Strategic marketing management for Boots in the UK

Strategic market placeing counseling for Boots in the UKBoots is a leading UK seller, selling health and beauty reapings through its chain of Boots the Chemists chisel ins. Around half(prenominal) the Boots brand products are developed and manufactured by the company. In this case the company is in control of the entire supply chain.From its foundation in 1849 Boots has forever believed in and practiced what is today known as Corporate Social Responsibility. The company is proud of this heritage and its strong sense of social responsibility. Today it is reflected in values and behaviours and do explicit in the company statement of origin purpose. We seek to respond to the legitimate concerns of our stakeholders whether they be in the marketplace, the workplace, the communities in which we operate or the environment that hazards us all. marketing Strategy Options.Boots is a member of Alliance Boots, an international pharmacy-led health and beauty group. Our purpose is to abet our nodes look and feel intermit than they ever thought possible.Our customers are at the heart of our caper. Were committed to providing exceptional customer and patient motorcare, be the showtime choice for pharmacy and healthcare, offer innovational products only at Boots, with great value our customers love.Our people are our strength and they tell us that Boots is a great place to work. We are alship canal be the employer of choice, attracting and retaining the most talented and passionate people.The strategy is to focus on its two core business activities of pharmacy led health and beauty retailing and pharmaceutical entirelysaling and distribution, while increasingly developing and internationalising our product brands to create a third dimension. growing the core businesses in existing markets,continuing to deliver productivity improvements and different speak to savings,pursuing offshoot opportunities in selective naked high branch markets and launchin g our product brands in new markets. This strategy is underpinned by our continue focus on patient or customer needs and services selective partnerships and our strong financial diciplines.we are commited to providing exceptional customer and patient care be the first choice for pharmacy and healthcare offer innovative products only at Boots,with great value our customer love.Pharmacy-led health and beauty strategy Boots is the largest pharmacy chain in Europe with an excellent reputation for differentiated health and beauty products and customer care.Our strategy is to develop Boots into the worlds leading pharmacy-led health and beauty retail brand,foc apply on helping people look and feel their best.The key steps we are taking in the uk to execute our strategy are--Making Boots more convenient and ready to hand(predicate) for our customers.-Developing our people to be at their very best for our customer-Improving our customer in store shopping experience-creating a compelling mu lti-channel health and benefit consumer offering-Increasingly differentiating our product offering-Continuing to provide customers with excellent value-Opening new stores in markets where Boots is already well established-Developing new store in markets where Boots is already well established-Developing country specific Boots branded trading formats to meet local needs. trade strategies optionsEvery marketing strategy is unique, but if we abstract from the individualizing details, distributively can be reduced into a generic marketing strategy. A brief description of the most parking area categorizing schemes is presented below, Strategies based on market restraint In this scheme, firms are classified based on their market share or dominance of an industriousness. There are a number of ways of categorizing these generic strategies.Typically in that respect are four types of market dominance strategiesLeaderNicheFollowerChallengerPorter generic strategies Michael Porter assess ed strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the breadth of market penetration while strategic strength refers to the firms sustainable militant advantage. He mat up three types were importantMarket segmentationProduct differentiationCost leadershipInnovation strategies- This deal with the firms rate of new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three typesClose noteersLate followersPi iodineers increment strategies- In this scheme we ask the question, how should the firm grow? There are a number of different ways of answering that question, but the most common gives four answersDiversificationIntensificationVertical integrationHorizontal integrationAggressiveness strategies This asks whether a firm should grow or not, and if so, how fast. One scheme divides strategies intoHolding twistHarvestingWarfare based strateg ies This scheme draws parallels between marketing strategies and military strategies. There are many types of marketing warfare strategies, but they can be grouped intoFlanking marketing warfareDefensive marketing warfare strategiesOffensive marketing warfare strategiesKeys to SuccessAn analysis of successful partnerships has identified common features. These take on Project delivery focused on addressing local requirements over a sustained period of time. Likely to acknowledge issues as varied as access, car parking, addition to their local business organization Rate, to pay for additional services. Where there is a majority vote in favour, all businesses are take to pay.The genuine inscription of the Local Authority (both at senior officer and political level)Adequate funding identified from a broad base of supporters/ sponsors and other sourcesA Business Plan and a curriculum of projects endorsed and funded by the partnersA robust, inclusive partnership that represents a g enuine cross-section of all the elements of town centre activity.A management structure with clear accountabilities to deliver the Business Plan and to monitor and evaluate progressA realistic, achievable vision for the centre that identifies the necessary steps required for its deliveryThe precept is gathered by the Local Authority but passed to a business-led local partnership to manage and deliver the BID Business Plan. get available from Alliance Boots, Corporate Affairs1. Links and contacts to a broad range of external organisations that can assist with sourcing cultivation and practical support.2. An additional programme is facilitated by Boots UK for those sites currently without an effective local partnership, but wishing to establish one3. The Company continues to support the core funding of 100 Town bone marrow Management initiatives. A twice-yearly Induction Programme is provided by Boots UK (at no charge to ATCM members), for newly appointed Partnership Managers. The p rogramme focuses on the key issues that challenge partnerships and offers help to successfully resolve them4. A series of short briefing papers put one over been prepared that store managers and town centre managers can receive upon request. These include Developing a Retail Crime Partnership Participating in Working Groups and Steering Groups Business Improvement Districts what are they Influencing Car Park supplying Developing ChristmasBusiness Improvement Districts lessons learntPreparing a Business PlanBroadening the Base of Business Engagement membership services Funding Marketing and Promotion. debut an effective campaign to promote your centre Business Improvement Districts key criteria necessary for Alliance Boots support Sunday/extended Trading hours5. Advice and guidance to store managers and Town Centre Managers, via contact details on page one of this briefDevelopment of Boots Corporate Social Responsibility StrategyThe launch in 2004 of a new CSR strategy has ena bled Boots to develop a framework to integrate sustainable development holistically into all areas of operations covering the sectors ofWorkplaceMarketplace confederacyEnvironmentThis strategy ensures that sustainable development is integrated effectively across the organisation and underlines Boots commitment to social responsibility as a business value. hap is reviewed quarterly and reported to the Corporate Social Responsibility Action Group chaired by the Group Operations Director. In addition the Board Social Responsibilities delegation chaired by a non-executive Board Director reviews consistency against operational planning on a quarterly basis.Within these sectors are a total of 21 focus areas. For each one a review was undertaken to benchmark against similar organisations, analyse strengths, weaknessesand identify opportunities for improvements. From this our ambition and annual targets have been developedTargets and progress made in meeting them is reported annually and m ade publicly available.Porters 5 forces analysisCompetitive rivalryAll the other retailers have different competitive advantages.The other factors which compete with the Boots bank is different banks and building societiesThe retail market is filled up with high competitors as more and more companies are toilsome to step into the wellness Beauty industryBoots reach in different stores allows it to reach large number of customers.Barriers for entryLocal knowledge is required for a new business in order to establish, which is highly difficult for new firms to replicate.Barriers to entry is high due to a number of factorsSecondly, company in retail sectors are increasing, which itself means there is very less chance for any new entrances.Firstly, company looking to set up its business in UK requires loads of investment, brand development, which takes years to establish.Threats of SubstitutesThe only major threat of substitute is an internal industry threat, wherein one supermarket c an lap up the business of other supermarkets.The threats for newcomers or substitutes is less, as the consumers views that as a necessity, especially in the developed world.The retail market is always trying to look around for new innovations with respect to Health Beauty products, alternative businesses. As a result of which it is difficult for substitution.Buyers force-outDuring the time of recession consumers wants are taken into more demand, thereby increasing their power.Because of the nominal head of too many competitors in the retail Health Beauty sector selling the same product, buyer power is high in the industry.Supplier powerSuppliers in itself is huge company providing products to the supermarkets.If the products are not sold, consumer will shift loyalties, making suppliers more powerful. And also when the products do not reach the supermarket, sales do get affected hugely.Developing Tools and ProcessesThe company has formal processes for all new product development and introduction. To integrate sustainable development criteria consistently across our product range new and revised tools and processes were introduced.Mckinsey growth pyramidIt is similar to that of market matrix. This model argues that business should develop their growth strategies based onGrowth skills countenance assetsOperational skillsPrivileged assetsThe model outlines seven ways of achieving growth, which areNew product and servicesA combination of market matrix and diversification strategy-by developing and marketing new products. Some of these can be sold to the existing customers who trust the business but new customers would require more persuasion.Existing products to new customersTaking the current customers as a base, the objective is to find entirely new products that these customers may buy, or else start to provide the products the existing customer is get from the competitors.Existing products to existing customersThe lowest-risk option try to increase sales t o the existing customers which can be done by increasing the frequency of purchase and maintaining customer loyalty.New competitive arenasThis option requires a business to think about opportunities to integrate vertically or call back whether the skills could be used in other industries.New geographiesIn this businesses are encouraged to consider new geographical areas into which to sell their products. Geographical expansions is one of the most powerful option for growth-but also one of the difficult ones.New delivery approachesThis focuses on the use of distribution channels as a possible means of growth.Are there any ways in which the products can be sold using the current or new emerging channels which may boost sales?New industry structureIt considers the possibility of acquiring troubled competitors which can be done through a general acquisition program.TASK2MARKETING ENVIRONMENTUsing of PESTEL analysis, marketing mix elements can be produced to contribute the