Fashion and Textile Marketing

This paper discusses the marketing activities of H&M, a Swedish multinational clothing company, including segmentation, targeting, positioning, and the marketing mix. It also explores the organizational implications, action plan, and budget for the company's expansion.

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Fashion and Textile Marketing
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Fashion and Textile Marketing 1
Executive Summary
The objective of the paper is to guide the reader about the information about the company H&M.
The paper highlights details about the marketing aspects of the company and the strategies of the
company to increase its effectiveness in the business environment. Segmentation, targeting and
positioning activities of the company are conducted to analyse the marketing mix activities of the
company for its sustainable growth. The latter part of the report also elaborates the
organizational implication of several activities of the business in the market. Budget is prepared
for the new marketing activities of the business and evaluation and monitoring of the budget is
conducted. Further, it should be noted that the company H&M is (Hennes & Mauritz AB) is a
Swedish multinational organization that operates its business functions in the clothing industry.
The organization is recognized for its fast fashion clothing for men, children, teenagers and
women. The company has second largest global presence in the clothing industry.

Fashion and Textile Marketing 2
Contents
Introduction......................................................................................................................................2
Marketing Objective........................................................................................................................2
Marketing Strategy..........................................................................................................................3
STP..............................................................................................................................................3
Marketing Mix.............................................................................................................................4
Product.....................................................................................................................................4
Price.........................................................................................................................................4
Place.........................................................................................................................................5
Promotion................................................................................................................................5
Organizational Implication..............................................................................................................5
Action Plan......................................................................................................................................7
Evaluation and Monitoring Plan......................................................................................................8
Budget..............................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Fashion and Textile Marketing 3
Introduction
The scope of the report is to explain the marketing activities of the company H&M (Hennes &
Mauritz AB) in the business environment. With the degree of increasing competition, the
company has also found the need of implementing changes in the environment to grow. The
market segment is rapidly changing with the changing interest of consumers which is creating
impression on the demand of the company H&M. The demand of the customers has started
shifting from sustainable choice to highly fashionable and innovative choice in the business
environment. The report includes evidence regarding the marketing objectives and policies of the
company in the target market. The strategies explain the marketing activities and action plan that
the business should use and implement in order to grow. More details about the report are
discussed below:
Marketing Objective
The marketing objectives help the company to attain reputable growth in the target market by
targeting the right type of customer segment. These objectives are discussed below:
S (Specific) - Increase the brand value of the company by using successful promotional
campaign.
M (Measureable) – The business should aspire to develop the recognition of the brand by 12% in
the target market (Nguyen 2018).
A (Achievable) – The business should aspire to positively influence the sales by 5% in the
market.
R (Relevant) – The business should produce 50% of their products using innovative and highly
fashionable trends present in the market.
T (Time Bound) – The Company should increase the customer satisfaction by 50% within the
time frame of one year (Mierzejewska 2017).

Fashion and Textile Marketing 4
Marketing Strategy
STP
Segmentation refers to the process of identifying the right type of customer for the business so as
to offer them products in the target market. The process of segmentation involves segregating the
target market on the basis of various segments and then identifying the prospective customers to
capture. This process is divided into four segments that are psychographic, behavioural,
demographic and geographic segmentation (Fahy, and Jobber 2015). Elaboration of
segmentation is discussed below:
Demographic: according to this type of segmentation, the organization aims people who
belonging to different religion and culture. The company attracts people belonging to age group
of 15 to 30 years in the market. The business also targets working class family along with lower
and middle income level people.
Geographic: according to geographic segmentation, the business attracts urban areas to attract
people in the environment. H&M target the cities where more students are present in the
environment (Burns, Mullet, and Bryant 2016).
Psychographic: according to psychographic segmentation, the organization H&M attracts people
who share a vibrant and joyous personality in the market. The company looks for people who
love wearing different clothes that are trendy.
Behavioural: according to behavioural segmentation, the organization attracts people show brand
loyalty in the market. H&M also target people who are fond of purchasing products in the market
(Arrigo 2018).
On the basis of segmentation process, the company should target middle and lower income level
people that belong to age segment of 15-30 years. These people are those who should brand
loyalty towards the produce in the external market. Further, H&M should also target the people
who are highly into purchasing branded fashionable clothes in the market.
Further, positioning strategy of a company refers to a strategy that considers the strengths of the
business along with the needs of the consumers available in the industry and positions the

