boots: hair-care sales promotion
TRANSCRIPT
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BOOTS: HAIR-CARE SALES PROMOTION
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About the companyJohn boot started the company The British and American Botanic Establishment in 1849 and was later taken control by his son Jesse boots who founded the company Boot and Company Limited.
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What is the companies situation?
Not more that 9% market share in hair care field
Wants to improve sales by coming up with various marketing strategies
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Their primary objectives are
To increase the sales volume by building brand equity and trade up consumers from lower brand values
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Sales were directly proportional to the marketing expenditure
According to Boots..
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Main motive of this case
To increase the sales of the hair care products by Boots
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To do so Dave Robinson has to chose one of these three
3 for the price of 2
Gift with purchase
On pack coupon
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Why do all of this?
For the company to improve sales, gain visibility and reach out to more people
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Their competition
Companies like P&G, Alberto Culver and L'Oréal and each company had their own branding strategy
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P&G They had their own set of hair care products, thus competition with itself and not allowing outside competition
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L'Oréal
Focused mainly on communication and distribution channels
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Now what do the people want?
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70’s the consumers wanted shampoo that
was gentle
80’ consumers wanted
shampoo that was
detangling90’s
consumers wanted shiny
hairDue to this issue companies had to come up with a marketing strategy to reach out to people and win their trust
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Thus Dave Robinson had to come up with an alternative..
What were they?
• 3 for 2• GWP• On pack
coupon worth 50p
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Sales will increase by 300%60% new customers
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Sales increased by 170%40% new customers
GWP
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Sales increases by 150%50% new customers
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The best solution is 3 for 2 as it is increasing sales as well as bringing in new customers comparatively
So what should Robinson choose?
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DISCLAIMAR
Created by Akhil Mukundan, RV College of Engineering, Bangalore, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow