H&M Marketing Strategy: Segmentation, Targeting, Positioning and Marketing Mix

This report discusses H&M's marketing strategy through segmentation, targeting, positioning and marketing mix. It explains how H&M attracts customers and competes with its competitors. The report also covers H&M's brand strategy, mechanisms for engaging audience, customer preferences, performance evaluation, and more.

Assessment 1 Blogging to
communicate

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
H&M STP........................................................................................................................................3
What is STP of the company? .....................................................................................................3
SEGMENTATION......................................................................................................................3
TARGETING...............................................................................................................................4
POSITIONING............................................................................................................................5
H&M MARKETING MIX..............................................................................................................5
What is marketing mix to the company?.....................................................................................5
PRODUCT...................................................................................................................................6
PLACE.........................................................................................................................................6
PRICE..........................................................................................................................................7
PROMOTION..............................................................................................................................7
PHYSICAL EVIDENCE.............................................................................................................7
PEOPLE.......................................................................................................................................8
PROCESS....................................................................................................................................8
Customer preferences.......................................................................................................................8
Performance evaluation...................................................................................................................9
Brand strategy..................................................................................................................................9
Mechanisms for engaging audience...............................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing fundamentals revolve around the elements of marketing mix by which
organization enhances their business and attract more customer. Marketing also include the
brand strategy and social media which help company to make improvement in their business.
This report includes the information about H&M that establish in Sweden in 1947 and deals in a
fashion and best quality clothing even though in cosmetics. Report also includes the marketing
mix and segmentation, target and positioning market which helps them to attract more customer
and being competitive in the market to compete with their competitor.
MAIN BODY
H&M STP.
What is STP of the company?
STP indicates the segmentation, targeting, positioning which company uses to target the right
customer for them.
SEGMENTATION
Main segmentation company does is from middle class people to high class.
segmentation which company uses one demographic and other is psycho graphic segmentation.
Illustration 1: segmentation of H&M
(Source: Chapter 8: Segment and Target Markets, 2015)

Demographic segmentation of the H&M based on the market where the organization is situated
and the price of the product which company sale to their customer at the best quality (Delirium,
2017). Majorly H&M focus on the age group of 15 to 30 years. On the other side psycho graphic
segmentation includes the interest of the customer by which company segment their market and
customer accordingly. This also indicates the dependent that children also live with their parents.
Segmentation of the H&m claim the value of the organization and their business. H&M designer
interpret fashion trend according to them and thereafter they create their own fashion to people
follow them accordingly. In many country company uses same demographics which is urban and
by this they target their customers. Behavioural segmentation of company depend upon the
consumer behaviour towards the company products as they create vale and make difference from
their competitors and company also create a traditional department for their customer to attract
those types of customer who prefer traditional. H&M belongs to genially segmentation which
helps them to segment their product according to their customer preferences (Alam, 2020).
TARGETING
Target market of the H&M is for the young generation and stylish product design for
them. Targeting customer of H&M are group of individual who love fashion and trendy products
and wants to buy them at an affordable price in a premium quality. For example; H&M target
college students sell their products, accessories etc. at a low price which they can afford and
therefore, the company provide these products at the best quality. In women company majorly
target women section to sell their products because the major trend occur in a woman's. Women
usually invest a lot of money in the fashion and this factor give the organization benefits.
(Uggla, 2017).
POSITIONING
Marketing strategy of positioning aim towards the brand occupy distinct position in the
market. H&M is the retail brand to provide their customer a fashionable product in a high quality
and at the best price which they sell to their customers. The company is second largest retailing
across the globe even in the e retailing through their own website which people use to buy the
product from them. the highly competitive business environment many of the companies are
trying to stand out at the global level in specializing and making the industries, labors and
resources more effective. In recent years, H&M who is the second largest multinational clothing

retail company in Sweden which has modified their way to do business (Sharma, Kaur, and
Syan, 2021).
H&M MARKETING MIX
What is marketing mix to the company?
The concept of marketing mix include components of marketing which organization
needed in their business. The concept of marketing mix focus on the comprehensive marketing
plan. This mainly introduced for marketing the objective of company in their target market. This
blog is to communicate and give the knowledge to the customer about company and their
activities.
Elements of marketing mix describe below;
PRODUCT
Product refer to physical appearance or experience of a service provided by the company.
Product determines the centre of strategy to influence their target market. as evidenced by their
advertising. Men's fashion comes second at H&M. H&M has a large selection of activewear. It is
Illustration 2: marketing mix
(Source: How to use the 7Ps Marketing Mix, 2021).

