Singapore Market Entry Strategy for Holland & Barrett: A Report

This report provides a comprehensive analysis of Holland & Barrett's international marketing strategy for entering the Singapore market. It begins with an executive summary and table of contents, followed by an introduction to international marketing principles. The report then offers a brief overview of Holland & Barrett and the Singaporean market, including its affluent economy and reliance on imports. The microenvironment of the health food industry in Singapore is assessed using SWOT analysis, identifying strengths, weaknesses, opportunities, and threats. The macro environment is analyzed through PESTEL analysis, evaluating political, economic, social, technological, environmental, and legal factors. The report suggests franchising as the optimal market entry strategy, detailing its benefits. It also explores Holland & Barrett's market position through segmentation, targeting, and positioning. Finally, the report discusses the implementation of the marketing mix, offering recommendations for success in the Singapore market. The conclusion summarizes the key findings and strategic recommendations.

Running head: INTERNATIONAL MARKETING
INTERNATIONAL MARKETING
Name of the Student
Name of the University
Author Note

Executive summary
This paper is a report on the company Holland & Barrett and will assess the international
marketing and the implementation of foreign market entry strategies that will help the
company to establish a strong foothold in the Singaporean market. The paper will analyze the
micro and macro environment of the health food industry in Singapore with the help of
SWOT and Pestel analysis and the paper will identify the marketing position in the market
that will help the company in expanding in Singapore.

Table of Contents
Introduction................................................................................................................................6
Discussion..................................................................................................................................6
Brief overview of the company..............................................................................................6
Market overview of Singapore...............................................................................................6
Micro environment of the health food industry in Singapore................................................6
SWOT analysis...................................................................................................................6
Macro environment of the health food industry in Singapore...............................................7
PESTEL analysis................................................................................................................7
Market entry strategy.............................................................................................................9
Market position of Holland & Barrett....................................................................................9
Marketing mix......................................................................................................................11
Conclusion................................................................................................................................11

Introduction
International marketing is the use of marketing principles in order to satisfy the
different wants and needs of the various different people across the borders (Leonidou et al.
2018). Due to globalization organizations are expanding their business in different countries
in order to generate profits and make a mark in the global market. To operate in a foreign
country, international marketing is an integral part of a business in order to boost the
reputation of the brand in a positive way, expand the target market, connect with new
stakeholders and customers and pave way for the future opportunities. This paper will talk
about the leading wellness and health retailers, Holland & Barrett and present the
international marketing strategy of the company and the foreign market entry strategies that
the company is going to implement in order to enter the Singapore market.
Discussion
Brief overview of the company
Holland & Barrett is a chain of health food shops. The company was founded by
Major William Holland and Alfred Slapps Barrett in the year 1870. Currently the
headquarters of the company is in Nuneaton, United Kingdom. Holland & Barrett has more
than 1,300 stores operating in 16 countries (Barrett 2019). The company has a substantial
presence in the Republic of Ireland, China, Netherlands, Hong Kong, Belgium, UAE, United
Kingdom and India.
Market overview of Singapore
Singapore mostly imports healthy and organic food from Japan, United Kingdom,
United States, Malaysia and Thailand. Singapore has a population about 5.8 million and is

one of the most affluent markets in Southeast Asia. Singapore has a highly developed
economy. Singapore is an open economy and highly depends on foreign and international
trade. Singapore imports about 90% of the food requirements and has very little agricultural
production in their local market (Friel 2013).
Micro environment of the health food industry in Singapore
SWOT analysis will be applied in order to assess and understand the internal factors
of the health food industry in Singapore in order to make strategic plans for the expansion of
Holland & Barrett in the city.
SWOT analysis
Strength- The citizens of Singapore believe in eating healthy. A survey conducted by Food
Industry Asia (FIA) has found out that about 98% Singaporeans have been trying to improve
and make healthy changes to their diet. Singaporeans have started checking the food labels in
order to check and ensure the presence of healthy and nutritional ingredients and the presence
of preservatives, sugar levels in order to maintain a healthy diet (Living and Beverage 2019).
Government of Singapore has come up with initiatives that promote the consumption of
healthy food and has come up with strict guidelines to ensure that people with low wages are
accessible to healthy food (Living and Beverage 2019). This will be beneficial for the
company Holland & Barrett as sales of the products will be high when there is a huge
demand in the Singaporean market.
Weakness- There is several new products and companies that have been trying to expand
their business in Singapore for the openness of the city to foreign markets however, there are
many challenges and weaknesses as the advertising and promotional costs for introducing and
showcasing new products are very expensive and high (Brylina et al. 2017) The entry in the
top and popular supermarket chains is very high. This will become a problem for Holland &

