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H & M Group International Marketing and Strategy

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Added on  2022/11/27

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This research focuses on analyzing the strategic and marketing practices implemented by H & M within the global marketplace. It compares H & M's strategies with its competitor Zara and provides recommendations for improving international marketing strategies.

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Running head: H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
H&M Group International Marketing and Strategy
Name of the University:
Name of the Student:
Authors Note:

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1H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Executive Summary
The international marketing process also takes into consideration analysis of the needs and
expectations of target consumers and according developing international marketing strategies for
increasing sales of company’s offerings. Considering same, the research was particularly
focussed on analysing the strategic as well as marketing practices implemented by the fashion
brand H & M within the global marketplace. The research findings revealed that H & M’s
process based marketing strategy is also deemed to be effective in attaining high sales in
comparison to its rival fashion brand Zara. In addition, the fashion brand has competitive
advantage over Zara in improving its international sales performance as it has an online delivery
process through which orders are received within a computer system based on which selected
products are shipped to consumers in a prompt manner with no shipping charges. The research
also revealed that H & M Fashion brand’s product development strategy is focussed on offering
new and innovative products to all its target consumers. This strategy of the fashion brand has
facilitated the company to attain competitive advantages over its competitor Zara where through
strategic alliances with the famous designers. As both the fashion brands H & M and Zara are
observed to have strong brand identity to attain a leading position in terms of sales margin, H &
M Company is recommended to make certain innovative adjustments in its international
marketing strategies and make its target consumers more exposed to its unique offerings. The
promotional strategy of the fashion brad must consider using selective advertisements with
maintaining a strong apparel line that is anticipated to increase its sales performance.
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2H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Acknowledgement
It is a great pleasure for me to acknowledge the assistance and contributions of many individuals
in making this dissertation a success.
First and foremost, I would like to thank my supervisor, for her assistance, ideas, and feedbacks
during the process in doing this dissertation. Without her guidance and support, this dissertation
cannot be completed on time.
Lastly, I wish to express my sincere gratitude to my family for their encouragement and moral
support.
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3H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Table of Contents
Chapter 1: Introduction....................................................................................................................6
1.1. Company Background.......................................................................................................6
1.2. Research Background and Problem..................................................................................6
1.3. Research Rationale and Significance................................................................................8
1.4. Research Aim and Objectives.............................................................................................10
1.4. Research Questions.........................................................................................................10
1.6. Dissertation Structure.........................................................................................................11
Chapter 2: Literature Review.........................................................................................................12
2.1. Introduction.........................................................................................................................12
2.2. Concept of International Marketing....................................................................................12
2.3. Different Perspectives of International Marketing Approaches.........................................14
2.4. Principles of Marketing Strategy........................................................................................18
2.5. Basic Marketing Theories...................................................................................................20
2.6. Research Gap......................................................................................................................23
2.7. Conceptual Framework.......................................................................................................24
2.8. Summary.............................................................................................................................26
Chapter 3: Research Methodology................................................................................................27
3.1. Introduction.........................................................................................................................27

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4H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
3.2. Research Onion...................................................................................................................28
3.3. Research Design.................................................................................................................29
3.4. Research Approach.............................................................................................................29
3.5. Research Philosophy...........................................................................................................30
3.6. Data Collection Method......................................................................................................30
3.7. Data Analysis Methods.......................................................................................................31
3.8. Ethical Considerations........................................................................................................32
3.9. Summary.............................................................................................................................32
Chapter 4: Data Analysis and Findings.........................................................................................33
4.1. Data Analysis and Findings Discussion.............................................................................33
4.1.1. Marketing Principles Comparison between H & M and Zara.....................................33
4.1.2. Segmentation, Targeting and Positioning Strategy Comparison.................................35
4.1.3. Unique Selling Proposition Comparison.....................................................................37
4.1.4. Marketing Mix Strategy Comparison between H & M and Zara................................38
4.1.5. Ansoff Matrix Comparison between of H & M and Zara...........................................44
5.1.6. SWOT Analysis Comparison between H & M and Zara............................................48
5.1.7. BCG Matrix Comparison between H & M and Zara...................................................49
Chapter 5: Conclusion and Recommendations..............................................................................51
5.1. Conclusion..........................................................................................................................51
5.2. Recommendations...............................................................................................................53
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5H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
References......................................................................................................................................55
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6H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Chapter 1: Introduction
1.1. Company Background
H & M is a company that is positioned as the world’s renowned fashion organisation and it
has its online shopping with around 47 markets along with 4900 physical stores all through the
world within 72 markets (Hmgroup.com. 2019). In the financial year of 2019, more than 335
new stores are planned to be opened that will be solely H & M stores. More than 95 stores are
considered to be brand stores and the group encompass eight major brands like H & M, Monki,
COS, Weekday, H & M Home, Afound and ARKET (Hansen, Jensen and Petersen 2016). The
brand has constantly indicated exceptional performance with maintaining high consumer
experience as well as its vision for maintaining a sustainable fashion industry. The company has
recorded net sales of SEK 210 Billion in the year 2018 (Hmgroup.com. 2019). The research will
also particularly be focussed on analysing the strategic as well as marketing practices
implemented by the fashion brand H & M within the global marketplace. In addition, the
research will also discuss the subject in a broad manner through associating it with relevant
marketing theories as well as practices.
1.2. Research Background and Problem
In the recent era of changing business environment, most of the organisations and
specifically the fashion brands wish to attain successful market expansion across several nations.
All the companies operate within an international business framework for capturing maximum
faction of the international market (Alon, Jaffe, Prange and Vianelli 2016). There is considerable
pace of globalisation within today’s business and the same can be articulated from the fact that
the organisations operate their business within the country’s boundaries might deal with the issue

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7H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
of domestic shortages of labour. It has been observed that the most of the businesses operating
internationally face issues in differentiating both the terms internationalisation and globalisation
and realise that both these terms lead to increased exposure to global factors (Arrigo 2018). Such
issue can result in the companies to develop ineffective international marketing strategies that
can facilitate them in suitably and competitively driving sales in the global marketplace.
Considering this research problem, it has been gathered that the fashion businesses like H & M
requires understanding the process of international marketing focusing in the nature of the
changing business world (Attas et al. 2017). Expanding business within the international market
is employed to signify westernisation in developing nations and the fashion brands like H & M
must analyse several economic conditions along with remaining aware of the related global
issues affecting its business sales and successful implementation of its international marketing
strategy.
It has been observed that the four major principles of marketing strategy are considered
important for successful implementation of international marketing strategies. The major
marketing principles include specialisation, differentiation, segmentation and concentration
(Bartsch et al. 2016). Through applying such principles it can be stated that specialisation is
evidenced to offer fashion brands with increased competitive advantages through ensuring their
specialisation on a specific aspect or product. Concentration international marketing principle
facilitates the organisation to realise the products and services offered by them and the offerings
that are not yet introduced by the organisation that can offer increased clarity to international
strategy of the business.
From analysing the business issue faced by H & M in maintaining its competitive edge
within the international marketplace, the company must take into consideration suitable
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8H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
implementation of marketing mix strategies as per their applicability in various nations
(Bookman and Hall 2019). In addition, the research will have useful implications in addressing
the identified research problem as it will analyse various factors impacting the entry mode of the
companies in the global markets (Burt, Johansson and Dawson 2017). There are several ways in
which the companies can enhance their international marketing strategies and these consider
analysing whether the product will attain success in the international market, adjustment of
media mix based on the target nations culture and evaluation of the local customs that can
support the company’s expansion and growth decisions (CuervoCazurra et al. 2017). Extended
7Ps theory includes process people and physical evidence that is also considered important t be
implemented in international marketing research. People aspect is considered to be one of the
major aspects that ensure marketing strategy success. It includes employees, organisational
culture and management (CuervoCazurra et al. 2017). The process aspect in this marketing mix
theory includes back-office operations that indicate the manner in which the organisation’s
products and services are offered. This model implementation in case of H & M company can
facilitate in analysing the issues faced by the company in driving its sales through
implementation of its international marketing strategies.
1.3. Research Rationale and Significance
The rationale of the current research is to analyse the effectiveness of H & M Company’s
international marketing strategies in attaining global competitive edge. In analysing the same,
comparative evaluation of the international marketing strategies by H & M and its major
competitor Zara is also carried out. This facilitated in gathering useful study implications in the
form of revealing the major sales performance issues faced by the fashion brand in comparison
to its competitors in the industry (de Jorge Moreno and Carrasco 2016). The significance of the
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9H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
current research is to evaluate various international marketing recommendations applicable for H
& M to improve its marketing strategies and thereby increasing its sales performance in the
future years. Moreover, significance of current research is focussed on analysing the marketing
discipline from variety of distinct marketing perspectives that includes the commodities,
institutional, functional, managerial and the environmental approach.
The purpose of the study is also to carry out the study of marketing approaches in the
fashion retail industry has considered the study of individual products along with analysing the
wholesalers, retailers along with agents (Duma et al. 2016). The approach to such study of
marketing is deemed to pass through several stages prior to attaining the present stage. From
analysing the study results, it can be gathered that these relevant marketing models and
principles can facilitate in making better comparison of the international marketing strategies
implemented by H & M and its competitor, Zara over years to increase their sales performance.
Considering the interrelations indicated in the research findings, it is evident from the
research that the international marketing strategies implemented by fashion brands serve as an
effective scheme through which the management intends to transfer its services or products to
target consumers (Ghauri et al. 2016). Significance of the current research is also to analyse the
combination of several aspects included within the marketing mix theory with the four aspects of
the marketing strategy that can facilitate in developing an effective marketing plan. The study
revealed that few markets are observed to be alike and it is considered important to adapt the
marketing mix that can facilitate in making sure that necessary customisation exist for satisfying
buyers’ needs to every market (Gomes 2017).

