Marketing Principles Report: Boots Pharmacy Case Study

This report provides a comprehensive analysis of the marketing principles applied by Boots Pharmacy. It begins with an overview of the marketing process, including market audits, integrated marketing, SWOT analysis, and marketing mix decisions. The report then delves into the benefits and costs associated with a market orientation approach. It explores micro and macro environmental factors, segmentation criteria (demographic, psychographic, behavioral, and geographic), and target market strategies, including mass and niche marketing approaches. The impact of buying behavior on marketing activities, including complex, variety-seeking, dissonance-reducing, and habitual behaviors, is also examined. Furthermore, the report discusses product positioning, development of products and services to gain a competitive advantage, distribution strategies to achieve customer satisfaction, pricing strategies, promotional strategies, and the extended elements of the marketing mix. It concludes by presenting two marketing mixes for different segments, differentiating between B2B and B2C marketing, and national and international marketing strategies.

MARKETING
PRINCIPLES

TABLE OF CONTENTS
Introduction .....................................................................................................................................4
Task 1 ..............................................................................................................................................4
1.1 Explain the marketing process ..............................................................................................4
1.2 Benefits and costs associated with market orientation .........................................................4
Task 2 ..............................................................................................................................................5
2.1 Micro and Macro environmental factors ..............................................................................5
2.2 proposed segmentation criteria .............................................................................................5
2.3 Target strategy for the business ............................................................................................6
2.4 Impact of buying behaviour on marketing activities ............................................................6
2.5 New positioning for the product ...........................................................................................6
Task 3 ..............................................................................................................................................7
3.1 Development of products and services to gain competitive advantage ................................7
3.2 Distribution to achieve high level of customer satisfaction...................................................7
3.3 Pricing strategy......................................................................................................................7
3.4 Promotional strategy.............................................................................................................7
3.5 extended elements of marketing mix.....................................................................................8
Task 4 ..............................................................................................................................................8
4.1 Two marketing mix for two segments...................................................................................8
4.2 Difference in B2B and B2C marketing..................................................................................9
4.3 Difference in national and international marketing...............................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
In the present context, companies are required to make use of standard marketing
principles in order to take some crucial business decisions (Ataman, Van Heerde and Mela,
2010). The process is considered important because it helps in achieving differentiation from the
competitor’s products and services. The purpose of this report is to understand the concept and
process of marketing within the context of a pharmacy company named Boots. It will do the
segmentation, targeting and positioning for the company’s products. At last, the report will end
in creating the marketing mix for the business.
Task 1
1.1 Explain the marketing process
The marketing process of the Boots consists of the following elements:
 Market Audit – Company perform the scanning of the market conditions in order to
analyse the future and existing business trends (Armstrong and et. al., 2014).
 Integrated marketing – Boots make use of this strategy for the purpose of creating a
consistent, seamless and multi-dimensional brand experience for the consumers. Under it,
the marketers incorporate all the elements of communication such as sales promotion,
advertising, direct marketing etc. (Huang and Sarigöllü, 2012)
 SWOT analysis – It is about analysing the strengths, weaknesses, threats and
opportunities available for the business.
 Marketing mix decisions – Another thing that company does is to identify the marketing
mix for its products and services (Jobber and Ellis-Chadwick, 2012). It covers the pricing
decisions, promotional plans, distribution arrangements etc.
1.2 Benefits and costs associated with market orientation
The Boots can design its products and services by using market orientation approach.
Under this approach, company works on needs and expectation of the customers despite of
thinking what is right. The orientation is a consumer centric process and it is highly concentrated
on behaviour of people. It aids in addressing the demands in the best manner possible. Further it
leads to increasing the value of buyers which ultimately promotes things such as loyalty and
repetitive purchasing (Luca and Suggs, 2010). It gives the company a competitive edge over the
competitors.
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Further there are some drawbacks as well. The process of market orientation requires
high amount of costs and research which is not feasible for a small size company like Boots.
