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Boots Macro Analysis

Essay by   •  August 9, 2011  •  Case Study  •  568 Words (3 Pages)  •  1,657 Views

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1.1 Market overview

1.1.1 Nature of the Product

Health, Beauty and Pharmacy retailers take a number of forms:

- Specialists containing pharmacies: Alliance Boots, Lloyds pharmacy

- Specialists without pharmacies: The body shop

- Grocers: Asda, Tesco

- Department stores: Debenhams

1.1.2 Product Categories

Product categories of Health, Beauty and Pharmacy retail market included

- Pharmacy & health

- Beauty

- Fragrance

- Mother & Baby

- Everyday Essential

- Opticians

1.1.3 Market lifecycle

Health Beauty and Pharmaceutical retailer is one of the most important retailing channels in UK due to Boots is the sixth largest retailer in value sales (Euromonitor, 2010) The market grew at the constant rate; increase 3%, in 2009. Market growth was not heavily impacted by the economic recession. Beauty specialist retailers and perfumes benefited from consumers as they purchased small luxuries such as lipsticks and perfumes, in order to compensate for a lack of more expensive purchases (Euromonitor, 2010). Regarding to verdict, market growth is in the upward trend aided by people trading up to more expensive products in categories such as skincare.

1.1.4 Size and trends

UK Health and Beauty specialist retailers in 2009 are about £13.8 billion, which was, grow up by 3 percent from 2008. (Euromonitor, 2010). According to verdict, market is expected to grow by £17.4 billion in 2011.

Pharmaceutical and health care retailer is in a highly attractive and potentially market for long-term growth. There are many key trends and developments that are able to drive demand for prescription medicines and other health care products in this coming year including

1. United Kingdom population forecast

Figure1: UK population forecast 2000-2025

Source: United Nation, World Population Prospects: The 2008 Revision.

According to the graph above, UK population is expected to grow every year. It is expected that the growing in population will drive more demand for health and beauty products and related service.

2. An increasing in prescriptions medicines (Alliance Boots, 2011)

According to Boots annual



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