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The Legal And Ethical Issues Marketing Essay

Boots is the leading pharmacy-led beauty and Health Company in britain concentrating on health, beauty retailing and pharmaceutical products. It offers covered a broad area in the international market with branches widening to main European countries. A complete range of products are offered by the company in beauty parlours and pharmacies while No. 7 being a unique brand which is very popular amongst its customers. Boots has become a leading company because of the good working marriage with its makes and pharmacists.


The goal of this project is to give an overall strategic position of the business by analyzing Boots. In such a report a wide outline of the company's position was done using SWOT evaluation (Power, Weaknesses, Opportunities, Hazards), and the company's competitive advantages was analysed by using Porter Five Pressure model. Also the impact of IT was analysed on the organisations functions and its competitive benefit.


The finding of this article was a assortment of data from a variety of sources. Hence, it is figured, Boots investment in IT/IS have shown significant expansion in the business's performance and income. Its ability to outsource its IT and Man Recourse Department gave the company the power to give attention to what mattered more, its customers.

The key findings of the statement are the pursuing.

Boots is a leading beauty, healthcare, optical professional and pharmaceutical business not only in britain.

By outsourcing it's IT and Human Resource division, Boots focuses on delivering first class service to all its customers which is the important aspect of its business.

IT/IS has been the driving a car make behind the success of Boots, the advantages of trainable touchscreen tills was a visible addition.

Boots has rolled out its Customer Advantages Card, and can manage its customers purchasing behaviors and monitoring the products and services and particular group of customer purchases

Report Structure

Management Summary: Describes the survey structure and features some key conclusions.

Introduction: Includes the business's back ground and historic information while providing details of the merchandise they feature and their financial position.

Strategic Analysis: That is an in-depth SWOT (Strength Weakness Opportunities and Hazards) research.

Competitive Analysis: This chapter gives information on the company's competitive advantage amongst its rivals using the Ported Five Drive model.

Impact of IT/IS: This chapter gives an over view on how IT/IS impacts the overall operation on the business and the competitive benefit it has on its competitors

Briefly summarise the way taken in the survey, and the main element findings


Being in the field of health care products for greater than a century, Boots Company plc is one of the most respected and leading companies in the united kingdom for health, beauty products and pharmaceuticals. Developing a humble start as an herbalists store founded by Mr. John Boots on Goose Gate in 1849, within the centuries, the company has nourished into a huge cooperate both merchandising and making healthcare products. Having more than 1000 stores in the UK itself boots has globally extended its merchandising into Europe, Australia, Canada, India and china and taiwan. Boots products are supported by excellent R&D with superior laboratories, contributing to the technological developments in the medical domain name. In 1985 Boots received Queens Award for Technological accomplishment for the finding and development of ibuprofen (Brufen) marking its excellence in research.

Boots' main way to obtain income is from the front end merchandising portions. Boots occupies more than 1000 retail stores in the united kingdom itself. specialize in retailing Healthcare, Beauty & Beauty products products. With Boots Opticians Ltd, as a subsidiary boots is also one of the most significant optics chains in the UK. Boots also promotes other products in categories such as gadgets, camera & photography and playthings. Boots shops provides these in blend as they may have identified these products as being moving in line with the client wants for their main product site, healthcare and beauty products. Boots manufactures a wide variety of products, without 7 - Cosmetic, Soltan - Sunshine cream and Almus - Generic Drugs as its famous branded products. After the breakthrough of ibuprofen by Boots laboratories the business has vastly broadened into research and development of drugs and mass manufacturing of pharmaceuticals. Boots has its hang on the makeup products industry as well. With its famous No 7 cosmetic makeup products brand launched in 1935 it includes a variety of aesthetic products and brands including '17 beauty products' and 'Botanics Skin area care'. It also retails in perfumes, mother and baby products, toiletries as well.

Boots also offers wellbeing services, with a range of services from facials, homeopathy, laser beam eyes surgery to nutritional advice.

The company began venturing directly into IT systems to raise the efficiency of management and businesses early in the 1990s. In 1992 all Boots stores were installed with EPOS (Electronic Point of Deal ) systems to automate sales businesses and track record all trades. Boots had noticed that a competent Information System was necessary to the effective management of the group as Boots has recently exceeded the size limit where manual methods for information management are severely ineffective.

Strategic Evaluation

For Strategic evaluation of the company Swot and Infestations tools were used to analyse the organisation's current position in the retail field. A brief release about SWOT and Infestation tools are listed below.


PEST stands for Political, Economic, Sociological and Technological.

A PEST analysis examines factors under these four headings and exactly how they might influence an organisation.


