Boots Hair Care Sales Promotion

Case study

Discount on shampoo
Brand Min Price Max Price GWP(for min price) GWP(for max price) On pack coupon(min price) On pack coupon(max price)

Charles Worthington

4.25

5.5

21.88

16.91

11.76

9.09

John Frieda

3.5

6.25

26.57

14.88

14.29

8.00

Nicky Clarke

4.025

23.11

23.25

12.42

12.50

Umberto Giannini

4.5

23.25

20.67

12.50

11.11

Toni and Guy

3.75

24.80

18.60

13.33

10.00

Trevor Sorbie

18.60

18.60

10.00

10.00

Lee Stafford

23.25

23.25

12.50

12.50

Discount on conditioner
Brand Min Price Max Price GWP(for min price) GWP(for max price) On pack coupon(min price) On pack coupon(max price) Charles Worthington 4.25 8.25 21.88 11.27 11.76 6.06

John Frieda

4.25

6.25

21.88

14.88

11.76

8.00

Nicky Clarke

4.5

4.5

20.67

20.67

11.11

11.11

Umberto Giannini

4.5

4.5

20.67

20.67

11.11

11.11

Toni and Guy

18.60

18.60

10.00

10.00

Trevor Sorbie

18.60

18.60

10.00

10.00

Lee Stafford

23.25

23.25

12.50

12.50

Discount on gel
Brand Price GWP On pack coupon

Charles Worthington

8.25

11.27

4.44

John Frieda

6.08

15.31

3.27

Trevor Sorbie

8.33

11.17

4.48

Pantene

4.65

20.00

2.50

Discount in 3 for 2 offer

Brand Shampoo Conditioner 1.7-3.3 1.7-2.5 1.6 1.6 1.5-2 2 1.8 1.8 22 3.33 Gel 3.3 2.43 Product bundle(max) 6.6 4.93 3.6 3.6 4 5.33 Product bundle(min) 5 4.13 3.4 3.4 3.5 5.33 3 for 2(max) 25 33.64 30.77 30.77 33.33 27.3 3 for 2(min) 25.37 25.31 32 32 30 27.3 Charles Worthington 1.7-2.2 John Frieda Nicky Clarke Umberto Giannini Toni and Guy Trevor Sorbie 1.4-2.5

Lee Stafford

1.6

1.6 -

3.2

3.2

33.33

33.33

Margins for premium products

Manufacturer cost=x Manufacturer margin=10% Retailer cost=1.1x Retailer margin=.44x Retail price=1.54x

Margins for mass market products

Manufacturer cost=x Manufacturer margin=10% Retailer cost=1.1x Retailer margin=.275x Retail price=1.375x

Offer 3 for 2

Sales increase 300%

Customers attracted 60%

Implications Maximum cost to the company. Huge rise in sales might erode brand value. Attractive to mass market customers rather than affluent ones. Lack of differentiation in strategy as compared to other competitors. Least cost to the company.

GWP

170%

40%

On pack coupon

150%

50%