Boots Hair Care Sales Promotion Case Study Analysis
Boots Hair Care Sales Promotion Case Study Analysis
Boots Hair Care Sales Promotion Case Study Analysis
(100ml)
Only Boots
Widely Available
Charles Worthington
Toni & Guy
Trevor Sorbie
Lee Stafford
1.7
1.5
2
1.6
John Freida
Nicky Clarke
Umberto Giannini
Average Values
1.4
1.6
1.6
Shampoo
Max Price
(100ml)
2.2
2
2
1.6
2.5
1.6
1.6
Average
CP to
Price
Average Price
retailer(40%
(100ml)
(250 ml)
margin)
1.95
4.875
3.48
1.75
4.375
3.13
2
5
3.57
1.6
4
2.86
1.95
1.6
1.6
4.875
4
4
4.45
3.48
2.86
2.86
3.18
CP to
Manufacturer
(8% to 12%
Margin)Assume 10%
3.17
2.84
3.25
2.60
3.17
2.60
2.60
2.89
Avg Profit
per unit
1.71
1.53
1.75
1.40
1.71
1.40
1.40
1.56
1.7
1.8
1.8
2.5
1.8
1.8
Conditioner
2.5
2
2
1.6
6.25
5
5
4
CP to retailer(40%
margin)
4.46
3.57
3.57
2.86
2.1
1.8
1.8
5.25
4.5
4.5
4.93
3.75
3.21
3.21
3.52
Average Price
1.84
1.58
1.58
1.73
1.7
1.8
1.8
Gel
CP to
Manufactu
rer (8% to
12%
CP to
Margin)retailer(40 Assume
Max Price (100ml)
Average Price
Avg Price(250 ml)
% margin) 10%
3.3
3.3
8.25
5.89
5.36
3.33
3.33
8.325
5.95
5.41
2.5
1.8
1.8
2.1
1.8
1.8
5.25
4.5
4.5
6.17
3.75
3.21
3.21
4.40
3.41
2.92
2.92
4.00
Avg Profit
per unit
2.89
2.92
1.84
1.58
1.58
2.16
100*1.56
Total Profit with scheme (300 units)
(200*5.55) - (300*3.36)
200*5.184 - 300*2.89
1.824
me
156
102
1.56-0.93 = 0.63
170*0.63 = 107.1
150*(1.56-.5) = 159
J&J
Price(100 ml)
Clean and Clear
99
Quoted Price
Selling Price
Offers Available 15% off
99
84
10ml moisturizer free
114
99
20% extra
119
99
Profit to Manufacturer
20.11
3.29
CP to Distributor(2%)
CP to Manufacturer (4%) Profit to Manufacturer
69.74
78.89
-9.15
82.18
88.89
-6.71
82.18
94.67
-12.49