Strategic marketing management for Boots in the UK

Boots is a leading UK retailer, offering health and cosmetics through its string of Boots the Chemists stores. Around half the Boots brand products are developed and created by the company. In cases like this the business is in control of the entire supply chain.

From its basis in 1849 Boots has always presumed in and practiced what is today known as Corporate and business Social Responsibility. The business is proud of this heritage and its own "strong sense of communal responsibility". Today it is reflected in values and behaviours and made explicit in the business declaration of business goal. " We seek to react to the reliable concerns of our own stakeholders - if they be in industry, the workplace, the communities where we operate or the surroundings that affects people. "

Marketing Strategy Options.

Boots is a member of Alliance Boots, an international pharmacy-led health insurance and beauty group. Our purpose is to help our customers look and feel much better than they ever thought possible.

Our customers are in the heart of your business. We're committed to providing exceptional customer and patient treatment, be the first choice for pharmacy and health care, offer impressive products 'only at Boots', with great value our customers love.

Our people are our durability and they reveal that Boots is a superb location to work. We are continually be the employer of preference, attracting and retaining the most proficient and ardent people. The strategy is to give attention to its two main business activities of pharmacy led health insurance and beauty retailing and pharmaceutical wholesaling and circulation, while increasingly growing and internationalising our product brands to create a third dimensions. growing the center businesses in existing trading markets, continuing to deliver productivity advancements and other cost benefits, pursuing development opportunities in selective new high growth markets and introducing our product brands in new market segments. This plan is underpinned by our continue concentrate on patient or customer needs and services selective partnerships and our strong financial diciplines. we live commited to providing exceptional customer and patient good care be the first choice for pharmacy and professional medical offer impressive products only at Boots, with great value our customer love.

Pharmacy-led health and beauty strategy :--

Boots is the major pharmacy chain in European countries with a fantastic reputation for differentiated health and cosmetics and customer support. Our strategy is to develop Boots into the world's leading pharmacy-led health and beauty retail brand, centered on helping people appear and feel their best.

The key steps were taking in the uk to do our strategy are:-

-Making Boots more convenient and accessible for our customers.

-Developing our visitors to be at their very best for our customer

-Improving our customer in store shopping experience

-creating a engaging multi-channel health and wellness consumer offering

-Increasingly differentiating our product offering

-Continuing to provide customers with excellent value

-Opening new stores in market segments where Boots is already well established

-Developing new store in marketplaces where Boots is already well established

-Developing country specific Boots top quality trading formats to meet local needs.

Marketing strategies options:

Every marketing strategy is exclusive, but if we abstract from the individualizing details, each can be reduced into a universal marketing strategy. A brief description of the most common categorizing strategies is provided below, Strategies based on market dominance - With this scheme, organizations are classified predicated on their market talk about or dominance of a business. There are a number of means of categorizing these universal strategies.

Typically there are four types of market dominance strategies





Porter universal strategies: - Michael Porter evaluated strategy on the proportions of strategic range and strategic durability. Strategic scope refers to the breadth of market penetration while proper strength refers to the firm's ecological competitive gain. He believed three types were important

Market segmentation

Product differentiation

Cost leadership

Innovation strategies:- This offer with the firm's rate of new product development and business design development. It asks if the company is on the leading edge of technology and business technology. You can find three types

Close followers

Late followers


Growth strategies:- Within this program we ask the question, how should the firm grow? There are a number of various ways of answering that question, but the most common gives four answers



Vertical integration

Horizontal integration

Aggressiveness strategies: - This asks whether a firm should expand or not, and when so, how fast. One structure divides strategies into




Warfare structured strategies: - This system draws parallels between marketing strategies and military strategies. You can find various kinds of marketing warfare strategies, nonetheless they can be grouped into

Flanking marketing warfare

Defensive marketing warfare strategies

Offensive marketing warfare strategies

Keys to Success:

An research of successful partnerships has recognized common features. Included in these are: -

Project delivery focused on dealing with local requirements on the sustained time frame. More likely to include issues as assorted as access, airport parking, addition to their local Business Rate, to cover additional services. Where there is a bulk vote in favour, all companies are required to pay.

The genuine dedication of the Local Specialist (both at older officer and politics level)

Adequate funding discovered from a wide base of followers/ sponsors and other sources

A Business Plan and a program of tasks endorsed and funded by the partners

A solid, inclusive relationship that represents an authentic cross-section of all the elements of town centre activity.

A management framework with clear accountabilities to provide the Business Plan and to monitor and assess progress

A realistic, attainable perspective for the centre that recognizes the necessary steps required for its delivery

The precept is compiled by the Local Authority but passed to a business-led local relationship to control and deliver the BID Business Plan.

Support available from Alliance Boots, Corporate Affairs:

1. Links and associates to a wide range of external organisations that can assist with sourcing information and functional support.

2. An additional program is facilitated by Boots UK for those sites currently without an effective local partnership, but wishing to establish one

3. THE BUSINESS continues to support the core financing of 100 Town Centre Management initiatives. A twice-yearly Induction Programme is provided by Boots UK (at no cost to ATCM customers), for recently appointed Partnership Managers. The programme targets the key conditions that challenge partnerships and will be offering help to successfully resolve them

4. Some short briefing documents have been ready that store professionals and town centre professionals can receive after request. These include;

Creating a Retail Offense Partnership

Taking part in Working Communities and Steering Groups

Business Improvement Districts - what exactly are they

Influencing Car Park Provision

Developing Christmas

Business Improvement Districts - lessons learnt

Preparing a Business Plan

Broadening the bottom of Business Engagement - account services


Marketing and Advertising. Launching a powerful campaign to promote your centre

Business Improvement Districts - key criteria necessary for Alliance Boots support

Sunday/extended Trading hours

5. Advice and advice to store managers and Town Centre Professionals, via contact information on page one of the brief

Development of Boots Corporate Community Responsibility Strategy:

The release in 2004 of a new CSR strategy has empowered Boots to develop a platform to integrate ecological development holistically into all areas of operations covering the sectors of





This strategy ensures that lasting development is included effectively across the organisation and underlines Boots dedication to social responsibility as a business value. Progress is examined quarterly and reported to the Corporate Social Responsibility Action Group chaired by the Group Procedures Director. Furthermore the Board Social Duties Committee chaired by the non-executive Table Director reviews uniformity against operational thinking about a quarterly basis.

Within these industries are a complete of 21 emphasis areas. For each one an assessment was undertaken to benchmark against similar organisations, analyse strengths, weaknesses

and identify opportunities for improvements. From this our ambition and annual focuses on have been developed

Targets and improvement made in meeting them is reported on a yearly basis and made publicly available.

Porter's 5 makes analysis:

Competitive rivalry

All the other vendors have different competitive advantages.

The other factors which contend with the Boots bank is different finance institutions and building societies

The retail market is filled up with high competitors as more and more companies want to step in to the Health & Beauty industry

Boots reach in several stores allows it to attain large number of customers.

Barriers for entry

Local knowledge is necessary for a fresh business in order to determine, which is highly difficult for new firms to reproduce.

Barriers to entry is high scheduled to a number of factors

Secondly, company in retail industries are increasing, which itself means there exists very less chance for any new entrances.

Firstly, company looking to create its business in UK requires plenty of investment, brand development, which requires years to establish.

Threats of Substitutes

The only major risk of substitute can be an internal industry risk, wherein one supermarket can lap up the business of other supermarkets.

The dangers for newcomers or substitutes is less, as the consumers views that as a necessity, especially in the developed world.

The retail market is obviously trying to look around for new inventions regarding Health & Cosmetics, alternative businesses. Due to which it is difficult for substitution.

Buyers power

During enough time of recession consumer's wishes are taken into more demand, thereby increasing their electricity.

Because of the presence of way too many opponents in the retail Health & Beauty sector offering the same product, buyer electric power is saturated in the industry.

Supplier power

Suppliers alone is huge company providing products to the supermarkets.

If the merchandise aren't sold, consumer will change loyalties, making suppliers better. And also when the products do not reach the supermarket, sales do get influenced hugely.

Developing Tools and Operations:

The company has formal operations for all new product development and release. To integrate lasting development criteria regularly across our product range new and revised tools and procedures were launched.

Mckinsey progress pyramid

It is similar to that of market matrix. This model argues that business should develop their progress strategies predicated on

Growth skills

Privileged assets

Operational skills

Privileged assets

The model outlines seven means of achieving growth, which can be

New product and services

A blend of market matrix and diversification strategy-by developing and marketing services. Some of these can be sold to the prevailing customers who trust the business but new customers would require more persuasion.

Existing products to new customers

Taking the existing customers as basics, the objective is to find totally new products that these customers may buy, if not start to supply the products the existing customer is buying from the opponents.

Existing products to existing customers

The lowest-risk option; try to increase sales to the existing customers; that can be done by increasing the occurrence of purchase and preserving customer commitment.

New competitive arenas

This option requires a business to think about opportunities to incorporate vertically or consider if the skills could be used in other establishments.

New geographies

In this companies are encouraged to consider new geographical areas into which to market their products. Geographical expansions is one of the most powerful option for growth-but also one of the difficult ones.

New delivery approaches

This focuses on the utilization of distribution channels as a possible means of growth.

Are there any ways that the merchandise can be sold using the current or new emerging programs which may enhance sales?

New industry structure

It considers the probability of acquiring troubled competitors that can be done through an over-all acquisition program.



Using of PESTEL evaluation, marketing mixture elements can be produced to add the goals and principles of Boots, after inspecting the existing marketing environment.

