Strategic Marketing Plan for H&M

The assignment requires creating a strategic marketing plan for H&M, a clothing business firm. The plan should include the 7Ps of marketing mix (product, place, price, promotion, people, process, and physical evidence) to accomplish organizational goals within a given time period. The plan includes a budget and control plan with expected outcomes and implementation plans for each quarter.

Marketing
Essentials

Table of Contents
TASK 3............................................................................................................................................1
P4 &M4 Marketing plan for H&M.............................................................................................1
D2 Strategic marketing plan to achieve marketing objectives....................................................5
REFERENCES................................................................................................................................6

TASK 3
P4 &M4 Marketing plan for H&M
Marketing plan refer to a written document which consists marketing activities and
decision of enterprise in coming future time. This plan is made by every enterprise in order to
achieve its set goals and objectives and at the same increase sales and profits of company
(Rowley, 2016). One of the main advantage of formulate marketing plan is that it
guides marketer during execution of marketing activities and ensure optimum utilisation of all
resources of firm. To formulate a better and effective marketing plan, it is very essential for
manager to have a adequate amount of information about various aspects of company.
Company overview
H&M was started in Vasteras, Sweden in year 1947 and at present firm has about 4300
stores in more than 64 markets. Firm implement various innovations to enhance online shopping
and to increase the number of its stores. One of the min aim of firm is to make clothing products
of good quality which is accessible to every individual. More than 161000 employees work in its
stores from various backgrounds.
Objectives
Objectives of H&M is to execute various business activities in friendly and economically
so firm can contribute more in environmental and social development (Spillan, 2010). For this,
firm has to make sure that suppliers are delivering quality products and employees are not taking
their human rights for granted.
Marketing situation analysis
At present the current market situation of H&M is on high as firm do work with best
models and photographers. Marketing play a significant role and its impact is very important to
create a positive image at market.
SWOT analysis
Firm use its SWOT to evaluate internal environment in order to collect information about
major strengths, weakness opportunities and threats of firm. Strengths: One of the biggest strength of H&M is that its fashionable clothing brand
image is very strong. Stores of company are at best locations and well developed and
effective marketing skills of enterprise help in serve customers in an effective way. They
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use such kind of technologies which do not harm environment in any way. Such strengths
of firm assists in attaining its targets and objectives in effective and efficient manner. Weakness: One weakness of H&M is low quality of its clothing, company is largely
dependent on its suppliers those which are located east. Further, has a lack of control on
its process of its production. Opportunities: One of the biggest opportunity for H&M is that market of firm is teens,
firm have large number of emerging markets with China, online shopping of firm is also
effective and firm has talented fashion designers interested in clothing market. Further as
company wants to position itself as a quality brand in clothing sector so it is an
opportunity for company to attract more customers and in this way, it can generate more
number of profits.
 Threats: Competitors of firm are one of the biggest threat such as Gap and Zara. Further,
labour cost of firm is also rising in China and India, along with this recession is another
threat for enterprise. Company is largely dependent on its suppliers this serve a big threat
to company as change in the requirement of suppliers largely affect the production and
pricing strategy of firm.
PESTLE analysis
This approach is use by H&M in order to identify the various elements exist in business
environment and impact of those on business actions and actions. Political: These elements are relating with the regulations and policies made by
government. Foreign exchange fluctuation and laws of government affect the production
process of company. Economic: Due to number of international transaction and operations prices of raw
material has rise. Further, it give to labour cost in various areas. Today almost every
individual is concern about environment safety and as H&M main aim is to promote and
ensure execution of all business activities in friendly manner so in this way company can
attract more individuals and can generate more number of profits. Social: This is relate with the impact of business activities on environment. Increment in
greener companies has influence H&M to introduce various changes in its production
process and various business activities. The firm should know about the taste and
preferences of customers so that better products can be offered to them.
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 Technological: Variation or change in technology affect the production process of
enterprise. For example, firms has to do more efforts in order to make the products with
recyclable fibres. Further company require to formulate better strategies to utilise updated
technology and to provide good quality clothes to its target customers. Legal: In order to execute all business operations in an effective way H&M has to follow
the laws of every country in which it operate. Enterprise keep all its stores up to date and
with safety so workers can perform well and can contribute more in completion of all
business activities.
 Environmental: To create and maintain a better relation with customers firm has to make
