Strategic Evaluation For Boots Marketing Essay

Published Date: 23 Mar 2015

Boots is a chain of pharmacies in the UK, as written at Boots-uk 2012 available on higher streets throughout the country. Boots was established in 1849 by John Boot. After the death of John Boot, his widow put the family store herbs in Nottingham, England, with the help of his son Jesse Boot become a partner however in 1997, launched his plan of boots, a card that customers take, get points to buy products and reward them with special offers. It also allowed the company to know the buying habits, and discover what customers normally buy and then send special offers to bring them to the store and spend more.

It was formed in 2006 through a merger of the listed British high street pharmacist Boots Group and the pan European wholesale and retail pharmacy group Alliance UniChem. Alliance Boots was initially a British company listed on the London Stock Exchange. In 2007 it was bought out in a private equity transaction. Every year Alliance Boots has delivered a double digit growth in trading profit.

(Limited 2012)Alliance Boots together with associates and joint ventures, supply medicines, other healthcare products and related services to more than 170,000 pharmacies, doctors, health centers and hospitals from over 370 distribution centers in 21 countries. It has revenue in excess of £25.4 billion.

Boots help its customers look and feel better than they ever thought possible. They have combined two retail businesses in the UK, Alliance Pharmacy and Boots, and developed a multi-format strategy focused on giving its customers more of what they want and need in the right place, cared for by its friendly, professional people. They're currently embarking on a major expansion of the Boots brand by rebranding our community pharmacies, Alliance Pharmacy as customers local Boots pharmacy'. They will continue their traditional focus on healthcare and dispensing, with the addition of Boots healthcare and Boots own brand product range. This is the largest expansion of the Boots brand ever.

Mission, Values & Culture, Alliance Boots Group's mission is to become the world's leading pharmacy-led health and beauty group.

Introduction

As (Alliance) and Boots UK Limited also was known as Boots is a pharmacy chain at United Kingdom, Boots was started in 1849, with the founder John Boot. After the death of John Boot, Jesse Boot his son, helped his mother run the family's herbal medicine shop in Nottingham, moreover Jesse Boot sold the company to the American United Drug Company at 1920. Nevertheless, the company was sold back to grandson of the founder j.boot.

Boots Expanded in manufacturing and more research of drugs with its improvement of the Ibuprofen painkiller. Boots was awarded the Queen's Award for Technical Achievement for this in 1987. Additionally Boots divested production to BASF and later sold the Nurofen brand to Reckitt Benckiser in 2006, The Company has been a subsidiary of Alliance Boots since 31 July 2006, following the merger of its then-parent Boots Group. The Group's operations are mainly carried out under the Boots and Alliance Healthcare brands. Boots UK is the leading pharmacy-led health and beauty retailer. Alliance Boots is also the largest pharmaceutical wholesaler in the UK through its Alliance Healthcare.

Alliance Boots is a multinational pharmacy-led health and beauty group. It has two core business activities pharmacy led health and beauty retailing, and pharmaceutical wholesaling and distribution

Alliance Boots together with associates and joint ventures, supply medicines, other healthcare products and related services to more than 170,000 pharmacies, doctors, health centers and hospitals from over 370 distribution centers in 21 countries. It has revenue in excess of £25.4 billion.

It was formed in 2006 through a merger of the listed British high street pharmacist Boots Group and the pan European wholesale and retail pharmacy group Alliance UniChem. Alliance Boots was initially a British company listed on the London Stock Exchange. In 2007 it was bought out in a private equity transaction. Every year Alliance Boots has delivered a double digit growth in trading profit.

Boots Financial performance

Boots Alliance Boots have performed despite rival competition. Below is a Boots financial period.

From (Boots 2012)Over all Profits for 2011 financial year, Boots revenue including share of associates and joint ventures, was up by 18.4% to over £23billion, Trading profits, which includes share associates and joint ventures went up 10.2% to £1,443million, £1,195 million merger cost synergy target achieved.

Alliance Boots is a leading international, pharmacy-led health and beauty group delivering a range of products and services to customers. The key products and services of boots are pharmacy services, prescriptions, baby, diet, fitness, hair products and perfume.

The most popular brands of boots are:

No 7: An insanely popular cosmetics and skincare brand.Botanical makeup, skin care, bath, and body line derived from plant extracts from the Royal Botanical Gardens of Kew in London.Time Dimensions: A skincare line geared toward anti-aging.Mediterranean: A bath and body care line made from natural, wholesome, and organic ingredients.Feel The Difference: A collection of vitamins and supplements that help to cleanse and purify your skin.

