Introduction Boots the chemist is UK's leading health and beauty retailer.

It has more than 1,400 shops in UK and Ireland. Boots is an international business that as well as securing market leadership is building and marketing its own brand No7 with significant success. Its parent company is called Boots Group plc that consists of Boots The Chemist Limited, Boots healthcare International, Boots Opticians and Boots retail International (boots.com 2008). The history of Boots success was started back in 1877. That was the time when Jessie Boot opened his first pharmacy. The young gentleman, then age of 22 was committed to multiplying his customers by cutting the prices of selling goods. At that time it was not that straightforward because all the leading pharmacies had pricefixing policy. However it did not discourage him. In order to reach his target he started advising customers to pay cash rather than take things on credit so the cash flow would be higher and he would be able to lower the prizes. He put a lot of effort into advertising as and even employed a bell-ringer that was wandering around Nottingham's streets and informing the public about a new strategy. This resulted in doubling the shop's takeover and becoming the busiest retailer in pharmacy sector. The second successful idea that Mr. Boot introduced to his customers was employing the young chemist who provided poor patients with prescriptions. Boot was concerned about peoples lives and at the time it was extremely expensive to get diagnosed without mentioning prescriptions. Boots the Chemists, health and beauty retailer, has possibly the largest range of quality, brand name personal products. 90 % of the UKs 60 million population visit a Boots store at least once a year. The company has an annual turnover of around 3 billion Sterling pounds from a network of some 1,300 stores (Branding Asia.com). Marketing Objectives Provide reward inspiration and generate awareness amongst the target audience of the breadth of the offer available with the Boots store card.

Increase footfall (and frequency) and drive sales across the entire campaign period.

This will be one of the most important objectives of the entire campaign across the entire campaign period. The number of people visiting a shop or a chain of shops in a period of time is called its footfall. Footfall is an important indicator of how successfully a company's marketing, brand and format are to bring people into its shops. Footfall is an indicator of the reach a retailer has, but footfall needs to be converted into sales and this is not guaranteed to happen. Many retailers have struggled to turn high footfall into sales. However, having a high footfall with frequency is one of the most important criterias for showing that a retailer is doing well. Also, Boots being one of the few pharmacy led retailers a new deals campaign will be able to boost its sales to a higher level.

Looking for solutions that excite its existing card customers and those customers who are looking for newer ways in order to redeem the Boots card points. It is imperative that the new third party deals that Boots will be looking at do enhance the appeal of the loyalty card. In order to do that the rewards have to both value as well as attractive to customers.

Offer innovative solutions that inspire customers to help them to feel that this loyalty card is different, better and more rewarding those other retailers. Most loyalty cards do only provide points that can be redeemed in store. However having a flexible mind with regards to rewards leads to much better customer loyalty as customers do not feel that they are bound to spend their rewards in that particular store. It will enhance the reputation and rewards scheme of Boots if it comes up with new innovative ideas, something that will be a first in the country and in the respective sector (Pelsmacker et al 2007).

Marketing communication Objectives The marketing communication objectives can be divided into three main categories: market segmentation, target marketing and finally positioning. The following diagram makes it clear as to what each objective entails.

Figure 1: Segmentation, Marketing and Positioning framework

(Source: Havaldar 2002)

Varey (2002) points out how many organisations can use the above framework to segment target and position its product. During the targeting phase companies carried out market research to understand the parameters involved and design a strategy. Boots should research about their customers what they like and which target segments will they benefit from the most. A good example of such segmentation is Toyota. When they were about to launch the Yaris in UK they found out that Their reputation was quite good in the older mens segment, but after doing the research it was clear that the main target market should be the 25-50 year old females who needed more than just reliability to buy a car. They developed an emotional appeal with the Yaris brand which consequently leads to the car being a particularly successful car within the target market (Strategic direction journal 2007). The mass appeal of companies also lies in the way they use their internet communications campaign. Although new websites for cars have become standard now, Boots will need to promote heavily using the internet so that more and more customers are exposed to the new Boots loyalty card deals. Abraham (2008) says that there is a lot of offline impact of online ads and communications. Internet advertising stimulates off-line sales, online campaigns increase sales more at advertisers retail cash registers than on their websites (Abraham 2008). As in a number of other corporate ways, companies have understood this impact and have used internet advertising across segments and demographics to secure sales. In conjunction with demographics, psychographics or customers mindset can also be used to segment a companys products.