Fashion and Textile Marketing 5
company accordingly. This strategy helps the business to spotlight specific areas where they can
attain competitive advantage in the target market. According to this type of strategy, the
company should position themselves at a place where customers can find the products affordable
as well as fashionable. The company does not aim to reach to highly paid fashion brands in the
market but they aim to increase the interest of customers by offering them quality products at
affordable rates in the market (Uggla 2015).
Marketing Mix
Product
H&M is a retail company of clothing; the business offers fast fashion clothing products to
women, men and children across the globe. The organization includes products of designer
collection along with basics and yoga wear clothes as well. Along with this, the company along
provide women wear shoes, bags and accessories as well. The organization H&M aims to serve
products that are income friendly and designer as well. The company also provides a diversity of
Monday fashion and weekday clothing to the people in the target market. The brand has been
inspired by art and technology and designed clothing for the people (Ohlsson, and Riihimäki
2015). So, it should be noted that the product strategy of the company aims to develop the level
of satisfaction of the consumers by providing them products that are inspired from different
designs and themes in the environment. The company should aim to diversify the product
segment by providing products to the customers based on their culture and authentic designs
(Belz 2017).
Price
The company H&M make use of cost effective pricing strategy in the business environment. The
organization always aims to offer high quality clothes in the premium market. Major competitors
of H&M are Zara and GAP. As compared to both the brands, the prices offered by the company
are relatively lower and quality is almost similar. Resulting in which, the customer attain higher
level of satisfaction due to low price and high quality products in the market. The company attain
competitive advantage using its cost effective techniques. Further, it should be noted that the
company offer several of products in the business at different prices. The prices offered by H&M
are comparatively lower than the price offered by the competitors due to which satisfaction of
the customers is increased. The pricing strategy of H&M is highly effective due to which

Fashion and Textile Marketing 6
customers get attracted towards the products. Thus, the company should maintain the price range
of the products low so as to increase their level of satisfaction (Lluesma, and Ruiz 2018).
Place
The company sell the products online through exclusive store located in many cities across the
globe. So, it can be said that the company offer products across the globe either by
manufacturing unit or by franchising activities in the business market. The business has varied
online stores that enhance the quality of its distribution channel in the business environment.
Orders booked through the website are directly delivered to the stated address of customers
within few business working days (Mo 2015). The company manufacture the product in
countries where labour at low rates is available so as to reduce the internal cost and sell products
at low prices as well. In the place and distribution strategy, H&M should aim to increase the
store numbers so as to provide better level of satisfaction to the people in the external
environment (Belz 2017).
Promotion
The organization H&M actively make use of promotional techniques in the business
environment to grow and attract customers as well. The marketing strategy of H&M provides a
diversified choice of product portfolio catering to different segments. The company make use of
multi-channel promotional strategy in the external environment (Adamashvili, and Fiore 2017).
They focus on creating TV ads that are creative and attractive. Innovative design of the
advertisement attracts the customers to purchase products from the company. The company also
make sure that the advertisement provides all the information about the attractive features of the
company. The business implements effective PR strategies in the environment so as to
understand the expectation of the clients from the product and provide them services
accordingly. The company should make use of brand presence of different film stars to promote
the products in the market (Samson, and Sheela 2016).
Organizational Implication
The company H&M should plan to increase the number of store of the business in the
international market while increasing the product range as well. They aim to provide products in
the environment that involve highly fashionable design according to the current trends and

Fashion and Textile Marketing 7
demand in the market. Further, for the purpose of implementing such changes in the business, it
is important for the organization to initially go through market research (Bocken, et. al., 2016).
Research will assist the business to analyse the current trends present in external market along
with work on them accordingly. On the basis of trends identified, the organization should create
designer collection and offer them to the customers. They should hire new skilled staff so as to
efficiently setup new stores for the company. The management of H&M should train the
employees in such a way that they eliminate conducting mistakes and providing satisfaction to
the customers in the market. The core aspects due to which customers purchase products from
the company are because of high quality and secondly low prices in the market (Palmatier, Stern,
and El-Ansary 2016). Thus, the company should ensure that quality is maintained while
managing the cost of the products as well.

