Professional Documents
Culture Documents
Abhishek Saha Arnab Chowdhury Jeevitha P R Solomon Dheeraj Kalyan VBH Manish Anand Saurabh S Yadav
Background
Boots A well known, retail name in the UK Into Health, Beauty products, Personal Care 75,000 employees in 130 countries (2004) Brands Strepsils, Clearasil, Nurofen New Services Boots Opticians (1987) Boots Healthcare International (1991) Product Retail products of Premium Hair Specialists
Major Competitors
P&G 8.4% Market Share Leading Brand: Pantene High Consumer Awareness LOreal 5% Market Share Portfolio of over 500 brands and 2000 prod. Pioneer in promotions Alberto-Culver Revolutionized Ad-slots Increased product base by Global acquisitions Wide product-range Product Retailers Tesco, Sainsburys, Morrisons Traditional Supermarket Superdrug Value Retail
Consumer Trends
70s - Gentle Shampoos 80s Detangling 90s Shiny Hair
Main purchasers Fashion Conscious Women (25-30 Age Group) Most Boost customers bought Basic and Premium brands Gender/ Occasion based usage
Promotion Alternatives
Christmas Promotional Activities
3 for 2 Gift with On-Pack Coupon Purchase The item with the 50p off on minimum price An existing products which the would be the free sample would be customer would one (competitors bundled along with be able to redeem didnt have POS the regular immediately tech.) purchase
Cons
Choice of free item limited to the same brand and not the Brand House
Skeptical customers would think that Boots is trying to push its stocks
Cons
No actual monetary savings
Estimated 40% sales to Boots shoppers who would not have otherwise purchased a hair-care product Creates excitement among customers regarding the gift
Skeptical customers would think that Boots is trying to push its stocks
On Pack Coupon
Pros
Actual savings in monetary terms for the price sensitive consumer
Cons
No differentiation with competitors
Estimated high usage of coupons as customers would indulge in holiday season shopping anyway
Consumers need to remember to carry the coupons with them for purchase
Impact on variables
3 for 2
GWP
On pack coupon
% Increase in Revenues
100%
70%
50%
% Increase in Profits
-50%
-29%
3%
60%
40%
50%
Highly Negative
Partially Negative
Highly Negative
Impact on variables
3 for 2
GWP
On pack coupon
% Increase in Revenues
100%
70%
100%
% Increase in Profits
-200%
-236%
-100%
60%
40%
50%
Little/No effect
No effect
Little/No effect
Open to Questions