Early Adopters/ Technology pioneers

those who are interested in the latest technology/ innovation, and must be the first on the block to own this technology and embrace it. The Boots loyalty card can have gifts that could be redeemed online, something that will fit within this segment.

Environmentally Friendly those who are recognising the environmental impact of motoring and would like to do something about it. those only somewhat concerned and seeking to express their concern and ease their conscience without causing themselves too much inconvenience. The socially aware mainstream, but more hesitant to buy new technology. Boots can have some environmentally friendly gifts to give away in the deals brochure like energy monitors to keep the environmentally friendly people happy as well. Value Conscious those who are looking for the ideal combination of high fuel economy and low maintenance cost in long run at an affordable price (Pickton and Amanda 2001). This segment will form the bulk of Boots customers and any deal or reward must be value for money or else customers might be left disappointed with what is on offer.

It can be seen that using the above objectives of segmenting, targeting and positioning, Boots can represent all demographics and psychographics within the retail market of UK. Description of communication tools To launch the new deals brochure Boots will have to use a combination of mail shots and internet. The next section will explain how each of these tools can help the Boots loyalty card to fulfil its communication objectives.

Mail shots Mail shots are attractive to many marketers, because in many cases its positive effect (but not negative results) can be measured directly. For example, if a company sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion, the company can say with some confidence that the campaign led directly to the responses. The number of recipients who are offended by the junk mail/spam, however, is not easily measured. By contrast, measurement of other media must often be indirect, since there is no direct response from a consumer. Measurement of results, a fundamental element in successfully sending mail shots is one of the main reasons why it is a method that Boots can use to segment its target market. Furthermore, using the Internet and heavy databases tracking direct marketing responses and measuring results can be easily done by companies. The mail shots can be used to recognise the benefits of using them as a way to build brands and create customer loyalty by educating customers, as well as to actually drive sales. For example, if Boots targets more than 100,000 consumers, focusing on their new loyalty rewards scheme. It can run in two bursts, featuring different segmented mailings to different kinds of customers whose data they have within their databases anyway. The first of the mail packs that contain information regarding Boots and the scheme and what they plan to do can be delivered in a glossy magazine style featuring any new slogans that can be thought of. It will feature some incentives as well. The motivation to purchase is key to any company and market segmentation is very important to these goals especially as not all existing customers [are] suitable for the products being sold (Barking et al., 1996, p. 253). Using mail shots Boots can achieve its first objective that is segmenting its customers and this is very important as it forms the basis of everything Boots does with its new brochures here on. Internet advertising Internet will be the most important source for targeting and positioning its product i.e. the new rewards given out.

Despite overwhelming statistics regarding Internet development, both successful and unsuccessful cases of Internet marketing have been reported. There is no proven successful method that can help management evaluate how beneficial Internet marketing could be before they commit substantial capital investment on Internet marketing and risk the possibility of interfering with their current channels. Not many companies have fully utilized the power of Internet marketing as a new channel for handling transactions on the Internet. The existing research in channel design and selection has only considered the traditional channels, including direct and indirect marketing approaches.

Below is the adoption process for a companys product on their web site and it is important to be aware of this in order to decide how best to launch the deals brochure. - Create Interest. At this point, the user becomes interested in the Web site but does not visit it. His or her interest may be increasing because of repeated exposure to the Web site address, or it may have also been sparked by information, gathered through word of mouth or other sources, about features on the Web site. - (3) Evaluation. At this point, the user mentally compares his or her own use requirements to the product, and anticipates the results. The user considers how the known features of the product can add value to his or her purchasing decision. - (4) Trial. During this stage, the user accesses the Web site on a limited basis. Trial use leads to adoption only if the user considers his or her experience to be beneficial. The user tests whether the features of the product provide any value to his or her purchasing decision. - (5) Adoption. In this stage, the user is convinced that the product contains features of value, and he or she continues to use it to satisfy his or her needs (Penrice 1995). While the Internet does offer unique capabilities, it also has the following disadvantages:

