Holland & Barett in management PDF

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business management work to describe the business strategy of a particular business...

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Table of content 1.0 Introduction ………………………………………………………………………. 2 2.0 Positioning of Holland and Barrett using porter generic strategies ………………. 3 2.1 Cost Leadership Strategy …………………………………………………………. 3 2.2 Differentiation Strategy …………………………………………………………… 4 2.3 Focus Strategy …………………………………………………………………….. 4 3.0 Marketing mix and the company’s positioning …………………………………… 5 3.1 The core four marketing mix for Holland & Barrett ……………………………… 6 3.1.1 Promotional mix …………………………………………………………………. 7-11 3.1.2 Product mix ……………………………………………………………………… 12 3.1.3 Place mix ……………………………………………………………………….... 12 3.1.4 Price mix …………………………………………………………………………. 13 4.0 Strategic decisions and relevant taught theories in its marketing efforts ………….. 13 4.1 Maslow’s Hierarchy of Needs ……………………………………………………… 13-14 5.0 How can Holland and Barrett evaluate its marketing efforts ………………….…… 15 5.1 Market Reaction ……………………………………………………………………. 15 5.2 Customer Response ………………………………………………………………… 15 5.3 Sales Performance ………………………………………………………………….. 15 5.4 Cost-Per-Acquisition ……………………………………………………………..… 15 5.5 Return-on-Investment …………………………………………………………..….. 16 6.0 Conclusion …………………………………………………………………….…… 17 7.0 References ……………………………………………………………………….… 18

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1.0 Introduction Holland & Barrett is one of the major health and wellness merchants in Europe, offering a comprehensive choice of pharmaceuticals such as; minerals, vitamins, health supplements, organic produce, and natural beauty items to its clientele. Alfred Slapps Barrett and Major William Holland founded Holland & Barrett in 1870 after purchasing a grocery business in Bishop's Stortford that sold food and apparel. They expanded their company to include a convenience store and a clothes store. It is also certain that they had a business on Epsom's High Street in 1900. Alfred Button & Sons purchased the company in the 1920s and preserved the name Holland & Barrett (Mark, 2019). Holland & Barrett's success is based on a dedication to always treat buyers and workers first, participate in ongoing innovation, and a determination to being ethical in all the company undertakes (Shiv, 2012). Holland & Barrett has invested in technology to make more than 6,000 items available to the public, and the company continues to engage in the environment as a leading source of sustainable products and projects. Holland & Barrett has five fundamental principles that describe what they believe in: collaboration, honesty, responsibility, esteem, and responsiveness (Mark, 2019). The UK-based firm is changing to give a world-class customer experience, with over 1,600 retail outlets in over 18 nations and over £700 million in annual turnover. In order to work sustainably, Holland & Barrett goods are created to the utmost standards of ethics, are violence-free, and of the best quality, extending from ancient favorites like Cod Liver Oil to the recent advancements like zero waste beauty (Shiv, 2012). For the purposes of this research, Holland & Barrett has been chosen to reflect on the firm and how it is positioned utilizing Porter's Generic Strategies. In addition, the seven marketing mix aspects are used to analyze how Holland & Barrett uses marketing techniques to strengthen and support the company's strategy. The research will also reflect Holland & Barrett's strategic decisions and applicable teaching ideas in its marketing initiatives, with a focus on evaluating the success of such efforts.

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2.0 Positioning of Holland and Barrett using porter generic strategies Holland & Barrett's approach of motivating people to take charge of their life is bolstering the company's reputation as a leader in the health & wellness space, as seen by its recent triumph in a competition aimed at increasing variation in promoting via the use of more generic methods. Generic strategies are useful because they define strategic positions at the most basic and wide level possible (Bruijl, 2018). According to Porter generic, establishing competitiveness necessitates a firm's decision on the nature and extent of its strategic edge. Each generic method comes with its own set of hazards, but trying to be "all things to all people" is a surefire formula for incompetence - becoming "stuck in the middle." The following is the positioning of Holland & Barrett using porter generic strategy (Álvarez and viltard, 2019).