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10H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
The research also has the rationale of explaining that international marketing process also
takes into consideration analysis of the needs and expectations of target consumers and
accordingly developing international marketing strategies for increasing sales of company’s
offerings. Considering such aspects related with implementation of international marketing
successfully, the findings gathered from this study implies that the marketer requires evaluating
all the necessary factors related to successful international marketing strategy implementation to
attain increased sales margin in the global marketplace.
1.4. Research Aim and Objectives
The aim of this current research is to analyse the effectiveness of H & M Company’s
international marketing strategies in attaining global competitive edge. The research objectives
that are to be addressed in this study are indicated below:
To recognise the marketing strategy of the H & M Company within the global
marketplace
To evaluate the efficiency of the company H & M’s marketing practice
To compare and contrast the marketing practice of H & M Company from its major
competitors (Zara)
1.4. Research Questions
Primary Research Question
How the H & M Company implement their marketing approaches and related strategies
in increasing their sales within the global marketplace?
Secondary Research Questions
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11H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
What are the international marketing and related strategies implemented by H & M over
the recent years?
How to compare the success of international marketing strategies of H & M with its
major competitor Zara?
What are the relevant marketing theories and practices that can be implemented for
evaluating the effectiveness of H & M’s international marketing strategies?
1.6. Dissertation Structure
The first chapter of the research report elaborates the company background, research
problem, rationale along with aim and objectives of the study. The second chapter explains the
existing literature on the international marketing and strategy implemented by the fashion brans
in previous years for attaining competitive edge. Relevant theories that are argued to be useful in
successful strategy implementation analysis are explained in this section. The third chapter
focuses on explaining the relevant research methodologies including the study design, approach,
philosophy and data collection as well as data analysis methods used in the current study. The
fourth chapter of this dissertation includes data analysis and findings that will consider analysing
the success of international marketing strategies implementation by H & M in comparison to its
competitor brand. The fifth chapter of the research concludes the major findings of the research
along with offering suitable recommendations to the company that can offer useful implications
to the company’s manager ensuring international success of the company.
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12H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Chapter 2: Literature Review
2.1. Introduction
The literature review section analyses the existing researches on different international
marketing theories and their success in facilitating the companies to attain competitive
advantages and increase in sales. The literature review section explains the concepts and
international marketing approaches that has been evidenced and evaluated by previous
researchers for analysing their effectiveness in dealing with domestic competition from
international companies that are extending their global presence (Helal, Ozuem and Lancaster
2018). Comparing and contrasting previous researches on the effectiveness of international
marketing strategies have facilitated in selecting the most suitable marketing theories and
principles for the current research. This has further supported in evaluating the sales margin
improvement of the fashion brand H & M after implementation of relevant marketing
approaches.
2.2. Concept of International Marketing
According to the research carried out by “American Marketing Association (AMA)” a
global organisation of academicians and practitioners explains international marketing as a
process of planning as well as implementing the conception, pricing, promotion along with
distribution of foods ideas and services. Henninger et al. (2017) added that such process of
international marketing facilitates in generating exchanges which satisfy individual as well as
company objectives. These researchers also defined international marketing as a series of
activities that satisfies as well as addresses the requirements of consumer groups or individuals
that are beyond the national boundaries. The international marketing process also takes into

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13H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
consideration analysis of the needs and expectations of target consumers and according
developing international marketing strategies for increasing sales of company’s offerings. Kang
and Kim (2017) indicated that the international marketing process is quite complex and
complicated in contrast to the local and domestic marketing. The society, culture, preferences,
region along with values is observed to be different in various nations. Considering such aspects
related with implementation of international marketing successfully, the marketer requires
evaluating all the necessary factors related to successful international marketing strategy
implementation to attain increased sales margin in the global marketplace.
On the other hand, researchers namely Kerr and Patti (2015) revealed that international
marketing management can be explained as the successful implementation of marketing
practices along with principles at an international level. Market selection at a global level can be
explained as the most important decision which a company desires to implement in its
international business. Conversely, despite of high complexity in implementing international
marketing strategies, the ways employed by the organisations in recognising a prospective
marketplace are deemed to be reliant on instinct unplanned decisions rather than structured
approach towards the same. Kumar (2019) elaborated that there are several ways in which the
companies can enhance their international marketing strategies and these consider analysing
whether the product will attain success in the international market, adjustment of media mix
based on the target nations culture and evaluation of the local customs that can support the
company’s expansion and growth decisions.
According to views presented by, Lei and ZHANG (2018) the extended 7Ps theory
includes process people and physical evidence that is also considered important to be
implemented in international marketing research. People aspect is considered to be one of the
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14H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
major aspects that ensure marketing strategy success. It includes employees, organisational
culture and management. The process aspect in this marketing mix theory includes back-office
operations that indicate the manner in which the organisation’s products and services are offered.
Mackey and Gass (2015) stated that success of any business in the international marketplace
is effectively associated with the capability of the organisation to attract qualified
prospects. These researchers also revealed that the combination of seven aspects included within
the marketing mix theory with the four aspects of the marketing strategy that can facilitate in
developing an effective marketing plan. Few markets are observed to be alike and it is
considered important to adapt the marketing mix that can facilitate in making sure that necessary
customisation exist for satisfying buyers’ needs to every market.
2.3. Different Perspectives of International Marketing Approaches
Research carried out by McCusker and Gunaydin (2015) is focussed on analysing the
marketing discipline from variety of distinct marketing perspectives that includes the
commodities, institutional, functional, managerial and the environmental approach. These
researchers also stated that the study of marketing approaches in the fashion retail industry has
considered the study of individual’s products along with analysing the wholesalers, retailers
along with agents. The approach to such study of marketing is deemed to pass through several
stages prior to attaining the present stage. Mo (2015) stated that the product or commodity
approach of marketing has increased focus on the product or it is also considered as an approach
on the marketing on the commodity wise basis. In this approach, the marketing personnel must
consider analysing the issues related with the commodity that is the sources along with
conditions of supply, nature along with extent of demand, transportation mode, standardisation,
storage along with packaging. Nguyen (2018) added that through implementing commodity
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15H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
marketing approach the marketers attain an overall viewpoint of marketing that ranges from the
producer to the target consumers. This approach signifies that it is quite simple and also offers
better results over every product marketing. However, a limitation of this marketing approach is
that it is quite time-consuming and repetitive process.
Researchers, namely Oishi (2018) indicated that institutional marketing approach focuses
on the study of the institutions that includes wholesalers, middlemen, importers, exporters,
retailers, warehousing and the agencies that are involved within marketing at the time of goods
movement. This is also considered as middlemen approach where the major focus is on the
understanding as well evaluation of functions responsible for discharging their marketing
activities. Palmatier, Stern and El-Ansary (2016) added that the activities of ach institution is
deemed to be an aspect of marketing that collectively addresses the marketing operations. In the
process of shifting goods from the producers to the consumers, a large fraction of people are
involved. This marketing approach also takes into consideration analysing and addressing the
functions along with issues of marketing institutions, transporting, warehousing and advertising.
This marketing approach also do not offer any suitable knowledge of overall marketing functions
and also has drawbacks in elaborating interlink among different institutions.
Piercy (2016) stated that functional marketing approach is focussed on analysing various
marketing functions where the approach concentrates its attention on the specialised functions or
services carried out by the marketers. These researchers also stated that functional marketing
approach is segmented into various functions that include functions purchasing, pricing, selling,
storage, standardisation, advertising, packing and transportation. Quinlan, Babin, Carr and
Griffin (2019) defined functional approach of marketing as business of selling and purchasing
that also encompass those activities assumed with ensuring smooth flow of services and goods

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16H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
between the consumers and the producers. This marketing approach also gives an increased
relevance to certain marketing functions and also lags in explaining the manners in which this
function is applicable for particular business operations.
Retail-innovation.com (2019) evidenced that managerial marketing approach is
considered to be latest and scientific that focuses on the marketing functions or marketing and
also takes into consideration the decision making role at the organisational level. This marketing
approach is deemed to be greatly concerned with the manner in which managers’ deal with
certain issues and situations. It considers the marketers to evaluate the recent marketing practices
in facilitating the company to attain the definite marketing objectives. Basically, Salem and
Salem (2019) explained two major factors including controllable and uncontrollable that is
greatly related with decision making. Controllable marketing approach encompasses
advertisement and price adjustment. Whereas, the uncontrollable aspects include sociological,
psychological, economical as well as political reasons analysis for market changes that cannot be
controlled by an organisation. Where the controllable aspects can be managed by the marketing
personals, the uncontrollable aspects limit the existing marketing opportunities. Samiee (2019)
indicated that the managerial marketing approach is related with the study of uncontrollable
aspects and takes into consideration the decision making as a controllable aspect. These
researchers also signified that the managerial decision-making approach is greatly cantered on
analysing the practical function of marketing where it ignores the theoretical factors related with
marketing. However, this marketing approach is intended to offer overall information on the
overall business.
Sidhu (2018) stated that environmental marketing approach is focused on developing
marketing strategies to address the environmental concerns that have turned out to be highly
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17H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
popular in to be used by the companies in the recent years. This approach implementation in
developing marketing strategy believes that the market approach in developing environmental
preservation takes placed from an idea of offering people, companies and nations incentives for
safeguarding the environmental aspects. Silverman (2016) added that under this approach the
companies take the initiative to transform the undeniable value of environmental predicts for
business welfare, economy and for future into a solid economic terms. These researchers also
revealed that focussed on such approach the company these days are making increased effort on
implementing green marketing strategies that can increase awareness of the fashion brand’s
offerings. Such strategic marketing approaches are considered to have the ability to increase
sales performance of the organisations and attain competitive edge on the global marketplace.
Researchers namely, Steenkamp (2017) revealed that system approach is another
effective marketing approach that is used by the organisations in the current business
surrounding. This approach considers setting the offerings of the companies with analysing the
relationships among them along with their attributes. Systems marketing approach also greatly
focuses on analysing the interconnections along with interrelations among the major marketing
functions. This approach is also evidenced to analyse the marketing connections within and
outside the organisation, where within the company there exist business activities co-ordination
along with the production, price and marketing. In contrast, Taylor, Bogdan and DeVault (2015)
explained that in following system international marketing approach better control is exercised
for modifying the company’s existing production process in an attempt to produce a desired
outcome. The aim of this approach is to secure maximum profit for the organisation through
ensuring better consumer satisfaction. For instance, these researchers also explained that
business is composed of several major functions focussed on profit making that further includes
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18H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
certain sub-functions (Thompson and McLarney 2017). All these marketing functions or sub
functions are totally independent but are still linked together to one other in attaining the desired
marketing objectives. Viardot and Nylund (2017) added that the societal marketing approach
employed by the companies is focussed on developing effective marketing strategies focussed on
the ecological factors such as cultural, sociological and legal aspects. Considering such factors
facilitates in making better marketing decisions and their impact on ensuring the social well-
being.
2.4. Principles of Marketing Strategy
Walliman (2017) revealed that the four major principles of marketing strategy are
considered important for successful implementation of international marketing strategies. These
major marketing principles include specialisation, differentiation, segmentation and
concentration. These researchers also stated that specialisation is evidenced to offer fashion
brands with increased competitive advantages through ensuring their specialisation on a specific
aspect or product. Concentration international marketing principle facilitates the organisation to
realise the products and services offered by them and the offerings that are not yet introduced by
the organisation that can offer increased clarity to international strategy of the business. Wang
(2018) indicated that these four fundamental marketing principles if implemented in a better
manner can result in attaining business growth. These researchers also stated that specialisation
principle used for developing a marketing strategy it is important to determine the areas where
the company wishes to specialise to increase its sales performance. For instance, if a company’s
consumer prefers attaining a particular service or product in a quick and efficient manner then
the marketing strategy must be focussed on promoting cleanliness, efficiency along with value.
Westjohn, Roschk and Magnusson (2017) added that the companies must take into consideration

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19H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
developing services and products that are highly appealing to consumers in comparison to its
competitors. This marketing principle must not consider conducting activities that does not align
with the specialisation.
According to the views presented by Yang, Song and Tong (2017), differentiation
principle is focussed on analysing the competitive advantages that can be attained by the
companies marketing strategies. This principle also focuses on analysing the ways in which the
companies are different and better in comparison to its major competitors. The differentiation
marketing principle believes that the consumers also refer to attain the best deal where they
expect to attain highest quality offerings at a better price. Considering the same, the
organisations must consider developing unique selling proposition within their international
marketing strategies. Yang, Song and Tong (2017) indicated in their research that segmentation
principle is greatly followed by the organisations where it focuses on analysing the specific
consumers of the company existing within the market that prefers valuing the company’s
differentiation. These are the consumers that are likely to pay an increased amount for the
company’s area of specialisation. For this reason, the marketing managers must consider
segmenting as well as identifying the consumer segment that are likely to purchase from the
companies and in a rapid manner.
Westjohn, Roschk and Magnusson (2017) also explained that in this segmentation
principle the marketing personnel needs to consider analysing whether the consumers appreciate
companies area of superiority along with their demographics, psychographics along with
deciding the perfect consumer profile. These researchers also revealed that the concentration
principle focuses on determining the best marketing segments through focusing on the
company’s resources, energies, budgets and time needed for acquiring consumers from these
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20H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
markets along with retaining them. Westjohn, Roschk and Magnusson (2017) stated that through
implementing the segmentation principle the fashion brands are observed to develop better
marketing mix strategies that have further facilitated them in differentiating products,
communication methods along with certain other marketing variables. In selecting the most
appropriate market segments the companies must take into consideration two major factors.
These factors include companies’ resources and objectives along with the market segments
overall structural attractiveness in relation to growth, size profitability, growth, scales economics
along with low risk. Westjohn, Roschk and Magnusson (2017) indicated that following the
market concentration principle, the companies follow the marketing strategies are focussed on
maintaining a strong market position, increased knowledge regarding segment specific
requirements, specific reputation along with maintaining the desired leadership position.
2.5. Basic Marketing Theories
In analysing increased sales through international marketing strategy implementation, the
basic marketing theory of 4P’s marketing mix focussed on strategies related with product, price,
place and promotion is generally employed. Henninger et al. (2017) defined marketing mix as a
tool by the marketers and the businesses in determining a product or brands offering. This
marketing theory is evidenced to evaluate the process of the organisations in different aspects.
Henninger et al. (2017) revealed that the extended 7Ps theory includes process people and
physical evidence that is also considered important to be implemented in international marketing
research. People aspect is considered to be one of the major aspects that ensure marketing
strategy success. It includes employees, organisational culture and management. The process
aspect in this marketing mix theory includes back-office operations that indicate the manner in
which the organisation’s products and services are offered. Henninger et al. (2017) indicated that
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21H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
process strategy of a company can include supply chain management, logistics along with
service delivery. The physical evidence aspect of the company is deemed to be the product and
services offered within the marketplace that generally includes store front, facilities, employee
behaviour, visual packaging along with employee dressing. Henninger et al. (2017) added that
success of any business in the international marketplace is effectively associated with the
capability of the organisation to attract qualified prospects. These researchers also revealed that
the combination of seven aspects included within the marketing mix theory with the four aspects
of the marketing strategy that can facilitate in developing an effective marketing plan. Few
markets are observed to be alike and it is considered important to adapt the marketing mix that
can facilitate in making sure that necessary customisation exist for satisfying buyers’ needs to
every market.
Henninger et al. (2017) revealed that several renowned fashion brands have considered
implementing the marketing mix theory for attaining sales increase in the international
marketplace. Previous researchers have revealed that the marketing mix theory includes
strategies that serve as tools for the marketers to determine a company or brand’s offerings. The
marketing mix strategies developed by the companies over years in attaining high sales
performance in global market are indicated below:
Product: Kang and Kim (2017) explained that the product strategies must be developed
by the marketers in a manner that fits the expectations of consumers and the products
must be designed in a manner that fits the needs of the brand’s target consumers.
Price: Kang and Kim (2017) stated that the pricing strategy must be decided by the
marketing managers in way that the brand offerings represent a god value for money.
This marketing strategy do not indicate that the products must be most priced extremely