Thus boots is one of the most trusted brands in health and beauty products moreover its products are not tested on animals but on men and women who trust boots.No7 the number 1 cosmetics and skin care brand in the UK; 1 in 3 women in the UK have a No7 product in their makeup bag.

Strategic Evaluation

It`s written (Clothing 2008)The origins of Alliance Pharmacy date back to the 19th century with the birth of Edgar Moss in 1879. During the course of his life, Edgar built up a network of pharmacies throughout Middlesex, Surrey and Buckinghamshire Edgar was born in Staffordshire on 30th June 1879, the second youngest in a family of six. His childhood was plagued by severe ill health and he received only a limited education. Just before the age of 20, and eager to fill the gaps in his learning, he enrolled in evening classes, whilst continuing to work full-time during the day. The money he earned allowed him to move on to further studies, and at the age of 23 he graduated from Manchester College of Pharmacy with just enough funds left for a telegram home and are turn ticket to Manchester. After qualifying Edgar held a number of different management roles stationed throughout the country. This wealth of experience spurred him on to venture into business on his own.

Boots mission is to provide our customers and patients, health products and excellent services, to help them feel better than ever imagined. It aims to be the first choice for healthcare, reaching our customers and patients in new ways and with real comfort. Their local pharmacies for their largest flagship stores, from residences throughout the prison service, boots are designed to provide excellent pharmacy experience. Healthcare in boots is not only to distribute the needs, but also offer expert advice to all our patients and customers, ensuring they receive quality care in a place that suits them. Closely with the NHS, Boots is to facilitate access to quality health services in the UK, ensuring that patients get what they need at the time and place that suits them

SWOT ANALYSIS FOR BOOTS

STRENGHTS

In (Ellis-Chadwick 2007)Company is investing in marketing to differentiate its offer and build loyalty, through offering a broad range of health and beauty products and services.

Boots USP's (unique selling points) is by the issuance of its advantage card so customers may have special saving.In healthcare: this is the core of Boots' service strength. The firm is trying to reposition Boots as the complete healthcare provider.Boots competitive advantages is it ongoing investment in its IT system mostly concentrating on customer satisfaction and holding a lion share of the market it operates in.It has recruited more healthcare specialists to offer advice, running combined trials with GP surgeries. It has opened its first GP surgery in Poole and has earmarked another 150 potential sites for more.Boots plans to double the number of pharmacies opening to midnight and increase the Measured Dose Service to care homes.Joint merger Alliance Unichem with have strengthen is marketing and Pharmaceutical distribution capability, 65,000 staff across all its stores.Excellent management structure mainly concentrating on delivering on excellent customer service.Alliance Boots ranks as one of the top three pharmaceutical wholesalers/distributors in almost all Western European markets in which it operates. Its Pharmaceutical Wholesale businesses provide high core service levels pharmacists in terms of frequency of delivery, product availability, delivery accuracy, timeliness and reliability at competitive prices.It also offers its customer's innovative added-value services which help pharmacists develop their own businesses.Boots stores are located in convenient locations and put the pharmacist at the heart of healthcare.

Weakness

Boots lacked the resources and expertise to become a Services Major. There is no identifiable campaign management system. Personal health care and lifestyles required expertise in operations and simultaneous production and consumption, which Boots lacked.

Opportunities

Boots should take the opportunity of merging with other companies so that they can break the external market. Also to do this same thing for other country which they open some branches there they can make their brand a Global brand.

Boots continues to undertake market research seeking new ways to develop their products,for example 'Model Me' by Toni and Guy, the continued development of No.7, and its beauty spa trial.The company is trying to improve its beauty proposition by recruiting beauty consultants to stand on shop floor and offer advice.Overall, the strategy is to extend Boots' range beyond the reach of the supermarkets.Trialing a beauty spa under the brand 'UR Beautiful', it will have its own entrance, separate from the main store. It will carry bespoke products. During cold season influences the sale of cold and flu medicine.

Threats

More and more companies will be competitively putting their prices down to compete with big companies, thus getting more and more people to shop with them rather than the big companies. The store's loyalty card scheme is helping this cause, getting more and more customers to shop with Boots so that they can be rewarded. The following are the threats which Boots faced:-

Environmental effects that is to say weather may disrupt transformation and delivery.There were supermarket chains like TESCO that entered the personal care and pharmaceutical market with lofty ambitions and stores that encompassed every product line that the customer would deal with.Government legislations on price control.New business developing offering similar services.Market demand may fall as a failing economy job loses.Rising cost of new technologies.Competitors lowing prices.The treat that the office of fair trade may not approve all their application for new pharmacies.

