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Pranav
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Priya
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Shivam
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Viraj
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WHAT IS BOOTS?
JESSE BOOTS
'The trust and confidence of your fellows:
A home and everything it means:
The feeling of a job well done,
And the urge to do better
- are these not essential to man's true happiness?'
Edgar Moss, 1940
CASE
OVERVIE
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Background
1883 - Boot & Company Ltd formed.
Boots A well known, retail name in the UK went into Health, Beauty products,
Personal Care
1935 - No7 cosmetics launched by Boots.
Brands Strepsils, Clearasil, Nurofen(1983)
New Services Boots Opticians (1987)
Boots Healthcare International (1991)
Product Retail products of Premium Hair Specialists
75,000 employees in 130 countries (2004)
(2006)- Boots Healthcare International sold to Reckitt Benckiser.
Merged with Alliance UniChem to form Alliance Boots plc,
(2007) - Alliance Boots was acquired by AB Acquisitions Ltd.
Major Competitors
Consumer Trends
PROMOTIONAL MIX
Advertising
Advertising
Elements
Elements
of
of the
the
Promotional
Promotional
Mix
Mix
Personal
PersonalSelling
Selling
Public
PublicRelations
Relations
Sales
SalesPromotion
Promotion
Direct
DirectMarketing
Marketing
Promotion Alternatives
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On Pack Coupon
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3 for 2
GWP
On pack
coupon
% Increase in Revenues
100%
70%
50%
% Increase in Profits
-50%
-29%
3%
% of new customer
acquisition
60%
40%
50%
Highly
Negative
Partially
Negative
Highly
Negative
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3 for 2
GWP
On pack
coupon
% Increase in Revenues
100%
70%
100%
% Increase in Profits
-200%
-236%
-100%
% of new customer
accquisition
60%
40%
50%
Little/No
effect
No effect
Little/No
effect
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Sales Promotion
Strategies Target
Consumer, Trade, and
The Sales Force.
Why Are Companies
Spending More and More
Money on Sales
Promotion?
Sales Managers are Under
Great Pressure to
Produce Results
Quickly.
Assessment of Sales
Promotion is
Relatively Easy.
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19
OFFERS AT BOOTS
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3 for 2 offer
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22
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In a Nutshell
Promotion Can:
Offer an
immediate
inducement,
Cause
customers to
try a product,
Persuade
customers to
buy again,
Introduce a
new product or
build a brand
over time.
Objectives
Building Brands
Intended to
Change Consumer
Behavior
Introducing
New Products
Advertising and Promotion
Work Well Together
Here Using
Push & Pull
Strategies
Promotion Cant:
Create an image
for a brand,
Compensate for
a lack of
advertising,
Do much to
compensate for a
negative image,
Reverse a sales
decline.
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Threat of New
Entrants
Threat of Substitute
Products
Bargaining
Power of
Customers
Driv
er
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AIDA Model
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PROMOTION CHANNEL
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Consists of
directing the
promotional mix
at ultimate
consumers to
encourage them
to ask the retailer
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for a product.
Sales Promotion
Advantages
Price discrimination
Effect on consumer
behavior
Effect on trade behavior
Luring New Customers
with Price
Gaining Community Favor
Providing Information
Disadvantages
Increased price sensitivity
Quality image may
become tarnished
Merchandising support
from dealers is doubtful
Short-term orientation
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