Marketing Principles Analysis: Holland & Barrett Case Study Report

This report provides a comprehensive overview of marketing principles, using Holland & Barrett as a case study. It delves into the various elements of the marketing process, including market analysis, target market selection, and the development of effective marketing strategies. The report examines the benefits and costs associated with marketing activities, exploring how products are developed to sustain a competitive advantage, distribution is arranged for customer convenience, and prices are set to reflect organizational objectives and market conditions. It also illustrates how promotional activities are integrated to achieve marketing objectives and analyzes the additional elements of the extended marketing mix (7Ps). Furthermore, the report includes planning marketing mixes for different consumer market segments and highlights the differences in marketing products and services to businesses versus consumers, as well as the nuances of international marketing compared to domestic marketing. The analysis incorporates Porter's generic strategies, particularly cost leadership, to understand how companies can achieve a competitive edge in the market.

MARKETING PRINCIPLES

Table of Contents
Introduction:....................................................................................................................................3
Explain the various elements of the marketing process...................................................................3
Evaluate the benefits and cost of marketing....................................................................................7
3.1. Explain how products are developed to sustain competitive advantage...................................9
3.2. Explain how distribution is arranged to provide customer convenience................................15
3.3 Explain how prices are set to reflect an organisation’s objectives and market conditions......16
3.4 Illustrate how promotional activities is integrated to achieve marketing objectives...............18
3.5 Analyse the additional elements of the extended marketing mix............................................18
4.1. Plan marketing mixes for two different segments in consumer markets................................21
4.2. Illustrate differences in marketing products and services to business rather than consumers22
4.3. Show how and why international marketing differ from domestic marketing:......................24
Bibliography..................................................................................................................................26
2

Introduction
Marketing is one of the departments in the business organization, and it’s the one, which presents
organizational products and services to customers. The activity of market is all about profit and
sales; but for assuring top sales and profitability, we need to work as a dynamic marketing team.
In this assignment, I am going to talk about Holland and Barrett, compose of marketing strategy
options and marketing environment.
Explain the various elements of the marketing process
CIM (Chartered Institute of Marketing) is the world’s leading professional marketing body,
being specifically placed as an active participant in the market community, organising and
forming the future of this agitated profession.
The American Marketing Association definition: The marketing is proposed as a boarder
activity, being more an educational process than a function; marketing is a set of institutions,
process for creating, delivering, communicating and trade offerings that have significance for the
clients, customers, partners and casual population.
The marketing process:
There are a few steps in the marketing process:
 Analysing marketing opportunities - Holland & Barrett usually detect its marketing
opportunities by examining the current resources and capabilities, current and future
market trends and of course internal and external environment.
 Selecting the target market - the succeeding part is selecting of aim customers for
their services and products. Holland & Barrett is cutting the whole market in pieces,
built on various aspects and choosing the matchless one for their products and
services.
 Marketing strategy – the market strategy that Holland & Barrett flourish after
choosing the target market and marketing strategy exists of value proposal, targeting,
segmenting and positioning of goods and services (Ankit , 2011).
3

 Marketing Mix Decisions – the following step is to control marketing mix for central
products and services. Few of the things that marketing mix need to cover are:
- Promotional marketing
- Pricing decisions
- Product growth
- Campaign growth
Implementation and control – strategies as the last step of marketing will be in the process of
implementation and control; if the market mix and advertising is considerate by the management
as unsuitable, than adjust those.
The marketing mix 7Ps
Figure: 7Ps of Marketing Mix
4

(Source: Created by author)
Product: The product is either an unmistakable decent or an impalpable administration that is
appear to meet a particular client need or request. All items take after an intelligent item life
cycle and it is crucial for advertisers to comprehend and get ready for the different stages and
their extraordinary difficulties. It is critical to comprehend those issues that the item is
endeavouring to understand. The advantages offered by the item and every one of its components
should be comprehended and the interesting offering suggestion of the item should be
concentrated on. What's more, the potential purchasers of the item should be distinguished and
caught on.
Price: Price covers the real sum the end client is relied upon to pay for an item. How an item is
evaluated will specifically influence how it offers. This is connected to what the apparent
estimation of the item is to the client as opposed to a target costing of the item on offer. In the
event that an item is evaluated higher or lower than its apparent quality, then it won't offer. This
is the reason it is basic to see how a client sees what you are offering. In the event that there is a
positive client esteem, than an item might be effectively evaluated higher than its goal money
related worth. Alternately, if an item has little esteem according to the purchaser, then it might
should be underpriced to offer. Cost might likewise be influenced by appropriation arranges,
esteem chain expenses and markups and how contenders value an opponent item.
Place: Place is the component through which merchandise and/or administrations are moved
from the maker/administration supplier to the client or customer. It is likewise alluded to as
dispersion, channel or mediator. Effective dissemination of your item/administration is not just
reliant on the conveyance instrument. You should likewise consider your clients – where is it that
they would hope to go to discover items/administrations like yours? It is along these lines vital
that you pick the right distribution channel(s).
Promotions: Promotion is about successfully speaking with your clients so they are urged to
purchase from you. You have to elevate to both existing clients and imminent ones, which might
include elevating to each in various ways.
5