PEST ANALYSIS FOR BOOTS

(Clothing 2008)PEST analysis is merely a framework that categorizes environmental influences political, economic, social and technological. Sometimes two additional factors, environmental and legal, will be added to make a PESTEL analysis, but these themes can easily subsumed under the other.

Economic environment

The economic environment shows a main part in running the business cost-effectively. There cent recession in the whole world has badly affected the business.

With most of business suffering losses, boots has managed to proof that it is a recession proof sector. Foreign holidays, fancy nights out and new cars are among the many things that Britons have sacrificed in the face of the worstrecessionfor decades. But there is one thing that it seems much of the population cannot go without - make-up. A recession does not change people's insecurities about the way they look, but the sales of inexpensive cosmetics haveincreased.Similarly the pharmacy business of boots is also recession proof. As people cancut their expenditure on clothing and other unimportant things but they cannot sacrificetheir health.

Social environment

A person's social environment includes their living and working conditions, income level, education and social status which they belong. With the government through the NHS to raise awareness of the health of people who are spending more on health and awareness and Boots are taking advantage of this understanding, along with the boots that say their sales are increasing every year as people is increasingly health conscious. Swine flu is making people more health conscious, so that the pharmaceutical sector is outperforming the boots. Even beauty products, and live a life of increasing sales of anti-aging cream No 7-growing.With more and more women working, income level is increasing, they are ready to spend on beauty products to look good, so this sector is again doing very well.

Political environment

The company will not be able to succeed, good reputation and credibility if you do not consider legal and political sectors as part of its strategy. Political and legal framework includes the business sector needs to follow the policies dictated by government regulations to be legal and commercial power business. Political environment means the impact of government policies on the business. Moreover if the new pharmaceutics were prepared to open 100 hrs a week, they would be given license to open pharmacy even quickly. This deregulation is giving boots a nightmare as it would enhance the competition, will lead to lowering the prices plus they have to open the stores for longer duration. Thus boots is coming up with new strategies to survive like repeat prescription service, delivering medicines and specialist boots pharmacist to guide the customers about medicines.

The government is also focusing on healthy lifestyle and is coming up with various health promotion strategies for example it endorsed several ideas through WHO. Thus pharmacies like Boots are participating in government led programmed to spread heath awareness to the people. Thus government health promotion strategies are indirectly helping boots and other pharmacies to enhance their sales.

Technological environment.

Boots Innovation Centre provides support and funding for the development of cutting-edge products and technology. Boots has launched demand forecasts and replenishment system to find the right balance of inventory required to meet the desired service levels, so users can understand what, how much, when and how to order. Reduce inventory and increase customer service levels and optimizing safety stock supply, reducing unnecessary out of stock, helping to boost profits by allowing users to take advantage of the opportunity to purchase the deal. Government recently issued a proposal for players to unlock big supermarkets hundreds of pharmacies in their stores in order to increase and improve NHS services to social services and health care.

Impact of IS

Has I view at (Adegbulu 2010)The culture of boots too takes significantly changed over the years now. In the early years back boots had its own its structure which mostly dealt with all IT requirements. Consequently, boots has understood that over the years it can improve on its IT infrastructure

Information system (IS) - is any combination of information technology and people's activities that support operations, management and decision making. A combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization.

Many organizations as we know it today would, in many cases, are impossible to transact without IS (information systems). IS creates new opportunities for innovation in products and services. Services which used to be delivered in person can now be delivered over networks.

Newer types of IT such as electronic mail and groupware are creating significant changes in the way that information flows around group ware, and between them and their customers and suppliers. Below are the impacts of Information system (IS):-

Productive gains

On Productivity gain Boots saves money and time, with self-checkout tills been introduced to Boots they are able to work for long periods of hours making processes more efficient. Productive can be made by using the range of automated processes and developments in customers support

Cost decreases

If Boots can reduce operation, Production and distribution costs. Then Boots will automatically see the increase in profitability. Boots can enable these costs by reducing the number of staff required as processes become automated. Boots would be saving wages and salaries.

Efficiency

Being well organized will help Boots to work more efficient preventing from some mistakes. Pick a useful list, this is linked in a PC and identifies products for numerous orders from their exact location, saving a lot of time.

Improved management information:

It is important aspect to use IT in any organization. Boots should manage information using IT system to keep information more accurate and inclusive. IT system will keep customer's data and information more accessible making available information more quickly to customers.