Boots could be affect by politically in lots of ways, taxation is one of the major issue with the huge companies because they keep changing time to time this may affect for net profit of the company. Employment laws and regulations and consumer cover is also taking major places for the health and beauty product selling companies because all the products should be safe for individual. Government Organisations attitudes also need to be consider for moment of this company. If the UK government were to put a quota on Boots products brought in, only allowing a degree of Boots products to be brought in to the country each year. Boots could defeat this by situating more factories with more product range in the UK.


Economic development in overall in this Pharmaceutical Products and healthcare industry sector is really competitive for the Boots, because they need to challenge all other merchants, who sell the same group of products by increasing product variations and etc.

Inflation also results on costs and selling prices on the merchandise at it might lead to minimise the expected income. And there will be exchange rates that could change a whole lot, and on top of this there is payment to pay exchanging money from one currency to some other, making buying and selling products overseas more expensive for Boots.


Age framework of the population, gender, family size and structure and changing nature of occupations could be influence on boots sales as they uncovered that they got most female customers than male. As the united kingdom has a wide selection of individuals from different communal backgrounds, Boots have to be aware of things like people's religion, contest, culture, education levels, population, gender, age circulation, buying behaviors and lifestyle. Therefore, I have to promote my product so that it appeals to the various cultural backgrounds of the UK, as this will maximise my sales and enable my product to fulfil its potential market share.


Under technological terms boots you need to consider about new discoveries and development, speed of their repository and other technology, changes in hardware materials, maintenance and working cost and also impact of changes in information technology. Those major facts that require to consider under scientific conditions and also scientific advances in things like machinery will have an effect on Boots. Therefore Boots need to be tuned directly into new technology, which can increase creation, save energy or cut down labour required. If they weren't aware of new technology in equipment they may ultimately go out of business credited to other firms becoming more efficient and increasing more of the market.


SWOT Examination is a technique which aids a firm to determine its Advantages and Weaknesses, as well as for identifying both the opportunities accessible to you and the dangers face. It can help find out opportunities that the company can exploit, by understanding the weaknesses of the business strategy the business can take care of and eliminate hazards (SWOT Examination).

SWOT research is a way where by the utilization of core-competence tree and the current-reality tree the talents and weaknesses are built-into core competences and core problems. To be able to conserve and influence the organisation's primary competence, the center competence and core problems are linked into a plan of action while defending against contact with core problems. It does a broad inner analysis for the identification of appropriate opportunities and risks by doing a study on organisational functions followed by environmental scanning.


Operation since 1849, dominated the UK Pharmaceutical market: This is a very valid point as having this dominance in the market from the inception provided Boots the versatility of the marketplace until today. Insurance firms such dominance Boots could make their mark.

Its leading brand: Boots has its leading "No. 7 brand", including "Soltan", and their "almos" brand which can be used because of its generics medications.

Leading Pharmaceutical and distributing inexpensive: Boots has syndication and low cost businesses in a number of countries including its main stores in European countries and likewise boots also spread through associates in four different other countries. By doing this Boots controls a very large portion of Europe's pharmaceutical distributions business which makes it a leading border in front of its rivals.

Customer concentrate: Boots pride itself on growing experience retail and wholesale teams which handles their individual areas. By doing this, boots creates an internal management system, handling customers purchasing patterns.

Marketing and advertising strategies: Boots boast a very effective and rewarding Advertising campaign.

Boots procedure of its advantage greeting card system has revolutionized the industry, by the benefits of this system, boots have been able to fully capture customer buyer's behaviors.


If any circumstance the raw materials is not found then it will be a great weakness for them. In cases like this they have to face many problems.

As they need to set up a well decorated shop the price will be high and also having products from the house country will also be costly. So they must need to have the ability to the.

Again the campaign of the products, advertising, attracting the clients are also costly as well as for that in addition they have to have good management because of this and cost is also important.

Again deciding on the best location is a big matter on their behalf. So they need to select a better place where the customers can have all the facilities they need.

The franchise arrangement usually includes constraints on how you run the business. So the Boots franchisee is probably not in a position to make changes to fit your local market.

The franchisor might go out of business, or change the way they do things if so they can have serious problem.



One major opportunity that boots have capitalised on is speedy growth of its pharmacies so that it is an instant growing business; using this method it allows them to attain a wider customer foundation allowing then to improve revenue.

The aspect of revenue technology may a chance for Boots, as in the winter and fall conditions, Boots have observed increased sales than it cool and flu drugs.

Boots possess the possibility to recruit the best heads in the pharmaceutical as it offers one of the very most respectable pharmaceutical businesses in the county.

