2. 1. Introduction
Holland & Barrett is the leading retail chain which offers a wide range healthy and specialist
foods of Vitamins, Herbal Supplements and Minerals across more than 1110 stores in Europe. In
UK and Ireland, the number of Holland and Barrett stores has reached over 620 outlets. Upon
above 145 years of experience in the British health supplement offerings, Holland & Barrett has
built strong brand name with unbeatable heath food product range and exceptional expertise
customer service. (Holland & Barrett, 2016)
This paper will identify the target customer segment of Omega3 Fish Oil, one of the premium
health supplement items branded by Holland & Barrett as well as analyze how its marketing mix
tailors the target customers’ specific characteristics.
2. Customer segment
Although Omega3 Fish Oil can be used by people of all ages, the most important customer
segment of this product is people aged over 55 who are heath conscious. This market segment is
also the crucial target of Holland and Barrett since according to Mintel (2010), people aged over
55s visit specialist food retail outlets the most frequently and more than 50% of them have ever
shopped at Holland & Barrett stores. In addition, this customer segment’s size is continuously
growing. According to Mintel (2013), the population of British people aging more than 55s has
been increasing steadily and by 2018, this population size will grow by 9%. Moreover, over 55
year old consumers are also the most conscious about health problems and interested in healthy
diets and health supplement offerings. As a result, the customer segment of British people aged
more than 55s who are health conscious is selected in this report due to its potentials and
importance.
3. Characteristics of customer segment
A survey report by Mintel (2011) that compares the attitudes towards shopping between people
aged over 55 and those aged under 55 has revealed that customer service is the crucial factor for
customers aging over 55 and especially the over-75s to determine their choice of retailers since
above 50% of them only selects stores which have helpful and polite staff.
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3. Figure 1: Comparison of attitudes toward shopping of customers aged under 55 and over 55
(Mintel, 2011)
Regarding their shopping behavior, value for money is the top priority of shopping for customers
adding more than 55. In more details, the survey have also pointed out that about two thirds of
customers aged above 55 have decided their shopping plan in terms of what they will buy in
advance. Moreover, just above two thirds of them usually pay attention to the ingredients shown
on the product packages. It is interesting to see that although the over-55s are not customers who
budget for every penny when they go shopping, they have more tendency of using coupons and
vouchers for money-off purchases once they have. The Figure 2 shows more clearly about the
percentage of customers aged under 55 and over 55 who use money-off coupons and vouchers.
Specifically, the older customers are, the more likely they will use coupons and vouchers to save
money while go shopping. This behavior can be explained that since the people aged over 55
lived in the post-war period, they have developed the habit of cutting costs where possible so as
to save to spend for the future. Coupons and vouchers are usually collected and saved by the
older customers and used for future shopping.
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4. Figure 2: Percentages of people who agree with the statements ‘I decide what I want before I do
the weekly shopping’ and ‘I decide what I want before I do the weekly shopping’ by age (Mintel,
2011)
Figure 3 and Figure 4 illustrate more clearly the shopping behavior of British customers by both
age and social-economical class. Specifically, while Figure 3 shows that although the more
affluent people aged over 55 (ABC1 over 55) have the highest tendency of using coupons and
vouchers, even more than the lower social-economical class of all age ranges, the Figure 4
reveals that they have the least tendency of budgeting for every penny (i.e. only 17%). Besides,
of the same social economical class, C2DE, the older customers still have less tendency to
budget for every money for their household shopping. These statistics imply that although
vouchers and coupons will appeal the older customers, there are still opportunities for selling
premium products for customers aged over 55s, especially the more affluent customers aged over
55s are those who are most easily attracted by premium offerings.
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5. Figure 3: Percentages of people who agree with the statements ‘I decide what I want before I do
the weekly shopping’ and ‘I always use money-off coupons and vouchers’ by age and socio-
economic class (Mintel, 2011)
Figure 4: Percentages of people who agree with the statements ‘When doing the household
shopping I budget for every penny’ by age and socio-economic class (Mintel, 2011)
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6. In addition, although the under-55s are quite interested in stores with self-service and online
shopping which are convenient and time-saving, the over-55s are not convinced by the
advantages of those shopping forms due to the barrier of technical skills. Instead, visualization
and customer service are important factors to drive more visits and transactions from older
consumers. According to Mintel report in grocery retailing in the UK in 2011 report, the
purchasing choices of British customers aged above 55s are more likely influenced by what they
see in stores while go shopping since they represent the highest percentage of population who
buy something because they look good in store (Figure 5)
Figure 5: Percentages of people who agree with the statements ‘I often choose what food to buy
based on what looks good in-store’ by age and socio-economic class (Mintel, 2011)
With regards to brand loyalty, the 2011 Mintel report on Pricing and Promotions in Food in the
UK has revealed that the over 55 are the least likely to either switch brands due to cheaper own-
label products or cut off the number of premium items that they intend to buy (Figure 6). These
figures suggest that the older customers have greater brand loyalty to their established retailer
which offer value for money.
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7. Figure 6: Changes in shopping habits by reasons and ages (Mintel, 2011)
Regarding particular benefits sought, according to Mintel (2011), the over-55s demands help
supplement products which help with bone, vision, heart, digestive and joint health.
4. Marketing mix
Holland & Barrett’s current marketing mix in general and for Omega3 Fish Oil in particular has
already reflected the shopping habits and attitudes of the over-55s segment.
