New Business Proposal: Boots Spa

Topics: Boots Group, Alliance Boots, Alliance Unichem Pages: 27 (8265 words) Published: March 10, 2013
New Business Proposal/ Boots Spa|
BBUS503/ The Synergy Group |
Saif Elemara: W1281351
Noreen Mukalazi W1295574
Janita Appau W12796687
Yixing Zhang W13108452

A response to consumer demand4
A gap in the market4
An Improvement to the No 7 Product portfolio5
Mission Statement6
Brief Industry description7
Market description7
Size of the market8
Competitor analysis9
Stage 1 Identify Competitors9
Stage 2 Audit Competitor Capabilities10
Stage 3 Company Capability Profiles11
Stage 4 Infer Competitor Objectives11
Consumer Behaviour11
Market segmentation / Targeted audience12
Smart Objectives15
Overall Business Objectives15
Marketing Objectives16
Operation Objectives17
Marketing Mix Strategy19
Promotion Mix21
Competitive advantage23
Boots Competitive Base23
Figure 1.1 Boots Spa Supply Chain25
The Transformation Process26
Figure 2.1 Transformation Process26
Human Resources27
Financial Summary for Boots Spa Clinic28
Variable Costs29
Reference list:31


Boots is the largest health and beauty retailer in the United Kingdom, with 1,400 stores in Britain and Ireland, and over 68,000 employees. At the heart of the business is Boots the Chemist, the UK's leading drugstore chain. Outside the UK, the company markets over-the counter drugs in over 130 countries through Boots Healthcare International and has a growing retail business, Boots Retail International. These businesses are supported by a widely respected product development and manufacturing operation that launches around 1,500 new products a year. ( 2011). Boots Spas will have highly trained experts available to discuss customer needs. The menu of treatments chosen will be based on the highest level of research and scientific backing .Before any treatment is carried out at Boots Spa, dermatologists will have an in-depth consultation with clients. Dermatologists will make an assessment and requirements will be discussed; treatments will be advised based on the results achievable. Some none evasive treatments could include Wrinkle Relaxing Injections and Medical Chemical Peels. . As noted in the graph by Mintel few people have had their skin care needs recommended by a dermatologist.

A response to consumer demand

The idea of the spa is a response to consumer demands as we saw that customers responded to this sort of service in high end stores, we wanted to bring the same sort of high quality to their home stores. This as well as driving sales will increase awareness of boots own brand No7

A new segment with much potential has been identified in the health and beauty sector as According to (Mintel Facial Skincare 2008), no other competitor fully serves this segment. Consumers are becoming more conscious about their health and beauty appearance.

They are also becoming more aware of ingredients and concerned about reported links to things such as allergies and cancer.

A gap in the market
This gap still remains untouched in the health and beauty service field. In order to introduce the Spa Treatment Centres, in all 100 UK based stores, a strategy that intends to target prospects will be implemented. This would be done after measuring the differentiated attributes that rivals such as Lush and Sanctuary Spa don’t offer to their customer. Despite that, leading beauty product retailers such as Debenhams and John Lewis will also be considered as competitors to the new service as they pose a threat of new entrants to the service. Boots has to be the first to cease this opportunity to fill a gap in the market.

For instance, in the health and beauty retail stores, consumers would likely search for a facial session to test...
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