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22H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
cheap but the prices for offerings must be set in a manner that c make the consumers
contended to pay more for the values offered by the product.
Place: Kang and Kim (2017) indicated that the products must be available from where
the target consumers finds it quire simpler to shop from. The place strategy might include
distributing the offerings though high street, mail order or the most recent distribution
channel that is through e-commerce or online shopping.
Promotion: The marketing strategy of promotion considers implementing suitable brand
promotion strategies through advertising, sales promotion, public relations and personal
selling along with the social media channels. These promotional strategies are considered
as the most effective communication tool for the companies. Kang and Kim (2017)
evidenced these promotional tools to be effective for the fashion brands to increase sales
margin and successfully communicating brand message to the target audiences in a way
that the promotional messages are informative and highly appealing for all its target
consumers.
People: Kang and Kim (2017) clarified in their research that people based marketing mix
strategies are greatly focussed upon by the marketing managers of the companies.
Following this marketing mix strategy the fashion brands are observed to depend on its
front line sales staff to the managing director. Selecting the right people on the marketing
process is essential for the reason that they are an important part of business offering.
Processes: The process focussed international marketing strategy takes into consideration
the delivery of services to the target consumers. The services delivered are a part of the
features for which the consumers are paying for.
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23H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Physical evidence:. Kang and Kim (2017) indicated in their research that the services
offered by the companies encompass certain physical elements even if a huge fraction of
consumer is paying for such intangible aspects.
Along with these marketing theories, research namely Kang and Kim (2017) defined Ansoff
matrix as a technique of developing strategic options for business. These researchers indicated
that Ansoff matrix is used by several companies operating in the international market to analyse
its competitive market position. This matrix serves as a strategic analysis tool that serves as an
effective framework for facilitating the marketing executives to develop effective international
marketing strategies in supporting future sales growth. The growth strategies explained in this
marketing model includes market penetration, product development, diversification and market
development that if implemented successfully can enhance sales performance of companies.
Kang and Kim (2017) defined SWOT analysis as identifying the internal and external factors
existing within the business environment that affects business of the companies. Westjohn,
Roschk and Magnusson (2017) defined BCG matrix to be developed by Boston Consultancy
Group that facilitates in analyzing the effectiveness of a product line or portfolio of companies.
2.6. Research Gap
Through analysing the findings and revelations from the previous researches it has been
gathered that past studies on the topic had a limitation in analysing the importance of evaluating
suitable marketing strategy principles and approaches in successful implementation of
international marketing strategies for driving sales (Palmatier, Stern and El-Ansary 2016). Very
limited research exists that takes into consideration the importance of selecting suitable target
market for improving company’s marketing initiatives and for ensuring success of products and
services in global marketplace. Previous studies also indicated a gap in associating the marketing
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24H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
principles and approaches with improvement of a company’s sales performance in the
international marketplace (Palmatier, Stern and El-Ansary 2016). Considering such limitation of
previous studies, the current research is intended to address such gap through considering use of
relevant marketing theories, principles and approaches in ensuring the success international
marketing strategy implementation. For attaining reliable findings, case study of a fashion brand
H & M is considered for comparative analysis with its major competitor Zara. This has
facilitated in evaluation of the issues faced by the fashion brands in implementing their
competitive international marketing strategies that has affected their sales performances
(Palmatier, Stern and El-Ansary 2016).
2.7. Conceptual Framework
The figure below indicates a conceptual framework for the current research on analysing
the ways in which international marketing and related strategies impact the sales performance of
the selected fashion brand H & M. This framework also indicates that marketing theories such as
7Ps marketing mix, marketing principles and competitor comparison using marketing model
such as the Ansoff Matrix can facilitate in analysing the sales performance of H & M in
comparison to its competitor (Zara Palmatier, Stern and El-Ansary 2016). From analysing the
conceptual framework it can be gathered that these relevant marketing models and principles can
facilitate in making better comparison of the international marketing strategies implemented by
H & M and is competitor Zara over years to increase their sales performance. Considering the
interrelations indicated in the conceptual framework below it can be evidenced from the research
that the international marketing strategies implemented by fashion brands serves as an effective
scheme though which the management hopes to transfer its services or products to target
consumers (Lei and ZHANG 2018). Through analysing the relationship between the sales

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25H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
performances the marketing strategies can be implemented by the company. The research will
also explain that effective marketing strategies needs decisions which successfully integrates
marketing programs of the fashion brand towards addressing needs of consumers as well as
persuading their positive purchase decision making process. These researchers also defined
international marketing as a series of activities that satisfies as well as addresses the requirements
of consumer groups or individuals that are beyond the national boundaries. The international
marketing process also takes into consideration analysis of the needs and expectations of target
consumers and according developing international marketing strategies for increasing sales of
company’s offerings (Lei and ZHANG 2018).
The research explained that the international marketing process is quite complex and
complicated in contrast to the local and domestic marketing. The society, culture, preferences,
region along with values is observed to be different in various nations. Considering such aspects
related with implementation of international marketing successfully, the marketer requires
evaluating all the necessary factors related to successful international marketing strategy
implementation to attain increased sales margin in the global marketplace (Lei and ZHANG
2018). The conceptual framework indicates that international marketing management can be
explained as the successful implementation of marketing practices along with principles at an
international level. Market selection at a global level can be explained as the most important
decision which a company desires to implement in its international business. Conversely, despite
of high complexity in implementing international marketing strategies, the ways employed by
the organisations in recognising a prospective marketplace are deemed to be reliant on instinct
unplanned decisions rather than structured approach towards the same.
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26H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
The research will also elaborate the importance of developing an effective international
marketing strategy for improving sales margin of the business (McCusker and Gunaydin 2015).
This can be ensured through innovating the combination of product features, accompanying
services, promotional tools along with price decision for distributing products that serve, reach
and appeal the target market. Through applying this strategy, the fashion brand H & M can attain
high sales margin that is ensured through making its marketing approaches appealing and also
offering products as per the desires of the consumers.
Figure 1: Conceptual Framework
(Source: Authors Creation)
2.8. Summary
The literature review section explains the concepts and international marketing
approaches that has been evidenced and evaluated by previous researchers for analysing their
Sales
Performance
of H&M
Marketing
Mix
Strategies
Marketing
Principles
Competitor
Comparison
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27H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
effectiveness in dealing with domestic competition from international companies that are
extending their global presence. It has been evidenced from the report that analysing the
marketing discipline from variety of distinct marketing perspectives that includes the
commodities, institutional, functional, and managerial and the environmental approach. The
literature review explained that in analysing increased sales through international marketing
strategy implementation, the basic marketing theory of 4P’s marketing mix focussed on
strategies related with product, price, place and promotion is generally employed. This marketing
theory is evidenced to evaluate the process of the organisations in different aspects. Considering
such limitation of previous studies, the current research is intended to address such gap through
considering use of relevant marketing theories, principles and approaches in ensuring the success
international marketing strategy implementation.
Chapter 3: Research Methodology
3.1. Introduction
The current exploration is focussed on analysing the effectiveness of international
marketing practices and strategies implemented by H & M for attaining competitive advantages
in the global fashion marketplace. In the research methodology chapter the researcher has
explained various applicable approaches, designs as well as strategies that has been implemented
in the current study for attaining suitable research results. Selecting the appropriate methods for
data collection and its analysis has facilitated the researcher in ensuring validity and research
authenticity (McCusker and Gunaydin 2015).

