H&M Marketing Strategy Analysis

This assignment examines H&M's position as the world's third-largest retail company. It compares H&M's marketing strategies with its main competitor Zara, highlighting innovations and customer engagement tactics. The report analyzes data from 2013-2014, showcasing sales growth and revenue trends. It concludes by suggesting strategies for H&M to achieve the top position in the global market.

Introduction to
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of the organisation and its current market strategies also of its competitors. ............1
TASK 2............................................................................................................................................3
Innovative idea that company can apply for improving its marketing strategies and approaches
.....................................................................................................................................................3
RECOMMENDATION ..................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing is the process of thinking in the concern of business in relation to customers
needs as well as their satisfaction (Anda and Temmen,2014). When particular organisation want
to promote a product and services they have to do marketing process which includes several
events, advertisement and many more. The same is the coordination of four element known as
4P's of marketing: product, price, place and promotional strategies. The below mention
assignment is based on Hennes & Mauritz AB (H&M) this is a retail industry founded by Erling
Persson in 1947, 71 years ago. The same company serving worldwide and its headquarter is in
Stockholm, Sweden and product offering by them is clothes and accessories. Their are many
competitor of H&M one of them is ZARA. Below mention project critically evaluate company
and its marketing strategies compare to competitors (Skålén and Hackley,2011). For the
respective company creative and innovative idea is created for marketing approach. In the end
recommendation for the chosen enterprise are given.
TASK 1
Overview of the organisation and its current market strategies also of its competitors.
Introduction of company and their market strategies- Company chosen in this
assignment is H&M it is a retail industry deal in clothes and accessories of men, women,
children and teenagers. It is operating in 62 countries with more than 4500 stores as well as
employee's are around 1,32,000. H&M is having its online presence in 33 countries with the
help of online shopping availability. The organisation is founded in 1947 by Erling Persson and
first store was open in Vasteras, Sweden. Website of the same company is hm.com and
competitor of this is ZARA (Clayson and Haley,2013).
Their are several marketing strategies used by company for attracting their customers also
for satisfying them and increasing sells. STP (segmentation, targeting, positioning) is the
procedure establish the links between an whole market and how a company select to compete in
that area (Marketing Strategy.2018).
 Segmentation Strategy- this approach mainly subdivide market and their population in
different segments with same features. H&M use psycho-graphic and demographic
segmentation for reaching to their customers because it is spread worldwide. With the
help of this strategy respective enterprise easily target customers of many religions,

lifestyle and culture. Thus, as per the area style of marketing are changed. Segmentation
is done on the basis of age, class, gender and family life.
 Targeting strategy- in this customer are target to whom business want to sell their goods
and services. H&M target those people who are trendy and fashionable as well as they
look shopping as a social activity which gives pleasure to their life (Kotler,2011). Mainly
target market of this brand is younger people but H&M offers accessories and clothes for
every age of people. The same brand target several age group people so and offer product
that is affordable by single peoples as well as for students also because they are more
fashion addict.
 Positioning Strategy- motive of this strategy is to occupy a distinct position of the brand
in the eyes of customers. H&M is the brand which offer customers high quality and latest
fashion clothes at best price up-to their possible. Range of products serving by them like
children wear, accessories, footwear, women's casuals and men's business. The respective
company is second largest in retail industry in the world. When image and position in
market as well as in the eyes of customers are created then it will easily increase sell and
attract customers.
Introduction of competitor and their marketing strategies- ZARA is the competitor of
H&M it is also from the same retail industry founded in 1975 by Amancio Ortega and Rosalia
Mera. Dealing in clothes of men, women and children having 2266 stores worldwide. ZARA is
famous and well known in the fashion world reason of this is that they are offering affordable
products and styles (Louviere and et.al., 2013). The respective brand mainly used positioning
and price scheme market strategies which help them in differentiating from others. They mainly
focus on building loyalty among customers with their affordability of product and services
offering by them. Marketing strategies used by the same company is given below:-
 Positioning Strategy: ZARA mainly target youngsters which they are targeting is
millennial people. Because young customers are price sensitive they want to mange
fashion but at affordable price. The same company sharply target the chosen segment
with the help of using low price strategy and latest styles. Although it don't mean that
when they are offering product at low price because of that they compromise in quality.
H&M is using several marketing strategies like segmentation, targeting and position so
that they can easily attract customers ans fulfil their needs and wants which is necessary for

survival of a company. On the other hand, this marketing strategy is using by ZARA because
they want to create brand image in the eyes of customers so that they can easily grab customers
who are trend as well as fashion addict (Phillip,2011). Because the respective brand is offering
latest trend product at affordable price so there is no requirement of target marketing and
segmentation.
TASK 2
Innovative idea that company can apply for improving its marketing strategies and approaches
As per discussed in task 1 H&M is the retail sector business serving worldwide, online and also
in stores their total retail sale in 2014 is $22.492 trillion dollars there is increase in the sales
6.1%. the respective company have its sale in 2014 $21,727,790 and there is increment of 18%
compare to 2013. gross point of same organisation is increased 17% compare to 2013 and now it
is $10,955,180 USD. Hennes & Mauritz having stores more than 3900 in 61 countries and
increasing the ratio of stores 15% per year. Now its become worlds 3rd largest clothing retailer.
The chosen enterprise have to do some innovation in their marketing strategies so that they can
grab more and more customers compare to current and maintain image in the eyes of target
buyers as well as market (Malhotra and Malhotra,2012). H&M can improve their customer
channel this help them in many ways and explanation of the same is given below:-
Customer Channel: this is the frame work in which organisation take decision that how
they will communicate with their customers for delivering value proposition and satisfying them.
Customers channel help organisation in many ways like increasing awareness of the enterprise
goods and services, offering a value proposition and allow to purchase a particular goods and
services to customers, assist them in evaluating the value proposition of organisation. If company
is in regular touch with their customers and clients they can easily analyse their taste,
preferences, need and wants that will help administration in satisfying (Malhotra,2011).
Satisfaction of customer is necessary because mainly H&M target youngsters and they are not
loyal towards a particular brand because of their mind swing also because of their expiation
related to many things. There are several channels which help company in remaining touch with
their buyers some of them are stated below- Social Media: H&M is the company which is having their online apps also and if the
same business have their pages on social media then they can interact with their

