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By: Dheeraj Tripathi

PGDM 2013-15
Roll no: 1301-065
Section A
Case Analysis: Boots- Hair Care Sales Promotion
To drive sales volume
To trade-up consumers
from lower-value brands
Retain and build the
brand equity
Highly Fragmented with 60 major brands
None of the brands has more than 9% market
share
Severe price competition
Volume growth more than value
Significant price discounting through
promotional activity
8.4% Market Share
High brand awareness
Leading Brand Pantene
P&G
Broad assortment of shampoos,
conditioners and styling agents
Top brands: St. Ives, VO5, FDS
Alberto-Culver
5% market share
More than 500 brands & more than 2000
products
L Oreal
Tesco, Sainsbury & Morrisons Major
retail players
Super drug is direct competitor
Hair Care
product Retailers
3 for 2
Item with minimum price in the purchase of 3 items would be free
Competitors doesnt have the technology at POS to imitate the
promotion: Could be a differentiating factor
Gift with purchase
A product sample free along with a regular purchase (usually 75 ml)
Existing sample product would be used to avoid the need to design
and produce additional packaging
On-Pack Coupon
50 pence off on the product
More conservative approach
Easily redeemable
Pros
Consumer would get 3 items for a regular
price buy of two.
Consumers could combine any three items
competitors did not have the technology
at the point of sale to imitate this
promotion.
Expected that sales would increase to 300
% of pre-promotion sales
60 % new buyers


Cons
Profit margins reduce substantially
Brand equity may dilute
Pros
Product sample would be given free
along with a regular purchase.
Additional packing would be used to
pack the free sample along with the
existing one.
Estimated sales would increase by
170% of the pre-promotional sales.
40 % new customers


Cons
Additional cost of 93 pence for
bundling the sample with the
product
Common strategy, competitors can
easily imitate.
Pros
Customers would be able to redeem
their coupons during their current store
visit.
Sales are estimated to increase by 150%
of the pre-promotional sales.
50 % of the customers would be just
promotional buyers.
Coupons would enable multiple visits
for a single customer.


Cons
Brand dilution
Common strategy, competitors can
easily imitate.
Current Promotional Scheme
-

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