Boots: Hair Care Sales Promotion: Presented by Group 4

BOOTS: HAIR
CARE SALES
PROMOTION
Presented by Group 4:
Amrutha Baburaj
Arjun Veer Singh
Harsh Mantri
Maithili Joshi
Pratik Rungta
Sudhir Pawar
BOOTS Collaborations
• United Kingdom’s top celebrity hairdressers
• Developed a critical mass of professional hair care
brands
John Boot opened the “ The British and American • Worked with celebrities to design formulations
Botanic Establishment” in 1849 • The ranges were launched through beneficial suppliers
and retail partnerships
Jesse Boot established it as the Boot and Company
Limited
Customers
• Customers are not brand loyal
One of the best known & respected retail names in UK • Trends in buying behaviour led to changing preferences
• Difficult to identify differences between various brands
• Target segment: Fashion conscious women in the 20-35
Provided health and beauty products
age category
• Affluent purchasers
Professional line of hair care products • Buying behaviour:
o Basic products for the rest of the family and
Owned global differentiated brands such as Nurofen, premium product for female head of the household
Strepsils and Clearasil o Basic products for everyday use and premium
products for special occasion
Employed around 75000 people and operated in around
130 countries Climate
• Aiming to achieve market leadership in the hair care
New services include: Boots Opticians formed in 1987; segment
Insurance services and initiatives in dentistry, • Unique strategy and not easy for competitors to replicate
chiropody, Boots for Men stores and Internet services • Holiday season
COMPETITION
P&G ALBERTO CULVER L’OREAL RETAILERS
• Launched Pantene • Offer a wide range • Marketed over 500 • Major retailers
and reformulated as of hair, skin and brands and 2000 carried professional
Pantene Pro-V home care products products and mass market
• Became the best hair • Hair care range • Product ranges hair care brands
care brand offered a broad include hair color, • Major competitors:
• Lineup included assortment of styling aids, body o Tesco
shampoos, shampoos, and skincare, o Sainsbury’s
conditioners and conditioners and cleansers and o Morrisons
hair styling products styling agents fragrances • Superdrug: one of
• Other complete • Top brands: • Held a 5% share of the largest health
ranges include o St. Ives the UK hair care and beauty retailers
Clairol, Head & o VO5 market o Launched
Shoulders, Daily o Consort hair • Product: Elvive private label
Defense. PERT plus care for men products
and Herbal Essences o FDS
DEFINE OBJECTIVES
To drive sales revenue up

by increasing volume sales
REVENUE
Increase customers from

NEW
lower-value brands such as
CUSTOMERS mass-market brands
While building up sales,
BRAND
Brand Equity should be
retained or built up. EQUITY
First Alternative- “3 for 2”
Buy two hair-care items at regular price and receive one free. The product with the least price
amongst all the three products will be given as free.
Advantages Disadvantages
• Consumers will have the • Might be confusing to the

advantage to mix and choose consumers in terms of
1
any 3 products they like. calculating the prices they
• This was a new technique have to pay.
and other players in the • Consumers may attribute it
market did not have this. to cheap promotion skills and
• Estimated sales was to the premium quality can get
increase by 300%. lost
• A chance of getting 60% • High chances of dilution of
newer customers through brand equity.
this.
5
Second Alternative- “GWP (Gift with purchase)”
A small existing sample product would be given with the regular purchase to the customers.
Disadvantages
• Giving away items is always

Advantages
going to have a positive
effect, but this solution
• Sales are expected to go up
seems very short term
by 170 percent comparing to • This promotion does not give
the non-promotional period
• 40 percent of sales would be
to Boots shoppers who never
would have came if it wasn’t
2 off a good sense of what the
products can do
• Most of the retailers can
easily imitate this strategy
for the promotion
and will not give any edge to
• No additional packaging is
Boots over it’s competitors
required • Extra 3p per unit will be
spent in the sample product
with the regular packaging
6
Third Alternative- “On-pack Coupon (50p off)
A coupon for 0.50 pound off attached to each product that is immediately redeemable on the
same day of purchase.
Advantages Disadvantages
• There are no risks involved • A promotion like this one

with this promotion will not make Boots stand
• Coupons will ensure that a
single customer visits the
store multiple times
3 out on the shelf
• Gaining any type of market
share is difficult
• 50% of the customers will be • Boots will not gain edge over
the promotional buyers it’s competitors with this
• There will be an increase in promotion
sales by 150%
7
Calculations
Recommendations
Based on the calculations shown earlier, we would want to go ahead with the third
alternative which is ‘On-pack Coupon (50p off)’
We have considered overall profit as the most important variable in coming to this
conclusion
On-pack Coupon (50p off) is the most profitable option as is clearly shown in our
calculations
Although the increase in sales would only be 1.5 times but with even those numbers, the
profit earned would be maximum.
12/11/2020 9
THANK YOU

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BOOTS: HAIR

To drive sales revenue up

Increase customers from

• Consumers will have the • Might be confusing to the

• Giving away items is always

• There are no risks involved • A promotion like this one

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