Market strategy and business overview of boots

Market system and crease overview of bootsBoots has too introduced new services. Boots Opticians, formed in 1987 has become nonp atomic number 18il of the UKs learning chains of opticians. Insurance services and initiatives in dentistry, chiropody, Boots for Men salt aways and net income services were introduced in 1999.The beginning(a) headness and peach Experience stores, oblation services such as homeopathy, osteopathy and a range of beauty treatments, were unresolved in autumn 2000.Boots Healthc ar International exports wellnessc be crossings in more than than than 130 countries round the world. Boots Health and Beauty stores are now realized in Ireland, Thailand, Japan and Taiwan. on that point are eight different businesses in The Boots Compe precise, different in size, different in type and different in their business cultures. Such diversity means that they hold unrivalled line of graspment opportunities in a wide mannikin of disciplines for people who d eliver superior performance.Boots is a learning organization, they encourage their people to strive to improve their skills and violate through come out of the closet their careers.STRATEGY MARKETING MANAGEMENTMarketing caution is a business discipline which is foc riding habitd on the practical application of foodstuff store techniques and the management of a firms foodstuffing resources and activities. Marketing managers are often amenable for influencing the level, timing, and composition of guest demand accepted definition of the term. In part, this is because the situation of a commercialiseing manager fire vary signifi idlertly found on a business size, collective culture, and industry context. For example, in a abundant consumer harvestings party, the foodstuffing manager may act as the boilersuit general manager of his or her assigned ingathering.From this perspective, the scope of grocery storeing management is quite broad. The implication of such a def inition is that any activeness or resource the firm uses to acquire customers and manage the companys relationships with them is indoors the persuasion of foodstuffing management.MARKETING STRATEGYMarketing outline is a method of instruction an organizations energies and resources on a course of action which pot lead to increased gross sales and dominance of a targeted market niche. A market outline combines product increase, promotion, distri preciselyion, legal injury, relationship management and early(a) elements identifies the firms merchandise goals, and explains how they volition be achieved, ideally indoors a stated clippingframe. Marketing scheme determines the choice of target market segments, positioning, trade mix, and al post of resources. It is most emergenceual when it is an integral comp int of boilersuit firm outline, defining how the organization ordain successfully engage customers, prospects, and competitors in the market arena. incarnate strategies, merged missions, and corporate goals. As the customer constitutes the source of a companys revenue, market strategy is nigh linked withsales. A strike component of marketing strategy is often to keep marketing in line with a companys overarchingmission statement. at one time the company has obtained an adequate under stand of the customer base and its own emulous position in the industry, marketing managers are able to prove key strategical decisions and develop a marketing strategy knowing to maximise the revenues and profits of the firm. The selected strategy may aim for any of a variety of specialized objectives, including optimizing short-term unit margins, revenue event, market share, long-term profitability, or opposite(a) goals.MARKETING STRATEGY OPTION oneness of the key elements of a successful marketing strategy is the acknowledgment that your existing and potential customers volition fall into particulargroupsorsegments, characterized by th eir inescapably. Identifying these groups and their requisites through market look, and then addressing those needfullymore successfully than your competitors, should be the concentrateing of your strategy. You can then create a marketing strategy that refers the most of your aptitudes and matches them to the needs of the customers you want to target. For example, if a particular group of customers is flavour for quality first and foremost, then any marketing activity aimed at them should draw care to the lavishly quality of your products or service.The benefits of a planned marketing strategy are numerous. Business owners often rely solely on their recognition to make business decisions. While this informal knowledge is important in the decision making action, it may non provide you with all the facts you need to achieve marketing results. A marketing strategy will dish out you in defining business goals and develop activities to achieve them.WILSON, GILLIGAN AND PEA RSON in strategic management, readily admit that in that location is no standard definition on strategy but high lights three level of strategy.Corporate train outline Dealing with the allocation level resources thought out the complete(a) organization, covering all of the various businesses or division.Business Level Strategy This exits at the individual business or division level and is refer with the question of emulous positioning.Function Level Strategy Which is limited to the actions of specific functions within specific businesses.Boots is a member of Alliance Boots, an international pharmacy-led health and beauty group. Our purpose is to help our customers look and thumb crack than they invariably thought possible.Our customers are at the heart of our business. Were committed to providing exceptional customer and patient care, be the first choice for pharmacy and healthcare, saturnineer progressive products self-coloured at Boots, with great value our customer s love.Our people are our strength and they show us that Boots is a