Benefits of Social Media Platforms for H&M

Digital Marketing
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
PESTEL Analysis of H&M..........................................................................................................3
TASK 2............................................................................................................................................5
Evaluation of key legal and ethical issues of the company..........................................................5
TASK 3............................................................................................................................................7
Evaluation of benefits Social Media platforms for the organisation...........................................7
TASK 4............................................................................................................................................9
Evaluation of effectiveness of social web on building brands Social web platforms..................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals....................................................................................................................12

INTRODUCTION
Digital marketing is a technique used by many organisations to promote their products
and services through online media at a global level. The companies consider social media
platforms, electronic devices and many more to reach their customers. More than 48%
consumers enquire about the product with different search engines. Digital marketing is the
fastest growing technique which has captured the market in a short duration. Digital marketing
involves the use of Facebook, twitter and other media which are currently used by many of the
customers to predict their preferences. This will help the company in developing the products
accordingly (Anjum, Thomas and Prakash, 2020). This report mainly focuses on digital
marketing campaign opted by H&M in the competitive external environment. Hennes & Mauritz
AB i.e. H&M is a Swedish multinational company which deals in clothing products of various
brands. It was founded by Erling Pearson in 1947 which was headquartered in Stockholm,
Sweden. The company spends large amount of their profit share in digital marketing. This report
will covers the effect of PESTEL factors on the digital marketing techniques of the company.
Furthermore, it considers the effectiveness of social web in building brands. It also covers the
advantages of social media in linking businesses with the customers. Lastly, it explains legal
issues in digital marketing.
MAIN BODY
TASK 1
PESTEL Analysis of H&M
PESTEL analysis is the framework developed with the aim of evaluating the external
environment of the organisation. Since, the company is operating in Sweden so this analysis will
evaluate the political, economical, environmental, social, technological and legal factors of
Sweden. After the slowdown of economic conditions of the world due to the pandemic attack,
the economy of Sweden is also affected. Their will be an expected decrease in the economy by
3.8% in 2020 which has impacted the small businesses the most. The overview of PESTEL
framework in context with H&M is explained below:
 Political Factors: These factors consider the geographical instability, terrorism and other
political conditions prevailing in the external environment of the company. H&M takes
the decision of digital marketing campaigns on the basis of current political condition

prevailing in the particular country as the company deals their operations in various
countries (Devasakthi and Nagajothi, 2019). The company uses Facebook pages and
different commerce sites for their digital marketing strategy as this will enhance the
interest of the customers. The Brexit also impacts the sale and revenue of the company by
affecting the digital marketing campaign. The adoption of new regulation due to Brexit
affects the growth prospects of the company in the external environment. Sometimes the
countries ban the internet access whenever any serious political condition arises which
affects the digital marketing campaigns. These factors can be configured as threat for the
company as they are unpredictable.
 Economic Factors: These factors include the macro environmental factors which are
uncontrollable by the companies. These factors include the changes in the interest rate of
the economy, effect of inflation and the unemployment rates. The inflation affects the
purchasing power of the buyer which ultimately impacts the industry growth, It affects
both the individual and the working environment of the organisation. H&M spends their
share of the profit in advertising campaigns but due to slowdown of the economy this
decision will affect the budget of the company. The effect of this factor is considered as
the threat of the company as the company is operating in the dynamic economy.
 Social Factors: These are the factors which directly impacts the customers taste and
preferences. The company tries to avoid these factors by satisfying the customers by
providing them quality products. H&M develops the marketing strategy according to the
social network and taste of the consumer which helps in getting greater reach by the
company. This factor can be consider as an opportunity for the company as they will get
the information about the customers desires and needs which will enhance their customer
base (Blazheska, Ristovska and Gramatnikovski, 2020).
 Technological Factors: These factors involve the impact of technology on the
company’s operations. This factor is the strength of the company as they will be able to
use latest technology in their marketing campaign which will be easy for them to connect
with their employees. H&M designs their banners and ads with the help of latest
technology which enhances their designs and creativity which will attract the loyal
potential customers towards the brand.