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3.2. Research Onion
Through implementing the research onion, the researcher has attained effective study
findings. In addition through implementing the researcher methodology approaches indicated in
the research onion in the figure below the researcher attained reliable results through
accomplishing six different tasks. In addition, the research onion strategies in the form of
research strategy, approach, philosophy and timeline has facilitated the researcher in obtaining
constructive research findings (de Jorge Moreno and Carrasco 2016).
Figure 1: Research Onion
(Source: Hmgroup.com. 2019)
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29H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
3.3. Research Design
The research was carried out on the effectiveness of international marketing strategies
implemented by H & M for improving the fashion brand’s sales performance in the global
marketplace. Considering the objective of the study, explanatory research design was chosen for
this exploration (de Jorge Moreno and Carrasco 2016). This is for the reason that it facilitated in
gathering detailed description of the factors marketing principles and approaches that affects
effective implementation of international marketing strategies by H & M in enhancing sales
performance. This research strategy has also facilitated in revealing the issues faced by the
fashion brand in comparison to its competitor Zara that is affecting its global sales margin.
Moreover, as the researcher also considered developing an effective recommendation list for the
H & M Company selection of explanatory research design facilitated in minimising the issues
identified at the end of the research (de Jorge Moreno and Carrasco 2016).
3.4. Research Approach
The research approach that has been used in this research is deductive. This research
approach is considered suitable for this study for the reason that the research has also been
focussed on focussed on carrying out qualitative data analysis through analysing the theories
along with the general data regarding the H & M Company (de Jorge Moreno and Carrasco
2016). Deductive research approach used in the current study has facilitated the researcher in
employing qualitative research and attains suitable research findings. Moreover, as the study
considered using positivism philosophy, this approach is deemed suitable where the secondary
data has been evaluated with the support of previous trends along with the existing models and
proven facts. In addition, deductive research approach can be used for this type of study as it
considers evaluating the existing theories and models associated with the study through
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30H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
observing the gathered data (de Jorge Moreno and Carrasco 2016). For such reasons, deductive
research approach was deemed most applicable in attaining the valid qualitative findings from
the research,
3.5. Research Philosophy
The applicable research philosophy in the research of analysing the international
marketing strategies for improving sales performance of H & M Company is positivism. This is
for the reason that the selected research philosophy is that the study considered using the
marketing theories and then arriving at a solution through conforming the theory (Alon, Jaffe,
Prange and Vianelli 2016. Positivism research philosophy is considered suitable for this type of
qualitative research as it is relied on valuating the existence of reality through employing
scientifically proven approaches. For the reason that the current research is focussed on
evaluating the issues faced by H & M in competing successfully with its competitor Zara in
developing effective international marketing strategies that can increase its sales performance,
positivism research philosophy is deemed applicable (Alon, Jaffe, Prange and Vianelli 2016.
This philosophy supported in analysing the challenges faced by the marketing professionals of H
& M in details and also supported in dissecting relevant data from valid secondary sources.
3.6. Data Collection Method
For carrying out research on the effectiveness of international marketing approaches in
improving the sales performance of H & M Company, the study has considered gathering
secondary data for analysis. Such data has been gathered from reliable internal and the external
sources that included annual report of H & M and certain relevant government publications
(Alon, Jaffe, Prange and Vianelli 2016. In addition the secondary data was also gathered from
the existing literature review that explained the marketing theories used in analysing marketing

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31H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
strategies of the fashion brands. Relevant data on H & M’s along with its competitor Zara’s
marketing strategies has been gathered from previously published journal articles and
government publications. In addition, the research also considered gathering secondary data from
several past papers, articles, journals, books and websites related with marketing approaches of
H & M as well its competitor Zara (Alon, Jaffe, Prange and Vianelli 2016. In the current study,
the literature review section has been developed through collecting secondary data in relating the
research put comes with the objectives of the study.
3.7. Data Analysis Methods
Case study data analysis method has been employed in the research of analysing the
international marketing strategies implemented by H & M Company for improving its sales
performance in the global marketplace. For analysing the international marketing strategies
implemented by H & M Company in comparison to its competitor Zara, the study considered
employing a combination of case study and grounded theory based data analysis (Duma et al.
2016). In analysing the secondary data through case study method the research considered using
cross-sectional time horizon. This is for the reason that selection of this time horizon considered
analysing the past marketing strategy of H & M and finally it also reaches at gathering data on
the current situation of the company. Cross-sectional research has also facilitated in analysing the
past and recent marketing strategy of H & M in a detailed manner. Case study data analysis
method is employed in this research as it facilitated in evaluating specific issues within the
boundaries of the business environment, situation or the organisation. Explanatory case study
was carried out where that focuses on analysing marketing situations faced by the organisation
within the real-life complex situations (Duma et al. 2016).
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32H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
In the case study data analysis method, the research considered comprising the
international marketing mix strategies, marketing principles and Ansoff Matrix strategies of H &
M with its major competitor Zara. This facilitated in capturing the complexities of the real-life
situations in a way that issues faced by H & M in implementing relevant marketing strategies can
be studied in greater depth levels (Duma et al. 2016). Conversely, the researcher has also
considered the disadvantages in carrying out case study analysis that includes lack of rigor along
with fewer generalisations of study findings.
3.8. Ethical Considerations
The researcher considered following suitable code of conduct in gathering secondary data
for attaining relevant findings on effectiveness of international marketing strategies implemented
by H & M for improving the sales performance of the fashion brand (Duma et al. 2016). In
gathering data following the ethical code of conduct, the researcher has considered gathering
relevant and valid secondary data from diverse peer reviewed journals along with recently
updated company websites and government publications on marketing strategies recent
implemented by the H & M fashion brand (CuervoCazurra et al. 2017). Moreover the researcher
has also considered the limitations of using secondary data n this research where he has taken
into account that the secondary data can be manipulated to a certain extent. This can further
impact the research quality along with the findings gathered from the study.
3.9. Summary
For carrying out research on the effectiveness of international marketing approaches in
improving the sales performance of H & M Company, the study has considered gathering
secondary data for analysis. The applicable research philosophy in the research of analysing the
international marketing strategies for improving sales performance of H & M Company is
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33H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
positivism. Considering the objective of the study, explanatory research design was chosen for
this exploration. Case study data analysis method has been employed in the research of analysing
the international marketing strategies implemented by H & M Company for improving its sales
performance in the global marketplace.
Chapter 4: Data Analysis and Findings
4.1. Data Analysis and Findings Discussion
4.1.1. Marketing Principles Comparison between H & M and Zara
Zara has set up loyalty programs for formulating an association with its customers along
with increasing the number of individuals visiting the stores. In addition, the organisation is
highly concentrated on enhancing its logistics system, which is crucial to the organisation in
having success in the clothing sector. Zara markets its products towards the Euro-chic crowd
demanding more fashionable clothes within limited lead time. Moreover, the organisation is
involved in lower clothing production, which restricts the supply of its items, since they are very
scarce in the market. Zara emphasises more on location of a retail establishment, instead of
advertising for drawing customers (CuervoCazurra et al. 2017). It spends only 0.3% of sales on
advertising for the organisation in contrast to that of the rivals spending around 3.5%
(Hmgroup.com. 2019). Finally, the organisation is concerned with searching the precise retail
site that best fits the organisation, instead of incurring additional money to lure customers into
the store. Therefore, it could be stated that Zara focuses on the marketing principle of
concentration for selling its products and services to the customers.