If they can follow a few of the other departmental stores in the cases of promotional activities they can easily aim for the segment they need.

They can have availability of the supplier as they are already well known.

They got enough full time marketing analysis to guide them for the moment.


A weak current economic climate can have very catastrophic influence on any business, Boots Alliance been market leader can be affected by such changes. Case in analysis, the 2008-2009 Rescission has seen many businesses close and even considerable layoffs.

Boots encounters on-going dangers from rivals such as Tesco's who have been drastically increasing the quantity of stores they currently have, which therefore put pressure on boots to up their game as it relates to keeping ahead of the Pharmaceutical and health care business. It has brought on Boots to eventually minimize prices with will decrease their profit percentage over time.

The rising cost of new technology will be an issue for business wanting to expand and to meet the swift change of technology. Boots faces the risk of rival business using the same solutions for a cheaper and similar reliable way of procedure.

Factors such as market, affecting inflation and interest rates is an outside the house risk for Boots, as in 2009 2009 the interest rate drops to an all time low as 0. 5%, which influences the spending ability of customers.

Their choosing of the location to create the store may also be a threat for them. If they opt for place where there is not enough purchasing vitality of the clients they cannot make revenue.

Impact of IS

Boots new IT/IS system

Boots has indeed come a long way as it relates to the implementation of top grade information systems. The culture of boots also offers significantly changed over the years. In the first years boots experienced its its framework which basically handled all It requires. Subsequently, boots has realised that over the years it can improve on its IT infrastructure, granted that the company boost it pride on consumer satisfaction.

Before the implementation of the outsourcing operation with IBM, Boots was formerly spending in excess of 100 million each year for three consecutive years, which when tallied totalled to 350 million. This money was put in in overhauling of the IT infrastructure to boost efficiently and more importantly the give it customer's affordability.

IT Director Rob Fraser was quoted expressing "we commit about 100 million annually in the past three years and now want to drop down that to 25 million or 30 million, but this includes building on the foundations we have put in place"

He described that they handled every part possible in their IT sector to add the outsourcing of its data centre, waiting for you and network systems.

One of the biggest moves for the business was the transformation from the old central Legacy system to the new (business tool planning) with is the back bone of the IT operational System.

The culture of Boots IT systems has changed dramatically, by doing so Boots could mount new PC's on all its rear offices and overhaul of its networks system and created touch screen tills across all its stores over the UK.

"This renewal got our IT infrastructure to industry leaving level. Now we have to get it to work for all of us and derive the value from our systems" Fraser explained.

Management have said that, it was necessary for Boots to restructure their ongoing out sourcing offer with IBM. The company's primary goal for the improvement in its IT sector, is to concentrate on how it can improve its customer marriage, lowering its IT operational cost, and improve on it delivery capacities.

Boots had additional plans when it hired Tata Consulting Services out of India as yet another outsource client. It was of the view that with several client is rises competition and at the same time looked to slice cost and getting affordability for any its customers.

A report written by David Friedlos he remarked that "one of the biggest areas of spending in the year ahead will be development of IT for medical care along site the NHS, including E-prescription and a fresh program launched in Scotland".

Another area where Boots IT sector has been effective on the culture on the organisation is by the implementation of IT/IS software to work alongside the NHS countrywide database. In so doing, boots has been able to register patients online from the nationwide database. Additionally, it allows patients to be accepted if they have minor disorder that can be handled at any Boots pharmacy, thus easing the pressure on local GP office buildings. It has also seen significant benefits, as the patients at the idea of visit will more than likely purchase their drugs from the store. It really is a very good way that the IT/IS has impacted just how customers shop at boots.

Additionally, the implementation with their customer advantage cards launched in 1997 which have seen tremendous advantages to include having 10 million documented card customers 2 million more than originally forecasted for.

All this investment was to the melody of 25 million including the database that was used to carry the clients data.

It is quite clear that Boots have radically transformed its culture as it relates to IS/IT systems. In utilizing their point out of the fine art IT system boots have leap frog in front competition. Such advantages were the execution of a scam recognition system and the increased advantages from their SAP applications (Systems Applications and Products).

Listing a few cultural changes, these would include

Leading research recognise the large IT improvement that Boots have made.

The integration with their Has been the NHS databases offering customers the simple prescription filling up at any Boots pharmacy.

The ability to use CRM (Customer Relation Management) to screen consumer shopping habits.

Out Sourcing

The out sourcing of Boots payroll and human resources systems to Northgate HR in 2006 in a deal worth 16 million over the seven time period.