goals and val ues of Boots, after analyzing the current marketing environment.PESTEL analysisPESTEL ANALYSIS (Political, Economical, Social, Technological, Environmental, Legal)The PESTEL analysis is a useful tool for brain market growth or decline, and as such the position, potential and direction for a business.. The PESTEL analysis headings are a framework for reviewing a situation, and can also, want SWOT analysis, and Porters Five Forces model, be used to review a strategy or position, direction of a company, a marketing proposition, or idea. Its an external factor. PESTEL is used to assess the market for a business or organizational unit. A PESTEL analysis is a business measurement tool.A PESTEL analysis measures a market a SWOT analysis measures a business unit, aproposition or idea.Considering each factor individually -PoliticalEuropean/international codeinternational regulationsgovernment term and changeregulatory bodies and processescurrent legislation home marketgovernment trading p oliciesfunding, grants and initiativesEconomicThe UK has been in recession since deluxe 2009 with two successive quarters of decline , affecting the economical factors nationally and globally.general/ product specific taxation issuescustomer/end-user driversoverseas economies and trendshome deliverance situation/ trendsspecific industry factorsmarket routes and distribution trendsSocialFactors including the demographic changes, the way people live, work and think and cultural aspect of the place, affecting customer needs and the potential marketsdemographicsconsumer attitudes and opinionslifestyle trendsadvertising and publicit.media viewsconsumer buying patternsbrand, company, technology imageethnic/religious factorsTechnologicalIt includes RD, computerization, technology incentives and rate at which technology changes. These changes affect the cost and quality of the product motivating for improvement.competing technology developmentresearch fundingintellectual property issuesco nsumer buying mechanisms/technologymaturity of technologyassociated/ underage technologiesmanufacturing maturity and capacitytechnology access, licensing, patentsreplacement technology/solutionsinformation and communicationsinnovation potentialtechnology access, licensing, patentstechnology legislationEnvironmentalBoots uses the carbon root word printing tool in their farms which says about the total amount of greenhouse gases caused directly and indirectly in the making and transportation of that productclimate liveclimate change..LegalThe cost of production and operation and effect on employees working in Boots was affected when government increased the labour compensation by 15%. It also follows legal factors like no child labour, special consideration for disables ,etc.health and safety lawemployment law just lawdiscrimination lawconsumer lawGlobalisation-After considering all the above factors Boots should put plan and put down proper strategies before introduction the globa l market and also reviewing the progress on regular basis , so as to make the necessary changes.Following are the areas which should be consider by the organisationWell planned Strategies to develop the profit and to attain long term goalKnow clearly the goals , objectives and targets with a regular follow up.Organisation should identify and assess their product in the marketneed to plan strategically as well as operationallymarket growth using the PESTEL analysis.logic, self-discipline and to operate systematicallySWOT analysisSTRENGTHSStrengthsWeaknessesStrong Brand EquityLow profitabilityStore NetworkLack of foreign PresenceOpportunitiesThreatsStore expansions in UKIntense price competitionExpanding product offeringsHigh regulatory oversightWEAKNESSESDeclining ReputationBoots is only presented in UK. Therefore there can be an issue if the company wants to have growth in the retailing Health Beauty Division sector.OPPORTUNITYOnline sales are a great opportunity for future growth .Staff which works at Boots are essential buyers, administrators, systems designers, finance workers and so on all are part of the whole team that must work together to make things operate smoothly and efficientlyBoots alternative business, investing in properties can have major growth in the future.THREATSAs a result there needs to be investment related to environmental and green issues.Boots operations have become a topic on various issues like environmental, planning and other factors.ConclusionIt is important to recognize that sustainable development is a journey of continual improvement. The processes and tools we have developed are under continual review and refinement. Some of our priorities for the immediate future includeExtending and adapting the risk assessment model for use in other business functions.Developing product sustainability benchmarkingBuilding sustainable development criteria into brand and departmental key performance indicators.Understanding the climate ch ange impacts of products.Developing strategies for consumer information on sustainable development issues.In short Boots UKs views sustainable development as a Holy Grail given the scale of the challenge, the complexity of our business and the pace of change. But we know that it is a key differential for Boots UK, that we are leading the way on many of the issues, and it is no less than what is expected of us by our customers and wider society.Journals/MagazinesEuropean Journal of Marketing (Emerald Group Publishing)Campaign ( Haymarket Publishing)Admap ( World Advertising Research Centre)Revolution ( Haynet)Journal of Consumer Behaviour ( Academy of Marketing Science)Marketing Intelligence and Planning (Emerald Group Publishing)Marketing Business (The Chartered Institute of Marketing Magazine)Journal of the Academy of Marketing Science ( Academy of Marketing Science)Marketing Week (Centure Communications Ltd)Websiteshttp//www.boots-UK/Media/PDFs/CSR/2BCE_AWARDS_Paper_v3_general_re lease.pdfhttp//www.boots.com/en/Help/About-Boots.com/http//media.wiley.com/product_data/excerpt.PDFhttp//en.wikipedia.org/wiki/PEST_analysishttp//www.businesspme.com/uk/articles/marketing/6/Types-of-marketing-strategies.htmlhttp//www.chicagoexec.net/chicago.nsfhttp//www.boots-uk.com/Our_Group/Alliance_Boots_Board.aspxhttp//strategy-guide.blogspot.com/2006/03/mckinsey-growth-pyramidThe Strategic Marketing Process