Boots UK has retailed products under the ‘Boots’ brand since the inception of the company more than 180 years ago. Its founder, Jesse Boot, was purpose driven and brought healthcare to the masses–which was necessary as the combination of access to doctors and apothecaries and the cost of remedies put them beyond most people, regardless of need. Jesse was an early adopter of advertising and, following campaigns that promoted healthcare for a shilling (a small sum in the pre-decimal British monetary system), the company led the way in providing affordable medicines that were tested for quality and safety before this was a requirement. Boots provided advice and support from qualified nurses and pharmacists as part of the solution it offered. Making its medicines available via mail order during the First World War and extending its opening hours during the flu epidemic of 1919 helped cement its reputation further. Along with his wife Florence, Jesse also introduced advances and innovations in retailing, and Boots extended its product range beyond medicines too. If that was not enough, Florence and Jesse also advocated improvements in worker education and conditions, and the five-day working week. These were all groundbreaking actions, underpinned by the company’s values and implemented by Boots. 

Because of Jesse’s own background, and the desire to enhance access to quality healthcare for everyone, the initial focus for Boots was on medicines, with a clear strategy to target individuals and families on lower incomes, not least because the needs of such customers were not catered for by others. Over time, and underpinned by its values and approach, the Boots name became known as a mark of higher standards and quality. This enabled the business to evolve, enhance and extend its offer, and to be a recognized as a trusted provider of market-leading products and services. Product innovations that supported the development of the Boots brand included the popular painkiller Ibuprofen, the creation of a range of affordable cosmetics under the name No7, and its work to devise the five-star UVA rating system for suncare products. More recently, following its history of operating in a socially responsible way, the company has joined the Plastics Pact (led by WRAP), and made significant progress in reducing and eliminating plastics, with benefits for its products, packaging and customers.

From early on, and following some of these innovations and developments, the segments the company served evolved. Not only did it offer great value healthcare, it also offered cutting-edge products and services. Slightly more affluent shoppers became a focus for Boots, and a target for its latest products and developments. For example, the beauty part of the business developed and grew from the early days due to Jesse’s wife, Florence, and the market opportunities available. Florence was the driving force behind these products and approached their launch in a way reminiscent of current practices: drawing inspiration from celebrities of the day and generating appeal via their preferences. This overall positioning of the brand, with its broad reach across product ranges and added service, remains today. Boots UK still offers a large range of own-label products in the value tier, but with added-value benefits, and applies science, knowledge, trend and innovation led products and solutions, many of which are differentiated via sustainability features and Boots’ social purpose, which allows the company to stretch into premium beauty, couture fragrances and other markets.  

Questions

1. What approaches to segmentation and targeting best explain the Boots UK strategy at the start of its journey, at points in time and over time?

2. Is the history and story of the Boots UK brand, its values and purpose, and well-known product brands and services, of benefit and importance or a challenge when it comes to the markets it targets and its positioning?

3. What role do the purpose, values and sustainability oriented developments and innovations that Boots UK has engaged in play in its positioning and response to the requirements of selected segments?

4. What are the benefits and disadvantages for smaller niche producers, who appear more likely to be plugged in to the (new) product requirements of customers than larger organizations such as Boots UK, when it comes to their segmentation strategy?

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