One practical limitation is that the user must actively decide to visit the Web site. Unlike radio and TV, there is the element of choice rather than the element of surprise, and there is no guarantee that anyone will visit the Web site. In general, there is little selectivity of audience; the Web site can be accessed by anyone on the Internet. The Web site must compete with thousands of other homepages, all of which are trying to attract and retain visitors. Individuals on the Internet have well-defined demographics and psychographics which may be less than ideal for certain company Web sites. Given the inherent strengths and weaknesses of the Internet as a marketing communication vehicle, this campaign must develop techniques to capitalize on the advantages afforded by the Internet media. These techniques should provide value to the visitor, and provide them with services not easily replicated by conventional marketing media. The techniques should also be tailored to address the needs and wants of typical Web site visitors, providing them with a good reason to visit and an even better reason to return. The goal of this evaluation is to determine techniques that can be beneficial to Boots if they want to get exposure to more people and launch their Deals brochure successfully. In-depth product/company information The Web site could provide users the opportunity to receive free information via mail regarding a company's offerings. Materials received might include catalogs, or CDROMs containing information in multimedia format. A company could dedicate a section of its homepage to daily news regarding new deals. This section might also include press releases regarding new product innovations and discoveries made by the company. Users might value this information and would likely remember the site where they obtained it. This should have a number where the brochure could be ordered by the customers.

Boots can also think about open communication with users who could be allowed to communicate with a company representative while online. This communication could be achieved through electronic media (typing back and forth), audio media (like a telephone, but through the Internet), or video conferencing (audio and video). Complementary services Company Web sites could provide hot links to sites containing information pertinent to the company's products or services. This could be a good way for people to impulse a lot of goods that are sold by Boots.

Budget

(P.T.O)

Marketing Communications Budget Plan Last updated:

Marketing Communications Branding Advertising Web sites Direct marketing Internet marketing Press relations Public relations Analyst relations Events Marketing Communications Total 50,000 25,000 1,00,000 1,00,000 50,000 10,000 20,000 30,000 50,000 4,35,000

The above figure shows the yearly budget for this particular plan. As has been clear throughout this plan that the main focus for the new deals brochure will be web sites and direct marketing and that is where the bulk of the money has been utilised. Furthermore, there have been some well thought out events which are going to cost money like analyst relations and events especially when the new rewards are about to be launched.

Boots can look into new ways of attracting customers through these reward card schemes and decide which customers should receive them, as part of an overhaul of the Card scheme. The card is seen as vital to Boots' efforts to fend off competition from supermarkets' expansion into health and wellbeing products and services. Customers do have a very high level of engagement with the card programme, especially women who see the points as providing a treat for themselves, but it needs to be realised that there could be a new way to engage customers as well as

to let customers choose from a wider breadth of goods from Boots than they might be buying elsewhere. Boots usually mails quarterly coupon to cardholders, sent with the co-operation of Boots suppliers, typically selected the retailer's highest value customers, missing the opportunity to grow spend from the majority of the customer base. This leaves millions of cardholders, many with a high potential for Boots, receiving very little communication from the health and beauty retailer. A new way of selecting customers can be used here as this provides a great opportunity to do so. A new system can be created by making a targeting system that could identify potential customer spend across categories, brands and individual products. The solution needed to identify a person's potential to buy brands and make the offer selections. This will have the objective of rewarding customers to keep them coming back into the store and also to get them to buy in areas where they aren't already buying. Boots has to work out which products they have most affinity with and how much we have to incentivise them to continue shopping. One way that this deals brochure can be successful is by identifying and scoring customers who are not purchasing at their optimum level, based on a certain time period of their purchasing history. After doing this one can easily compare purchase history within various product categories, working out potential spend and comparing this with actual spend. Using this communications could be tailored for each customer. Control and evaluation procedures Target To increase awareness from 69% to 82% within 6 months of the campaign launch among Boots customers. Pre-testing: The current level of awareness comes from pre-testing undertaken either with the situational analysis or by a specific market test. It is done before a campaign to see what the current situation is. Post-testing: once a campaign has been implemented, post-testing is carried out. The results should match the objectives.

Measurement: Measurements of a qualitative nature, assessing changes in awareness or perception, are often better handled by an external agency with experience in this kind of research. Taking into account this statement Boots can think about either engaging its own employees or outsourcing this work to a specialist agency.

Conclusion This piece of work looked at Boots plc and their loyalty card scheme. It looked at the various ways in which customers using this card can be rewards in a way that more customer loyalty can be expected from the customers. This piece defined both marketing as well as communications objective for the plan. Thereafter, using a number of ways an entire plan was laid out so that Boots can segment, target and position this new product among its consumers. The piece also prepared a budget considering various factors like scale and reach expected and also the amount of cash available in a big retailer like Boots.

References

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