Boots plans 15% budget cut amid refocus on brand

Boots is to slash its media spend by up to 15% as it embarks on an overhauled marketing strategy focusing on brand rather than price promotions.

The retail group, which is expected to reveal a fall in annual profits from £639m to about £550m today (Thursday), has signed its first TV sponsorship to aid the strategy.

It has agreed a six-figure deal with GMTV to back its summer holiday and travel content, and will use the three-month strand to promote Boots-owned brands such as cosmetics range No 7, kids clothing brand Mini-Mode and sun protection brand Soltan.

The agreement will include idents and promotions on themes such as getting ready for summer. It moves the brand away from the three-for-two offers that analysts have criticised for playing too prominent a role.

The deal comes as Boots plans to slim its marketing communications spend by up to 15% in the current financial year. Boots spent £48.3m in 2002.

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