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For selling its products, H&M focuses on mobile marketing campaign in order to
promote its latest collections. For conducting the mobile marketing strategy, the customers
receive SMS coupons, mobile banner advertisements put on important portals and media sites.
The main objective of this marketing strategy is to uplift the current seasonal trends for that
specific season along with driving membership of the H&M club. The customers could sign up
for the same by visiting the website along with entering their contact information
(Hmgroup.com. 2019).
For assisting gain consumer traffic in the store, H&M has utilised celebrities like Roberto
Cavalli, Karl Lagerfeld, Jimmy Choo and Rei Kawakubo for increasing its sales volume. One of
the significant advertisement topics that H&M might market is the Fashion Against Aids
campaign. The particular collection featured tank tops, t-shirts and hooded sweaters designed
from the part of Designers Against AIDS (DAA) and various music artists like Ziggy Marley,
Timbaland and Rihanna. Approximately 25% of the revenue from such collection goes to
prevention projects related to HIV/AIDS (Hmgroup.com. 2019). By introducing significant
stylists, H&M intends to raise its market share, particularly in the British market. However,
H&M spends heavily on advertising so that it could draw the attention of its potential customers.
Therefore, it could be stated that H&M focuses on differentiation strategy, as it intends to attract
all types of customers by selling multiple products for different ages, gender and sex.
Based on the above analysis and discussion, it could be seen that Zara focuses more on
concentration strategy for selling its products to the customers. On the other hand, H&M targets
all groups of customers by following differentiating strategy (Alon, Jaffe, Prange and Vianelli
2016). In this case, it could be stated that Zara enjoys competitive advantage over H&M in the
global marketplace owing to the fact that it spends significantly lower in advertising and it
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35H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
mainly tailors products to meet the needs of specific groups of customers and thus, it has lower
cost of production.
4.1.2. Segmentation, Targeting and Positioning Strategy Comparison
Segmentation strategy:
The segmentation strategy that Zara has employed is reliant on the typical demographics
of the customers such as psychographics, age and gender. However, besides this, the
organisation targets customers depending on their sense of style and fashion like Latino, trendy,
contemporary, grunge, classic and others. Zara is involved in blending the ethnicity of the brand
along with the target market in the product offering, which resemble certain settings and tests
(Alon, Jaffe, Prange and Vianelli 2016).
On the other hand, H&M uses psychographic and demographic segmentation in order to
reach its customers. H&M is spread across the global nations and this implies that the
organisation targets many religions, lifestyle and culture. This necessitates the need for
marketing to be made differently in different areas (Alon, Jaffe, Prange and Vianelli 2016).
The first segment includes segment by class, in which H&M is providing latest fashion at
cheaper prices by targeting mainly lower middle class, students and working class. The second
segment includes segment by home or class, in which the most popular segment includes women
ranging between 15 years and 30 years still residing at houses, student dorms and others (Alon,
Jaffe, Prange and Vianelli 2016). The third segment is segment by age, in which the most
popular segment includes women ranging between 15 years and 30 years known as Generation Y
and ambitious with increased purchasing power. The final segment includes segment by family
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36H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
life involving typical college to graduate females at home single on their own in dorms or in their
first houses, either single or as young couples without children.
Targeting strategy:
The Zara brand via Inditex has targeted a broad gap in the retail sector. The organisation
targets the customers interested in high fashion and they want to stay in line with the modern
fashion trends; however, unable to purchase clothes from high-end boutiques and couture. For
targeting the market, Zara has launched its outlets in popular locations and the customers are
provided with turnover time of 4-5 weeks for the latest collections made available at a portion of
the cost of couture. Therefore, coupled with the brand persona, the accumulation of accessories
and clothes and marketing campaigns pull the targeted customers into the Zara stores (Alon,
Jaffe, Prange and Vianelli 2016).
In case of H&M, the target customers include the group of trendy and fashionable
customers viewing shopping as a social activity and wanting to follow the trends without making
considerable investment. The target market for H&M is for the younger generation and despite
the fact that the organisation sells products for all ages, its main target customers are women.
Thus, by targeting the lower middle class and working class of woman, H&M follows a
concentrated targeting strategy (Bartsch et al. 2016).
Positioning strategy:
The primary goal in order to position the Zara brand in the market is to democratise
fashion. The organisation intends to provide the customers with high fashion and trendy products
at cheaper prices for accommodating their needs. Due to this, the marketing strategy deployed by
Inditex for Zara is to open outlets and shops providing the Zara experience at big locations of

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setting the image of the brand as being hip, trendy, accessible and high fashion (Bartsch et al.
2016).
H&M is a retailer, which is intending to give the customers with high-quality and
fashionable clothing at the best possible prices. They provide fast-fashion retailing from runaway
to racks along with selling European influenced clothing in the US market. Moreover, H&M
conducts clothing in a number of categories constituting of women’s casuals, children’s wear,
men’s business, accessories and footwear (Bartsch et al. 2016). It is the second biggest global
clothing retailer and it is involved in E-retailing as well. Finally, H&M is socially,
environmentally and economically sustainable as well.
4.1.3. Unique Selling Proposition Comparison
Unique Selling Proposition of H & M
Fashion Brand
Unique Selling Proposition of Zara Fashion
Brand
The fashion brand has attained improvement in
its sales performance by 10% than the previous
year through its successful “Unique Selling
Proposition” international marketing strategy.
Following such strategy the fashion brand
focuses on implementing the strategy of
“Unique Clothing” where it has an increased
emphasis on offering its target consumers with
prompt, trending and constantly updating
fashion apparels (Bartsch et al. 2016). Such
unique selling proposition is evidenced to be
Zara has improved its sales performance over
years in comparison to existing international
fashion brands through employing its
successful “Unique Selling Proposition” of
developing or imitating products based on the
latest trends within a short timeframe of two
weeks. However, this strategy of Zara is not
that competitive in comparison to H & M for
the reason that the fashion brand is focussed on
following the policy of “Zero Advertising”.
Instead, it prefers investing a huge fraction of
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38H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
successful in increasing its sales margin even
in recession al across its business units placed
in several locations of the world. This is the
major factor that facilitated it to attain
competitive edge over Zara through offering
low prices for its fashion apparels. For
positioning itself as low cost brand, H & M has
put increased efforts in creating unique
apparels as per the preferences and
expectations of consumers (Ghauri et al. 2016).
Sales performance of H & M has improved
through its successful unique selling
proposition of situating its stores conveniently
at the city centre (Ghauri et al. 2016).
its gathered revenues in opening new stores
(Ghauri et al. 2016). However, marketing
strategy of launching imitated products within
short time span has improved its vertical
integration strategy and increases its daily sales
number. Such USP strategy of the company
has enhanced its sales performance through
offering its fashion apparels at affordable
prices along with ensuring unique products as
per market demands (Ghauri et al. 2016).
4.1.4. Marketing Mix Strategy Comparison between H & M and Zara
Marketing Mix Strategies of H & M Company
Product: H & M has positioned its offerings as renowned fashion brand where the
company has retail stores all over the world. It offers a wide range of fashion products for
men, women and children (Ghauri et al. 2016). The product portfolio of the fashion brand
is broad where it focuses on constantly expanding its fashion ranges. The expanded
product categories of H & M in several regions of its business nations include clothes,
shoes, bags, accessories along with beauty products. These product ranges also have sub-
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39H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
categories that are intended to target different quality of products for different consumer
groups. The offerings of this fashion brand are trusted over years for its capability to
address fashion needs of consumers and introducing new trends for increasing sales
margin (Burt, Johansson and Dawson 2017).
Price: The pricing strategy followed by H & M is quite similar and competitive with its
competitor Zara. Since, H & M has several brands and they are targeted towards distinct
consumer segments, the fashion brand has set different price for its various product
ranges. Most of its offerings are of affordable prices targeted for increasing sales among
the middle income group consumers (Burt, Johansson and Dawson 2017). However, it
has also been observed that few of its offerings are high priced basically depending on
the regions where it is selling its fashion products. Such varying price is also for the
reason of its high product shipping prices in selected nations as there are additional taxes
and regulations for certain nations. Moreover, H & M Company has attained competitive
advantage through differentiating itself on the basis of price offered for its fashion
brands.
Place: The place strategy of H &M is focussed on developing exclusive stores all over
the world through which the fashion brand sells its offerings (Burt, Johansson and
Dawson 2017). In implementing this strategy, the fashion brand has attained competitive
advantage over Zara as it has situated its stores in big cities, shopping malls and big
cities. This marketing strategy is well supported by its effective consumer targeting
strategy that has further resulted in increasing sales performance of the brand across
nations. In addition, the placement of the brand in its target consumers mind is the major
intention of the brand that it intends to attain through its distribution strategy. The