This includes its 65, 000 employees who work in medical and beauty department

Boots HR head of operations figured they did detail evaluation of the HR division and also have concluded the best way was to out source

Man power planning and labour arranging was contracted out to Torex Retail

In 2006, boots declared a 350 million upgrade from it point of sales system that will enable E-learning because of its 60, 000 plus personnel. The new touchscreen will be utilized for training personnel making them better during amount of very little activity in stores. The very smart thing relating to this was that the tills had smart transitioning software's, that allows cashiers to do training while working. When a customer approaches some a screen switches it back again to the checkout system.

"Working out department at Boots realised these computerized training could not replace person to person training but it compliments it said" Michael DeSalles.


The influence on IT/IS has brought on the culture of the organisation to change, this is obvious when boots rolled out their touch screen tills a change from the old regular thrust buttons tills. By doing so, specific training was more personalised.

Additionally, by outsourcing techniques its IT/IS department, it could be assumed that the company would have had to redistribute it employees to other departments.

Competitive advantage

A competitive advantage is what boots required and by its sizable financial shot to their IT/IS update. By learning several documents like the case study given, there are several that may be clearly taken to light.

The new IT/IS system has more than given Boots the competitive advantage against it competitors. And there are numerous reasons to aid this decision.

K. Laudon in his Publication explained that "Information systems promote better management of firm's possessions and cash moves that can increase revenues and reduce operational cost, thereby improving its competitive position".

Boots have position themselves on the proclaimed form the starting point where, their ventures in IS systems they may have proven much dividends in exchange. Their competitive benefit has been obvious in several areas.

Human resource

Boots has been able to improve on its human being resource, had the opportunity to implement on its tills a training software enabling personnel to learn face to face whilst working at exactly the same time. Due to boots constant drive to improve their IS system. Presently they acquired more than 25 analyses to analyse their greeting card holders purchase history to decide about their future sales programs.

Business process

Boots business process has given them much benefit as it relates to product differentiation, Boots out sourcing offer with IBM has given them more time to concentrate on what matters most to them, their customers. Therefore having done that, they were able to designate exactly what they'd want to do.

Identifying Customers' needs

Boots has received favourable response from its customers and have also been able to use IT/IS to keep an eye on customers purchasing habits.

Please summarise here responding to these 2 questions:

1. Investigate the impact of the new IT/IS system on the culture and output of the organisation

2. Identify information that corroborates, or falsifies the claim that the new system has sent value and provided the organisation competitive gain that Boot's management were seeking?

eMarketing Strategy


EBusiness is a great way that companies using to increase and enhance their business via internet or making use of internet technology.

E-business is a assortment of business models and procedures encouraged by internet technology and focusing on improvement of prolonged enterprise performance (Planning and controlling the supply string: By David Simchi-Levi, Philip Kaminsky, Edith Simchi-Levi)


E-commerce is the capability to perform major commerce purchase electronically (Building and handling the supply string: By David Simchi-Levi, Philip Kaminsky, Edith Simchi-Levi).

E- marketing strategy

eMarketing is the management process responsible for figuring out, anticipating and gratifying customer requirements success (http://www. cim. co. uk/)

E-marketing strategy is just how of providing information about consistence path for the organisation to adopt e-marketing activities that hyperlink using its other marketing activities and help its overall business targets. And it offers some similarities to characteristics of traditional marketing strategies. They are listed below

· Give a concept about future assistance of the internet marketing activities of the business.

· Analyse the organisation's capacities, external environment, inside resources that need develop to information strategy.

· Join the internet marketing aims and the other marketing goals that can support.

· The most appropriate marketing ways of gain the internet marketing goals and make lasting differential competitive advantages.

· Use basic marketing strategies such as marketing combine, target market and positioning to build up Boots

Different e-marketing strategies

Differentiated strategy: This is also referred to multi-segment or selective field of expertise plan. In this way, several target market emerges the merchandise and service. The product could be the same or it could be different. However the branding, advertising campaign and even promotional communication changes for each focus on customer group. For instance, the boots markets different kind of health and beauty care products for different set of customers. The product is different but size could be same or size is different but product could be same.


In order to market the company I used several analyse solutions to check out about boots current problems. So first I used the SOSTAC planning system. I used to determining the best option marketing plans that require to look at for boots and there are a few basic elements that each marketing plan must have, SOSTAC cover all of them.

S stands for Situation Examination - which means where are we now?

O means Objectives which means where do we want to go?

S stands for Strategy which summarises how we will make it happen.

T means Tactics which are the details of strategy.

A is to use it or execution - putting the program to work.

C is made for Control which means measurement, monitoring, researching, updating and modifying.

