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Hair-Care Sales Promotion By: Katherine White. The Issue Dave Robinson needs to decide a promotion strategy for a line of professional hair-care products.

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Presentation on theme: "Hair-Care Sales Promotion By: Katherine White. The Issue Dave Robinson needs to decide a promotion strategy for a line of professional hair-care products."— Presentation transcript:

1 Hair-Care Sales Promotion By: Katherine White

2 The Issue Dave Robinson needs to decide a promotion strategy for a line of professional hair-care products at Boots Three promotional options “3 for 2” Gift with Purchase On-pack coupon

3 The Company Located in the United Kingdom Provides health and beauty products and various services Operates in 130 countries worldwide and about 1,300 stores

4 The United Kingdom Hair-Care Market Over 60 national brands are widely available in supermarkets and drug retailers No brand has more than 9% market share (highly competitive market) Overall market expected to grow 1-3% for the next 5 years

5 The Opportunity Boots wants to be the retail hair-care expert Build a new market using celebrity endorsement Currently no celebrity-endorsed products were available in retail stores

6 The Relationship Mutual benefit for Boots and hairdressers Boots designed formulations Manufactured products and paid per-unit licensing fee for use of celebrity’s brand name Boots managed licensed brands Celebrities managed public relations

7 The Major Competitors Procter & Gamble Alberto-Culver L’Oreal

8 Procter & Gamble Best-selling hair-care brand in world Shampoos, conditioners, and styling products Held 8.4% share of U.K. hair care market Additional hair-care brands

9 Alberto-Culver Multibillion-dollar company Owner of Sally Beauty Company Over 2,000 store locations Hair-care, skin-care and home-care Shampoos, conditioners and styling agents

10 L'Oreal Worldwide presence Markets over 500 brands and 2,000 products in all distribution channels Advertising pioneer Holds 5% share of U.K. hair care market

11 Hair-care Product Retailers Major supermarket competitors: Tesco Sainsbury Morrisons Major retailer competitor: Superdrug

12 United Kingdom Consumers No brand loyalty Buying behavior led to changing preferences Difficulty differentiating brands Most Boots customers bought both basic and premium brands

13 The Promotion The Target Market Run for 1 month starting December 1 st No media advertising budget allocated Advertisement in stores Pricing and Margins

14 “3 for 2” 3 products has to be of the same brand Free item is the least expensive Competitors can’t compete with offer Sampling component Introduce product to new consumers

15 Gift with Purchase Product sample with regular purchase Existing sample product used to reduce cost Packaging issues Time issue Introduce new products

16 On-Pack Coupon Conservative approach- cheapen brand Redeem coupon during current store visit Most competitors use price discount or GWP as promotional method

17 My Promotion Decision Choose the “3 for 2” Competitors can’t compete Costly but effective Consumers don’t realize price reduction

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