great place to work. We aim to always be the employer of choice, attracting and retaining the most talented and passionate people.Market matrixThe market matrix is a tool that helps businesses to decide their product and market ripening strategy.http//www.franteractive.net/resources/Ansoff-Matrix.GIFThe supra diagram shows market matrix in like manner known as Ansoff product which is a series of suggested growth strategies that set the direction for the business strategy.1. MARKET PENTRATION (Existing market, existing products)Market penetrationis one of the cardinal growth strategies of theProduct-Market Growth Matrixdefined by Ansoff Market penetration occurs when a company enters/penetrates a market with online products. The best way to achieve this is by throwing competitors customers (part of their market share). Other ways include attracting non-users of your product or convincing flow rate clients to u se more of your product/service (by advertise etc). Ansoff developed theProduct-Market Growth Matrixto help firms recognise if there was any wages of entering a market.Market penetration seeks to achieve four main objectivesMaintain and increase the market share of current products- this can be achieved by a combination of competitive pricing strategies, ad , sales, promotion and more resources dedicated to personal administering.Secure dominance of growth market.2.MARKET DEVELOPMENT ( raw(a) Market, Existing Products)You can grow by leveraging your product knowledge to reach new customers. More than likely, you kick in spent time and coin developing your product and service offering. Assuming youre happy with your current offering, extending it into new markets is a logical next step. This is aptly called amarket development strategy. If you beget identified potential new markets as opportunities, use these strategies to reach them. Here are some quick considerations to mak e to begin with executing a market development strategyIs the market agreeable? (To really answer this question, I recommend some form of market research to validate your gut feeling.)Are you willing to commit the undeniable time and resources to reach this new market?Can your business be adapted to the new market?Will you maintain your current competitive advantage in this new market?3. produce DEVELOPMENT (Existing Market, New product)New Product Development is the term used to describe the complete process of bringing a newproduct service to market. in that respect are dickens parallel paths involved in the NPD process one involves the idea generation,product designand detail engineering the another(prenominal) involves market research andmarketing synopsis. Ideas for new products can be obtained from basic research development aSWOT analysis(Strengths, Weaknesses, Opportunities Threats), Market and consumer trends, companys RD department, competitors, focus groups, emp loyees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features.4.DIVERSIFICATIONS New Market, New Products)Diversificationis a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur each at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry which the business is already in.It is a process where a business markets new products in new markets.This is the most unstable strategy because the business is moving into markets in which it has dwarfish or no experience.For a business to adopt a diversification strategy, it must take aim a clear idea well-nigh what it expects to gain from the strategy.SWOT analysisStrengthsPrice cuts are attra cting customers especially in beauty and toiletries.Boots is still above high street average, despite all the short-comings being reported.Great locations, with a prime pitch on every high street. Meaning that Boots is handy to potential customers, this is highly important when taking into account the 4 Ps. salubrious labour workforce which is highly immanent to every business, this could be a major tool when assay to refocus and achieve the overall objectives.The current share determine is 667.0p on 8 Nov and has risen since October 28 when it was set at 657.5p. This initiates growth in sales due to external genes such as climate change and more susceptibility to illness that this causes.Weaknesses everyplace diversification which has led to a loss of focus from the core operations of the business.It seems from the article in the Independent newspaper that Boots are reliant on sun cream as a star product, however the British weather is know for its instability meaning good su mmers are non guaranteed, this has ultimately led to a reduction in profits.390 million was spent on revamping the company could this money have been spent in other areas of the business that may have been more profitable?Some customers feel that Boots is too expensive, thus suggesting price elasticity however the recent price cuts in different parts of the business might have affect the price quality reputation amongst customers, who feel this is important.900 job cuts from head spatial relation and possibly more if finances deteriorate. This might have an adverse effect on the reputation amongst stakeholders.OpportunitiesCompete through head on pricing although this could be risky according to reports.Does Boots need all their chain branches? An analyse and bell-benefit analysis should be conducted along with market research to identify which branches are doing the best and which areas would benefit from the store or which areas are overly concentrate with Boots stores. Ther efore taking action by reducing the number of stores and focusing on improving the remainder of stores would narrow termss and provide essential capital that could be reinvested in other parts of the business.ThreatsAbolition of the resale price maintenance has increased competition.If lucre sales of drugs continue to grow, Boots could lose a significant proportion of its market share.Changes in supply chain and systems within the company could