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distribution strategy through its stores and e-commerce site has successfully made its
consumer view the brand offerings s affordable and trendy brand that always offer them
with latest fashion products (Burt, Johansson and Dawson 2017).
Promotion: Brand promotion strategy of H & M is observed to be highly effective
improving increased sales performance in comparison to its competitor brand Zara. This
is for the reason that H & M’s promotional strategy is different as per the suitability of
culture of each nation. Internationally, H & M brand promotes its offering through
advertisement, magazines, fashion shows along with social media. As social media
marketing strategy has turned out to be an extremely vital promotion media, for this
reason the H & MM fashion brand remains highly active in its digital media platform
(Burt, Johansson and Dawson 2017). This promotional strategy includes posting
appealing and engaging visual content on its fashion brand offerings through its website
and application that directly interacts with its consumers all over the world. Increased
sales margin is also ensured by the brand through its aggressive celebrity endorsements
internationally. In addition, increased investments in CSR activities have also contributed
to increase its brand value and sales margin (Bookman and Hall 2019).
People: H & M fashion brand has effectively developed its competitive people based
strategy in staying ahead of competition from Zara and attaining improvement in its sales
performance. This marketing strategy of the fashion brand considers employing staff
within its sales team that successfully plays an exceptional role in its marketing strategies
along with showing respect towards its consumers through considering theory
preferences (Bookman and Hall 2019). The employees working with the fashion brand
are highly skilled and trained in addressing queries of consumers and helping them to
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41H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
select fashion product most suitable with their need. The employees of company are
skilled in respecting consumer preferences and resolving issues faced by them.
Process: H & M’s process based marketing strategy is also deemed to be effective in
attaining high sales in comparison to its rival fashion brand Zara (Bookman and Hall
2019). This is for the reason that H & M makes sure that its fashion apparels are always
available in all its retail stores in which the company has systems installed where retailers
are able to notify whenever there is low inventory levels. In addition, the fashion brand
has competitive advantage over Zara in improving its international sales performance as
it has an online delivery process through which orders are received within a computer
system based on which selected products are shipped to consumers in a prompt manner
with no shipping charges (Bookman and Hall 2019).
Physical Evidence:
Marketing Mix Strategies of Zara Fashion Brand
Product: Zara is considered as one of the leading fashion brand of the world that offers
appears for men, women and children that includes varieties such as jeans, skirts, tops, t-
shirts, shoes, bags and accessories. In comparison to H & M, Zara is observed to attain
competitive edge for launching around 10,000 unique designs each year (Bookman and
Hall 2019). The products launched by Zara have always been on the hit list among the
high end fasionistas along with the common people. The fashion brand develops its
product development strategy as per the preferences of its target market that also impacts
the availability of its product line. The fashion brand is also observed to attain
comparative edge over H & M regarding sustainable development of products and its
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42H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
commitment towards decrease in the production waste (Burt, Johansson and Dawson
2017).
Price: The pricing strategy of Zara is concentrated on following on following “high on
fashion and low on prices”. In this strategy the fashion brand focuses on providing the
latest fashion at a lower price in all its global stores in comparison to H & M. Zara has
analysed the factor that the own pricing strategy of the brand can be maintained as it does
not have an increased investment in the promotional strategies (Burt, Johansson and
Dawson 2017). The prices set by Zara is completely country specific similar to the
pricing strategy of H & M in which the fashion brand carries out tagging of all its
offerings locally within each respective market. The fashion brand follows market based
pricing strategy that is successful in increasing its sales as its offerings sets the target
price that the consumers are willing to pay.
Place: The distributing strategy of Zara is to increase its product reach globally for which
the fashion brand has attained international market reach with stores in 88 nations with
having around 6500 outlets (Burt, Johansson and Dawson 2017). The fashion brand also
sells its offerings through its online store where being a vertically integrated company it
attains competitive advantage through its supply chain. The stores of Zara are situated in
posh regions of all its business nations where the brand considers coordinating with the
in-house designers for recognising new trends and developing new products as per the
demand. However, position of Zara stores in posh locations might make its offerings
appear premium that can push away target consumers belonging to the middle income
group (Burt, Johansson and Dawson 2017).

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43H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Promotion: The brand promoting strategy of Zara is observed to be less aggressive in
driving high sales performing in comparison to H & M. As the company focuses on
keeping prices of its offerings low it makes very limited expense in its promotion
strategies. This offers advantage for H & M to increase its market reach through
promotion and increase sales margin internationally (Burt, Johansson and Dawson 2017).
However, some effective brand promotion strategies of Zara include opening new stores
for which it spends a huge amount of money on real estate in maintaining exceptional
appearance of its stores décor. The fashion brand solely relies on word of mouth
promotion along with social media in compassion to expensive marketing channels
(McCusker and Gunaydin 2015).
People: The employees at Zara Stores all over the world contribute towards Zara’s best
people best strategy where they operate the stores in attaining business success and
increase in sales. The staffs at its stores always maintain clean and well maintained attire
that promotes the fashion brand as one of the leading fashion brand. Zara has attained
competitive advantage over H & M in following people strategy fir driving sales. This is
for the reason that the people of the fashion brand ensures that an exceptional consumer
service is offered for increasing product sales (McCusker and Gunaydin 2015). However,
Zara has fewer employees in its “Click” business for the consumer service area
responsible for offering promoted services. However, the brand focuses on maintaining
its transactions online in its “Click” business to reduce expense an increase sales profits.
Process: The business operations process strategy of Zara is not observed to be focussed
on several aspects of its service and product offering but is deemed to be concentrated on
its packaging strategy. However, the packaging strategy of the company has turned out to
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44H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
be successful in driving increased sales (McCusker and Gunaydin 2015). The visual
element based strategy of the brand is focussed on creating first impression of fulfilment
among its consumers through their purchasing process. This strategy considers creating
unique design for the way in which people groom and dress themselves and the
packaging of the products are done in a manner that they appear premium from outside.
Process based marketing strategy of the fashion brand is focussed on analysing the
current market trends following which it transforms its offerings as per consumer needs
for ensuring their high sales (McCusker and Gunaydin 2015).
Physical Evidence: Zara makes increased investments in developing physical evidence
based marketing strategy more effective for driving high sales margin. This marketing
strategy of the fashion brand facilitates it in maintaining its target consumers shopping
experience at Zara constant and intact at all the regions of the world. In increasing sales
from its stores, the fashion brand focussed on improving consumer shopping experience
through implementing the strategy of situating its stores on posh areas (McCusker and
Gunaydin 2015). In addition, Zara has modified its stores to look spacious and modern
with exceptional lightings and walled mirrors that are solely designed by Zara decoration
team.
4.1.5. Ansoff Matrix Comparison between of H & M and Zara
Market Penetration Strategy: This international marketing strategy of H & M has the
objective of increasing sales in all its business markets. Market penetration strategy of the
fashion brand considers offering fashionable apparels at affordable prices in comparison
to its major competitor Zara. It has attained improvement in sales performance through
implementing its market penetration strategy for the reason that unlike Zara, H & M has
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45H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
strong advertising campaigns that has increased its brand popularity internationally
ensuring globalisation of its fashion lifestyle and trends (Burt, Johansson and Dawson
2017). On the other hand, Zara employs intensive growth strategies in driving sales
following which it introduces new items every week that has facilitated the company to
attain repeat consumers. In contrast to H & M, Zara attains sales performance through
moving its new fast-fashion items that are designed in-house and strategically controlled
distribution network. The company’s sales performance attained great success over H &
M Company in the current years through reducing its exposure to fashion faux pass
(Bartsch et al. 2016).
Product Development Strategy: H & M Fashion brand’s product development strategy
is focussed on offering new and innovative products to all its target consumers. This
strategy of the fashion brand has facilitated the company to attain competitive advantages
over its competitor Zara where through strategic alliances with the famous designers like
Roberto Cavalli (Bartsch et al. 2016). This strategy has improved prestige of this fashion
brand worldwide in comparison to Zara. Product development strategy of H & M is also
observed to be successful in attaining increased sales margin than Zara as its initiative to
introduce environment friendly materials in designing its apparels such as organic cotton.
Zara has made successful attempts in staying ahead of the competition in the fashion
market through introducing new product features constantly and the apparel are designed
by the brand in a manner that its consumers prefer purchasing from the brand by
perceiving its offerings to be affordable (Bartsch et al. 2016).
Market Development Strategy: The market development strategy of H & M is focussed
on targeting new consumer market segments in its international market through

