Bootsanalysis - Kevin Raesly Team Number 3 Boots February...

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Kevin Raesly Team Number 3 Boots February 29, 2008 Problem The problem facing Boots: Hair-Care is that the most important month of the year for sales is approaching and they want to take a step ahead of their competitors in hair- care sales . In doing this, they want to drive up sales volume and move the customers who purchase low-end products to the higher-end products . Solution #1 The first promotion plan they are considering is that of a “3 for 2” offer . In this, customers would be able to buy two items at regular price and then receive one free . They could combine any items they wanted as long as they are all same brand . The free item they would receive would be that which is least expensive . This is a promotion that would be unique to Boots because most of their competition does not have the technology to imitate this solution and for them to do this, the price of the three items would all have to be the same . This gives Boots a major advantage because customers are able to experiment with a cheaper brand versus a more expensive one and compare the results without the addition cost of necessarily having to buy both . Dave Robinson estimated that the sales per day would increase to 300% of pre-promotion sales during the period .. In addition to this increase in sales, he also estimated that 60% of the sales would be to customers who, otherwise, would not have purchased during the period . This is significant because research shows that 85% of United Kingdom adult women go into a Boots store at least once a week, but do not always buy something . In looking at the
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This note was uploaded on 09/24/2008 for the course AEM 2220 taught by Professor Perez,p.d. during the Spring '06 term at Cornell University (Engineering School).

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Bootsanalysis - Kevin Raesly Team Number 3 Boots February...

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