hinder growth rate in the next 12 months. gatekeepers 5 forces analysisCompetitive rivalryThe retail market is alter up with high competitors as more and more companies are trying to step into the Health Beauty industryAll the other retailers have different competitive advantages.Boots reach in different stores allows it to reach large number of customers.The other factors which compete with the Boots bank is different banks and building societiesBarriers for entreeBarriers to entry is high due to a number of factorsFirstly, company loo king to set up its business in UK requires lots of investment, brand development, which takes geezerhood to establish.Secondly, company in retail sectors are increasing, which itself means there is very less chance for any new entrances.Local knowledge is undeniable for a new business in order to establish, which is highly surd for new firms to replicate.Threats of SubstitutesThe threats for newcomers or reserves 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.The only major threat of substitute is an intimate industry threat, wherein one supermarket can lap up the business of other supermarkets.Buyers violenceBecause of the presence of too many competitors in the retail Health Beauty sector selling the same product, buyer power is high in the industr y.During the time of recession consumers wants are taken into more demand, thereby increasing their power.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.CDocuments and SettingsSonyDesktopporters_ volt_forces_lg.gifCompetitive strategy by Michael PorterPORTERS GENERIC STRATEGYMichael Porter had argued that a companys strength depends on two headings cost advantage and specialisation. By applying these strengths three generic strategies resultCost leadershipDifferentiation chargeCost leadership strategyCost leadership is a strategy make on offering a customer a put down pirce than competitors and maintaining an advantage by ensuring the cost are lower than those of competitors.Factories are built labor is recruited and trained in all sorts of knowledge for the low est cost of production. In the process cost advantage is the focus.However low cost not always allows low price. Producers could price at competitive parity, other than the competitors. For example, such as Toyota, are good in producing autos at a low price, but have the brand and marketing skills.Differentiation strategyIt is a strategy that involves offering a product which is different to, is first derivative from, those of competitors. The advantage of the product will appeal to the whole market and not in a narrow segment.The company that succeeds in differentiation strategy often follows the internal strengthsAccess to scientific researchHighly skilled and creative development team.Strongly sales team with the ability to successfully communicate the perceived strengths of the products.Corporate reputation for quality and innovation.FocusThe focus strategy strives on a narrow segment and within that segment tries to achieve either a cost advantage or differentiation. A company following the focus strategy often enjoys a high degree of customer loyalty, and this in turn leads to more customer lifetime value.The focus strategy has two variants.In cost focus a firm seeks a cost advantage in its target segment, while inDifferentiation focus a firm seeks differentiation in its target segment. Cost focus exploits differences in cost expression in some segments, while differentiation focus exploits the special needs of buyers in certain segmentsA company following narrow market focus and pursuing a focus strategy, have lower volumes of bargaining power with their suppliers.A company following differentiation focused strategy may be able to pass higher costs on to customers since close substitute products would not exist.Firms that succeed in a focus strategy are able to lead a broad range of product development strengths to a relatively narrow market segmentFinally, other focusers may be able to carve out sub-segments that they can serve even better.TASK-2 pes tle analysis is in effect an inspect of an organizations environmental influences with the purpose of using this in coifion to guide strategic decision-making. The assumption is that if the organization is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes.PESTEL ANALYSIS FOR BOOtS PEST1. POLITICAL FACTORSPolitical factor is always affected any kind of business. The government always make changes in tax policy, labour law policy and trade restrictions. increase globalization, gives challenges and opportunities to Boots. Using this company can enter into new markets through partnerships.2. ECOMOMIC FACTORS fanfare chances are really high that if inflation occurs then the prices of each crime syndicate will rise. When a country enters an inflation stage then their money would be less worth, and companies will higher the prices, consumers have less money to spend on goods, and that will be a major a mpere-second the economy. The country might put prices higher on exports, but other countries wont buy them anymore and go find a cheaper one. switch rates play a very big role in the marketBecause of the food crisis all over the world, can result in the get cost of the company, which in turn can increase the Health Beauty Product prices which affects the purchasing power of the consumers. Because of credit crunch, the consumers purchase power would decrease, but they would still consider that as its basic necessity.Lot of incentives is inclined to the consumers. This affects Boots as prices have to be reduced most of the times3. SOCIAL FACTORThere seems to be more attention on fresh and easy musical mode cooking. This gives Boots an opportunity to encourage new Health Beauty Product.Recently government has given more emphasis to promote healthy eating because of the increasing obesity. As a result the consumer would move on to healthy eating which in turn will be an opportuni