Marketing communication plan for H&M in Canada Research 2022

Marketing communication plan for H&M in Canada
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Table of Contents
1.0 Introduction....................................................................................................................................3
2.1 PESTLE Analysis..............................................................................................................................4
2.2 Competitor Analysis........................................................................................................................6
2.3 Consumer’s analysis........................................................................................................................8
2.4 Internal context with VRIO Analysis................................................................................................9
3.1 Objectives.....................................................................................................................................10
4.0 Strategies.....................................................................................................................................11
4.1 Target Segment.........................................................................................................................................11
4.2 Perceptual map.........................................................................................................................................14
4.3 Positioning Strategy..................................................................................................................................15
5.0 Recommendation..........................................................................................................................15
5.1 Strategies of communication....................................................................................................................15
5.2 Strategies for supporting positioning........................................................................................................16
Conclusion..........................................................................................................................................17
References..........................................................................................................................................18
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1.0 Introduction
This research work will focus on developing a marketing plan for H&M in Canada. It will
primarily focus on the summer clothing as the organization has a detailed assortment of the
same. The key focus will be to increase the profit in this category and ensure that the
organization operates in a sustainable manner.
Hennes & Mauritz (H&M) is a Swedish multinational clothing company that was founded in
1974. Fashion in fast fashion for women, men, children and teens is what the company is well
known for (H&M Group, 2022). In 2020, H&M Canada's revenue is estimated to be $65.18
million Canadian dollars, with an overall operating profit of $1.78 billion USD. The revenue for
H&M has grown by 36.5% in five years, from $480.34 million CAD in 2014 to $756 million CAD
in 2019 (Statista, 2022). The H&M store count in Canada was 96 as of 30 Nov 2020 (H&M
Group, 2020).
The present population of Canada is 38,321,435. People from different religious beliefs such as
Catholic, Protestants, Hindu, Muslims, Sikhs, and many more live in Canada (Worldometer,
2020). The organization will target people from all religions. With the help of a direct distribution
channel, it is possible to reach out to the target segment through retail outlets and online
means. Consumers have a habit of trying fashion products from renowned brands and this will
be considered an opportunity.
This research work will conduct a detailed situational analysis of the company, identify the
marketing objective and then provide relevant recommendations to ensure that the company is
able to attain its objective. Relevant theories and models would be used throughout the
research work to support the action plan.
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2014 2015 2016 2017 2018 2019 2020
1.70%
1.90%
2.20% 2.30% 2.30% 2.40%
2.70%
H&M apparel market share of Canada
from 2014 to 2020
H&M apparel market share of Canada
(Smith,2022) https://www.statista.com/statistics/964478/handm-market-share-apparel-industry-
canada/
2.1 PESTLE Analysis
Influence Factors Impact Significance Time Communications Implications
O or T H/M Now/LT
Political/Legal
The Canadian government
has formulated rules and
regulations to be followed
at the time of formation of
a company, employee
hiring, employee welfare,
fair competition, consumer
protection etc.
(Opportunity)
H&M has followed the same
and hence it can operate
easily.
High Now
With the help of regular
communication, it is possible to
follow the laws appropriately
Economic
Covid -19 has adversely
affected economy in the
last two years which
directly affected the
consumer purchasing
power and per capita
income.
(Threat)
The consumers may not
purchase products from
H&M if their income gets
affected.
High Now
Keeping a regular watch on the
economic factors can assist in
undertaking the right
strategies.
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Sociocultural
Difficult to attract the
customers and retain them
with the brand as
customer do not have
brand loyalty for clothing
since the clothing trend
change rapidly so
customer buy the brand
that keep up with the
trend.
(Threat)
Need to spend a lot on
marketing to be in customer
mind due to no brand loyalty High
Long-term Regular communication with
the customers can ensure their
loyalty.
Technological
Modern technologies
including radio signals,
automatically stock
replenishment systems,
warehouse management
systems and others (Kotler
and Armstrong, 2016).
(Opportunity)
Technologies help the
company in undertaking its
business operations
proficiently
Medium Long- term
Efficient technology can result
in consistent communication.
Environmental/Ethical
Canadian concern on
Ethical production of
product (no child labour/
no poor working condition
in factory/ recycled
materials)
(Opportunity)
H&M undertakes
environment friendly
activities through strategies
such as selling green
apparels, environment
friendly stores and others.
Medium Long-term
Company should regularly
communicate about its
initiatives to the society.
The Canadian government has formulated rules and regulations to be followed at the time of
formation of a company, employee hiring, employee welfare, fair competition, consumer
protection etc. H&M has followed the same and hence it can operate easily.
In reference to the economic factors, Canada is considered as a free economy that is not
dependent on other countries. According to a report by (Heritage Foundation,2022), Canada is
ranked at the first place in reference of economic freedom. Covid -19 has adversely affected the
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Canadian economy in the last two years. This has directly affected consumer purchasing power
and per capita income. Consumers may not purchase products from H&M if their income gets
affected. Hence, it is a threat. H&M uses modern technologies including radio signals,
automatically stock replenishment systems, warehouse management and others (Kotler and
Armstrong, 2016). Technologies help the company in undertaking its business operations
proficiently.
H&M undertakes environment friendly activities through strategies such as selling green
apparels, environment friendly stores and others.
The PESTEL analysis of the company clearly shows that the political, legal, economic,
technological and environmental factors are not major threats for the H&M (Baker, 2014). This
is because all these factors are behaving in a consistent manner since a long time. The
company has now understood the manner in which these factors behave and formulating
strategies for overcoming the hurdles. However, the socio -cultural factors can act as a major
challenge or threat for H&M. There are ten provinces in Canada and Ontario, Quebec and
British Columbia are the most dominant population in Canada (Johnson, 2019). This is because
it is difficult to attract the customers and retain them with the brand as customer do not have
brand loyalty for clothing since the clothing trend change rapidly so customer buy the brand that
keep up with the trend. It is evident that the competition has also augmented in this industry and
hence it is further becoming difficult for the company to attract and retain its customers. It is
recommended to undertake proficient strategies to nurture a strong relationships with the
customers and ensure that they remain loyal to the brand (Keller, 2012). With the help of this
strategy, it is very much possible to overpower the competitors and ensure that the customers
are engaged with the brand.
2.2 Competitor Analysis
It is highly crucial for the organization to analyze its competitors in the market as it may assist in
undertaking right strategies at the right time.
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