(Dälken, 2020) 2.1

Cost

Leadership

Strategy:

The focus of

this

strategy is on productivity. A

company

intends

benefit

to

from

economies

of scale and

experience

curve effects by creating large quantities of quality items. The product is usually a simple, nofrills item that is mass-produced at a cheap rate and distributed to a huge number of people. Maintaining this strategy necessitates a constant quest for cost savings throughout the board. The linked distribution strategy aims to achieve the widest possible dissemination (Bruijl, 2018). Trying to build a virtue out of low-cost product characteristics is a common promotional tactic. Wal-Mart is an example of a company that uses the cost leadership approach. Wal-Mart recorded sales of $244.5 billion in 2013, making it the world's biggest corporation, as the business pursued a cost-cutting strategy that included generating economies of scale and making ongoing attempts to cut expenses (Pulaj, et al. 2018).

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2.2 Differentiation Strategy: Differentiation is a wide market strategy that entails developing a product or service that is seen as distinctive in its sector. After then, the corporation or product line may decide to charge a higher price for its goods. Style, brand image, innovation, functions, distributors, distribution, and client service are all examples of this specialization (Pulaj, et al. 2018). Because the consequent brand loyalty lessens customers' tolerance to pricing, differentiation is a potential approach for obtaining above-average returns in a certain industry (Abu, 2020). Cost increases are frequently passed on to the customers . Buyer loyalty may also act as an entrance barrier; in order to compete effectively, new businesses must build their own particular competency to differentiate their products in some form (Álvarez and viltard, 2019). Hero Honda, Asian Paints, HLL, Nike sports shoes, Apple Computer, and Mercedes-Benz vehicles are examples of effective differentiation strategies. Because differentiation provides a greater entry barrier, research suggests that a differentiation approach is more likely to yield larger profits than a low-cost strategy. A low-cost strategy, on the other hand, is more likely to result in market share gains (Álvarez and viltard, 2019). 2.3 Focus Strategy: The organization focuses on a small number of target markets with this strategy. It's also known as a niche approach or a focus strategy. The business hopes to better address the demands of the target market by focusing its marketing efforts on different segments of the market and adapting the marketing mix to these focused markets (Abu, 2020). Rather than productivity, the corporation usually seeks to obtain a competitive edge through performance. It is most suited for small businesses, although it may be used by any corporation. It may be used as a focus strategy to pick targets that are less susceptible to replacements or where competition is particularly low in order to gain a higher-than-average return on investment (Álvarez and viltard, 2019). Holland & Barrett, on the other hand, has embraced the cost leadership strategy, which entails boosting profits by lowering expenses while charging industry-average pricing. Furthermore, by expanding market share by charging lower prices while still generating a respectable profit on each sale due to decreased expenses, the business will be able to increase market share (Zekiri & Nedelea, 2019). Holland & Barrett, for example, employs its Rewards for Life cross-channel loyalty program, which allows consumers to earn points toward discounts. Customers may

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activate a card by signing into the system using the store's iOS app, and they can also build a loyalty account through the app, where they can collect points that can be used to get a discount on purchases. A wish list is included in the app. Holland & Barrett uses the program's data to better understand its consumers and their behavior, allowing it to enhance how it interacts with each of them (Zekiri & Nedelea, 2019). 3.0 Marketing mix and the company’s positioning Product, pricing, promotion, location, people, processes, and physical evidence are the seven Ps of marketing mix. This mix tactically positions a company like Holland & Barrett in the market and may be deployed at different degrees of force. This is done to guarantee that the main demographic is happy, that the perception of service quality is correct, and that the company stands out from the competition. Employing these P's in the most advantageous method for the organization may be incredibly useful, but first the corporation must fully comprehend each component of the 7 P's framework (Kuehlwein and Schaefer, 2018).