Benefits of the products also lead to increase in the price of the products. People have to pay
high prices if the need goods of their choices.
Task 2
2.1 Micro and Macro environmental factors
Micro environmental factors
Employees of the Boots play an important role in the success of the organization and in
the improvements of the services. They are required to show their dedication and hard work
towards their work. Customers are highly responsible for the success of the marketing campaigns
(Shimp and Andrews, 2013). Company should assure that their promotional stunts are highly
concentrated on the expectations of the people. Media is responsible for creating the image of the
company within the market.
Macro environmental factors
Demographic factors influence the marketing activities of the company. It includes the
study of occupation, gender, density and location etc of the consumers. Economic factors is
about analysing the purchasing power of the buyers. Social factors includes the study of buying
behaviour of the people (Uncles and Ellis, 2012). Environmental factors applies the legal
implications on the business activities of the company.
2.2 proposed segmentation criteria
Boots is having wide range of pharmacy products and services for its customers.
Company can segment the whole market in the following manner:
 Demographic segment – Here the market can be segmented on the basis of occupation,
gender, income, race etc of the population
 Psychographic segment – Factors such as perception, thoughts, lifestyle, values, beliefs
etc are considered for the segmentation.
 Behavioural segment – It includes the social behaviour that is willingness to buy, loyalty
towards the products etc.
 Geographic segment – Here the firm can segment the market through taking into
consideration the size, population and atmosphere of the place.
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2.3 Target strategy for the business
Boots is having the option of applying different types of target market strategies. These
includes differentiated, niche and mass strategies. Company can follow mass approach because it
manufactures different kinds of health and skin care goods for all age group. The people include
men, women and kids. The pharmacy products are produced in large volumes and are sell at
reasonable prices. It is suggested that company should focus on targeting specially the females as
they are more concerned about the skin and beauty (Constantinides, 2006). They would take a
great interest in the products of the company. This strategy will take the form of niche marketing.
Both the strategies are effective for the business of Boots. They have the potential to enhance the
sales and profitability for the customers.
2.4 Impact of buying behaviour on marketing activities
There are different types of buying behaviour which affects the marketing activities of
the Boots:
Complex buying behaviour – Under this, the consumers usually performs lot of research
before buying the products (Valette-Florence, Guizani and Merunka, 2011). Products of Boots
are having a substantial impact on the buying behaviour. The products supplied by the
organization are very precious and people take advice of experts before availing them.
Variety seeking behaviour – Generally the consumers are provided lot of options in
similar type of products. For instance, there are many skin care cosmetics available in the
market. People could buy different cosmetics at different times.
Dissonance and habitual buying behaviour – Customers are involved here majorly but
only in few types of goods. Firm will be dealing with basic needs of the customers that is the
daily routine products.
2.5 New positioning for the product
Boots is required to give adequate importance to the product positioning because it helps
in generating loyalty from the side of the customers. This approach helps the company in
presenting the products in effectual manner to target different audiences. It promotes the
products by making use of different types of modes of promotional tools. Hence, this kind of
promotion influence the minds of the customers. For instance company has stopped its long
running campaign “Here come the girls” and introduced a new one for people of all age groups.
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It is concentrated not only on women but for people of all ages. Hence, it can be stated that use
of good positioning approach may bring higher sales and profits for the consumers.
Task 3
3.1 Development of products and services to gain competitive advantage
Competitive advantage can be termed as a situation in which people are wiling to buy
products of one organization over other market players (Wilmshurst and Mackay, 2010). Boots
always try to develop in such a way that it gains advantage over the other pharmacy companies
in the country. Further the brand always seeks for way through which it can lower down its cost
of operations. This supports in offer products and services to people in market at low prices.
Along with this, it also carries out in-depth market research to develop new products. Therefore,
it can be stated that products are developed at low cost and with the help of adequate market
research to gain competitive advantage.