well-known for its fashionable apparel and footwear for people, Its extensive product line
comprises tops, coats, undergarments, trousers, footwear, swimsuits, and so many more items.
It's items are believed to be of superior quality as rivals product (Mahmoud, 2018). As a result,
buyers are willing to pay a premium for that. As a result, its items are deemed one-of-a-kind.
H&M is in lead position in global market because of its quality and the reasonable price of the
products. The majority of H&M offerings are geared towards females, company changes their
designs and catalogues on a daily basis to attract the customer as much as they can.
PLACE
When a company selling their products or services therefore, place is needed it doesn't
require physical location rather this can be virtual through their website, social media etc. For the
perfect place company should know about their target market, and channels through which they
distribute their products (H&M,2021). H&M also had the maximum store presence of the 3
firms, with approximately over 3,450 retail outlets since about November 2015. H&M venture
into the US market has been more fruitful, with approximately 407 outlets (HALIM, 2017).
Company sells its products via distributors and through online websites. It also sells its products
through digital store fronts, wherein customers may select from a number of options goods and
pay for them using a digital wallet.
PRICE
Price which organization reflect indicates customer perceived value of company product,
and cost. Pricing has the huge impact on the company success and it also has impact on their
marketing strategy. Different type of business has different marketing strategy. In comparison to
other similar online businesses, the prices of H&M products are lower. Customers are lured to
H&M mostly because of the cost and quality of its products. Because its cheap and affordable
with no bargaining in quality of the product. As, compare to the H&M competitors its price is
quite lower than their competitors. H&M use premium pricing and value based pricing that
describe that customer is willing to pay the amount which company demand for their product. By
this organization attract their customer and increase their brand efficiency (Singh, and Narang).

PROMOTION
Promotion indicates direct marketing to promote company product and services.
Promotion enhances the brand awareness via multiple channels and strategy to attract the
customer for more profitability of the organization. H&M is promoting the most current
collection to its customers with a diverse advertising push. Buyers receive SMS coupons, as well
as mobile flag advertisements placed on major gateways and broadcast locations. Membership in
the H&M club. Buyers can consent to allow this by going to the website and inputting their
mobile number. H&M has also used prominent names to assist boost customer activity in the
store. For e.g. :- H&M has diverse range of methods and platforms to promote their product like
you tube advertisements, television, SEO and so many.
PHYSICAL EVIDENCE
Physical evidence indicates the proof of buying products from company. Basically,
physical evidence also encompasses the existence of the brand. From packaging to branding the
product this describes the physical evidence. All these factor incur the physical evidence that
describe the business viability, reliability, and certainty. Customers are drawn in by the aesthetic
exteriors of H&M, which advertise the promise of deals and discounted merchandise displayed
on posters. H&M is broadening its offering and expanding into new markets. It participates in
public relations initiatives to generate market buzz. The staff of the H&M stores are so humble.
As aesthetic exteriors H&M devotes to a considerable quantity of efforts to promotional
activities.
PEOPLE
People refer to the direct or indirect involvement. Organization main goal is to satisfy
their customers. People include all individual who involve in the company from management to
customer who helps the organization to achieve the success. H&M focuses on women in the
bottom working and middle classes. H&M target audience is young folks. The workplace culture
is quite modern, with staff rotating through each area and being encouraged to develop and come
up with the greatest apparel wear. H&M also collaborates with various apparel manufacturers
around the country to develop the latest trends. Workers originate from a range of backgrounds
and have specialized talents (López, and et.al 2021).

PROCESS
Process includes how business runs like, from manufacturing goods to selling them to the
customers. H&M Adapt to the prevailing product based on regional preferences and buyer
desires. This is due to the firm's quick input by each outlet to a centralized IT logistics activities
that puts out the proper merchandize. Customer relationship management is given a high priority.
Workers are expected how to keep profit making consumer by providing them with improved
services and incentives. In the event of a complaint, the H&M personnel will make every attempt
to settle it as soon as possible. There is indeed a telephone support number where customers can
get their questions answered (Seo, and Suh, 2019).
Customer preferences
Company targeted their products of women apparel according tot heir customer preferences like,
People buy the product which H&M create because they produce a fresh look and offer their
customers a signature styles of products. The stores of the company basically design for an
innovative and progressive look to their targeted customer for better growth and advancement of
the company. To target the customer and attract them company offer discounts and represent the
online catalogue to selling their product.
Performance evaluation
After all this company also target towards the child safety and marketing, sustainable products
and refreshed their products on daily basis to attract more customer for more growth. Company
major target towards the clean production of their clothes and thereafter the sustainability policy
in the product which they sell to their customers. A rotating economy is rising the business
concept because rotation is the most important part of a business environment. Thus, H&M
rapidly become a fully circular to modify the root and minimum waste material. In 2019, H&M
company's opening in achieving the circular business model in various sections. As H&M is a
textile industry part they started to invest in fiber as cotton, wool leather and chemicals. Firstly,
the two companies started that produces a new fiber material from the waste of the textile firm. It
has been founded that waste can be renewed in some different style and can become the new
product and material again. The quality is also quite good of recycled material. In addition,
H&M jointed the cotton initiative name BCI in 2010 to make a surety that cotton is more
sustainable. Practicing this concept at mid of the 2020 the percentage level of recycling the

