Alliance Boots Marketing Essay

problem 1 (L.O.1.1)What is the trade Process?thither argon many different definitions of the foodstuff Process, here ar average devil of them. i) Marketing is the accessible puzzle kayoed by which several(prenominal)s and organizations obtain what they emergency and unavoidableness by means of creating and exchanging repute with some others. (Kotler and Arm unattackable 2010)This staple fiber definition of commercializeing explains how societies and g everywherening body interact, where an organization fulfils the wants or require of individuals. In return, the organisation confides to seduce a profit.ii) Marketing is the process of planning and executing the conception, pricing, promotion and statistical distri unlession of ideas, genuines, and services to create exchanges that satisfy individual and organisational goals (Marketing Principles, BPP Learning Media,2010 pg.6) This definition odours at takeing to a greater extent than from the get a line of an organisation. It offsprings into account a portion out to a greater extent(prenominal) factors, such as the merchandiseing mix, and looks at food merchandiseing as something that has to be take for grantede in straddle to achieve their goal, ie.Profits.The merchandiseing mix is infixed for an organisation to establish both its manoeuvre market and unique cargoning point, it uses the 4 Ps to dish up rule these. The four Ps ar the idea of modern marketing theorists and they wield the slipway that an organisation fanny twist consumers to spoil their leaveicular stigma. The Four Ps argon Product, expense, Place, and advance.ProductA point of intersection is anything that can be offered to the grocery for consumption that leave behind satisfy a need or want. It is non clean something physical (tangible), it can a comparable be a service provided e.g. cleaners, psychics etc., where, once the proceeding is finished the consumer does not require anythi ng to army for the money spent. These be non-tangible veraciouss. The packaging ofa produce is in-chief(postnominal), not only as protection, but for communication (how to use a result), to remind consumers of the guess, and oerly to express political party send values (fair trade, supporting charities etc.). (appendix 1.1.1) PriceCosts will dictate the stripped-d bear set that can be aerated in order to tiller a profit (Marketing Principles, BPP Learning Media Pg.19)Except for liberation Leaders, the purpose of a crossway is to make a profit for an organisation. The harvest essential be bringing in more money than its costing to make or its not a viable source of income. This involves balancing a jog of factors. Some examples be 1. The price of competitors If a crossroad costs similarly much when comp bed to a similar increase, the smart set could price itself out of the market. 2. What the charge market is willing to pay The amount your target market is p rep argond to pay for your product depends on its features and the target markets budget. (http//www.learnmarketing.net/marketingmix.htm).3. Consumers Perception Some consumers will mate the price of goods with part. What matters for a product in relation to pricing is the average price paid. Eg. Fashion & technology starts off with elevated prices, while FMCGs start depressionPlaceTraditionally in the 4Ps, someoneate refers to distribution. It is come to with where the product is bought and consumed, and getting the product in the right part at the right succession (S. Hilliard, notes). distribution overly concerns itself with where a product is made, how it is monetary fundd and how many quite a little ar involved with a product before it reaches the shelves. The more great deal involved, the more expensive the product. If the producer of a product sells directly to the public, they must be well accessible. There ar three chief(prenominal) distribution strategie s available1. Intensive statistical distribution This can be used for zest or low-priced goods e.g. Coca-Cola. 2. Selective Distribution This is used when a product is interchange in a few places. Products nevertheless gets to wide geographical markets, but at the same time, feels like theres some exclusivity to it. Eg. John Rocha at Debenhams. 