Download - Boots hair care sales promotion
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BOOTS:HAIR-CARE SALES PROMOTION
CASE ANALYSIS
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OUR STORY STARTS WITH OUR HERO
PLANNING HIS SALES PROMOTION STRATEGY
FOR A LINE OF PROFESSIONAL
HAIR-CARE PRODUCTS AT BOOTS
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WHO IS OUR HERO??
DAVE ROBINSON
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WHAT IS BOOTS
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BOOTS UK LIMITED TRADING AS BOOTS,
IS A PHARMACY CHAIN IN THE UNITED KINGDOM AND IRELAND,
WITH OUTLETS IN MOST HIGH STREETS, SHOPPING CENTRES AND
AIRPORT TERMINALS
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ABOUT THE FIRM
EMPLOYED AROUND 75,000 PEOPLE
OPERATED IN 130 COUNTRIES WORLDWIDE
ESTABLISHED IN 1883
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LETS JUMP INTO OUR HERO’S SITUATION AND HAVE SOME FUNANALYSING THE CASE
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WHAT IS THE SITUATION?
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SELECTING ONE AMONG THE
THREE PROMOTIONAL ALTERNARIVES
3 FOR THE PRICE OF 2 GIFT WITH PURCHASE 50 % OFF
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MORE DETAILS ABOUT THE SITUATION
COMPETITORS
CUSTOMER ANALYSIS
FIRM INITIATIVES
MARKET ANALYSIS
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MORE THAN 60 BRANDS
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NO BRAND HAS MORE THAN 9 % OF MARKET SHARE
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SALES DIRECTLY PROPORTIONAL TO ADVERTISEMENTS
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OVER EMPHASIS ON PROMOTIONS
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ANALYSIS
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LACK OF BRAND LOYALITY
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CHANGING CUSTOMER BEHAVIOUR
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CELEBRITY ENDORSEMENTS
CREATE AWARENESS AND EMOTIONAL ATTACHMENT BETWEENCONSUMERS AND THE BRAND
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ADVANTAGES AND DISADVANTAGES OF 3 ALTERNATIVES
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3 FOR THE PRICE OF 2ADVANTAGES
SALES ARE ESTIMATED TO INCREASEBY 300%
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3 FOR THE PRICE OF 2ADVANTAGES
60% OF SALES WOULD BE CUSTOMERS WHO WOULD NOT HAVE PURCHASED A HAIRCARE
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3 FOR THE PRICE OF 2ADVANTAGES
COMPITITORS DON’T HAVE RESOURCES
TO INSTANTLY COPY THIS STRATEGY
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3 FOR THE PRICE OF 2DISADVANTAGES
LOOSING BRAND EQUITY
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3 FOR THE PRICE OF 2DISADVANTAGES
EFFECTS LONG TERM SALES FOR ENDORSERS
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GIFT WITH PURCHASEADVANTAGES
SALES ARE ESTIMATED TO INCREASEBY 170%
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GIFT WITH PURCHASEADVANTAGES
40% OF SALES WOULD BE CUSTOMERS WHO WOULD NOT HAVE PURCHASED A HAIRCARE
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GIFT WITH PURCHASEDISADVANTAGES
WOULD COST APPROXIMATELY 90% PER UNIT FOR THE PRODUCT PLUS 3% PER UNIT TO SECURETHE SAMPLE
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GIFT WITH PURCHASEDISADVANTAGES
CAN BE COPIED BY OTHER RETAILERS EASILY
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50% OFFADVANTAGES
SALES ARE ESTIMATED TO INCREASEBY 150%
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50% OFFADVANTAGES
50% OF SALES WOULD BE CUSTOMERS WHO WOULD NOT HAVE PURCHASED A HAIRCARE
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50% OFFDISADVANTAGES
EFFECTS BRAND EQUITY AND LONG TERM SALES
FOR THE FIRM AND ENDORSERS
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CONCLUSION
3 FOR 2 IS THE BEST STRATEGY TO IMPLEMENT
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DISCLAIMAR Created by S.Pavan Krishna, IIT
Madras, During a marketing management internship by
Prof.Sameer Mathur, IIM Lucknow.