customers and solve problem if they have any. This is the best way of keeping in touch
with client and fulfilling their need and wants as well as provide them satisfaction.
Business page show their products with their price through which customer can see the
new stock added by showroom or in online app by respective company
(McDaniel,Lamband Hair,2011). Social media can be Facebook, Instagram and Tweeter.
 E-Mails: many company use this medium for communicate with their clients or for
sending detail related to launch of new product and services. This is less expensive way
which help business remaining in touch with customers. E-Mails includes pics of
products, detail of services and goods or any discounts, offers and sales related details are
also given in the same. This included mail address of the brand if anyone having issues or
queries related to anything can be asked. Help Desk: In every retail industry brand showrooms have their Help Desk in which
customers can come and ask their problems or any things related to the same brand at
these desk. This assist organisation in many ways like they can do innovation in existing
product and services as per client demand or can bring new product in the market. Help
desk is created by enterprise with the motive of solving problem and also provide
awareness about various plans and policies follow by H&M.
 Face to Face meet: this gives more positive impression in the eyes of customers and they
become loyal towards the brand when they receive positive response from the manager or
other employees working in that company. Because this is the best way of attracting and
influencing clients for a particular product and services offering by business.
These are the some customers channel through which H&M can maintain relation with
the clients as well as also keeping in touch with them (Palmer,2012). When these channels are
implemented in organisation in appropriate manner then it will give positive results.
Opportunity cost is the benefits that one person gain but with the sacrifices of others. It
simply mean that there is an alteration give up when one thing is chosen. When innovation in
implemented in the respective company there is loss of cost which occur when several customers
channel are used by the business. Although, H&M have to hire some staff for working on these
things so that it will give better results and help in growth of business. It may be expensive but
gives better results and assists in many ways.

RECOMMENDATION
After going through the above assignment it has been recommended that H&M have to
do innovation in their marketing strategies so they can compete in the competitive market with
their competitor like ZARA. As per my knowledge the chosen company have to use customer
channel which help them in keeping in touch with their clients. these channels can be help desk,
social media, E-Mails and face to face. These may be expensive for company but the same will
give various benefits to them. Because customers targeted by the same brand is youngster and
they are not loyal mainly they follow trend and fashion. As well as consider price with the
quality of products basically fashion addict person are students and single so they can't spend
huge amount in clothing and accessories. I suggest that H&M have to do some innovations also
and not only target the young age persons but also every age sector human being and women are
more shopping addicted so they have to target them also for increasing sell of their goods and
services. So, I suggest that company have to implement proper marketing strategies that will help
them in becoming world 1st largest from the 3rd.
CONCLUSION
From the above explained report it has been concluded that H&M is the world 3rd largest
retail company. Having many competitor one of them is ZARA both are using various marketing
strategies for competing each other and the major organisation is doing some innovation as well
as creativity like customer channel (Help desk, face to face, E-Mails and social media). Updation
in existing techniques are necessary for grabbing more and more customers as well as making
them loyal towards their brand. Statistical data of the respective business is taken of 2013-14
which shows the sale, revenue and their total retail sales as well as its shows increase in the form
of percentage.

REFERENCES
Books and Journals
Anda, M. and Temmen, J., 2014. Smart metering for residential energy efficiency: The use of
community based social marketing for behavioural change and smart grid
introduction. Renewable energy, 67, pp.119-127.
Clayson, D. E. and Haley, D. A., 2013. An introduction to multitasking and texting: Prevalence
and impact on grades and GPA in marketing classes. Journal of Marketing
Education, 35(1), pp.26-40.
Kotler, P., 2011. Reinventing marketing to manage the environmental imperative. Journal of
Marketing, 75(4), pp.132-135.
Louviere, J., and et.al., 2013. An introduction to the application of (case 1) best–worst scaling in
marketing research. International Journal of Research in Marketing, 30(3), pp.292-303.
Malhotra, N. K. and Malhotra, N. K., 2012. Basic marketing research: Integration of social
media. Boston: Pearson.
Malhotra, N. K., 2011. Basic marketing research. Pearson Higher Ed.
McDaniel, C., Lamb, C. W. and Hair, J. F., 2011. Introduction to marketing. South-Western.
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
Phillip, J., 2011. Ambush Marketing and Brand Protection: Law and Practice. Oxford
University Press.
Skålén, P. and Hackley, C., 2011. Marketing-as-practice. Introduction to the special issue.
Online
Marketing Strategy.2018.[Online]. Available through
<https://www.investopedia.com/terms/m/marketing-strategy.asp>.