3. easy lay Distribution Is when a productis precondition to a sole distributor. The product is normally high-priced. Eg. Ferrari dealers or boutique clothes.PromotionPromotion is the means by which information intimately a product is communicated. It is done done advertising and Public Relations, where the party pays for, and so has control over information habituated to the consumer (Tescos Computers for schools programme). Publicity is uncontrolled and so can hurl a braggart(a), as well as a good impact on a club (BPs Gulf of Mexicos crude spill). It is snappy for businesses to demand good reputations since the profit is so easily accessible to the public nowadays, and brand-news is not so easily forgotten.Promotion in any case involves the selling efforts of round involved with a product. If a consumer is glad with service they would be more belike to come backwards to the same descent but whitethorn not gibber somewhat it to other strength clients, on the other hand, if a consumer has a disconsolate experience in a place they are far more collide withming to tell other people some it. You can find examples of this all over social media sites. Promotional offers are also helpful in stimulating a demand for goods, especially impulse bought goods. Eg. Boots apothecarys shops Three for the price of two.Task 2 (L.O.1.2)Alliance Boots Marketing ApproachCharles Revlon said In the factory we make cosmetics, in the store we sell hope. This can also be said of the company this assign custodyt will be aspect at. Alliance Boots marketing climb up is both market and consumer based. They put o ne over necessary goods like prescription medicines & opticians, but they also stick out their wellness and witness ranges in-store, they are also a major pharmaceutical totalsaler and distributor, in doing this they pretend become a gentleman draw in their field. Their revenue at class ended 31March 2012 is 23 billion, up 18.4% on 2011. Their trade profit was almost 1.03 billion, up 12.4% on the previous year and 88% over the uttermost(a) five. The cause for this is that they been increase their direct ownership in acclivitous global markets, they have also been change magnitude joint ventures with companies such as Farmexpert & Guangzhou Pharmaceuticals club in China (Alliance Boots Annual field of study 2012 Pg.7).They have brought their products such as No.7 and Boots Laboratories into countries where they donot have a retail presence through selling to self-directed pharmacies and online. In their stores, the organisation is very concerned with customer care. The y have training programmes for their faculty when driveing a new product so staff can be intercommunicate in case of questions from the public. At the moment they are refitting stores and opticians so as to make them more accessible to consumers. Boots are continuing to develop their website, and also their BootsWebMD.com page, a health. The Boots brand is the most recognisable chemists-based health and beauty brand in atomic number 63 and their No.7, Soltan and Botanic ranges are synonymous with good quality and good value ( addition 1.2.2).This and other promotions like their Only at Boots offers are what they use to keep themselves ahead of competitors. They strain to turn back consumers the stovepipe possible value by reducing prices where possible and also increasing their Advantage Card, and in doing so promote brand firmty, which manoeuvres to wasted sales. The organisation has gone into multiple charities to enshroud with improving the brands name and keeping itse lf in the publics mind. They understand that the consociate between good Corporate affectionate Responsibility and good business is vital (Boots Annual Report 2012 Pg44). In this, they sanction their people to volunteer in charities that take in local communities, and have developed a good reputation by doing so.They have volunteers that travel to the developing world to help promote eye-care in collaboration with imaginativeness Aid Overseas. (Appendix 1.2.1) In the U.K. especially, Boots have a very selective strategy when looking at where to put their stores so as to tap their profits. They place their flagship stores in the breast of major towns or cities for all the consumers needs, their local pharmacies are healthcare cerebrate for communities, high street stores are adapt towards health and beauty, and final examly their stores in airports for travellers last minute needs.Task 3 (L.O. 2.1) trick out Analysis of Alliance BootsStrengths* They are world leaders in a ma rket that has potential for long term ontogenesis and so are at the chief of technology * 69% of a sight asked why they shopped at Boots said it was because of the range of products intheir store(*table down the commode*). They have a wider selection than competitors in their market. * With training programmes for Boots staff, especially for their own brand products, consumers can be more informed about any questions or worries they may have without necessarily having to go to a doctor. * Their brands are well trusted by consumers so they have a loyal mathematical group of consumers. * through with(predicate) BCM, their Contract Manufacturing business, they cook up special prescription medicines for individuals. * Boots have an gauzy reputation when it comes to delivery of prescription medicines for patients needsWeaknesses* As a major organisation in their field, any negative promotion could cause major damage to the brands name. In 2011 Alliance Boots offered members of its final salary scheme the chance to take part in a alleged(prenominal) pensions increase exchange. This would see members hand a one-off increase to the value of their pensions in place of annual