cotton and waste material has been converted into 100%. For reducing the impact on social and
environment the above mention organization joined the group named Responsible Cashmere
round table which in Mongolia. This is responsible for leather making which obvious put effect
on the environment as well on society (H&M,2021).
Brand strategy
The aim of the organization is to establish and place their business in the big city and where the
people are willing to buy the best quality or premium fashion products. This has been a first
principle for the company to build a store in a big city for more recognition. International market,
fashion apparel for all type of age groups and sections. This also indicates towards the decision-
making and resources which company uses to target and attract their customers. Sustainable
product made by company also give benefits to them. Clean and efficiency logistics of products
help company in their growth and attract customers.
Mechanisms for engaging audience
H&M engage with their audience thorough online website which they also develop a customer
feedback system that software help company in manage their customer complaints and any
queries regarding the product or delivery related to company. Majorly H&M share their content
on google+ as a source to connect with their customers and the features in this give access to the
company to share the trends which they design to their customers (H&M,2021). Company 22%
CTR uplift in search because of the social extensions which they use (Ernst, and Haar, 2022).
CONCLUSION
Report concludes the information about the marketing strategy of H&M. Company uses
many tactics to attract their customer and make position in the market for more growth. Report
conclude that by the marketing mix company establish a 7p's which help them to identify and
measure their market and create the value of company in the market which they targeted.
Segmentation, targeting, positing also help company in order to create a well establish and
acknowledge company within their customers. Company uses google+ for their content by which
they encourage their targets customer to buy the company product and enhances uses customer
feedback system to get the true review from their customers.

REFERENCES
Books and Journals
Alam, W., 2020. Business model canvas of sewage treatment plant.
Delirium, P., 2017. Marketing Strategy H&M. Retrieved March.3. p.2018.
Ernst, R. and Haar, J., 2022. Implementing M2W in the Firm. In From Me to We (pp. 169-191).
Palgrave Macmillan, Cham.
HALIM, A., 2017. PRICE, PRODUCT ASSORTMENT, PRODUCT QUALITY AND
EMPLOYEE SERVICE TOWARD BEHAVIOR INTENTION THROUGH
CUSTOMER SATISFACTION AND STORE IMAGE ON H&M AT SUPERMALL
IN SURABAYA (Doctoral dissertation, Universitas Pelita Harapan Surabaya-
Department Of Business School-Faculty Of Management).
López, and et.al 2021. Digital value chain restructuring and labour process transformations in the
fast‐fashion sector: Evidence from the value chains of Zara & H&M. Global Networks.
Mahmoud, T.O., 2018. Impact of green marketing mix on purchase intention. International
Journal of Advanced and applied sciences. 5(2). pp.127-135.
Seo, K. and Suh, S., 2019. A study on the characteristics and social values of vegan fashion in
H&M and Zara. Journal of Fashion Business.23(6). pp.86-100.
Sharma, R.R., Kaur, T. and Syan, A.S., 2021. Contemporary Issues in Sustainability Marketing.
In Sustainability Marketing. Emerald Publishing Limited.
Singh, A. and Narang, M.S., Comparative Study of Customer Preference with Respect to Two
Fashion Brands H&M versus Forever 21. SBS Journal of Applied Business Research,
p.51.
Uggla, H., 2017. The price of luxury. IUP Journal of Brand Management. 14(2).
Online
H&M,2021. [Online]. Available through; < https://www.hm.com/entrance.ahtml?orguri=%2F>
Chapter 8: Segment and Target Markets, 2015. [ Online]. Available through; <
http://gabrielajohnsons.blogspot.com/ >
How to use the 7Ps Marketing Mix, 2021. [ Online] Available through; <
https://www.smartinsights.com/marketing-planning/marketing-models/how-to-use-the-7ps-
marketing-mix/ >