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    Boots Hair Care Analysis

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    Amit
    The document analyzes different sales promotion options for Boots hair care products to drive sales volumes, trade up customers, and build brand equity. It recommends a "3 for 2" promotion or no promotion over other options like "gift with purchase" or coupons. The "3 for 2" promotion is projected to have a nominal impact on objectives while avoiding potential negative effects on brand equity seen in other promotion types. No promotion is also recommended given similar minimal impacts.

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    Boots Hair Care Analysis

    Uploaded by

    Amit
    139 views2 pages
    The document analyzes different sales promotion options for Boots hair care products to drive sales volumes, trade up customers, and build brand equity. It recommends a "3 for 2" promotion or no promotion over other options like "gift with purchase" or coupons. The "3 for 2" promotion is projected to have a nominal impact on objectives while avoiding potential negative effects on brand equity seen in other promotion types. No promotion is also recommended given similar minimal impacts.

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    Boots Hair Care Analysis

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    The document analyzes different sales promotion options for Boots hair care products to drive sales volumes, trade up customers, and build brand equity. It recommends a "3 for 2" promotion or no promotion over other options like "gift with purchase" or coupons. The "3 for 2" promotion is projected to have a nominal impact on objectives while avoiding potential negative effects on brand equity seen in other promotion types. No promotion is also recommended given similar minimal impacts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    139 views2 pages

    Boots Hair Care Analysis

    Uploaded by

    Amit
    The document analyzes different sales promotion options for Boots hair care products to drive sales volumes, trade up customers, and build brand equity. It recommends a "3 for 2" promotion or no promotion over other options like "gift with purchase" or coupons. The "3 for 2" promotion is projected to have a nominal impact on objectives while avoiding potential negative effects on brand equity seen in other promotion types. No promotion is also recommended given similar minimal impacts.

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    Boots: Hair-Care sales promotion

    Challenge: Choose the correct promotion of the three

    1. Get three for the price of two (3 for 2)


    2. Receive a gift with purchase (GWP)
    3. On-pack coupon worth 50 pence

    Primary Objective:

    1. Drive Sales volumes


    2. Trade-up customers from lower -value brands
    3. Retain/build brand equity

    Background:

    About Boots

     Among best-known retailers in UK – Provides health & beauty products and advice
     Owns Nurofen, Strepsils and Clearasil; employs 75,000 people, operates in 130 countries

    Retailers

    Retailer No. of Stores Others


    Tesco 1800 45,000 employees
    Sainsbury’s 700
    Morrisons 400
    Super Drug 700 10,000 products

    UK Hair Care market

     Over 60 brands; <= 9% market share each; market growing by 1%-3%

    Consumers

     Not brand loyal


     Changing shampoo brands produces better results
     Professional brands buyers were fashion conscious women in 20-35 age; affluent
     Boots customers bought both basic and premium brands

    Products to be considered in Promotion

    1. Conditioner
    2. Shampoo
    3. Styling product

    Recommendation
    We can go ahead with the 3 for 2 promotion scheme or No promotion at all given the nominal impact
    on Sales Volumes, Trade Up customers and the negative impact other schemes have on the Brand
    Equity.

    Promotion No promotion 3 for 2


    Styling Sty
    Product Shampoo Conditioner Shampoo Conditioner
    Product Pro
    Costs New 2.4 2.394 2.394 2.394 2.394
    Sales Quantity Promotion Dec 100 100 100 300 300
    incl. Jan 100 100 100 20 20
    Dec 100 100 100 300 300
    Billing Quantity
    Jan 100 100 100 20 20
    Revenue 798 798 798 1276.8 1276.8
    Old 478.8 478.8 478.8 478.8 478.8
    Total Costs
    New 478.8 478.8 478.8 766.08 766.08
    Old 319.2 319.2 319.2 319.2 319.2
    Total Profit
    New 319.2 319.2 319.2 510.72 510.72
    Change in Profit NA -622.44

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