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46H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
introducing new uses for its offerings in new international markets. This strategy of the
fashion brand needs to be more competitive in comparison to its major competitor Zara
holds the leading position in employing market development strategy to increase its sales
performance. For instance, Zara considers selling its new fashion apparels in new
locations of different nations that has positioned it as fastest growing clothing
manufacturer internationally (Bartsch et al. 2016). In successfully competing with Zara,
H & M is gathered to improve its market development strategy where for increasing sales
it has launched COS (Collection of Style) with highly expensive and smarter fashion
apparels intended for its high income group segment.
Diversification Strategy: H & M has implemented the diversification strategy that is
gathered to be riskiest as it considered developing new products along with entering nee
markets. In following this strategy, the fashion brand focussed on introducing unique and
trendy fashion items such as jewellery, shoes, clothes, bags along with other fashion
accessories in increasing its sales performance within global marketplace. However, in
comparison for its competitor Zara, H & M made less attempts in successfully
implementing the diversification strategy (Hmgroup.com. 2019). Zara has implemented
diversification strategy effectively in increasing sales performance. For instance, the
fashion brand constantly seeks to develop new fashion products along with collaborating
technological as well as marketing synergies within its existing product line in appealing
different and new group of consumers’ fur driving sales. However, in competing
successfully with Zara it has recently diversified its business in offering fashionable
household items through H & M Home (Hmgroup.com. 2019).
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47H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Figure 2: Ansoff Matrix Strategy Comparison of H & M and Zara
(Source: Hmgroup.com. 2019)
From carrying out comparative analysis of marketing strategies between Zara and H & M
fashion brand it has been gathered that, H & M is making increase efforts in improving its sales
performance within global meets through enhancing its diversification and market development
strategies (Hmgroup.com. 2019). The company’s competitor Zara is competing successfully with
this fashion brand through employing its internationalisation strategy focussed on market
development. H & M tends to adapt its existing products and strategies for introducing them with
promoting its new features in new market. Whereas, Zara competes successfully with this
fashion brand through introducing its original and successful business model in attaining
improved sales performance (Hmgroup.com. 2019). However, H & M has attained strong sales
and financial position in global fashion industry in comparison to Zara through sustaining its
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48H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
growth profitability within its growth strategy. The product development strategy implemented
by H & M is observed to be highly successful in comparison to Zara where it has attained its
growth goals through increasing its number of international fashion stores by 10-15% every year.
This has further boosted its sales performance every year that is evidenced to be driven from its
ability of managing its existing as well as new product offerings effectively.
5.1.6. SWOT Analysis Comparison between H & M and Zara
SWOT Analysis Comparison between H & M
Strengths
Wide product ranges
Exceptional identity for all the brands
Diversified international presence
Exceptional financial performance
(Hmgroup.com. 2019)
Weaknesses
Increased reliance of third party suppliers
Not efficient in following latest trends
Affordable pricing negatively impacts
quality
Opportunities
Focussing on expansion for enhancing
profitability
Expanding e-commerce platform in
emerging markets
Threats
Constantly changing fashion trends
Intense competition
High labour costs in developed nations
High foreign exchange fluctuation risks
SWOT Analysis Comparison between Zara
Strengths
Unique fashion apperal
Weaknesses
Generalised collection

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49H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Strong presence in international markets
Competitive supply chain
Unique design competitive advantages
High brand value
Decreased costs and increased profits
(Hansen, Jensen and Petersen 2016)
Low efforts in advertising strategies
Opportunities
Expansion of e-commerce business
Increasing market potential
Rapid market expansion opportunity with
new design
Threats
Fierce competition
Low advertising initiatives
Low market reach
5.1.7. BCG Matrix Comparison between H & M and Zara
BCG Matrix of H & M
From analysing the BCG Matrix of H & M indicated in the figure below indicates that the
brand’s women swear has attained highest profits that contributes to 50% of its revenues and in
global industry women swear accounts for just 34% of its profits (Hmgroup.com. 2019).
Menswear is situated in the cash cows position that is the company’s second highest profitable
unit that has high chances of growth in international market. Footwear segment is in the question
marks that accounts for 12% of the overall sales and the sportswear is identified as dogs that
accounts for 1% of its revenues.
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50H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Figure 3: BCG Matrix of H & M
(Source: Hmgroup.com. 2019)
BCG Matrix of Zara
In analysing the BCG matrix of Zara it has been gathered that apparels and accessories of
Zara serves as major source of cash flow within the company that accounts for 45% of market
share. Zara TRF and men’s apperal fall in the stars category as it is profitable in the market and
also has high chances of expansion in global fashion industry. Kids segment of Zara falls under
the question markets matrix as it accounts for 6% of its overall market share that also has
chances of future growth in stable and favourable market conditions (CuervoCazurra et al.
2017). Maternity wear segment of Zara falls under the dogs segment for the reason that it is nit
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51H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
able to make enough market shares. Increased investment is needed in this category or Zara
needs to take decision regarding shutting down its operations.
Chapter 5: Conclusion and Recommendations
5.1. Conclusion
The rationale of the current research was to analyse the effectiveness of H & M
Company’s international marketing strategies in attaining global competitive edge. In analysing
the same, comparative evaluation of the international marketing strategies by H & M and its
major competitor Zara is also carried out. It was gathered from the study that Zara has set up
loyalty programs for formulating an association with its customers along with increasing the
number of individuals visiting the stores. In addition, the organisation is highly concentrated on
enhancing its logistics system, which is crucial to the organisation in having success in the
clothing sector. Zara markets its products towards the Euro-chic crowd demanding more
fashionable clothes within limited lead time. Moreover, the organisation is involved in lower
clothing production, which restricts the supply of its items, since they are very scarce in the
market. Zara emphasises more on location of a retail establishment, instead of advertising for
drawing customers.
In analysing the secondary data through case study method the research considered using
cross-sectional time horizon. This is for the reason that selection of this time horizon considered
analysing the past marketing strategy of H & M and finally it also reaches at gathering data on
the current situation of the company. Cross-sectional research has also facilitated in analysing the
past and recent marketing strategy of H & M in a detailed manner. Case study data analysis
method is employed in this research as it facilitated in evaluating specific issues within the

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52H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
boundaries of the business environment, situation or the organisation. Explanatory case study
was carried out where that focuses on analysing marketing situations faced by the organisation
within the real-life complex situations. The findings of the research revealed that market
penetration strategy of the fashion brand considers offering fashionable apparels at affordable
prices in comparison to its major competitor Zara. It has attained improvement in sales
performance through implementing its market penetration strategy for the reason that unlike
Zara, H & M has strong advertising campaigns that has increased its brand popularity
internationally ensuring globalisation of its fashion lifestyle and trends.
The study also revealed that the fashion brand has attained improvement in its sales
performance by 10% than the previous year through its successful “Unique Selling Proposition”
international marketing strategy. Following such strategy the fashion brand focuses on
implementing the strategy of “Unique Clothing” where it has an increased emphasis on offering
its target consumers with prompt, trending and constantly updating fashion apparels. This is the
major factor that facilitated it to attain competitive edge over Zara through offering low prices
for its fashion apparels. For positioning itself as low cost brand, H & M has put increased efforts
in creating unique apparels as per the preferences and expectations of consumers. The pricing
strategy followed by H & M is quite similar and competitive with its competitor Zara. Since, H
& M has several brands and they are targeted towards distinct consumer segments, the fashion
brand has set different price for its various product ranges. Most of its offerings are of affordable
prices targeted for increasing sales among the middle income group consumers. However, it has
also been observed that few of its offerings are high priced basically depending on the regions
where it is selling its fashion products.
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53H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Considering the findings of the study for improving sales performance, H & M is
recommended to focus on increasing presence of is brand and sub brand names internationally.
This can be done through investing on the brand’s collaborates with other brands in the market.
The company must consider developing an international marketing strategy focussed on
introducing new labels that will be concentrated on offering consumers with specific type of
apparels. This international marketing strategy is deemed to attract a broad range of consumers
along with enhancing the scale of presence of the existing names of sub-brands within the
market.
5.2. Recommendations
Based on the findings from the research, H & M Fashion brand is offered with suitable
recommendations regarding consideration of certain aspects in developing successful
international marketing strategies that can further enhanced sales performance of the company.
These proposed recommendations are indicated below:
As both the fashion brands H & M and Zara are observed to have strong brand identity
to attain a leading position in terms of sales margin, H & M Company is recommended
to make certain innovative adjustments in its international marketing strategies and make
its target consumers more exposed to its unique offerings. The promotional strategy of
the fashion brad must consider using selective advertisements with maintaining a strong
apparel line that is anticipated to increase its sales performance.
H & M fashion brand is also recommended to tap a new consumer segment for attaining
a competitive edge and increasing sales performance for its product lines. For instance,
the over 60 years aged population can be targeted by the fashion brand that can be a new
consumer segment for the company. In order to apparel and increase sales among these
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54H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
consumers, H & M must develop brand promoting strategy through sub-brand name.
This can facilitate in maintaining consumer base perception for the brand, whereas all the
manufacturing process can remain the same.
For improving sales performance, H & M is recommended to focus on increasing
presence of is brand and sub brand names internationally. This can be done through
investing on the brand’s collaborates with other brands in the market. The company must
consider developing an international marketing strategy focussed on introducing new
labels that will be concentrated on offering consumers with specific type of apparels.
This international marketing strategy is deemed to attract a broad range of consumers
along with enhancing the scale of presence of the existing names of sub-brands within
the market.

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55H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
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