case study: boots hair care sales promotion
TRANSCRIPT
Hair Care Sales
PromotionCase Study
Company Profile
PHARMACEUTICALS HEALTHCARE BEAUTY PHOTOGRAPHY
John
Boot
HEADQUARTERS IN NOTTINGHAM, UNITED
KINGDOM
1849Founded In
Aim to make the best promotion strategy for company’s hair care products
Dave Robinson,Director Bootshas to formulate aMarketing Strategy for hisCompany!!!
3 for 2 50 p off
Gift with Purchase?
WHICH ONE TO CHOOSE ?
Analyze target
customer needs and
behavior
Check for
competitors
Propose a
solution
Lets continue…
• Product innovation• Strong customer loyalty• Strong brand image• Offers multiple products
• Increased promotional spending
Broad range of products
• Less stores• Less professional products
• Innovation• High Quality products• Effective Distribution strategies
Very expensive products
2.Focus on market differentiation.
1.Focus on increasing brand awareness.
• Purchase 3 products of the same brand & Get the cheapest one free!!• It was estimated that the sales per day would increase to 300% of the pre-promotion sales.• The company had a competitive advantage as the competitors lacked the technology to imitate this promotion.
• Redeem the 50p off coupon on your first visit to the store.• It was expected that the sales will increase to 150 % of the non promotion sales.• The competitors used different promotion methods, therefore the company had a competitive advantage.
• In this strategy, a product sample was given as a gift with any regular purchaseEstimated sales were 170% In this strategy, a product
sample was given as a gift with any regular purchase• Estimated sales were 170% of the pre-promotion sales.
•
of the pre-promotion sales. In this strategy, a product sample was given as a gift with any regular purchase• Estimated sales were 170% of the pre-promotion sales.
• In this strategy, a product
sample was given as a gift with any regular purchase• Estimated
sales were 170%
of the pre-promotion sales.
FOR THE
Case analysis Process
To select the best profitable sales
promotion strategy for the company.
1.What should be the Brand’s promotion strategy?
2.How should the brand differentiate it’s products form the Competitors?
The best promotion strategy for boots will be “3
for 2”
ACTION
Maximum return
Strategy not easy to
The company may face problems due to the additional cost it will have to incur, on providing a free bottle to every customer who opts for the scheme. But, overall the company will make a profit which will be large Enough to cover these expenses. Thus, ‘3 for 2’ will be the perfect choice.
50p off
coupon
Gives 150 % increase in sales which is less than the estimated 300%. Strategy adopted by it’s competitors. As compared to the ‘ 3 for 2’ strategy, it doesn't provide variation in products.
Cost intensive for the company, since giving
gifts will result in additional expenses of that product.Offers 170%
increase in sales, which is less
than ‘3 for 2’ strategy.Easy to imitate for
it’s competitors
The Best Strategy for the company is ‘3 for 2’.
This Presentation is created by Nishchay Misra, University Of Petroleum And Energy Studies, Dehradun during Marketing Management Internship under Prof. Sameer Mathur, Indian Institute Of Management, Lucknow
Prof. Sameer Mathur