Harvard Business Review - Boots UK

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Harvard Business Review

- Hrishikesh Kulkarni (IIT B)

A Pharmacy Chain in United Kingdom which specializes in medicines, health and beauty products

Present1849

Founded by John Boot in 1849 by the name of ‘The British and American Botanic Establishment’ in Nottingham

Present1849

His son Jesse Boots established it as a private Company named ‘Boot and Company Limited,’

1883

Present1849

By now the company had almost 560 stores around England with a revenue over £2.5 million over the year

1913

Present1849

Major development post war -Building of first research facility

1959

Post War

Present1849

International expansion in operations was conducted by Boots Healthcare International (formed in 1991), which exported healthcare products to more than 130 countries round the world.

CURRENT LOGO

Competitions in the UK market

Pantene Pro-V

Alberto V05

L'Oréal Paris

Boot’s Response

Celebrity Endorsements Hairdresser Partnerships

Some of the Partnerships

Charles Worthington John Frieda

Nicky Clarke

Trevor Sorbie

Lee Stafford

Consumer patternsHow their buying pattern affected the company

1.NO BRAND LOYALTYA general belief that changingshampoo brands produced better results than continually using a single brand.

Changing Preferences

2.

Consumer patternsHow their buying pattern affected the company

1970s - Shampoos that were gentle

1980s - Greater emphasis on detangling

1990s - Shiny hair became more important

Brands were too similar3.

Consumer patternsHow their buying pattern affected the company

It was difficult for consumers to identify meaningful differences between the various brands available in any given store.

Situation

Planning of Sales promotion Strategy for Christmas

3 for the price of 2 Gift with Purchase On pack Coupons

0

50

100

150

200

250

300

350Alternatives Summary

% compare to non-promotion

3 for the price of 2 Gift with Purchase On pack Coupons(50 p off)

Perc

enta

ge

% of sales would come from Boots customers who would not have otherwise purchased a product within the promotional period.

Thank You