Boots: Hair Care Sales Promotion-The objective to prepare this case is to find the best promotional strategy which would drive up the profit of Boots.

2. o To choose the best promotional strategy that
drive up the sales of the company and help build
its brand equity.

3. What is
boot

4. About the company
 Boots, one of the best known and respected retail name in UK.
 It deals in cosmetics and health products, insurance, services
in dentistry, chiropody, Boot for Men stores and internet services.
 It had international sales and marketing operation.

5. Early Days Modern Era
 IN 1883 it was established as a private company “Boot and Company Limited”
launched its own logo.
 In 1949 it adopted a new black and white logo.

6.  In 1949, a factory for the manufacture of cosmetic
was opened at Airdrie
in Scotland.
 It included new power house,printing work.
 In 1959 a new pharmaceutical research building.

7.  Competitors brands
 Product Retailers
 Consumer perspective

8. L’Oreal
 Procter and
Gamble
 Alberto-Culver
MASS MARKET BRAND

9. The sales of the brand(L’Oreal, Procter and Gamble,
Alberto-Culver ) were directly proportional to the
amount of advertising expenditure.
For Boots no advertising budget was allocated for the
Promotion. Instead Boots did celebrity endorsement.

10. It cultivated relationship with hairdresser that had high
consumer awareness
and premium positioning.

12. The major competitors in the supermarket segment
were Tesco, Morrisons, Sainsbury.

13. Tesco was the largest supermarket chain in the United
Kingdom with more than 1800 stores and 45000 employees.
 Sainsbury was the second largest with 700 stores.
•Both Tesco and Sainsbury provided wide product that included
traditional supermarket item and online shopping, as well as
CDs, wine, flowers and gifts and mobile phones.
 Morrisons had 400 stores and provided quality services at low
prices in all of its UK stores.

14. • A second major hair-care competitor was Superdrug.
• It had grown to become one of the largest health and beauty retailer
with almost 700 stores in United Kingdom.
• The company value offering included around 10000 products,
ranging from essential to premium products.

15.  Consumer are not brand loyal.
They believed changing shampoo brand
produced better result than using a single
brand.
Trend in buying behaviour led to changing
preferences.
It was difficult for consumer to identify
difference between various brand available in
given store.

16. The main problem with the Boot
Was to select that promotion tool
that gave it the maximum profit
among these three alternative:
“ 3 for 2”
 GWP(Gift with Purchases)
 On-pack coupon(50p off)

17. Which
alternative
should
Boots choose

19. ADVANTAGES
 This offer would enable consumer to buy two hair-care item at
regular price and receive one free.
 The competitors did not have the technology at the point of sale
to imitate this promotion.
DISANVANTAGES
 Premium product may lose their brand equity and may sound
as some cheap promotion.
 Hair Dresser will oppose this strategy as it would lead to the
dilution of their brand equity.

21. • Here the customer were given a product sample along with a
regular purchase.
• The sample product would avoid the need to design and produce
additional packaging.
Adding the sample would cause 90p per unit for a product plus
3p per unit to secure the sample to the featured product.
 This is the most common strategy among retailers and can be
easily imitated.

23. Advantages
 Here all the customer would be able to redeem the coupon
during their current store visit.
 It would lead to the multiple visit by the single customer.
DISADVANTAGES
 This is the most common strategy among the retailers and can
be easily imitated.
 This would lead to the dilution of the brand equity.

25. Boots should adopt the “3 for 2” sales
promotional
tool by considering its advantages and
disadvantages.

26. END……..

27. Created by Shivi Sharma, Kalindi College (Delhi University) during a
Marketing internship by Prof. Sameer
Mathur.
DISCLAIMER