Barrett when trying to expand in Singapore as the investment cost of the company will
increase.
Opportunities- The demand of healthy food products in Singapore is very high due people
there focusing on healthy lifestyle. The population of Singapore is very high thus the demand
of healthy food products is very high when compared to the population. Singapore has wide
distribution channels especially in the supermarkets that have a different section for organic
and healthy food and also has independent healthy food stores (Hoek et al. 2017). Holland &
Barrett is an established company that has been operating in other countries and has been
successful in their operations.
Threats- Singaporeans believe in good and healthy lifestyle. There are several different
brands that provide healthy food in the market. Most of the healthy food products are
imported from different countries and there is huge variety that people can choose from this
becomes a major threat for new brands and companies to expand as people become loyal
towards the brands they have been consuming. This will become a problem for Holland &
Barrett if they expand their business in Singapore.
Macro environment of the health food industry in Singapore
In order to monitor and analyze the macro environment of the health food industry in
Singapore PESTEL analysis will be applied that will help Holland & Barrett to understand
the factors and the impact the industry can have on the company Holland & Barrett.
PESTEL analysis
Political factors- The political environment of Singapore encourages healthy living and has
made policies to ensure people of the city get sufficient healthy food. The government of
Singapore has come up with a lot of initiatives that promotes healthy lifestyle. The
government makes sure that people in Singapore can understand and choose the healthy food

amongst all the products available in grocery stores thus the government of Singapore came
up with the Healthier Choice Symbol, this symbol has been introduced in the food products to
help the consumers understand the products that are better for the diet of the customers. The
government has introduced the Healthier Dining Innovation and the Healthier Dining Grant,
these both are funding schemes that are being offered by HPB in order to help the F&B
partners in order to promote and develop menu options that are healthier. The government
has come up with Whole-of-Government (WOG) which is a healthy catering policy that
aimed to encourage better and healthier eating in the workplace, community and outside the
house Due to the evolving lifestyle; people in Singapore are dining outside more frequently.
With the rise of Diabetes in Singapore, the government has come up with the initiative of
Healthier Ingredient Development Scheme that encourages and ensures the use of healthy
ingredients in the foods by the food service industry in order to promote healthy living and
for preventing diseases (Living and Beverage 2019)..
Economic factors- The healthy food available in Singapore are expensive and costlier when
compared to the ready to make and fast food chains. Interest rates, consumer spending and
the taxation on foods affect the opportunities and options that are being presented in the
industry (Tan et al. 2017). The low price offered by the fast food chains and ready to make
meals is becoming convenient for people rather than buying healthy and organic food
products.
Social factors- The citizens of Singapore work very hard in order to fulfill their materialistic
desire. According to the National Nutrition Survey, it was estimated that about 70% of the
people in Singapore consume calories more than the required calorie intake and people who
are between the ages of 18 to 69 do not have the required physical activity. This has resulted
in the obesity rate and other diseases that occur due to unhealthy lifestyles (Roberto et al.
2015). This has resulted in people making different and healthy lifestyle choices by

consuming healthy products and organic foods that will help to keep the people healthy and
active.
Technological factor- The technology in the health food industry in Singapore is advanced
as it is necessary to create food labels, production of the food and for the packaging. With the
advancement of technology it has helped food corporations to reach out to their target
audience in easier and faster methods.
Environmental factors- Singapore does not have a very good local production thus most of
the healthy food products and organic food are mainly imported from different parts of the
country. There is a demand of healthy food products because of the change in lifestyle to a
healthier living. The government of Singapore also has a huge role to play in promoting
healthy life choices that has helped in preventing disease and ensures well being of the people
of Singapore.
Legal factors- The public policies and the legal framework in Singapore mostly are
favorable towards the foreign investors as most of the healthy food products are imported
from different countries all over the world (Hsu 2015). Companies from outside smoothly
operates in Singapore because of the high demand and the legal framework.
From the Pestel analysis of the healthy food industry in Singapore it can easily be assessed
that Singapore is a favorable country for the expansion of the business Holland & Barrett,
healthy food products as the government highly supports and promotes healthy living and the
other factors like the social factors and environmental factors influence healthy living. There
is a huge demand of healthy products in the country and thus the outcome of the analysis is
that there is place for expansion of healthy foods in Singapore.