Product
In response to the over-55s’ demand for premium health supplement products which are of high
quality and value for money, Holland & Barrett’s offer Omega3 Fish Oil Concentrate in form of
1000md capsules which contain pure fish oil, free from contaminants. The product provides
essential Omega3 fatty acids which are EPA and DHA. Since EPA supports heart functions and
DHA maintains the vision and brain operation, the Omega3 Fish Oil is a tailored product for the
over-55s’ benefits sought (Holland & Barrett, 2016). Moreover, as more than two thirds of them
are often concerned about the product information during purchasing decision making process
and visualization (i.e. look good) is also an important factors affecting their choices, Omega3
Fish Oil’s package is made attractive and informative with transparent red boxes made by high
quality plastic and complete information about the products’ ingredients, directions, producers’
promise of quality and advisory information. Moreover, the claim that the product is made in
accordance with the recommendation of governments about nutritional intake and the product is
of the highest quality and the best value for money in the market is highlighted so as to appeal
the over-55s.
In addition, since customer service is the top priority for customers aged over 55 to select and
stay with a retailer, Holland & Barrett’s has built a strong position in the market with excellent
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8. customer advice service and product knowledge which other competitors cannot compete. The
sincere customer services offered at Holland & Barrett give the over-55s customers feel more
certain about receiving good value for money.
Price
Holland & Barrett has adopted value-based pricing strategy. Since the over-55s are not those
who budget for every penny while go shopping, instead, they look for high quality products
which are value for money. Since the product is claimed to be of the highest quality in the
market, its price is a bit higher than other fish oil products in the market but this pricing will
make the over-55 segment believes more in the product quality.
Place
Although online retailing has become an emerging trend and Holland & Barrett has already
launched an online store at http://www.hollandandbarrett.com , since its important segment, the
over-55s, are not interested in online shopping, the company still operate and continuously
increase the number of its outlets all over the UK and Ireland. The Omega3 Fish Oil is therefore
sold on not only the Holland & Barrett’s online store but also across more than 620 outlets in the
country (Mintel, 2016).
Promotion
Although the over-55s are not those who budget every penny, they are the customers who use
coupons and vouchers the most. Thereby, Holland & Barrett's often sell the Omega3 Fish Oil
product at promotional prices and offer many coupons and vouchers to trigger sales. Since the
over-55s are not interested in online shopping, Holland & Barrett's has used traditional
promotional channels to send vouchers and coupons and other promotional information to the
over-55 that is Direct postal mail. By this way, the over-55s are well informed about promotional
offers and redeem vouchers and coupons on frequent basis. The direct mail catalogue is designed
attractively with a lot of helpful information and money-off offers that is very effective to appeal
the over-55s
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9. Since the over-55s is the most loyal customer segment one they receive value for money from a
well-establish retailer, the Holland and Barrett strengthen its relationship with loyal customers by
offering what they love that are more promotional offers under the Rewards for Life loyalty
scheme. Holland & Barrett also advertise this loyalty program widely on television.
Physical evidence
Since the over-55s less likely to make online purchase and visualization is an important for them
to select a retailer or products, Holland and Barrett has continued to invest in its traditional
stores. Specifically, more larger stores have been launched and in some stores, there are healthy
food and drink on the go named the VBites Café and the Zenerjii Juice Bar which will appeal
heath conscious customers like the over-55s (Mintel, 2016).
Process
Since the over-55s often plans for their shopping very carefully and decide specifically what they
want before they shopping, the Holland & Barrett develop customer service as contact points to
support their research and shopping plan even when they have not decide what should they buy.
Specifically, Holland & Barrett has moved the customer service to the forefront: there are in-
store appointments where nutritionists will listen and try to understand the customers’ lifestyles
and needs, thereby, give heath advices and direct customers to the right products that suit their
needs
People
Staff at Holland & Barrett are trained in the way that suits the over-55s’ demand and selection of
a retailer store. Specifically, Holland & Barrett’s staff are not only polite but also helpful because
they are also nutritionists with rich product knowledge who can give valuable advice on health
and product selection
Recommendation for better Marketing Mix
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10. The marketing mix strategy of Holland & Barrett for its Omega3 Fish Oil can be improved so as
to better appeal the over-55s. Firstly, the Holland & Barrett should develop a new version of
Omega3 Fish Oil which is designed for the over-55s only since the health condition of the over-
55 are not the same as the younger people, the health supplement item should be made in a way
that is easier for them to absorb and digest. Besides, although there has been a customer service
desk with nutritionists who give health and product advice in every store, there should be a
separate customer service area for the over-55s so that they do not have to wait so long that will
show respect to the elder people and the over-55s will surely feel more satisfied for what they
get.
Reference
Holland & Barrett (2016). Holland & Barrett Omega 3 Fish Oil Concentrate Capsules 1000mg .
[Online]. Available at <http://www.hollandandbarrett.com/shop/product/holland-barrett-omega-
3-fish-oil-concentrate-capsules-1000mg-60003832 >
Holland & Barrett (2016). Who we are . [Online]. Available at
<http://www.hollandandbarrett.com/info/who-we-are >
Mintel (2011). Over-55s' Eating Habits - UK - September 2011. [Online]. Available at
<http://academic.mintel.com/sinatra/oxygen_academic/list/id=591614&type=RCItem#0_1___pa
ge_RCItem=0>
Mintel (2013). Dieting Trends - UK - November 2013. Market Drivers
Mintel (2016). Specialist Food and Drink Retailers - UK - March 2016. [Online]. Available at <
http://academic.mintel.com/display/747986/>
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