Managing risk

Boots needs to fully understand and appreciate the risks they face from all the IT they use and how risk can be overcome. In addition it will have to consider the responsibilities of data users, employees and organization in ensuring that Boots data is safe and secure.

Disaster recovery

Boots should not rely on computer technology to undertake and record their daily activities. Boots must ensure that their activities are not affected by a disaster such as a fire flood or other forms. Not only will your data, hardware and software be better protected, but the people that compose Boots will be better safeguarded should a disaster occur.

The impact of the new IT / IS system on the culture and production of the organization.

Information technology (IT) Set of tools processes, and methodologies and associated equipment employed to collect, process, and present information. In broad terms, IT also includes office automation, multimedia, and telecommunications. IT has many uses within organizations, specialized use depend on the nature of the organization. However, common uses can include: Creating advertisement and promotional materials, Letters, Storing customer, stock, membership, and employee details, Building management, Mailing lists, Accounts, Payroll.

Some of culture change was ability to use CRM to monitor consumer, Leading analysis recognize the massive IT improvement that Boots have made.

Some more information at (bible 2011)

Negative effects

Privacy

Though information technology may have made communication quicker, easier and more convenient, it has also bought along privacy issues. There other medical companies can copy Boots products.

Lack of job security

in here boots experts believe that the internet has made job security a big issue as since technology keeps on changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure.

Unemployment

While information technology may have streamlined the business process it has also crated job redundancies and outsourcing. This means that a lot of lower and middle level jobs at boots have been done away with causing people to become unemployed.

Positive effects

Communication

Communication is essential to the business world, and information technology gives boots the resources it needs to communicate quickly and effectively. IT department can hook employees up with email, video conferencing equipment and internal chat rooms, so that they always have an efficient way to conduct business and communicate.

Work Remotely

IT systems give you remote access to boots from on shop to another electronic network, so that you can work. This accessibility allows you to increase your productivity because you can still get work done, even when you aren't physically in the office.

Minimizes information

The advantage of IS that it minimizes information overload, which can be quite common with conventional businesses in the modern era.

Cost effectiveness

Information technology and system has helped to computerize the business process thus streamlining businesses to make them extremely cost effective money making. This in turn increases productivity which ultimately gives rise to profits that means better pay and less strenuous working conditions.

Creation of new jobs

Probably the best advantage of information technology is the creation of new and interesting jobs. Systems analyzers, Hardware and Software developers and Web designers are just some of the many new employment opportunities created with the help of IT.

Economic Advancement

A major step to global economic advancement is the removal of distance and time barriers brought about by the application of information technology to buying and selling of goods and services (e-commerce). E-commerce gave room for tiny, small and big business players to emerge.

eMarketing Strategy

In general terms, an e-marketing strategy consists of the steps taken and procedures followed for marketing a brand through the web. The center of attraction in any e-marketing strategy is the website of the company to which Internet users are to be attracted for increasing sales. But first, the company's website needs to be in a proper design, format, attractive, and one that will have a good impression on prospective buyers.

There are many aspects that lead to the success of a business. Marketing is one such significant area that makes a business grow. Nowadays, due to the trend of Internet shopping, companies are adopting marketing strategies, according to how potential consumers use the Internet.

Here's a list of marketing terms that I hope is more useful and one of this can also be proper for boots to use:

B2B Marketing

Any type of business, whether an organization, individual, government or other institution that markets to other businesses is involved in business to business marketing. Since B2B marketing involves companies trying to sell mass quantities of product to one another.

B2C Marketing

Business to consumer marketing campaigns tries to reach a category of people that will be likely to purchase their product or service. The marketing efforts the company takes should be more broad than B2B, which focuses on specific companies. B2C marketing can involve different marketing techniques such as door to door marketing, promotion marketing, newspaper marketing, television marketing and radio marketing. In today's marketing world, B2C Internet marketing is becoming more important to reach consumers.

Email Marketing Strategy

Another important component of an effective e-marketing strategy is email marketing which is all about sending information of product and services like boots to potential customers using email. This is a proven effective method of using online marketing as an efficient tool for business generation.

Online Advertising

Online advertising is a marketing method, which has a very substantial Return on Investment value. It consists of placing advertisements of products and services on the company website, sites which are ranking on the first page of search engines, and sites which are getting a considerable amount of traffic from Internet users.

The eMarketing strategy which I advise boots to use was B2C

For both markets in-house lists provide the best results. These lists will often already exist in some form and offer a wealth of information for the smart marketer to turn into a catchy campaign. Boots should have information pertaining to existing and former customers although B2B marketers may also have a database of prospects from the sales team.