(Kuehlwein and Schaefer, 2018) 3.1 The core four marketing mix for Holland & Barrett 5|Page

3.1.1 Promotional mix: Holland & Barrett use its promotional mix, also known as the marketing communications mix, to advertise and promote its company and goods while taking into account the demographics of its target audiences (Baker, 2020). The following is a list of Holland & Barrett's various promotional mixes: Advertisement: The advertising approach of Holland and Barrett is based on the Google method of' see-think-do approach,' which is a channel that starts with the brand awareness and then drives consumers down to the sales level. First, the company needed to raise the brand recognition at the "see" stage of the channel (Baker, 2020). During this stage, the company shares the corporate identity with the customer and motivates them with entertaining facts about Holland and Barrett and what they stand for, as well as the strong personalities and celebrities who utilize the product. Customers are drawn to Holland & Barrett because their favorite celebrities utilize the brand. As a consequence, these clients are more likely to buy and utilize these items (Egan, 2019). The following step is 'think,' where Holland and Barrett retargets customers from the "see" stage in order to improve their brand familiarity. The main purpose is to direct users to the website, where they can browse the extensive product line and learn more about the items' unique selling points. The 'do' phase allows Holland and Barrett to target different adverts based on the purchasing and searching processes on the website (Egan, 2019).

(French, 2009)

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Public relations and publicity: Holland & Barrett employs public relations in their marketing communications. In this strategic plan, the corporation uses public relations to raise wellness awareness among the general population, such as the 'me no pause' campaign. Wellness is distinct for everybody, and this ad strives to highlight all of the many, and perfectly legitimate, reasons that people might perceive it. Through its PR platform, Holland & Barrett hears from individuals who have gotten through the last few days with the assistance of fitness Videos and Sourdough starters, to those who resorted to Vitamin C for that additional health boost (Andaleeb and Hasan, 2019). The organization employs public relations via sponsoring sporting events and other similar activities that involve the use of vitamins and health supplements, and these activities are used to communicate with target consumers about what the company is doing to solve key wellness concerns. In this sense, Holland & Barrett's promotional mix includes public relations to address wellness concerns and promote the company, allowing existing and new customers to establish a more positive view of the firm and its goods (Hill et al. 2019).

(Andaleeb and Hasan, 2019) Sales Promotions: Holland & Barrett's sales campaigns are typically in the form of unique deals made to certain clients, such as the 'buy one, get one free for a penny' campaign. Sales promotions are used by the firm to entice new consumers by providing added features, such as the reductions they may earn by purchasing when discounts or special deals are provided. In 7|Page

Holland & Barrett's marketing communications mix, sales promotions create demand from new consumers by pushing them to acquire the company's products based on these positive values (Percy, 2018).

(Percy, 2018) Events and experiences: As part of its marketing plan to raise brand recognition, Holland & Barrett organized an annual meeting for its domestic and global store staff, as well as Store Support workers. A total of 1,650 participants came at ACC Liverpool in November 2018 to attend the company strategy reviews and engage themselves in new products and categories for the next year. The conference subject, 'Now that's what I call H&B,' was created to connect the essential marketing themes with the venue's and cities musical tradition. During the meeting and banquet feast, Meet & Potato, the corporate retailer's event agency, partnered with the venue to donate 15 cartons of leftovers to the city's food banks as a means to promote sustainability (Trusov, et al. 2018).

(Trusov, et al. 2018) 8|Page

Personal selling: Holland & Barrett, a health food shop, places a strong emphasis on customer service. The company educates its employees on how to provide professional advice to customers in the store. Staff members attend the Holland & Barrett Natural Health Institute, which offers training that last an aggregate of a year and prepare them to counsel consumers’ instore about goods like nutritional supplements. It's an attitude that the business takes pleasure in, and it's no coincidence that it's clearly displayed on its homepage (Andreea and Cătălin, 2019).

(Owomoyela et al. 2018) Direct marketing: Holland & Barrett promotes their products through direct sales to specific markets. These items are frequently aggressively promoted. However, the organization employs loyalty programs to engage clients in certain market categories in order to have a stronger effect. For example, the Rewards for Life program, which was tested in 40 locations throughout the Staffordshire, Yorkshire, and Lancashire, attempts to keep loyal clients as well as attract new ones. Clients may earn four points for every £1 they spend in-store, online, or by direct marketing. Clients may exchange their points for vouchers that they can use to shop at Holland & Barrett stores (Festa et al. 2018).