PESTEL evaluation:

PESTEL Examination (Political, Economical, Public, Technological, Environmental, Legal)The PESTEL research is a good tool for understanding market expansion or decline, and therefore the position, potential and path for an enterprise. . The PESTEL examination headings are a platform for reviewing a situation, and can also, like SWOT research, and Porter's Five Makes model, be used to review a technique or position, path of any company, a marketing proposition, or idea. Its an exterior factor. PESTEL is utilized to assess the marketplace for a business or organizational device. A PESTEL research is a business way of measuring tool.

A PESTEL analysis measures market; a SWOT examination measures a small business unit, a

proposition or idea.

Considering each factor singularly :-


European/international legislation

international regulations

government term and change

regulatory bodies and processes

current legislation home market

government trading policies

funding, grants and initiatives


The UK has been in recession since August 2009 with two successive quarters of decrease, affecting the inexpensive factors nationally and internationally.

general/ product specific taxation issues

customer/end-user drivers

overseas economies and trends

home market situation/ trends

specific industry factors

market routes and syndication trends


Factors including the demographic changes, the way people live, work and think and ethnical aspect of the place, influencing customer needs and the potential markets


consumer attitudes and opinions

lifestyle trends

advertising and publicit

. press views

consumer buying patterns

brand, company, technology image

ethnic/spiritual factors


It includes R&D, computerization, technology bonuses and rate of which technology changes. These changes influence the cost and quality of the product motivating for improvement.

competing technology development

research funding

intellectual property issues

consumer buying mechanisms/technology

maturity of technology

associated/reliant technologies

manufacturing maturity and capacity

technology access, licensing, patents

replacement technology/solutions

information and communications

innovation potential

technology access, licensing, patents

technology legislation


Boots uses the carbon ft. printing tool in their farms which says about the quantity of greenhouse gases caused directly and indirectly in the making and transportation of this product



climate change

. .


The cost of creation and operation and effect on employees working in Boots was influenced when government increased the labour wages by 15%. It also employs legal factors like no child labour, special concern for disables, etc.

health and safeness law

employment law

antitrust law

discrimination law

consumer law


After considering all the above factors Boots should put plan and deposit proper strategies before going into the global market and also looking at the progress on regular basis, so as to make the required changes.

Following will be the areas that ought to be consider by the organisation

Well planned Strategies to develop the revenue and also to attain long-term goal

Know clearly the goals, objectives and goals with a normal follow up.

Organisation should identify and determine their product in the market

need to plan strategically as well as operationally

market development using the PESTEL analysis.

logic, self-discipline and also to operate systematically

SWOT analysis




Strong Brand Equity

Low profitability

Store Network

Lack of International Presence



Store expansions in UK

Intense price competition

Expanding product offerings

High regulatory oversight


Declining Reputation

Boots is only provided in UK. Therefore there may be a concern if the company wants to own expansion in the retailing Health & Beauty Department sector.


Online sales are a great opportunity for future progress.

Staff which works at Boots are essential - purchasers, administrators, systems designers, finance workers and so on all are area of the whole team that must work together to make things operate effortlessly and efficiently

Boots choice business, investing in properties can have major growth in the foreseeable future.


As a result there needs to be investment related to environmental and renewable issues.

Boots operations have grown to be a subject on various problems like environmental, planning and other factors.


It is important to identify that lasting development is a voyage of continual improvement. The procedures and tools we've developed are under continual review and refinement. Some of our priorities for the immediate future include

Extending and adapting the chance examination model for use in other business functions.

Developing product sustainability benchmarking

Building lasting development conditions into brand and departmental key performance indicators.

Understanding the local climate change impacts of products.

Developing strategies for consumer information on sustainable development issues.

In short Boots UK's views lasting development as a ULTIMATE GOAL - given the range of the task, the complexity in our business and the tempo of change. But we realize that it is a key differential for Boots UK, that we are at the forefront on many of the issues, which is no less than what is expected of us by our customers and wider society.


European Journal of Marketing (Emerald Group Publishing)

Campaign ( Haymarket Posting)

Admap ( World Advertising Research Centre)

Revolution ( Haynet)

Journal of Consumer Behaviour ( Academy of Marketing Knowledge)

Marketing Brains and Planning (Emerald Group Posting)

Marketing Business (The Chartered Institute of Marketing Journal)

Journal of the Academy of Marketing Research ( Academy of Marketing Technology)

Marketing Week (Centure Marketing communications Ltd)


http://www. boots-UK/Media/PDFs/CSR/2BCE_AWARDS_Paper_v3_general_release. pdf

http://www. boots. com/en/Help/About-Boots. com/

http://multimedia. wiley. com/product_data/excerpt. PDF

http://en. wikipedia. org/wiki/Infestation_analysis

http://www. businesspme. com/uk/articles/marketing/6/Types-of-marketing-strategies. html

http://www. chicagoexec. net/chicago. nsf

http://www. boots-uk. com/Our_Group/Alliance_Boots_Board. aspx

http://strategy-guide. blogspot. com/2006/03/mckinsey-growth-pyramid

http://www. marketingmo. com/the-strategic-marketing-process/

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