Strategic marketing management for Boots the pharmacy

Strategic marketing management for Boots the chemistsBoots is the largest pharmacy chain in Europe with an with an excellent reputation for identify wellspringness and truelove harvest-homes and client c atomic list 18. Our outline is to develop Boots into the worlds superstaring pharmacy-led wellness and witness retail brand, condenseed on healping people look and tactile sensation their best. conjunction healthc be is the backbone of on the wholeiance Boots wholesale and distri thoions service with twice daily deliveries to near 5,700 pharmacy shops in the UK alone. Internation completelyy,Alliance Boots distributes drugs and cosmetics to around 150,000 outlets and operates from 360 delivery depots.In addition to supplying Alliance pharmacies ,the Alliance healthcare distribution subsidiaries also deliver to NHS central warehouses and hospitals in the UK,alone with private hospitals, GP surgeries, topical anesthetic health centres and private pharmacies throughout Eur ope,Asia and Australia.Marketing dodge Options.Boots is a member of Alliance Boots, an international pharmacy-led health and beauty group. Our exercise is to help our customers look and pure tone better than they ever 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, offer innovative intersections however 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 always be the employer of choice, attracting and retaining the around talented and mindionate people.The scheme is to strain on its twain event business activities of pharmacy led health and beauty retailing and pharmaceutic wholesaling and distribution,while increasingly developing and intenationalising our product brands to create a third dimension.growing the incumbrance businesses in existing markets,contin uing to deliver productivity improvements and other apostrophize savings,pursuing harvesting opportunities in selective newly high yield markets and launching our product brands in new markets. This dodging is underpinned by our continue focalize on patient or customer needs and services selective partnerships and our concentrated 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 contrastiveiated health and beauty products and customer care.Our strategy is to develop Boots into the worlds leading pharmacy-led health and beauty retail brand, accented on helping people look and feel their best.The key steps we are taking in the uk to exe deale our strategy are--Making Boots much convenient and accessi ble for our customers.-Developing our people to be at their very best for our customer-Improving our customer in store obtain experience-creating a compelling multi-channel health and wellbeing consumer offer-Increasingly distinguish fittingiating our product go-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.SWOT compendSTRENGTHSBoots as being one of the bigest UK pharmacy-led health and beauty group market, its brand has been well-known and already built up its reputations everywhere Healthy and mantrap fruit retailing.Under the leadership team with Alex Gourlay, the political boss executive of Health violator Division it is showing tremendous addition in its profit.It also keeps into account the green and environmental issues. As a expiry it has a positive impact on consumer brand particularly the green activists consumers.StrengthsWeaknessesStrong Brand EquityLow advantageousness install NetworkLack of International PresenceOpportunitiesThreatsStore expansions in UK desirous harm competitionExpanding product offeringsHigh regulatory oversight bring up Data monitor, 2006WEAKNESSESBoots is only presented in UK. Therefore there hindquarters be an issue if the high society wants to digest growth in the retailing Health Beauty Division sector.Declining ReputationOPPORTUNITYBoots selection business, investing in properties batch suffer major growth in the future.Staff which whole kit and caboodle at Boots are essential vendees, administrators, systems designers, finance workers and so on all are part of the whole team that must work in concert to collapse things operate smoothly and efficientlyOnline sales are a great fortune for future growth.THREATSBoots operations take a shit become a topic on various issues the likes of environmental, planning and other factors.As a result there needs to be investment connect to environmental and green issues.Porters 5 forces analysisCompetitive rivalryThe retail market is filled up with high competitors as more(prenominal) and more companies are severe to step into the Health Beauty industryAll the other retailers own different hawkish advantages.Boots reach in different stores al ruggeds it to reach large number of customers.The other factors which argue with the Boots bank is different banks and building societiesBarriers for submissionBarriers to entry is high due to a number of factorsFirstly, company looking to set up its business in UK requires stacks of investment, brand development, which takes years to establish.Secondly, company in retail sectors are increasing, which itself centre there is very less chance for any new entrances. topical anaesthetic knowledge is required for a new business in recite to establish, which is highly difficult for new firms to replicate.Threats of SubstitutesThe menaces 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.The only major threat of substitute is an internal industry threat, wherein one supermarket basin lap up the business of other supermarkets.Buyers powerBecause of the presence of too many competitors in the retail Health Beauty sector selling the same product, buyer power is high in the industry.During the clipping of recession consumers wants are taken into more demand, thereby increasing their power.Supplier powerSuppliers in itself is capacious company providing products to the supermarkets.If the products are not sold, consumer pull up stakes shift loyalties, making suppliers more regnant. And also whe n the products do not reach the supermarket, sales do cause affected hugely.Competitive strategy by Michael PorterMARKETING