The value proposition and differential advantage of the strategy used by boots, the first step in determining your marketing strategy is the same whether you are doing B2B or other marketing strategy. First, you need to identify who the customer is and why they should hear what you have to say.

The differential advantage of this strategy B2C companies typically boots target a single decision maker or customer segment instead of multiple decision makers and influencers. As a result, the approach and internet marketing tactics mix needs to be more relevant to the consumer vs. the business buying experience.

Marketing B2B B2C marketing is different is that many companies focus on customer loyalty. Loyalty is the only way we can get to make your customers return. When you have excellent customer service with your marketing campaign, you will succeed.

The goal of B2C marketing is to convert shoppers into buyers as consistent as possible. B2C companies use more coupons, shows, exhibitions and discount offers to encourage customers to buy.

B2C marketing campaigns focused exclusively on the transactions those are shorter and designed specifically to capture the interest of potential customers immediately.

B2C Internet marketing strategies is one of the most advanced consumer market that have revolutionized the business world. This not only contributes to the development of a direct contact between consumers and businesses, but also allows the business independent business, with all the costs down, promote and sell their products and services in a simple,

B2C marketing strategies have a different orientation. As a buyer, the consumers is often just constantly looking for the best price and generally have a good amount of research into price comparisons prior to purchase.

Legal and ethical issues

Ethical, Legal Issues in boots provides a comprehensive treatment of the issues facing in today's modern, working environment. It features ethical material and codes of practice, using them throughout the book to highlight issues. Legal issues that organization needs to consider during the use of information on the internet are as follows:

Intellectual Property and Copyright;

Copyright was initially conceived as a way for governments in Europe to restrict legal issue; the contemporary intent of copyright is to promote the creation of new works by giving authors control of and profit from them. Boots they need to use things without bypass the copyrights. Copyright has been internationally standardized, lasting between fifty to a hundred years from the author's death, or a finite period for anonymous or corporate authorship.

Internet fraud / online scams;

The use of Internet services or software with Internet access on boots defraud victims or otherwise take advantage of them, for example, the theft of personal information, which may even lead to identity theft. A very common form of Internet fraud is the distribution of rogue security software. Internet services can be used to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or other persons associated with the regime. Online scams take many forms, and they cause a lot of grief, embarrassment, and monetary loss to people who get caught in the scammer's web.

Ethical issues

Ethical principles provide the foundations for various modern concepts for work, like boots, which broaden individual and corporate priorities far beyond traditional business aims of profit and shareholder enrichment. Ethical factors are also a significant influence on institutions and public sector organizations, for whom the traditional priorities of service quality and cost management must now increasingly take account of these same ethical considerations affecting the commercial and corporate world.

The modern concept of ethical organizations encompasses many related issues including:corporate social responsibility (CSR) - or simply social responsibility, the 'triple bottom line', ethical management and leadership, Fair-trade, Social enterprise

CONCLUSIONS

At (Wikipedia 2012)Alliance Boots is undoubtedly a leader in pharmaceutical, health care, beauty and optical service in the United Kingdom. The report provided two forms analysis one which points out the company's position in the form of a SWOT analysis.

(Limited 2012)Products offered by Boots Opticians, Men's Glasses, Women's Glasses, Designer Glasses, Sunglasses, Children's Glasses, Contact Lenses. Men and women glasses, Boots offer men and women glasses in many brands, in many designs and at different prices as per the needs of its customers. Children glasses vary in shape and size far more than adults. Boots therefore need its younger customers to come into practice so as to get the right size and therefore best fit for each child.

Boots is a long-established IBM customer, but they were researching other companies in regards to their new customer analysis system before deciding to stick with IBM. The reason they went for the IBM solution was because they offered the complete package as well as their own technical support teams and experience. This would obviously save them time due to the fact they do not need to train up a new person to train more people therefore the ones that create this will be able to train the Boots employees into how to use the IT system.

As a key partner of the NHS, Boots is able to deliver specific services that are designed to meet the specific needs of its customers and patients in their local communities. Boots aim to be the first choice for all healthcare needs and offering the following types of services is just one way that we can extend its expertise to its customers.

Boots is a very strong brand in itself. It also owns several very strong sub-brands: No.7, Soltan and Botanist. No.7 is regarded as being on a par with other beauty products manufacturers' branded cosmetics/skincare ranges. Its 'Protect and Perfect Serum' was found by the BBC TV Horizon programme to perform better than more costly brands. This widely reported finding provided a considerable boost to Boots' and No. 7's brand reputation.