Physical evidence: For the proper quality of the products and to increase the sale of the
organisation there are the importance of physical evidence. The proper physical evidence
improves the service system and provides the best quality product services to the customers
around the world.
People: People are effective for the business process of the organisations. People including
employees, customers and shareholders provide impact. Based on the performances of the
employees the organisation can provide the proper service to the customers. The attraction of the
customers to the product service of the organisation develops for popularity and commercial
condition of the organisation.
Process: The process of work in then companies also provides influences on the business. The
developed process of work improves the product quality and service system of the organisation.
The old process of work provide to negative effect upon the while work system of the
organisation.
To advance effectively, you have to consider the accompanying:
You have to know however much as could be expected about your clients and their purchasing
propensities.
You have to recognize which are the essential inquiries clients could have about your
item/benefit; i.e. is this a dependable item? Your limited time exercises ought to answer these
inquiries.
You have to recognize your extraordinary offering point (USP) and convey it viably to your
clients.
You have to recognize the style of your limited time exercises
You have to choose when you are going to advance.
6

Evaluate the benefits and cost of marketing
Marketing audit – is a complete system, independent and is a regular inspection of a company’s
business, objectives, activities and strategies to discover problem areas and to suggest a scheme
to surpass the company’s marketing.
I can use a marketing oriented approach or a business marketing approach as a business
organization in order to improve the products.
Holland and Barrett's promotions have constantly centered around its costs, and this is the first
run through a battle has highlighted the admonitory administration offered by its staff. Eighteen
months prior, the organization propelled an inside preparing institute, which all individuals from
staff need to go to before they can help clients on the shop floor. The overall population, clarifies
Phil Geary(the owner), has gotten to be much more instructed on option cures, 'so we had to get
smart'. Since May 2015, Holland and Barrett has moved far from its technique of enormous item
rebates - some of the time by as much as 75% - to pull in clients. Rather it has made a more
unobtrusive diminishment in the cost of 800 items and is pushing a 'low value ensure' message.
Geary says this procedure implies it is more imperative to highlight the information of staff in
promotions, while holding the pricing element.
The marketing oriented approach suggest organizations to proceed with the customers
preferences; the customers wants and needs are more important than what the organization thinks
is better for them, so here the organizations are making decisions built on customer’s needs (Lars
Perner, Ph.D.).
Market-oriented approach is followed only by the successful organizations; Holland & Barrett
have benefits from the market oriented approach as following:
- customers centric – when the company gives importance on the customers’ needs and
demands
- making customer benefit – in this process Holland & Barrett is aid to produce buyers
worth, that swell customers fidelity
- addressing demand – Holland & Barrett proceed to customer requirement
7

- Reasonably competitive advantage – while the company elaborates products and services
built on customers need and demand; it fortifies the full need of products and services
that consign competitiveness over competitors
Few of the disadvantages of the customers:
Deficiency of predictability – the product development is very strong in the market orientation,
as some customers have various choices
Increasing benefits – increasing price tag
Customers have to pay more money for better quality.
3.1. Explain how products are developed to sustain competitive advantage
Porter generic strategy:
Michael Porter, sketched out an arrangement of non specific methodologies that could be
connected to all items or administrations. Porter called these generic procedures "Cost
Leadership” , “Differentiation” and “Focus”. He wrote about these strategies in his book
Competitive Advantage: Creating and Sustaining Superior Performance.
Cost Leadership:
Taken a toll Leadership relates to the "no frills" experience, similar to the minimal effort aircraft
transporters, who pick the cost authority technique to accomplish upper hand. Separation, then
again, relates to the extravagance suppliers, similar to Rolls Royce or Ferrari or Gucci, Armani
or Prada. These organizations give exceptionally alluring items or administrations to their clients.
Center is about business sector division by offering a particular item or administration in a corner
business sector.
Cost leadership Strategy
Porter’s generic strategies are methods for accomplishing upper hand over your rivals. The key
achievement element in a cost administration system is to out-deal with the opposition. There are
two key methodologies of accomplishing this inside of a Cost Leadership methodology:
8

 Build benefits by diminishing expenses;
 Build piece of the overall industry by bringing down costs;
Evaluating is a key issue if your organization needs to seek after a Cost Leadership system as the
objective business sector extension is amazingly value touchy. A drawback of the minimal effort
supplier technique is item value disintegration, in the end prompting the item being resigned
from the business sector. Seeking after an ease technique may leave an organization helpless
against the assault of other lower-cost suppliers, who can keep you from undercutting so as to
expand piece of the pie your costs. To effectively accomplish Cost Leadership an organization
needs to advance its quality chain. This should be possible utilizing the accompanying
methodologies:
 Perform esteem chain exercises in a more financially savvy way than your rivals;
 Survey your quality chain to wipe out superfluous (inefficient) exercises.
Performing esteem chain exercises in progressively a financially savvy way can be accomplished
by:
 Outsourcing;
 Utilizing the organizations dealing energy to drive down suppliers costs;
 Make utilization of economies of scale (purchase materials in mass);
 Put resources into innovation to expand creation effectiveness;
 Embrace work sparing working strategies;
You can likewise search for chances to advance your worth chain by:
 Selling so as to bypass expense of wholesalers and merchants specifically to clients;
 Supplanting certain quality chain exercises with innovation;
 Dispensing with low-esteem exercises;
9

