Boots Hair Care Sales Promotion

Case study

Discount on shampoo

Brand Min Price Max Price GWP(for min price) GWP(for max price) On pack coupon(min price) On pack coupon(max price)

Charles Worthington 4.25 5.5 21.88 16.91 11.76 9.09

John Frieda 3.5 6.25 26.57 14.88 14.29 8.00

Nicky Clarke 4.025 4 23.11 23.25 12.42 12.50

Umberto Giannini 4 4.5 23.25 20.67 12.50 11.11

Toni and Guy 3.75 5 24.80 18.60 13.33 10.00

Trevor Sorbie 5 5 18.60 18.60 10.00 10.00

Lee Stafford 4 4 23.25 23.25 12.50 12.50

Discount on conditioner

Brand Min Price Max Price GWP(for min price) GWP(for max price) On pack coupon(min price) On pack coupon(max price)

Charles Worthington 4.25 8.25 21.88 11.27 11.76 6.06

John Frieda 4.25 6.25 21.88 14.88 11.76 8.00

Nicky Clarke 4.5 4.5 20.67 20.67 11.11 11.11

Umberto Giannini 4.5 4.5 20.67 20.67 11.11 11.11

Toni and Guy 5 5 18.60 18.60 10.00 10.00

Trevor Sorbie 5 5 18.60 18.60 10.00 10.00

Lee Stafford 4 4 23.25 23.25 12.50 12.50

Discount on gel

Brand Price GWP On pack coupon

Charles Worthington 8.25 11.27 4.44

John Frieda 6.08 15.31 3.27

Trevor Sorbie 8.33 11.17 4.48

Pantene 4.65 20.00 2.50

Discount in 3 for 2 offer

Brand Shampoo Conditioner Gel Product bundle(max) Product bundle(min) 3 for 2(max) 3 for 2(min)

Charles Worthington 1.7-2.2 1.7-3.3 3.3 6.6 5 25 25.37

John Frieda 1.4-2.5 1.7-2.5 2.43 4.93 4.13 33.64 25.31

Nicky Clarke 1.6 1.8 - 3.6 3.4 30.77 32

Umberto Giannini 1.6 1.8 - 3.6 3.4 30.77 32

Toni and Guy 1.5-2 2 - 4 3.5 33.33 30

Trevor Sorbie 2 2 3.33 5.33 5.33 27.3 27.3

Lee Stafford 1.6 1.6 - 3.2 3.2 33.33 33.33

Margins for premium products

• Manufacturer cost=x• Manufacturer margin=10%• Retailer cost=1.1x• Retailer margin=.44x• Retail price=1.54x

Margins for mass market products

• Manufacturer cost=x• Manufacturer margin=10%• Retailer cost=1.1x• Retailer margin=.275x• Retail price=1.375x

Offer Sales increase Customers attracted Implications

3 for 2 300% 60% Maximum cost to the company. Huge rise in sales might erode brand value. Attractive to mass market customers rather than affluent ones.

GWP 170% 40% Lack of differentiation in strategy as compared to other competitors.

On pack coupon

150% 50% Least cost to the company.