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To what extent will Boots marketing objectives assist Boots in achieving its long-term strategy?

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Introduction

To what extent will Boots' marketing objectives assist Boots in achieving its long-term strategy? (34 marks) Boots the chemist, established in 1849, has had a variety of corporate objectives since its inception. Starting as a partnership between John Boots and his mother, their main objective was likely to be survival (as with all new business start-ups), but throughout time the Boots brand has build and secured its place as the UK's favourite cosmetics chain. This has also altered the objectives of Boots, as they can afford to set more ambitious targets. The expansion of Boots has lead to the need to different organisational structures, where the functions (also known as departments) of the business are clearly set. One such function is the marketing department, which will have its own objectives that need to be fulfilled. Marketing objectives are the specific goals or targets of the marketing department in an organisation. The typical marketing objectives of Boots are as follows: * to create and maintain brand loyalty, * to maximize market share, * to increase product range awareness, * to increase sales and footfall, * diversification into new markets by developing innovative products. These objectives must be set in line with their corporate objectives, which are the targets of the business as a whole, to ensure the workforce are all working to common goals. ...read more.

Middle

into new products or if drastically increased allow a horizontal merger between Boots and a competitor to occur, to increase market share further. However, if Boots' activities are seen to be against consumer welfare then the competition commission, who regulate the market and manage business mergers, could fine them obscene amounts of money which would be detrimental to future development. Market research is crucial for a business when developing and launching new products. Marketing is all about meeting and responding to customers' needs and wants. Hence, market analysis essentially provides the backbone to new product development. If Boots need to increase the product range of their top brands, then a significant amount of capital will be needed to fund the initial R&D. Internal factors as well as external factors influence a) the marketing objectives set and b) the ability to meet these marketing objectives. As Boots is a profitable business, finance isn't as important a factor as if, say, a sole trader pharmaceutical company went to implement a new strategy. Boots have the human resources, finance and sophisticated operational systems needed to successfully meet their marketing objectives and ultimately allow for a successful marketing plan. Throughout innovation a business can expand its product range and exploit market niches which have previously been unfilled. ...read more.

Conclusion

This seems counter-productive to Boots' long-term plan of expanding rapidly ('accelerated development') as it may keep sales constant which is good, but it won't increase them significantly, which is bad. The capabilities of the other business functions within Boots' will not act as a limitation towards succeeding to meet their long-term aims. As a business earning supernormal profit (profit earn above the rate needed to keep the firm in the market) it has the potential to retain profit for marketing activities and campaigns, which generally cost a lot and acts as a huge cash outflow. This money can be used to purchase new capital equipment if the operations department cannot supply enough products if demand peaks and also to train and motivate the workforce so Boots' succeeds at every level of the business hierarchy. Ultimately, I think Boots' marketing objectives act a clear, focused pathway to meeting their proposed plan in the future and will definitely allow Boots' to keep its competitive edge and generate significant profits for years to come. The extent to which they will help achieve future development is highly supportive, as they all focus on maintain a strong position in the market as a leader, but in the world of business nothing is set in stone and many variables influence business activity which simply cannot be controlled, hence contributing a degree on uncertainty. ?? ?? ?? ?? Business Studies Assessment 1 - Adam Denny ...read more.

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