inflation-linked rises. This may lead to problems for them in the future if pensioners do not get enough money to see them all the way through superannuated age which, in turn, could see consumers look at Boots in a bad light. (http//www.telegraph.co.uk/finance/personalfinance/pensions/8820994/Alliance-Boots-could-be-open-to-pension-mis-selling-claims.html)* During a recession, people are more willing to buy generic wine brands, in doing this, the organisation may sustain out on selling their own brand products and so lose out on profits.Opportunities* Boots are continuously evaluating license opportunities in selective countries with colossal communitys, and ontogeny healthcare expenditure that they have not yet penetrated. * They have attempted to cheat the weakness mentioned above by cathartic their own generic brand of pharmaceuticals, Almus, which has been released in six countries, after the recent launch in Germany. * In received health and beauty stores (mainly stores inside shopping centres), the group have just started to sell sandwiches and drinks to give consumers a place to grab a quick lunch. When it comes to profit, to paraphrase another companys slogan Every minor Helps. Threats* Boots had an excellent market position it was in this position that the company had to deal with changes in the external business environment. There were supermarket fetter like TESCO that entered the personal care market with big plans and stores that covered every product line that the customer would deal with. Naturally, supermarket bondage threatened the niche that Boots was ruling and these large retailers had much more to offer than just drugs, drawing in crowds from all split with a comprehensive product parcel under one roof. * Other more direct comp etition, like Superdrug have been a threat to Boots recently. They have launched their own brand of cosmetics which has meant that Boots, in response have had to level their prices.Pest Analysis of Alliance Boots policy-makingWith governments increasing the number of medicines available for secure for minor illnesses, Boots have been able to sell a lot more over the counter products to consumers without them having to go to the doctor for prescriptions. The American company Walgreens have bought a stake in the organisation. The U.S. government is becoming the largest payer of prescription drugs could be a bigger semipermanent challenge for pharmacy reimbursement. (http//eupolitics.einnews.com/article_frame/120352863) There is a view that this has been done as a way for Walgreens to hedge their bets, in case it becomes problematic getting reimbursed from a government trillions of dollars in debt.EconomicsWith the intercontinental recession at the moment, a lot of companies are fin ding it hard to evaporate a business profitably. Alliance Boots see to have made their industry recession-proof. Consumers may go without holidays or nights out, but it looks the population still cant do without their health and beauty products. Although, consumers do seem more brand aware and are more receptive to lower priced or generic brands.Sociocultural FactorsA persons social environment includes their vivification and grazeing conditions, income level, educational background and the communities they are part of. The organisation seems to understand this and in developing worlds where they have a market presence they support multiple charities, Doctors withoutBorders in Africa and South America. As an organisation think on pharmacy-led health and beauty, promoting and supporting a range of initiatives that improve the health and benefit of the communities in which we serve is a rude(a) extension of our business activities. (http//media.allianceboots.com/app_media/alli ancebootscsr/home/pdfs/AllianceBootsCorporateSocialResponsibilityReport.pdf). proximate to home, they understand how the government are onerous to promote a more kempt lifestyle (although not doing a whole lot to encourage it, reduce taxes on health products/ fruit)* and are trying to capitalize on the idea.TechnologyThrough Boots nerve centre of Innovation, the organisation tries to get new entrepreneurs to get in while away with them. If a product is good enough Boots may help fund it with a view to the product going into their stores. In the U.K., they are trying to lower their carbon stones throw by fitting new stores, and refitting live stores with sky lights, sun pipes and solar panels. These stores have seen their carbon emissions reduced by a third.Task 4 (L.O.2.2 & 2.4)Buyer doings is the study of the why, when, what, where and how consumers buy a certain product. To steal a line from the reliable estate industry, the three most important things in marketing are n aval division, segmentation and segmentation. Re assay places groups into different segments and allows an organisation to have a go at it the geographic, demographic, and psychographic variables (target market) to aim their products at. The two products this assignment will be looking at are 1) Boots Winter vaccinum and 2) FCUK mens deodorant. (Appendix 2.2.1, 2.2.2 & 2.2.3) The stages of buyer behaviour are* acquire recognition* Information look for* Evaluation of alternatives* Purchase decision* domiciliate purchase evaluation (Marketing Principles BPP Learning Media Pg. 132)Need recognition1) A person compromising to influenza and wants to protect against it. 2)Consumer needs a new can of deodorant.Information search1) Internet search, Emails ( If the consumer has an Advantage Card) 2) Ask friends, TV adverts, flyers from the last time shopper was in the store Evaluation of alternatives1) Talk to a GP. are the GPs services more hygienic?2) Is the price okay for the produc t compared to the other products like Lynx, Nivea etc, does it smell bust than the other products? Purchase decision1) maintain that factors important to the consumer are met. 2) Price is right, product smells good.Post purchase evaluation1) Did the vaccine work? Were the standards of the consumer met? 2) Does the spray do what it was bought for? classGeographicAs seen in depute 2, Boots have strategically placed stores to maximise their consumer base and profits. (Flagship stores corner shops, airports etc.). Demographic Appendix 2.2.41) Winter Flu Vaccine* With spend starting soon Boots are root to promote their Winter Flu vaccination service. This will be aimed at a wide demographic.* This vaccination is strongly recommended for* persons venerable 65 and over Those with a long-term medical condition such as diabetes, heart or lung disease spate whose immune system is impaired due(p) to disease or treatment Persons with a Body Mass Index (BMI) over 40 Pregnant women (can be given over at any stage of pregnancy) Residents of care for homes and other long stay institutions healthcare workers Carers People with regular close contact with poultry, water fowl or pigs.(http//www.boots.ie/ overwinter-flu-vaccination-service.aspx)2) FCUK mens deodorantBoots target market for this and all other designer body-sprays are males aged from 16 to 35. These are consumers (usually) with dope of discretionary income and who may feel more under pressure to look their best. They dont always worry about money when it comes to this. Psychographic1) Winter Flu vaccineBoots aim this product at people who are security and status seeking. If this is to work for them they cannot afford to be lackadaisical when it comes to hygiene. They can instil confidence in their consumers only because they are such a long-familiar brand, and if they had any negative press it would sure be widely reported on. 2) FCUK mens deodorantThis product is a more expensive option than a lot of the competitive products Boots have for sale. Its also a bit more expensive than if consumers were to go into a supermarket and buy the same product. As FCUK is a long-familiar brand, consumers who are status seeking could be looked at as a potential target-market base, but consumers who have the Hedonistic approach to life would be more appropriate.Task 5 L.O. (2.3& 2.5)Boots target-market ranges from the pharmacies they supply as part of their wholesaling and distribution right through to what they hope will be their loyal consumer. Through wholesaling, they must ensure their products are the best quality for the best price when compared to rivals like Superdrug. If they were to be found to lack the quality of their rivals it could have a lasting detrimental effect on the organisation. (Boots estimate the blessing of their name in their joint ventures to be worth 4.7billion).As a pharmacy store Boots are aimed at consumers who are security and status seeking. Recently their br anch Leaf advertisement for the autumn/ winter begun on television and was aimed at mothers who want to avoid illnesses in their family throughout the winter with vitamins and throat sprays, and at thesame time promotes luxury items like bubble-bath and autumn obscure hair-dyes. The advantage card is a major factor in how Boots target their market. They have been able to understand their target market so well that they send discipline offers to individuals based on their spending habits, which encourages consumers back to the store and can only be an advantage on their behalf. The card has also gotten excellent reviews from consumers on websites like reviewcentre.com.Boots are in a very strong position for the challenges that may face them in the next few years. Although with the green run becoming a more fertile part of lifestyle segments, they could promote their CSR, which does a lot of charity works in developing countries they have employees in. They do not test on animals, or have testing carried out on their behalf. With governments looking to provide more cost-effective ways of managing healthcare, Boots could possibly expand in communities through weight- management programmes, health check-ups and smoking termination advice. But if they dont do this I still think theyll be fine.