Situation Analysis




Marketing Combine -

Neil H. Borden first coined the idea of the marketing combination as a means of describing mixture of marketing techniques, ingredients and policies that ought to to used while formulating a marketing plan(Ross). ( Elements of the marketing combine are often referred to as the "Four P's" unveiled by E. Jerome McCarthy in 1960. They are Product, Price, Place and Promotion).

As a one of the main key component of marketing combine, promotion is necessary to consider when expanding the integrated marketing communication plan. Therefore the Boots need to consider about all the communication options that currently available to target the customers. So when we consider about the Boots it includes many ways to market their ecommerce web site for their commitment customers. And in stage the Boots should give priority to low priced promotional methods apart from high cost methods.





This represents every one of the communications a may use to promote its products to be able to increase its sales. Boots can offer special discounts to new loyalty customers or when they buy something for the very first time over a particular price they could get more loyalty tips. This really helps in attracting customer. They can also advertise about the devotion credit card benefits in the newspaper publishers, internet and Television.

You should identify here the main element element of an marketing combine and suggest how other elements would support it.

Word of mouth

Word of mouth is a god technique of publishing to site of the Boots Company. Nonetheless it has both positive and negative sides. Mostly people use to give publicity if it does not provide proper service. So with all the word of mouth technique to advertise about the Boots loyalty card, the business has to ensure that the customers are satisfied about their products, quality and the service to be able to prevent the disadvantage of this technique.

Actions or Implementation

These will be the things to do to be able to implement methods and also to achieve the proper goals. After the strategy has been set up, evaluation of the business's resources must be done by assigning the goals to the resources and discover if it measures up. The elements of marketing mix can be used to achieve some of the marketing strategies.

You have to offer here some specific actions, answering the questions - HOW? WHO? WHEN?


These are things you can do in checking whether the goals were achieved. For example whether Boots devotion card is prosperous and its research methods are basically useful for the future of the business etc. Milestone should be set to ensure that the plans are completed accordingly. Suggest other ways of control as well i. e. analytics etc. . .


In order to market the boots devotion cards, the management should balance their online and offline promotional methods. This means giving publicity to their site in offline methods and online methods promoting non web customers to go to their stores.

Offline promotion identifies using different marketing communications tools such as advertising and PR supplied by traditional press such as Television, Radio and Print out in order to direct people to an online business.

Print materials

Print materials such as leaflets, business credit cards, letterheads, brochures, postcards, bookmarks and so on. All above materials can be utilized publish the new credit card and the name of the Boots company. Same time people are getting happy image about the Boots because they're giving some benefits to their customers.

Legal and honest issues

Use of internet information, gatherings, processing and circulation are legal and moral issues that need to be considered. Company's business online is a direct representation of how good ethical standards are put on the internet because ethics come with an immense influence on the business enterprise. It influences the brand image of the company while affecting the company's success for the long term (pwebs, 2006) by affecting how sales, marketing, and advertising principles are applied. To prevent the affects to the brand image and online sales the Boots website and search engine marketing must not perform almost any unethical searches. The major legal and honest is with intellectual property issues. Trade Magic formula Protection is a method which helps to protect the ownership of a concept and keeping those ideas top secret. Usage of copyrighted material, I have already been very careful so as to never to use any copyrighted materials on the website. (tekxam, 2005). In ecommerce websites there are many legal and internet site regulatory issues such as Electronic digital copyright, e-commerce, credit/cash procedures, international trade, tariffs, privateness, digital press offers, and security and many more (pwebs, 2006). Unethical spyware and adware should not be found in the web site. Handling of customer's personal details should be achieved very carefully by Boots as the business will maintain trouble if any violation is done. The company must consider that the email of the customers should not be sold to others and to avoid spam by pointless mails dispatched regularly. Once known that the client has unsubscribed the e-mail address must be removed instantly from the database.

Any specific factual statements about Boots? Any specific guidelines/recommendations to Boots?


In the uk Boots is certainly the best company in pharmaceutical, healthcare, beauty and optical service.

This report indicates the position of the business in the form of a swot research and the other in Porters FIVE power.

A broad and detailed study of Alliance Boots gave the following details:

Boots have the ability to expand to a broad customer bottom part and market share due to its combine with different business such as Unichem from a single entity.

Out sourcing of Boots IT team to IBM was a glowing idea as it is a proper respected company.

Alliance Boots gives priority to customer satisfaction by inspecting ways to make sure the best products, the best prices, and the best services are delivered to their customers.

Over the years Alliance boots have moved to a multimillion pounds per annum business from a single entity.

So what's your finish - the result of your research?

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