Marketing Communication Plan for H&M's New Initiative

This project report focuses on H&M's new initiative for cause marketing and its marketing communication plan. It covers internal and external audit, market analysis, creative strategy, communication artifacts, media mix plan, and campaign management proposal.

BMM5562 Individual
Marketing
Communications

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
New initiative of H&M..........................................................................................................3
Purpose of marketing communication ...................................................................................3
Internal Audit..........................................................................................................................4
Target Audience.....................................................................................................................4
Market analysis ......................................................................................................................4
Marketing strategy of H&M...................................................................................................5
External Audit........................................................................................................................5
PESTLE Analysis ..................................................................................................................5
Creative strategy of H&M ....................................................................................................6
Communication artefacts .......................................................................................................6
Marketing communication mix tool ......................................................................................7
Media Mix Plan .....................................................................................................................7
Campaign Management Proposal...........................................................................................7
Evaluation of Objectives .......................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing communication is crucial for every business as it facilitates in informing targeted
audience about company's product or offering (Blakeman, 2018). There are various tools and
tactics used by company in order to remain competitive in dynamic business environment.
Marketing communication plan involves various elements such as objectives, marketing goals,
strategies and distribution channel. In order to attract customer to business, it is important to grab
their attention. This project report is based on H&M, a multinational Sweden based clothing
company. It focus on fast fashion and trendy clothing items to all age groups. This project report
will cover an initiative for cause marketing in existing process of company with an objective
rather than just selling product. In addition to that, it will cover internal audit which involve
mission, vision, STP and competitive advantage along with external audit. Further, it will include
campaign message and marketing mix tools.
TASK
New initiative of H&M
As company focuses on providing trendy and fashionable clothes to all age groups and
now it wants to take initiative of something new for cause marketing. Company have opted a
new strategy in which customers who have purchased clothes from H&M can sell back to
exclusive outlets at 30% of valuation. This approach is profitable for both customers and
company as customers are getting amount on old clothes and company can offer it to needy
people by recycling them into a newer one. This initiative will help in various aspects to
customers as old clothes are useless for customer and still getting valuation of 30%. It will
eliminate extra cost of company and can enjoy higher profit along with diminishing social cause.
Purpose of marketing communication
The key purpose of company is to create and sustain demand of product and to shorten
sales cycle. By formulating strategies of marketing communication, company can make
customers aware about its launches and initiatives (Bruhn and Schnebelen, 2017). It facilitates in
communicating with customers and and to offer product which can meet customer expectation.
Now a days, people are more conscious about process than product. This revolutionary initiative
will provide tons of benefits to both customer and customers. By undertaking this initiative,

company can attract larger customer base and can elevate its brand image. A strong
communication plan helps in grabbing attention towards company's offering (Juska, 2021). The
decision of customers are based on numerous factors such as quality, price, quantity and process.
Company can recycle clothes and offer to needy people as reach becomes wider.
Internal Audit
Vision statement
The vision statement of H&M is to lead change towards climate positive fashion while being
equal and fair company.
Mission statement
The mission statement of H&M is to make fashion accessible and enjoyable to all.
Target Audience
The targeted customers of H&M are group of trendy and fashionable consumers who sees
shopping as a social activity which provides pleasure and to those who wants to follow trends
without paying lots of money. It offers clothing and accessories to all group of people at
reasonable price. It majorly focus on women as they shop more from them and for children and
for husband as well. With low prices, it deals with working class and lower middle class women
and this is called concentrated marketing strategy (Bogue, Collins and Troy, 2017). As women
are fond of shopping and wants to upgrade their closet by purchasing trendy clothes.
Market analysis Rivalry of new industry – Fashion industry have high competition and for that there is
strong rivalry which impacts on company in negative manner. It is needed to analyse
competition who are active in market. Threat of new entrant -In fashion industry no small company can able to work as quickly
than H&M and due to low switching cost, customers can easily switch to different brand.
There is very low risk of a new entrant. Threat to substitutes- In this industry, company faces threat of substitute products as
similar products are offered by many companies because of cut throat competition.
Change in technology and trend can affect company's product.

 Bargaining power of suppliers – The bargaining power of customer is low in this
industry as there are numerous suppliers who can provide same quality of product at
lowest possible price.
 Bargaining power of buyers -Buyers have the power to influence price and company
have to forcefully lower down its products as customer can switch to other brand easily.
Marketing strategy of H&M
In order to attract customers towards this initiative, company have opted digital marketing tools.
As most of the audience are available on social media platform and it becomes easier to engage
and communicate with customers. This method is opted by many multinational companies as it is
cheaper and cost effective than traditional marketing (Chaffey and Smith, 2017). By promoting
ad campaign on social media handles, company can easily deliver its message by creating engage
content.
External Audit
PESTLE Analysis Political Factors -As H&M is operating in many countries and on one hand company is
enjoying higher profit but along with this, in many countries like Egypt and Turkey it is
facing issue of unpredictable political climate. Different set of rules and regulations
makes it complex for H&M to operate smoothly in countries. Economic -Due to COVID-19, company have affected adversely and it can be seen in
consumer purchasing behaviour and decline in sales volume. For a short time, 80% of the
stores are closed due to lockdown and company have incurred a loss of 18% of sales. Social – Along with profit making, company have donated $500000 to WHO in order to
support needy people who were affected due to COVID-19. Technological -In order to make process smoother and faster, company have opted latest
technology so that it can improve existing supply chain. It will help company in assessing
financial position and to take strategic decision.