ty to Boots to stock in more of healthy Health Beauty Product and as a result of which there would be an increase in consumers number.4. TECHNOLOGY FACTORThe internet phenomenon seems to be growing more rapidly. Boots can use internet for its advantage. stand up in the queue system for some items in the shopping market is time consuming. By installing the self checkout machines it can reduce the queue system for which the customer would not have to wait for few items which in turn will increase the sales for Boots.5. ENVIRONMENTALIt should be mandatory to reduce carbon footprint and increasing energy efficiency. One of the important and ethical issues is, like sales of organic food and ethical treatment of animals, this can clearly affect Boots on various levels. This is a sensitive issue. This can be done by maintaining on the man stand and environment.6. LEGALAs per legal the company makes sure that the product is right for the customers. They do all sorts of checks before it is brought forward to the customers.The current UK grocery market is highly regulated in many aspects, which is commonly in the developed countries. The recent inquiry by OFT could act as one example, which would potentially reduce the profitability of the supermarkets. Moreover, Trade Union would also protect employees to receive lack benefits, and this would make the grocers difficult to lay off employees.MARKET PALNNING FOR BOOTSAmarketing planis a written enter that details the necessary actions to achieve one or more marketing objectives. It can be for a product orservice, abrand, or aproduct line. Marketing plans cover between one and five years. A marketing plan may be part of an overallbusiness plan. Solidmarketing strategyis the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.MARKETING MIXThe structure of the facts book will be designed to match the speci fic needs of the organization, but one simple format suggested by Malcolm McDonald may be applicable in many cases. This splits the secular into three groupsReview of the marketing environmentA study of the organizations markets, customers, competitors and the overall economic, political, cultural and technical environment covering developing trends, as well as the current situation.Review of the detailed marketing activity A study of the companysmarketing mix in terms of the 7 Ps (see below)Review of the marketing system A study of the marketing organization,marketing researchsystems and the current marketing objectives and strategies. The last of these is too frequently ignored. The marketing system itself needs to be regularly questioned, because the validity of the whole marketing plan is reliant upon the accuracy of the input from this system, and garbage in, garbage out applies with a vengeance.7Ps of MARKETING MIXOnce youve developed your marketing strategy, there is a Se ven P Formula you should use to continually label and reevaluate your businessactivities. These seven are product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven Ps to make sure youre on track and achieving the maximum results possible for you in todays marketplace.1. PRODUCT To begin with, develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not its in the rightbusinessat this time. Ask critical questions such as, Is your current product or service, or mix of products and services, appropriate and suitable for the market and the customers of today?2. PRICES The second P in the formula is price. Develop the habit of continually examining and reexamining the prices of the products and services you sell to make sure theyre still appropriate to the realities of the current market3. progress The third habit in marketing and sales is to think in terms of promotion all the time. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them.4. blot The fourth P in the marketing mix is the place where your product or service is actually sold. Develop the habit of reviewing and reflecting upon the exact location where the customer meets the salesperson. Sometimes a change in place can lead to a rapid increase in sales.5. PACKING The fifth part element in the marketing mix is the packaging. Develop the habit of standing back and looking at every visual element in the packaging of your product or service through the eyes of a critical prospect. Remember, people form their first impression about you within the first 30 seconds of seeing you or some element of your company. diminutive improvements in the packaging or external appearance of your product or service can often lead to completely different reactions from your customers.6. office The next P is positioning. You should develop the habit of opinion continually about how you are positioned in the hearts and minds of your customers. How do people think and chatter about you when youre not present? How do people think and bubble about your company? What positioning do you have in your market, in terms of the specific words people use when they describe you and your offerings to others?7. muckle The final P of the marketing mix is people. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales andmarketing strategy and activities.RECOMMENDATIONS AND completionI think the current Boots Distribution Channel is very limited. The only place youll find their product is in a local Boots store . I think they should expand their channel like I have summed up earlier. I would have placed vending machines throughout whole UK, outside each super m arket. To survive in such a competitive market place, Boots must continue to build a fortified brand in order to create a strong differentiation in the market, attract customers with a credible value proposition and to endlessly engage customers in ways that would endear them to the brand and to the companyMy evaluation for this is that Boots is in a very good position, but if it needs to gain more customer they need to make more product, not as in output, but new products.