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Action Plan
Activity Time
Period (in
months)
Manager Growth Objective Concerned
Department
Market Research 2 Marketing Head Assortment of
authentic information
R&D
Analysis of expansion
opportunities
2 Operations
Head
Beginning goals and
mission
Operations
Defining the target
market and prioritizing
groups present in
worldwide market
3 Marketing Head Deciding people and
groups to target
Marketing
Allocation of Resources
to meet for new product
and expansion strategies
4 R & D Head Obtaining Resources R & D
Hiring of Employees 1 HR Manager Hiring employees to
develop innovative
HRM
Product Innovation
Operation Strategies
2 Operations
Head
Developing the product
and analysing its
alignment with
customer’s need
Operations
Creation of different
channels
1 Sales Head Development of
channels to increase
effectiveness of sales
Sales
Increment of Sales of
new products through
various channels
12 Manager Development of sales
campaign
Management

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Evaluation and Monitoring Plan
In order to implement the strategic action plan for the company, the management of H&M
should initiate change management activities in the business environment. The management
should explain it to the employees that the change is going to happen in the business and it can
affect the state of the company in the same way that the employees perform. So, it is important
for the employees to perform right actions in the business environment. Further, the management
should themselves take part in the action plan so as to achieve objectives in the business
environment. The monitoring plan of the company should involve check-ups on daily basis and
reporting to the higher level management. The supervisor should display samples of the product
on the factory setup so as to make the employees understand about the importance of quality in
the organization. While opening the stores, the management should also send experienced
employees in the organization so as to manage the activities in the new market as well (Alon,
Jaffe, Prange, and Vianelli 2016).
Budget
EXPANSION REQUIREMENT
BUDGET in million $
Income/ Revenue 5000
TOTAL 5000
Expenses
Legal Expenses 150
Raw Material 100
Salaries and Wages 50
Promotions 300
Depreciation 400
Shipping and Storage 100
Sales Expense 500
Other Expenses 1500
Total Expenses 3100
Expected Net Profit 1900

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(Budget is created using ball park figures only)
Conclusion
Thus, concluding the afore mentioned facts, it should be said that the paper represented
information about business activities of the company H&M. The company is present in a fashion
retail industry and provide premium quality products at low rates in the external environment.
The paper highlights information about the marketing actions of the business. The company is
aiming to grow by providing well-designed products to the customers at low rates in the market.
Further, they are aiming for business expansion by opening new stores in global market as well.
The marketing mix strategies for the company are discussed in the paper along with action plan
and budget for the expansion strategies of the company. By using above mentioned strategies,
the company H&M can effectively grow in the target market.

Fashion and Textile Marketing 11
References
Adamashvili, N. and Fiore, M., 2017. Investigating the role of business marketing techniques in
sales process. European Journal of Management Issues, 25(3-4), pp.135-143.
Alon, I., Jaffe, E., Prange, C. and Vianelli, D., 2016. Global marketing: contemporary theory,
practice, and cases. Routledge.
Arrigo, E., 2018. The key role of retail stores in fast fashion companies: The H&M case study.
In Contemporary Case Studies on Fashion Production, Marketing and Operations (pp. 121-137).
Springer, Singapore.
Belz, F.M., 2017. Marketing in the age of sustainable development. In System Innovation for
Sustainability 1 (pp. 126-146). Routledge.
Belz, F.M., 2017. Marketing in the age of. System Innovation for Sustainability 1: Perspectives
on Radical Changes to Sustainable Consumption and Production, p.116.
Bocken, N.M., de Pauw, I., Bakker, C. and van der Grinten, B., 2016. Product design and
business model strategies for a circular economy. Journal of Industrial and Production
Engineering, 33(5), pp.308-320.
Burns, L.D., Mullet, K.K. and Bryant, N.O., 2016. The business of fashion: Designing,
manufacturing, and marketing. Bloomsbury Publishing USA.
Fahy, J. and Jobber, D., 2015. Foundations of marketing.
Lluesma, C.R. and Ruiz, P.G., 2018. Virtues and the common good in marketing. In Business
Ethics (pp. 123-147). Routledge.
Mierzejewska, J., 2017. Analysis and evaluation of marketing strategies for clothing companies
on the example of Zara and H&M (Doctoral dissertation, Katedra Procesów Zarządzania).
Mo, Z., 2015. Internationalization process of fast fashion retailers: evidence of H&M and
Zara. International Journal of Business and Management, 10(3), p.217.

Fashion and Textile Marketing 12
Nguyen, D., 2018. Social media marketing strategy-Case study H&M Hennes & Mauritz.
Ohlsson, C. and Riihimäki, J., 2015. Sustainable Communication or Communicating
Sustainability?: A qualitative research studying sustainable marketing practices at IBM, Max
Burgers & H&M.
Palmatier, R., Stern, L. and El-Ansary, A., 2016. Marketing Channel Strategy: Instructor's
Review Copy. Routledge.
Samson, M.S. and Sheela, M.V.P., 2016. Global Markets And The Evolving Marketing
4p’s. Responsible Marketing For Sustainable Business, 100.
Uggla, H., 2015. Aligning Brand Portfolio Strategy with Business Strategy. IUP Journal of
Brand Management, 12(3).