3.2 Distribution to achieve high level of customer satisfaction
Customers of an organization can be satisfied only in situation in which they get required
product or service on time (Wright, 2014). Boots can use offline channels of distribution to make
its products available in marketplace. Further, it can open its own stores in different places of the
country so that customers do not have any kind of inconvenience in finding and buying its
products.
3.3 Pricing strategy
Boots adopts pricing strategies on the basis of conditions and demand in market. In case
of high demand and high growth rate, it can adopt high price strategy whereas low market
demand will encourage the brand to go for low prices (Uncles and Ellis, 2012). It can also make
use of costs psychological in which it can offer its products on prices which affects the overall
psychology of people. The example of this is prices such as $19.99 or $2.98. It can also go for
strategy of price discrimination where it can offer same products at high prices as compared to
other market-players. Ethical pricing can be also used where profits can be earned without
defrauding its main competitors and its consumers.
3.4 Promotional strategy
In order to promote its products and services, Boots can make use of various push and
pull strategies. Along with this, it can also advertise its products by using techniques such as
above the line and below the line. As per the nature of products offered by Boots, public relation
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and sponsorship will be more suitable to attract customers. The suggested methods will support
the organization in creating a distinctive image in market and enhance its overall profits.
3.5 extended elements of marketing mix
Along with hard elements, soft and extended elements such as people, physical evidence
and process also plays important role in success of marketing strategies. Skilled and productive
workforce is very essential in carrying out marketing plans. Further physical evidence such as
brand image and logo creates distinctive image in the minds of customers. At last effective
process helps in delivering products and services on time and with better quality (Ataman, Van
Heerde and Mela, 2010). These all elements supports in getting high degree of customer
satisfaction and increase sales of businesses.
Task 4
4.1 Two marketing mix for two segments
Marketing mix for anti -itching cream (age group of 10-15)
Elements Discussion
Product Anti-itching cream is useful for male and
female both for diverse purposes.
Price Price will be £25
Place The product will be available on all the
cosmetic stores and pharmacy stores
(Hermann, 2009).
Promotion In order to promote the product,
advertisements can be given.
Marketing mix for acne cream (age group of 20-40)
Elements Discussion
Product The product is useful for youngsters.
Price Price will be £35
Place Pharmacy and other medical stores are the
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sources where products will be available.
Promotion Newspapers and advertisements will be used
4.2 Difference in B2B and B2C marketing
B2B is the concept in which one business entity trades with another business entity for
the purpose of selling the goods and services (Handlechner, 2008). For instance- according to
Boosts, selling of pharmaceuticals products to other business and medical centers comes under
B2B business. However, selling direct services to the consumers is termed as B2C concept.
Suitable products are required to be sold in both the cases so that business can retain its position
in external market place. Similarly, B2B and B2C both the concepts emphasizes on including
diverse aspects of product selling. Marketing techniques are also different in both the concepts as
in B2B, Boots focuses more on influencing profitable business entities. Whereas, in B2C chief
emphasis is given towards promotional aspects so that large number of customers can be
persuaded towards business products.
4.3 Difference in national and international marketing
At the time of entering into international market place, it is essential for Boots to consider
global policies and strategies according to the legal aspects. The concept of internationalization
is beneficial and risky as well because at one end it generates much profitability and on the other
hand, it arises issues related to market difference. International market is complex; hence Boosts
can acquire greater prosperity and success; however due to complex rules and regulations,
Boosts might face issues regarding legal constraints (Fifield, 2012). In the realm of technology,
international marketing could assist Boosts to acquire much benefits by emphasizing more in
technical aspects. Considering the difference between both the types of marketing, it can be said
that domestic marketing do not have complex issues; however international marketing have
many constraints related to legal and political facets.
Conclusion
Summing up the entire research study, it can be said that while marketing the products
and services, Boots needs to emphasize on all the associated principles. The approach of
marketing orientation should be adopted for the purpose of enhancing customer base and revenue
ratio. Thus, the study has discussed how effective targeting assists in changing business scenario.
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