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(Owomoyela et al. 2018) Word of mouth: Holland & Barrett uses word of mouth marketing which is a sort of promotional mix, to transmit consumer reviews from one person to another premised on referral. Modern word of mouth marketing includes both intentional efforts and organically occurring moments in which customers express their delight with a product or service (Owomoyela et al. 2018). The following are client reviews and testimonials from Holland & Barrett:

(Hill et al. 2019)

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Social media marketing: Holland & Barrett's marketing strategy makes use of social media to raise brand recognition and drive sales to a larger public. Holland & Barrett has a good digital marketing and remarketing approach to retarget website traffic throughout their contemplation cycle based on their interests and preferred product offerings. Holland & Barrett increased website traffic by 99 percent, resulting in a 37 percent increase in social media conversions. The use of Facebook pixel is an illustration of this. Holland & Barrett can watch how customers navigate the website, which commodities they look at, where they halt in the purchase process, and whether or not they buy it using this smart technology (Festa et al. 2018). 3.1.2 Product mix: Through its healthcare goods, Holland & Barrett has positioned itself as a wellness business. Initially, the firm only sold items to ladies, but over time, it has expanded its product line to accommodate men and women of all ages. Because of their excellent quality, unique items in the beauty and skin care category have become well known (Hill et al. 2019). Holland & Barrett is a company that makes and sells items in the categories listed: 

Face care- Face Cleaning, Lip Care



Body care – Deodorant, Shower, Hand and Body care



Supplements and vitamins



Nutrition for athletes.



Natural splendour.



Food & Beverage (Hill et al. 2019).

Holland & Barrett has also announced intentions to minimize the usage of plastic in the packaging of its own-brand vitamin line during the course of its product life cycle. As part of its ecological initiatives, the company's vitamin containers now include 20% less polyester. The new, smaller bottles are now made entirely of plastic that is at least 80% recycled. Holland & Barrett has also eliminated the shrink wrap from its closures and reduced the color intensities in its containers to make them more recyclable (Al Badi, 2018).

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3.1.3 Place mix: The places where the firm's items are marketed, accessible, or disseminated are outlined in this component of the marketing mix. Holland and Barrett distributes its wellness goods at a variety of regions across the globe. These items, for instance, are sold in the firm's retail outlets. Holland and Barrett’s marketing channels are comprised of the following locations/venues, which are listed in order of importance: •

Stores that sell goods.

•

Online store of Holland and Barrett.

•

Stores owned by Holland and Barrett (company-owned) (Festa et al. 2018).

Because retail outlets are strategically positioned and easily available and accessible in numerous regions across the world, they are the most important places where Holland and Barrett items are sold. Large corporations like as Wal-Mart, as well as tiny local and regional businesses, are among these merchants. Holland and Barrett manages the delivery and distribution of its products based on this component of the marketing mix, particularly through its online shop and personal retail stores. The organization, on the other hand, has only little control over the distribution and sale of its items through other retailers (Al Badi, 2018). 3.1.4 Price mix By using well-defined pricing models, Holland and Barrett has strived to grow its market share. It has targeted the middle-class segment of the population in order to gain the most buyers for its merchandise. To appeal to a broader clientele, the firm has made its costs low. The value-based pricing model has been implemented by Holland and Barrett (Al Badi, 2018). This number is used to figure out how much customers are willing to pay for the firm's wellness items. The company adapts its price brackets in response to environmental changes using PESTEL research. Holland and Barrett skillfully use price techniques to increase revenue while promoting

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significant importance in advertising its products and brand in this area of the marketing mix (Baines et al. 2019).

4.0 Strategic decisions and relevant taught theories in its marketing efforts These principles enable Holland and Barrett grasp the basic points about the influence of marketing in making strategic decisions utilizing applicable models and theories as mentioned below, based on consumers' wishes and motives for taking action (Baines et al. 2019). 4.1 Maslow’s Hierarchy of Needs: The five-pronged approach Maslow's Hierarchy of Needs divides human needs into five groups: biology, safety, affect...