Boots to cut promotions and revamp loyalty strategy

LONDON - Boots is to move away from promotional offers as part of a brand investment programme that will position the chain as a must-visit high-street destination.

The retailer is also planning what sources say is "a significant evolution" of its Advantage Card loyalty scheme to drive consumer spending and improve Boots' knowledge of its customers.

Boots is understood to have decided promotional tactics, such as the three-for-two product offers that have been a mainstay of its marketing for several years, should become less integral to its overall retail strategy.

Ann Francke, the former Mars and Procter & Gamble marketer who joined Boots in February as its strategic marketing director, is spearheading the brand investment programme.

"[Francke] believes that Boots should be much more about exclusivity, and giving consumers more powerful reasons for shopping there than the traditional product promotions," said a source close to Boots.

Francke is considering an overhaul of Advantage Card in order to improve Boots' data-mining and cross-selling opportunities.

The retailer, which will next month see the arrival of former Asda marketing director Richard Baker as its chief executive, is midway through a transformation project.

This includes slashing £100m from group costs and investing £40m in the current financial year in a campaign called "Lower Prices You'll Love".

Boots' most recent trading update, announced a month ago, provided more positive news for investors, with first-quarter sales growth of 4.7%.

Marketing has also learned that a review of Boots' agencies will constitute a wide-ranging overhaul of its entire agency roster, and not just its relationship with WPP's J Walter Thompson and MindShare.

Francke was not available for comment as Marketing went to press.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum here.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers