ABSTRACT

Health foods and

supplements

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Coursework 010; MOD

Holland and barrett - Portofolio -

Principles and Practices of Marketing - PPM
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TABLE OF CONTENTS

Introduction …………………………………………………………..………... 2
Task 1. Critically evaluate how the company has used at least four of the seven
marketing mix elements in its UK operations, to reinforce its positioning within
the last three years ………………………………………………………..…… 3
Task 2. Reflects strategic decisions and relevant taught theories in its marketing
efforts.……………………………………………………………………..….. 12
Task 3. Does/ can evaluate the effectiveness of its marketing efforts. (How does/
can the company measure effectiveness? ………………………...………….. 15
Conclusion …………………………………………………………………… 17
Reference list ……………………………………………………………….... 18

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INTRODUCTION
H&B in the United Kingdom is owned by Russian billionaire Mikhail
Fridman, who also invests in health and beauty goods such as Manuka Doktor
and Good and Natural (Wadlow, 2020). It caters to a certain niche market of
vegetarians who have high expectations. It provides a cross-platform customer
experience through stores, clicks, collections, online and mobile e-commerce,
and other channels of distribution. H&B Pharmaceutical Holdings is a
pharmaceutical holding firm that treats illnesses with natural materials rather
than drugs. 880 Holland & Barrett and Ireland stores, as well as their websites,
have launched 10 SKU Love Hemp product lines in the last few days
(Accesswire, 2020).
As illustrated in the graph, H&B has the highest profit margin thus far in 2016.
(Fame, 2021).

Figure 1. Indices of several values over time (Fame, 2021)

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MAIN BODY
1. Critically evaluate how the company has used at least four of the
seven marketing mix elements in its UK operations, to reinforce its
positioning within the last three years
To delight the market while making a profit, marketing mix techniques are
used to select and align a brand's positioning. The marketing mix includes the
product, pricing, place, promotion, people, processes, and physical proof. The
following three types are part of the newer holistic marketing approach (Kotler
et al., p.23, 2019).
Holland & Barrett will only show four of the seven marketing mix tactics
utilised to strengthen its position in the last three years. Marketing is used to
select and align the market to a given brand, resulting in profit for the company
(Kotler et al., 2019).
Figure 2. Dr Bronner's Lavender Pure-Castile Liquid
Soap (Holland & Barrett Retail Limited, 2021)

The product is the first Holland and Barret Mix Tool. They provide a
wide range of things to choose from, all with the H&B insignia and in various
sizes to suit your needs. They also provide packages or individual products,
warranties, and return options. No unsustainable palm oil or partially
hydrogenated fats are used in their production, and they are all labelled. In
addition to cleaning the skin, Natural Beauty Liquid Soaps are packaged in
post-consumer recycled bottles. They utilise 946 ml clear bottles with their
emblem (Holland & Barrett Retail Limited, 2021).
H&B introduced a new limited-edition vegan beauty package on the market in
April 2021. This set of ten products is for the improvement and care of the skin
and hair (Cohen, 2021a).

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Figure 3. The box includes products from huge brands including Dr Organic,
VitaSkin and Oleus (Cohen, 2021a).
Holland & Barrett has launched a £50 vegan makeup set worth £113. Like
Vitabiotics and Vital Remedy®, other companies like Cal-EZ and Antares
Health Products INC have their own smart and well-equipped assembly process
where they pack most of their products. Customers can also build their products
at “Make Your Counters”. H&B promotes on Facebook, Instagram, Pinterest,
and Twitter, as well as retail and online businesses (Holland & Barrett, 2021).
Foods from H&B are minimal in calories; for
example, Slim Noodles have only 9 calories
per 100 gramme.

Figure 4. Weight Management (H&B, 2021)

A healthy weight is important for human health, hence many products in the
H&B product categories focus on retaining or losing weight (Holland & Barrett,
2021).
The pricing emphasises the second tool. They anticipated that the client
would buy the goods for £21.99 owing to quantity, therefore they set the price

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beforehand. Their rates change according to the season, holidays, and other
events.
Figure 5. PPB Powdered Peanut Butter Original 180g
£6.99 (Holland & Barrett Retail Limited, 2021)

Previously, H&B used a binary promotional strategy, running four-week

promotions for specific items. Regular customers can earn lifetime benefits by
earning points that instantly convert into reward vouchers, while new customers
can benefit from short-term online and in-store cash deals. H&B uses the
penetration pricing technique when releasing new products, such as the £113
box of ten things that started at £50. This strategy works until the stock runs out
or the customers are pleased, at which point H&B will sell the bundle at full
price, or even more.
Cod Liver Oil, 120 cps, 1000 mg costs £ 9.99 at H&B, £ 9.60 at Health Leads, $
8.95 at Body Building Warehouse, and £ 6.69 at Simply Supplements. These
disparities arise because different establishments have varied staff levels, a
different well-known and important brand, a different consumer type, some
richer than others, and are physically located in different places.

Figure 6. Same product, different prices. (Google.com, 2021)

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Figure 7. H&B Immune Support Bundle (H&B, 2021)

Holland & Barrett uses bundle pricing because it sells more products as a
package deal with better margins and offers discounts to customers. They'd
spend more if they bought them separately than bundled. For example, buying
three immunity supplements instead of one save money (H&B, 2021).

Figure 8. Floradix Iron & Vitamin (H&B, 2021)

H&B also uses psychological pricing, which uses a particular technique to
persuade clients' subconscious thoughts that the price has fallen significantly,
making them believe it is cheaper. Most products, for example, have a written
price that is 1% cheaper than the actual price. As a result, when people come
into a store featuring Holland and Barrett products, they expect to get huge
discounts, such as buy one get one-half price.
Holland and Barret's hybrid marketing strategy includes promotion. This
is what they mean when they advertise or run a sale in-store, online, or even
better, on social media. For low-cost vitamin and supplement advertising, they
use direct or interactive advertising.
Figure 9. Vitamins and supplements if
you buy 1 you will get 1 half price
(Holland & Barrett Retail Limited, 2021)

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Figure 10. Promotions (Henry, 2021).

First, H&B specials: get three for the price of one or buy one and receive a half-
priced second product or buy one and get a half-priced third product (Henry,
2021).
H&B employs JustEnough Software, a Microsoft SQL Server database-based
management promotion software, to better control promotional programmes. In
the end, it is a good test for the market (Gibson, 2016).
The place is a mixed marketing tactic. They offer online as well as in
supermarkets and global supply networks.
Figure 11. The online website of Holland
and Barrett (Holland & Barrett Retail
Limited, 2021)

Holland & Barrett has 85 stores in London alone. This field has a vast global
supply network. Its network is the largest in the UK, and it is well-positioned
due to a $ 10 billion structural expansion in the health and wellness market
alone, according to Business Insider. Focusing on a narrow market with distinct
needs, specific products, and strong brand loyalty makes H&B less attractive to
competitors. The network's CEO expects it to stay there for a long time (Martin,
2017).
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Using Porter's Generic Strategies to Position H&B

Holland & Barrett is a health leader, allowing customers to regulate their age
through advertising. To make their items stand out from the competition, they
used digital screens in subways and bus terminals, static posters, social media,
and digital platforms. Because they stayed digital, they witnessed a 32% rise in
online sales. They have become cost leaders by combining technologies such as
Wi-Fi and portable terminals at the point of sale (The Retail Bulletin, 2019).
Promotional Mix and Activity
Holland & Barrett has hired VCCP to represent them strategically and
creatively. In 2019, the digital campaign "Me.No.Pause" was launched in
partnership with the advertising agency Pablo London to depict the realities of
menopause through the eyes of many women who contributed their tales. On
TfL digital screens, H&B social media profiles, and an online film (Calnan,
2020).
Figure 12. Source: Holland & Barrett
VCCP will take over Holland & Barrett's
strategic and creative advertising
(Calnan, 2020).

Especially after the outbreak, H&B offers huge discounts to coincide with store
reopening. Retail and internet sales are planned. Hormones and supplements are
among the almost 400 products promoted by H&B. They used a voucher for
online customers and the concept of saving £5 on a £25 purchase or £10 on a
£50 purchase in supermarkets (Cohen, 2021).
Figure 13. Over 400 products are
included in the money-saving deal
(Cohen, 2021).

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Figure 14. Holland & Barrett are proud

to support several charities
(Holland&Barrett, 2021)

H&B believes in giving back to the community. Healthy Hope is a non-profit

organisation maintained solely by volunteers. A murder mystery is among the
occurrences. Fundraising initiatives include in-store and online grants, as well
as partnerships with micro-donation platform Pennies. As a sponsor, he gave the
NHS over £100,000.
Figure 15. Porter’s Generic
Strategies: Cost Leadership,
Differentiation and Focus (De
Bruin, 2021)

Holland & Barrett has lowered emissions by constructing a green store in

Coventry, according to The Grocer. One of Holland and Barret's unique features
is its new vegan, waste-free, and cruelty-free beauty area (Goncalves, 2021).
H&B uses a high-end beauty line that is coveted by loyal customers.

Figure 16. Cut costs at H&B

(Mirror, 2021)

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Figure 17. H&B Manuka Honey Figure 18. Walmart Manuka Honey
(Holland&Barrett, 2021c) (Walmart, 2021)
It targets a certain market or buying group. But only for a specific target market.
Initially, the company targets a specific market segment with its approach.

Chart Title
8,000
6,000
4,000
2,000
Figure 19. Positioning on
0
the map according to
GNC H&B The Vitamin
Shoppe
Iherb H&B's competitors
(ZoomInfo, 2021)
Employees Revenue Column1

High quality

Holland & Barrett

Low price High price

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Low quality
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Figure 20. Graph positioning of H&B

In 2021, H&B will be the world's second-largest firm by personnel and sales. In
recent years, as people increasingly adopt a healthy lifestyle, interest in food
supplements has expanded dramatically, and H&B has always given the finest
quality items at reasonable prices. iHerb has 1,600 employees and a revenue of
$557 million, while GNC has 8,400 employees and a revenue of $2 billion
(ZoomInfo, 2021).
Figure 21. Annual turnover
of health food store Holland
& Barrett generated in the
United Kingdom (UK) from
2012 to 2020 (Stipp, 2021)

As indicated in the graph, Holland & Barrett's turnover fell from 2019 to 2020
to 413.6 million pounds. This decline could be linked to the UK lockout caused
by Covid 2019, which affected all companies simultaneously (Stipp, 2021).
2. Reflects strategic decisions and relevant taught theories in its
marketing efforts.
Sustainability, according to Geraldine Waterton, Head of Brand
Management at Holland & Barrett, is a strong feature. One of the greatest
selections of own brand vitamins with 714 items. They will launch new
packaging that will save over 200 tonnes of plastic and allow for easy home
recycling (H&B, 2021). New packaging for Holland & Barrett's well-known
immunity and vitamin D line
will be released in stores in
October 2021.

Figure 22. Product Life Cycle

(Nwadike, 2021)

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Current marketing strategies, the corporation employs peak sales with high
profits, according to PLC. As a result of greater sales, lower expenses, and
capital control, they generated £ 26 million in cash at the end of the year,
making it a flagship product. using the BCG matrix (H&B, 2020).
Weight control has 6 key subcategories and 237 items. About 714 items are
well-known brands that offer the widest range of vitamins available. According
to PLC, Vitabiotics' market growth rate is expanding rapidly, generating sales
and profits while gaining market share (H&B, 2021).
Currently, the corporation promotes this brand on the internet and Facebook,
despite little competition, with Boots being the closest competitor. The BCG
matrix reveals that these products have high cash consumption and cash
generation, despite not displaying the brand. Holland & Barrett's market
position is due to several factors. Buying High Street rivals "Julian Graves"
gave them market supremacy. Advertisements for "1p" products showcasing
international athletes also draw consumers (H&B Facebook, 2021).
H&B provides a revolutionary product by replacing single-use goods with
refillable packaging that reduces waste and water usage and is currently being
introduced in PLC. H&B encourages clients to transition from single-use sheet
masks to multi-use masks, which have the same cosmetic benefits but are less
harmful to the environment. They're donating 5% of profits from multi-use
mask sales to an organisation that aims to minimise plastic pollution in our
oceans. Single-use beauty waste is classified as clean beauty for Christmas in
the BCG matrix (H&B, 2021).
In addition to Tofurky's Sandwiches, H&B offers Vegan Jerky and CDB Drinks
for as low as Quinoa Chips. Prices start at less than £4 for a main, snack, and
drink, which is cheaper than many high-street competitors. Some healthy
products like Deliciously Ella, Vita Coco, Hippeas, and Captain Kombucha
compete with it. In 2019, H&B debuted a 103-calorie vegan salted caramel
avocado ice cream with passion fruit peanut butter. They're fantastic dairy
alternatives in ice cream, and they're loaded with nutrients. They are gaining

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popularity over Ben & Jerry's Peanut Butter Ice Cream with Peanut Butter Cups
(H&B, 2019).
According to the BCG matrix, H&B star items like Vitamins are market
leaders and require constant investment. They outperform the company's other
items.
While Question brand products, like clean beauty for Christmas, require more
money and advertising to make a profit. To find the future star, it takes a lot of
promotion to get it into the quadrant star.
The dog category has the weakest products, such as dried mango, which has
minimal cash usage but high cash generation. Increased demand for healthier
snack options and decreased consumption of sugar-sweetened snacks are
driving consistent volume growth (CBI, 2020).
If you have a mature yet well-established product with sluggish growth and a
high market share, you are making money (H&B, 2021).
Figure 23 depicts these four steps.

Figure 23. BCG Matrix (Hanlon, 2020)

Despite being a leading retailer, H&B will close 21 stores in 2021 because of
the lockdown and a 13% drop in sales. During this time, H&B's e-commerce
revenues climbed by 103% to 125 million pounds. However, internet sales were
insufficient to boost
growth, therefore annual
revenues fell 2%. (Mintel,
2021).
Figure 24. Aaker Model
(Schmidt, 2019)

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The Aaker model covers brand awareness, loyalty, perceived quality, and
brand associations. Personality, emotional, social, and self-expression goals
must be included in a company's brand, according to David Aaker. H&B
declared itself dusty because it always offered the same goods, but they
promised to build a new, more intriguing, and appealing brand. This new brand
will bring new ideas to the table for customers. All three will alter. His new
marketing plan includes measuring the effectiveness of his advertising,
especially the new Me.No.Pause campaign (Hammett, 2019).

Figure 25. Logo of H&B (Logotyp,

2021)

The Holland Barrett colour logo uses green to express money, progress, and
security. The brand is a high-end firm because it sells luxury goods. The bulk of
H&B stores are in malls in central London, implying that they are primarily for
wealthy people who desire to live a healthy lifestyle. For consumers and their
health, the H&B brand is enthusiastic, attentive, and customer-focused. They
employ special bundles to target their demographic and reward loyal consumers
with large discounts. A pleasant, favourable impression is created by the
products' colour and shape. The company's objective is to deliver modern, high-
quality retail services while developing clean technology to combat climate
change (H&B, 2021).
3. Does/ can evaluate the effectiveness of its marketing efforts. (How
does/ can the company measure effectiveness?

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Figure 26. Overview Holland & Barrett Interviews (Glassdoor, 2021)

The company has miscellaneous awareness sets to measure the

effectiveness of production, including the analysis of Glassdoor reviews.
Employees, for example, believe it is an excellent place to work; those who
have worked there give it a positive 54 per cent rating, a negative 30 per cent
rating, and a neutral 15% rating. An overhaul of the loyalty programme, which
now lacks personality and value, is also on the horizon.
According to Facebook analytics, 512,201 individuals have liked their products
and 518,218 people have followed them. Customers share each post on
Facebook to demonstrate to those who do not often visit their site how fantastic
the products are and what they are used to accomplish (H&B, Facebook, 2021).
H&B's product lines, on the other hand, are segregated by gender, with most of
its clients being women in their forties and fifties. This is because older people
are more interested in vitamins than they are in tanning or reducing weight.
Wellness products, sports supplements, and protein powders are among the
categories available for males. Organic foods are preferred by young ladies who
seek a slimmer and more toned appearance.
According to Mintel (2020), consumer expenditure on beauty and personal care
decreased by 2% in 2019 to reach 9.7 billion pounds (US). The beauty market
has risen at a higher rate than the personal care market in recent years, and
consumer spending on beauty has been declining since 2018. 2019 saw a 2.5 per
cent growth in retail sales through health and beauty merchants, bringing total
sales to 12.5 billion pounds. Because the market has gotten increasingly
saturated, the sector's growth has slowed significantly. The value of sales will
increase in 2019, according to predictions. Due to intense competition from
smaller companies and non-specialist retailers such as supermarkets, department
shops, and the internet, several mature health and beauty specialists, such as
Boots and Superdrug, have failed to acquire market share in the United
Kingdom. While overall beauty product purchases have remained relatively
stable over the past year, there has been a significant increase in the number of
women aged 55 and over who purchase beauty products, with the proportion of
women aged 55 and over purchasing beauty products increasing by 6
percentage points to 84 per cent in 2019 from 78 per cent in 2018. In part, this
was owing to a rise in the purchase of body care products, which resulted in
body care becoming the only category to experience a value sales growth in
2019. (Mintel, 2020).

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Holland & Barrett reported a 4.3 per cent increase in revenue from £ 335.3
million in 2012 to $ 349.6 million in 2013, compared to the previous year.
However, despite the difficult economic trading conditions that currently
confront the retail industry, according to Holland & Barrett Retail Limited, the
company's business performance in 2013 and financial position since the end of
the year have both shown to be strong. The company's turnover climbed by
more than 18 per cent between 2011 and 2012, with only UK sales jumping
from 26 million pounds to 35.4 million pounds. In 2013, Vitabiotics spent £8
million on advertising, with another £3 million invested in the first six months
of 2014, according to the company. In the period January to July 2014, the
Wellman and WellWoman categories received the most advertising attention,
with both categories seeing an increase in market value over the year ending
June 2014. (Mintel, 2014).

CONCLUSION

For this research, the marketing mix applicable to the weight

management product category as well as all marketing theories and methods of
this category were discussed in detail. Additionally, he addressed Porter's ideas
for becoming a healthcare leader through significant investments in technology
while remaining profitable over the long term. Displays the launch of new
items, resulting in the saving of thousands of tonnes of plastic. Profitable
advertising should be used to demonstrate the Product Life Cycle. That the
brand is employed to attract customers, as well as produce revenue, is
demonstrated by this example. Using the Aakar model, you can see how client-
centred goals lead to emotional, social, and self-expression qualities. In the
conclusion, the yearly report provides information about Glassdoor reviews,
Facebook sharers, how things are separated by gender, and how sales have
increased according to the product in various years over the past decade.

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