 Legal -H&M was fined in 2020 by Hamburg Commissioner and was directed towards
subsidiary. The fined was imposed because it was leaked that employee data has been
leaked to general public.
 Environmental – Fashion industry strongly relies on weather conditions and for that
reason H&M send its relevant clothes to various countries they have stores as to minimise
wastage and curb cost. This industry is one of most environmentally taxing industries to
exist as its production process pollutes surroundings. By accomplishing objective,
company can minimise its negative impact on environment and can remain sustainable.
Creative strategy of H&M
The company aims to fulfil its objective by creating an ad campaign on social media so as
to make them aware about new initiative and can donate their old clothes of H&M or of any
other brand. This will help company in spreading its brand image along with to help needy
people. This initiative is much impactful to minimise cause marketing and can be achieved by
setting up of SMART objective (Puthussery, 2020). In addition to that, it will improve brand
equity in the mindset of customers. This approach will be beneficial for customers, company and
to needy people who have affected due to COVID-19 or by any other calamities. Company can
elevate its brand image in market and get free marketing.
Communication artefacts
In order to create awareness among people, company have chosen digital marketing and social
media marketing. It is cheaper and effective marketing tactic used by many companies. As most
of the audience are available on social media platform and it becomes easier to engage them and
to communicate by creating engaging content and posting vivid and meaningful image of
company's objective. This will create a sense of responsibility among people and will contribute
in accomplishing objective. Moreover, company also pays attention to customer's feedback so as
to make improvement in their products. H&M have created engaging content which influences
their decision and makes them to be a part of company. In addition to that, company have
released a poster of its new initiative by opting impactful slogan which clarifies objective of
company.

Marketing communication mix tool
The communication mix involves various tools which are used by companies in order to
communicate with their potential customers as well as with customers. There area various tools
such as social media, advertising, direct marketing and events. In case of H&M, it opts social
media marketing to promote its initiative as it is cost effective and easy to target. By using eye
catching images, company can easily influence its customers. Along with social media
marketing, company also advertise by conducting roadshows to catch attention of many peoples.
It is needed to have all elements of marketing communication mix so as to communicate
effectively with customers or potential customers. It plays an important role in marketing and
have tons of benefits.
Media Mix Plan
This term may be referred as a combination of marketing channel that a business uses so
as to accomplish marketing objectives (Diamond, 2019). It can be used for testing new
campaigns and for total ROI. In order to test effectiveness of marketing campaign, company uses
RACE framework, a strategic planning process which can be applied to digital marketing
campaigns and allows an action plan to be formulated in accordance to purchasing stage of user.
Following are the elements of RACE Framework. Reach – In order to wider the reach of audience, company have chosen SEO, and social
media marketing. By using SEO, it can analyse traffic on websites and can communicate
with customer by social media. Act- This stage encourages interactions on websites and social media so as to generate
leads. Its all about influencing and persuading visitors to take next step. Google Analytics
can be used to generate leads. Convert – In this stage, customers are made them to opt for product or to react what a
company is willing to do. Engage -in this stage, customers are now engaged and it is responsibility of company to
maintain healthy relation so as to remain loyal towards company.
Campaign Management Proposal
Basis Cost
Cost of stock $15000-20000

Digital Marketing expenses 2.5% of Net sales
Additional capital Required $5000
Evaluation of Objectives
It is imperative to evaluate effectiveness of campaign so that corrective actions can be
taken so as to eliminate risk associated with it. Management have to monitor activities and
ensure that all activities are performing according to pre determined manner or not. H&M have
chosen KPI tool to assess effectiveness of campaign. By this, company can compare its actual
performance with pre set standards so as to measure effectiveness of campaign. In addition to
that, company can collect data from online sources so as to create insight for decision making.
CONCLUSION
From the above project report, it was concluded that marketing communication plays an
important role in making aware about company's products, objectives, mission and vision. In
case of H&M, it has taken initiative to take back old clothes from people at 30% valuation and
sell it for charity purpose to COVID-19 affected people. In order to make this campaign
successful, company have opted digital marketing as it is cheaper and cost effective than
traditional marketing. It involves a plan budget, media mix communication tool and campaign
management proposal.

REFERENCES
Books and Journals
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Bogue, J., Collins, O. and Troy, A.J., 2017. Market analysis and concept development of
functional foods. In Developing new functional food and nutraceutical products (pp. 29-45).
Academic Press.
Bruhn, M. and Schnebelen, S., 2017. Integrated marketing communication–from an instrumental
to a customer-centric perspective. European journal of marketing.
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Routledge.
Diamond, S., 2019. Digital marketing all-in-one for dummies. John Wiley & Sons.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. Sage.
Juska, J.M., 2021. Integrated marketing communication: advertising and promotion in a digital
world. Routledge.
Puthussery, A., 2020. Digital marketing: an overview.