Market entry strategy
Singapore is open to foreign investments as most healthy food products are imported.
Healthy food products are expensive when compared to the other products in the market. The
ideal marketing strategy of the company Holland & Barrett to establish a strong foothold in
the market in Singapore will be franchising. The company is famous and operates in different
countries and franchising will help the company to reach out to the customers in Singapore.
This strategy will be beneficial for the company. The company initially has to make
an one time investment for acquiring the rights to the business, equipments to set up the
franchise and for the training. Once the operations of the business start the franchisee will pay
Holland & Barrett an ongoing payment for royalty. This will cost Holland & Barrett less as
the company will only have to pay the initial cost for the set up and training. Later the
franchisee will pay for everything. This will pave way for simple management. The
franchisee will manage the franchises and manage according to the agreement. This helps the
company for the low cost and in the simple management (Sánchez 2018). This helps in faster
expansion and an effective market penetration in the market that will the company Holland &
Barrett to successfully expand their business in Singapore and dominate the Singaporean
market.
Market position of Holland & Barrett
Market position is the ranking of a company or a brand in terms of volume of sales of
its own company and of the competitors that belong to the same industry or market.
Segmentation
Holland & Barrett uses four main and basic strategies in order to segment their market.

Behavioral- Products with good quality at a reasonable price attracts customers and they tend
to buy products with great pricing and that provide discounts.
Demographic- The segmentation on the basis of demographics can be further classified into
other types:
Age- According to the demographic it has been seen that the people of all ages are looking
for healthy lifestyle alternatives that will help the people to be fit and prevent from diseases
in the long run.
Gender- Both male and female is shifting their focus on a healthy lifestyle. Both the genders
tend to buy health and food products for the future well being that will help both males and
females to be fit in the long run.
Income- Holland & Barrett is a brand that provides good quality products at a reasonable
cost. People with medium and high income will be able to afford the products provided by
the company.
Race, Religion and Nationality- Health food products cater to everyone irrespective of the
caste, nationality, religion and many more.
Targeting
The demand for a healthy lifestyle has paved way for people to purchase healthy food
products that help in ensuring healthy lifestyle of the people. The company Holland & Barrett
caters to people of all ages as they provide health food that is required and consumed by
everyone starting from the children to old people. The company has a chain of shops in
different countries and provides service through their website where they deliver the healthy
food products to people at their doorstep.

Position strategy
Holland & Barrett provide healthy food at affordable prices that has garnered the
attention of many customers in all the countries where the country operates. The aim of the
company is to cash on the pricing strategy that has helped the company in gaining a
competitive advantage.
High
quality
Less expensive
Low
quality
Expensive

Marketing mix
Marketing is an integral part of a business that contributes to the success of the
business with the primary and main focus on the consumer value, quality and customer
satisfaction. Marketing mix is a strategy that is used the most by companies that blends the
integral and important variables together in order to come up with suitable and positive
results (Išoraitė 2016). Holland & Barrett is going to use the 4P’s of marketing mix in order
to establish a strong foothold in the Singapore market.
Product- Holland & Barrett provide healthy food products and the Singaporean market has a
huge demand of these products. The company is going to provide all the details of the
ingredients. The products provided by the company are of high quality products that will
ensure healthy living. The packaging of the products is convenient and attractive that will
make people notice the brand.
Place- Holland & Barrett will establish their own shops were all the products will be
available and the company will sell their products through their online website that will be
convenient for the people as they will deliver at the doorstep.
Price- The products are of high quality with affordable pricing that will attract the customers.
Several discounts will be provided to the customers and other means of transaction will be
provided like credit and debit card transactions and other e-commerce payment systems. This
will help in making transactions easier for the customers and the affordable prices will make
it convenient for buying products in bulks as well.
Promotion- This is one of the important factors that the company needs to do to make people
aware of the launch and introduction of the brand in the Singaporean market. The company
needs to promote their brands by advertising in all form of media, print media like
newspapers, health magazines. The other is broadcast media like television and radio where

advertisements will be aired. The company will promote their products through digital media
like social networking sites; this will help the company to reach out to their target audience
easily in very less time. Promotion of the products by these means will help in making people
aware of the products and the price they are offering in order to make them purchase the
products.
Conclusion
Holland & Barrett is a successful company and aims on expanding their business in
Singapore because of the high demand of health food products. The analysis of the market in
Singapore it states and suggests that the market is open to foreign investments and the
environment is favorable for Holland & Barrett to expand their business in this market. The
marketing mix will help the company in making some strategic decisions that will help the
company to gain a competitive advantage in the market and pave way for the success of the
company in Singapore.

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