Introduction

Boots The Chemist (BTC) also known as Boots UK Limited, commercially

known as Boots and previously known as The Boots Company is a
leading pharmacy chain in the United Kingdom, with outlets in most high
streets throughout the country. Boots is also available in the Republic of
Ireland, Norway and other territories. The company has been a subsidiary
of Alliance Boots, since 31 July 2006 after Boots Group plc merged with
Alliance UniChem plc and combines the former Boots the Chemist Ltd and
Boots Stores Ltd. (Wikipedia, the free encyclopaedia)
In this case study will concentrate and focus on marketing and logistics in
retail sector. We found that retailers have no control over timing of
seasonal events and its usually very difficult to forecast likely demand
with normal level of accuracy. In contrast, promotional events are planned
by retailer and supplier.So they usually get challenges on managing
events and promotions.
Case Study
In this case we have to identify and list the logistics challenges of
mounting promotions and events at a retailer such as BTC. Our case study
highlights the logistics challenges of managing promotions and events in
retail sector. The timing of such event is one of the critical success factor
required.
What is Sales promotion?
Promotion includes all promotion-tools other than advertising, personal
selling and publicity. It includes trade fairs and price cuts (especially
during special period such as Christmas or Idd el Fitri). Sales promotion is
good when a company intends to clear old stocks or wants to bring new
stocks, change of season and change of fashions. (Lucy Mboma, 2004.)
Sales promotion it consists short term incentives to encourage the
purchase or sales of a product or service. (Philip Kotler, 2006: 469)
Challenges/ Issues

Items on promotion are not on the shelf

Display aids and promotional material missing

There were issues in distribution. Deliveries were scheduled at

different times of day from normal deliveries.

There was a high reliance on good luck for all elements to come
together prior to the start of the promotional period. Inevitably some
products, display aid and show material arrived late.

Consumer dissatisfaction

Sales lost

Solutions
Dedicated promotions team was created within categories.
The team masterminded the overall promotional plan and was
responsible for delivery of products, display aids and show material

Sales forecasting bases on historical data of product line by

individual store

Designing of shelves display by merchandising team.

Redesigning of end-to-end supply chain

Bases on solutions given above, BTC could have done better by

considering following decisions in developing it sales promotion program.
Lean principles
As we have observed in this case that, consumer only purchased their
requirements based on their use. The retailers like BTC have no control
over timing of seasonal events. In order to manage this situation well, the
company should apply lean principles for effective delivery of products,
display aids and show material from their supplier to national
warehouse(NDCs), regional distribution centers(RDCs) up to the shelf in
their stores.
By implementing pull production the company will improve the supply of
products to its end customers. Pull production basically means that
production and purchasing activities are based on signals from the followon process. That is, materials are supplied when needed, avoiding work in
progress and speeding the flow of materials through the system. This
ensures that work is performed only when required. There is no waiting
time and hence this reduces the production cost which in turn reduces the
cost of the finished products. The main concern in this concept is
availability of the right material at right time. (Rahul V. Alteker, 2009)

In BTC case study by this lean approach. The lead time will guide the time
to place orders to supplier. The company logistic team will have better
understanding of the total time needed for order to be processed and
when exactly will be delivered and be available on shelf. This then will be
used to calculate replenishment plan especially on seasonal events and
promotions
Agile approach
Another observation under this case study was that demand was
unpredictable during seasonal event such as valentine, mothers day,
summer holiday and Christmas. By using agile approach the company will
thrive and prosper in an environment of constant and unpredictable
change. Agility is not only to accommodate change but relish the
opportunities inherent within a turbulent environment. (Rahul V. Alteker,
2009)
The following solutions also should be considered by BTC team to improve
the promotion events
a) In order to define the full sales promotion program the company
should have decided on the size of the incentive. A certain minimum
incentive is necessary if the promotion is to be successful, a large
incentive will produce more sales response.
b) The company must set conditions for participation. Incentives might
be offered to everyone or only selected groups. E.g. 50 shillings off
coupon could be given out in package, at the store.
c) They should decide how to promote and distribute the promotion.
Each distribution method involves a different level of reach and cost.
d) The length of the promotion is also important. If the sales promotion
period is too short, many prospects (who may not buy during that
time) will miss it. If the promotion runs to long, the deal will lose
some of its act now force.
e) Evaluation. The most common evaluation method is to compare
sales before, during, and after a promotion.
(Source: Philip Kotler, 2006)
Conclusion:
In my conclusion logistics have greater effects in marketing process. This
case have demonstrated how important is to consider logistics when
planning seasonal events and promotions