 , jesse boot , a...
Objective
• To drive sale volume
• To trade up consumers from lower- value brands
• retain and build brand equity
UK Hair Care Market
• Highly fragmented with 60 major brand
• None of the brands has more that 9%
market share
• sever pri...
Post war regeneration and development
• In 1949 new factory for cosmetics
manufacturing at Airdrie in scotland .
• A new p...
Associated celebrities and the brands
Name Description Specifics Market Awareness
Charles
Worthington
One of the most
infl...
John Frieda
Entrepreneurial in
spirit, global in
impact, John
Frieda’s team of
celebrity stylists
(the “House of
Experts”)...
Lee Stafford
He is known for
hairstyle and hair
care.
-
- Three salons in
the United
Kingdom
Low
Toni & Guy
“At Toni & Guy...
summary of the brand’s product ranges
distribution and introduction dates
Price comparison chat
Major competitors
• P & G : 8.4% market share , high brand
awareness , leading brand pantene
• Alberto-culvery : Broad ass...
How consumers behave
promotion strategies....
• 3 for 2
• GWP
• on-pack coupon(50%off)
3 For 2
Advantages Disadvantages
Consumer would get 3 items for a regular
price buy of 2
would be preceived as a stock cle...
GWP
Advantages Disadvantages
Product sample will given free along with
a regular purchase
Adding the sample would cost
app...
on pack coupon worth 50%
Advantages Disadvantages
Customers can use their coupons during
the current store visit
this is a...
conclusion
• Boots’ aim was to secure market leadership in
the United Kingdom in the hair-care segment.
The celebrity hair...
Case analysis 2
Case analysis 2
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Case analysis 2

Boots hair care sale promotion

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Case analysis 2

  1. 1. Case analysis :boots hair care sale promotion Ashwin Gaikwad IITM
  2. 2. What is boots ? • Boots, one of the best-known and respected retail names in the United Kingdom, provided health and beauty products and advice that enhanced personal wellbeing. Besides retailing, Boots had international sales and marketing operations and also developed and manufactured its own products.
  3. 3. How was it established ? • Boots was established n 1849 , by john boot . After his father's death in 1860 , jesse boot , aged 10 helped his mother run the family's herbal medicine shop in Nottingham , which became Boots can Co. Ltd in 1883 , then Boots pure drug company Ltd in 1888 . In 1920 , jesse boot sold the company to the Americian United drug company . However , because of deteriorating economic circumstances in North America Boots was sold back in british hands .
  4. 4. Objective • To drive sale volume • To trade up consumers from lower- value brands • retain and build brand equity
  5. 5. UK Hair Care Market • Highly fragmented with 60 major brand • None of the brands has more that 9% market share • sever price competiiton • volume growth more than value • significiant price discounting through promotional activity
  6. 6. Post war regeneration and development • In 1949 new factory for cosmetics manufacturing at Airdrie in scotland . • A new power house • Printing works • new pharmaceuticals reseach building in 1959 at Nottingham .
  7. 7. Associated celebrities and the brands Name Description Specifics Market Awareness Charles Worthington One of the most influential and creative hairdressers. His name is synonymous with style, innovation and success - Five prestigious London2 salons tending to more than 2,000 clients a week - Celebrity following on both sides of the Atlantic
  8. 8. John Frieda Entrepreneurial in spirit, global in impact, John Frieda’s team of celebrity stylists (the “House of Experts”) fuels the company’s new product initiatives with the inside track on hot, new celebrity hair trends. - - Three salons in London, two in New York and one in Los Angeles. - The product range is targeted for specific hair types. Strong
  9. 9. Lee Stafford He is known for hairstyle and hair care. - - Three salons in the United Kingdom Low Toni & Guy “At Toni & Guy we create wearable, catwalk-led hairstyles for people who want easy-care, trend- setting hairstyles. Be an individual; be ahead in the style stakes with Toni and Guy.” - 250 salons in the United Kingdom Strong
  10. 10. summary of the brand’s product ranges
  11. 11. distribution and introduction dates
  12. 12. Price comparison chat
  13. 13. Major competitors • P & G : 8.4% market share , high brand awareness , leading brand pantene • Alberto-culvery : Broad assortment of shampoos, conditioners and styling agents, Top brand : st.Ives , VO5 , FDS . • L'oreal : 5% market share , More than 500 brand & more than 2000 products • Hair care product retailers : TEsco, sainsbury & morrisons - major retail players , superdrug in direct competitor
  14. 14. How consumers behave
  15. 15. promotion strategies.... • 3 for 2 • GWP • on-pack coupon(50%off)
  16. 16. 3 For 2 Advantages Disadvantages Consumer would get 3 items for a regular price buy of 2 would be preceived as a stock clearing strategy Consumer would combine any three items the want premium products would lose their brand equity and may sound as some cheap promotion Most competitors did not have the technology at the point of sale to imitate promotion Product partners (hair dressers) may oppose to this strategy for the dilution of their brand equity Estimation was that sale will increase 300 % 60% customers - promotional buyers
  17. 17. GWP Advantages Disadvantages Product sample will given free along with a regular purchase Adding the sample would cost approximately 90% per product + 3% extra to secure sample to the feature product estimated sale would increase by 170% of the pre-promotional sale This is a very common strategy used by most of the retailers which can be imitated very easily 40% will be just from promotional buyers
  18. 18. on pack coupon worth 50% Advantages Disadvantages Customers can use their coupons during the current store visit this is a common strategy used by most of the retailers Estimated sale would increase 50% of the pre-promotional sales Form of discounting which can be dilute the brand equity 50 % of customers just promotionak buyers more of a conservative approach customers would enable multi visits for a single customer less estimated sale growth as per the market research
  19. 19. conclusion • Boots’ aim was to secure market leadership in the United Kingdom in the hair-care segment. The celebrity hair-care brands were clearly an important component of their strategy. Competitors could not easily copy their strategy because Boots had contracts with some of the most prestigious salon brands in the United Kingdom. He wanted to ensure that the promotions were profitable, but the importance of maintaining and enhancing the professional hair-care brands could not be understated.

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