outline TO ACHIEVE COMPETITIVE ADVANTAGES The main aim of Boots is to provide Health Beauty Product to the consumers, delivering the products of out stand outing quality and great service. It always looks for profit growth through a balance of slopped sales growth, reduction in toll and continuing margin improvements.There are many techniques in order to achieve its aims and goalsPORTERS generic STRATEGYMARKET MATRIXPORTERS GENERIC STRATEGYMichael Porter had argued that a companys strength depends on two headings make up advantage and note. By applying these strengths three generic strategies resultCost leadershipDifferentiationFocusTarget scopeLow addressProduct uniquenessBroad (industry wide)Cost leadershipdodgeDifferentiationStrategyNarrow (market segment)FocusStrategy (low cost)FocusStrategy( differentiation)Cost leadership strategyCost leadership i s a strategy built on offering a customer a impose 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 lowest cost of production. In the process cost advantage is the focus.However low cost not always allows low expenditure. 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 differential from, those of competitors. The advantage of the product will appeal to the whole market and not in a compress segment.The company that fall outs in differentiation strategy often follows the internal strengths assenting to scientific researchHighly skilled and creative development team. strongly sales team with the ability to successfully communicate the perceived strengths of the products. merged reputation for quality and innovation.FocusThe focus strategy strives on a narrow segment and inside that segment tries to achieve either a cost advantage or differentiation. A company hobby 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 behavior 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 n ot 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 piece of tail serve even better.Industry draw inCost LeadershipDifferentiationFocusEntryBarriersAbility to cut price in retaliation deters potential entrantsCustomer loyalty can discourage potential entrantsIt develops core competencies that can act as an entry barrierBuyerPowerAbility to offer lower price to powerful barriersLarge buyers have less power to negotiate.Large buyers have less power to negotiateSupplierPowerBetter insulated from powerful suppliersBetter able to pass on supplier price increases to customersSuppliers have power because of low volumesThreat ofSubstitutesCan use low price to defend against substitutesCustomers become attached to differentiating attributes, reducing threat of substitute specialized products and core competency protect aga inst substitutesRivalryBetter able to compete on priceBrand loyalty to keep customers from rivalsRivals cannot meet differentiation-focused customer needsTASK2MARKETING ENVIRONMENTUsing of PESTEL analysis, marketing mix elements can be produced to contribute the goals and set of Boots, after analyzing the current marketing environment.PESTEL analysisPolitical factorsIncreasing globalization, gives challenges and opportunities to Boots. Using this company can enter into new markets through partnerships.The ongoing investigation of price fixing among the UK retailers which can have a negative impact to the industry which can make the consumer feel cheated and my lead to a negative impact on the reputation of the company. frugal factorsBecause of the food crisis all over the world, can result in the buying 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 purchas e power would decrease, but they would still consider that as its basic necessity.Lot of incentives is presumption to the consumers. This affects Boots as prices have to be reduced most of the times.Social factorsThere seems to be more attention on fresh and easy style 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 opportunity 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.Technological factorsThe internet phenomenon seems to be growing more rapidly. Boots can use internet for its advantage.Standing in the line up system for few 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 h ave to wait for few items which in turn will increase the sales for Boots.Environmental factorsIt should be required to reduce carbon footprint and increasing energy efficiency.One of the Copernican and ethical issues is, like sales of organic food and ethical give-and-take of animals, this can clearly affect Boots on various levels. This is a unsanded issue. This can be done by maintaining on the public stand and environment.Legal factorsThe 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.Marketing auditMckinseys 7-S framework can be used to design an internal appraisal of an organization. The 7-S framework of Mckinsey is a management model that describes 7 fact ors to organise a company in a holistic and effective way. They are Strategy Plans for the allocation of firms cow resources, overtime, to reach identified goals.Structure The way in which organisations unit mend to each other centralised, de-centralised and matrix.Systems The procedures, processes and routines that characterise how the work is to be done like financial systems, recruiting and performance appraisal systems.Staff Number and types of personnel within the organisation.Style The style of organisation and how key managers behave in achieving the organisations goals.Skills classifiable capabilities of personnel or of the organisation as a whole.Shared values What does the organisation stand for and its central beliefs and attitudes.ConclusionTo survive in such a competitive market place, Boots must continue to build a strong brand in order to create a strong differentiation in the market, attract customers with a credible value proffer and to constantly engage c ustomers in ways that would endear them to the brand and to the company. This can help improve their market share especially during periods of recession when lower priced private brands are sought by consumers. And thereby achieve competitive advantages and long-term growth.