 Migrating offices to lower dispatching or taking care of expenses;
 Offering decorations free experience (stripped down item or administration – something
besides vital is charged additional);
 Limit product offering;
Taken toll procedures as a rule work best when there's a furious value rivalry among opponents,
where the past activities can be effectively given something to do. In the event that there is little
item separation and supplies are promptly accessible from a few suppliers, organizations can
purchase in mass (e.g. entire generation) at a markdown cost, driving down expense and deciding
on bringing down retail costs (expanding piece of the pie by contending on cost) or keeping costs
and expanding edge. This is a typical system for huge sustenance retailers that are supplied by
neighbourhood makers with little to medium creations.
The most serious danger of seeking after a cost methodology is that it is genuinely simple for
direct contenders to go with the same pattern as the courses plot above to accomplish cost
lessening are not one of a kind and are promptly accessible given the same level of interest in
driving down expenses. One approach to stay in front of the opposition in a moderately leveled
playing field is to present consistent advancement of the generation and quality chain by
presenting incline-producing systems like Six-Sigma or Kaizen.
Differentiation Strategy
Differentiation implies making your items (or administrations) not quite the same as those of
your rivals or all the more engaging your client base. This is exceptionally reliant on your few
elements, similar to industry, market, client base, and the way of the real items or
administrations. Whatever it will be it must be something that makes your items or
administrations emerge.
The key achievement component in a separation procedure is to make it either exceptionally
troublesome or extremely costly for adversaries to repeat your item or administration. To
accomplish this, organizations need to put resources into:
 Research and Development;
10

 Generation and conveyance of high caliber and interesting items or administrations;
 Showcasing and deals to make mindfulness and craving for it's interesting items.
Organizations seeking after a separation methodology can charge a premium cost for it's items or
administrations, in the long run seeing expanded unit deals because of the separation
Variable and expanded purchaser unwaveringness: Cases of the fruitful utilization of a separation
system are Nike athletic shoes, Apple Computer, and Mercedes-Benz cars.
Organizations can take a gander at their quality chain to figure out where they can discover open
doors present separation:
 Audit their item R&D exercises to attempt and join item highlights that expand item
execution or client esteem discernment;
 Audit creation R&D and innovation related exercises to fuse item highlights that upgrade
purchasers fulfilment;
 Audit conveyance and transportation exercises to consolidate specific elements or worth
included administrations;
 Survey advertising, deals, and client administration exercises to consolidate item
characteristics and elements that expand purchaser's impression of unmistakable items or
administrations and manufacture brand value and build client loyalty;
A separation system is proper where the objective client section is not value delicate, the
business sector is aggressive or soaked or clients have certain requirements, which are
conceivably underserved. Regardless, your organization needs one of a kind assets and abilities,
which empower it to fulfil these requirements in ways that are hard to duplicate. Such assets or
capacities may incorporate licenses or other Intellectual Property (IP), remarkable specialized
skill (a blend of individual ability and aggregate character – e.g. Apple outlines or Pixar
activitys), skilled work force (e.g. a games group's star players or a business association's star
brokers), or creative procedures. Moreover, organizations can likewise put resources into brand
11

administration, bringing about an expanded view of a separated item, notwithstanding when the
genuine item is the same as contenders (e.g. Starbucks espresso and Nike tennis shoes). This is
somewhat basic among style brands.
The most serious danger for organizations seeking after a Differentiation Strategy is the danger
of assault by contenders seeking after Focus Differentiation systems in various business sector
portions. To relieve this danger organizations seeking after a wide market Differentiation
Strategy need a spry item advancement process where steady development keeps particular
players under control.
Focus Strategy:
Focus strategies concentrate on niche markets. Organizations seeking after Focus Strategies have
a profound comprehension of a specific business sector and the exceptional needs of it's clients.
They can in this manner create one of a kind lower cost or separated items or administrations for
that particular business sector. These organizations for the most part have an exceptionally solid
brand unwaveringness amongst their clients and have a tendency to consume that fragment
(especially in littler markets), making it less alluring to contenders therefore relieving the danger
of assault from other specialty players, new participants or wide market contenders hoping to
expand their client base through item or administration specialization.
Slender business sector procedures are like their wide market scope namesakes. What is key is
that organizations concentrating on specialty markets need to bring something new in with the
general mish-mash – something that increases the value of clients in that specific business sector.
Else, they'll soon be contending with bigger, more creative and wide engaged organizations.
Here are a few illustrations of the kind of activities organizations might need to take a gander at
while seeking after a Cost Focus Strategy:
 Diminish cost over the worth chain by drawing in with authority suppliers;
 Make shrewd interests in specific innovation to build generation proficiency;
12