sure that it is using raw materials that are safe for environment. Managers of H&M must
ensure that their manufacturing activities are like that which can not harm environment.
They should be engaged in CSR activities so that ethical working takes place within
company.
Strategy
Main strategy of H&M is to achieve current and future needs in order to achieve growth.
Company do continuous improvements in order to improve its current strategy. Firm use
premium pricing strategy for selling their products in market. They also use effective
promotional tools such as digital marketing in order to attract lager group of customers towards
the brand.
STP of H&M Segmentation: Basically firm uses three criteria for segmentation and in order to collect
information about needs of its customers. Further, firm use various areas such as class,
ages and many more to do segmentation. H&M segment their market on the basis of
demography, geography and psycho-graphic segmentations in which various variables
are considered such as age, lifestyle, age, occupation, income, gender etc. Targeting: Firm targets those individuals who see shopping as a act of daily life also to
the individuals who always want latest trends. H&M target people who are aged between
17 to 28. They majorly emphasize on youths and also carry out promotional activities to
attract those individuals who concern more about environment in order to promote their
good quality clothes.
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 Positioning: H&M is second largest retailer of clothing in world. Company has huge
number of stores in Europe. It wants to position itself as quality brand in clothing sector
which promote execution of all commercial operation in economic manner.
Marketing mix Product: Firm offer various type of fashionable and quality products to its customers at
affordable prices. Variety of clothes are offered by H&M help in attract more number of
customers at the same time support entity to carry out business operations in friendly
manner which help in achieve its set marketing objective. Price: Company offer quality products at lower prices as compare to its other
competitors. This help company to contribute more in social development of society. Place: Various stores of H&M are located in exclusive locations along with this, firm
have online stores. They sell their products on their exclusive stores which are located in
big cities of all across the world.
 Promotion: Company use variety of promotion tools such as digital marketing, YouTube,
TV advertisement, sponsorship and discounts.
 People: Company provide training to its employees on continuous basis so they can
perform their job roles in better manner. company’s tie up with various clothing designers
help in make and offer latest trends in fashion which help in grasp the attention of large
number of people. Further, company encourage individuals to execute business
operations in efficient manner and employ practices which ensure optimum utilisation of
all available resources. All this help support execution of all business activities in friendly
manner.
 Process: Company focus more to manage its relationship with customers. For this
training is given to workers so they can retain more profitable customers. in case of any
customer complaint and issue, so many efforts are done by entity to resolve the same.
Further, company purchase quality raw material from its suppliers in order to carry out
business operations by consider the aspect of environment safety and to offer quality
services to its customers.
 Physical evidence: Stores of H&M are appropriate with great ambience and humble staff.
Merchandise of company is of great quality and with latest trends. All this help firm to
achieve its set marketing objective.
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Actions and tactics
Firm ensure that its products lines are launches on continuous basis. Further company use
discount schemes in order to attract more number of customers (Wirtz, 2012). Organisation
maintain contracts with its designers to bring new talent in H&M. Firm ensure to keep all its
employees motivate so they can perform well and contribute more in growth of company.
Company purchase raw material from the suppliers who provide quality materials as this help
firm in achieve its set business and marketing objectives. Further, organisation provide training
to its employees on continuous basis so wastage of resources can be minimising at workplace
and company can contribute more in environment sustainability. Company continuous examine
its strategies in order to do necessary changes for attain its set objectives.
Control
H&M is the second largest clothing company and the main reason behind this is that it is
very organised and controlled company. Firm has great control on its production and design
which provide various advantages to company.
If H&M wants to come up with the idea of Green garments then firm will require budget
and a plan for execute various operations.
Marketing Budget
Particulars 1st year 2nd year
Initial money 20000 20000
Investment 10000 10000
Total 30000 30000
Marketing expenditures 20000 15000
Advertisement 8000 8000
Online promotion 1000 1500
Sales promotion 8000 7000
Direct marketing 7000 14000
Digital marketing 10000 11000
Total 54000 56500
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After formulate a marketing plan, it is very important for marketing manager to monitor
and keep a control over it to get better result. Various methods are there which can be use by
manager for this.
Planning:-
Time line Expected outcome Implementation plan Control
1st Quarter 2.00% Effective strategy with 4ps Number of
customers, profit
2nd Quarter 5.00% Various channels of
communication
Number of new
customers
3rd Quarter 7.00% Different channels of promotion Sales, profit
D2 Strategic marketing plan to achieve marketing objectives
H&M is a clothing business firm and it provides the different categories of designer and
stylish clothes for people. In order to making the business effective and increasing the sales, it is
necessary for manager to prepare a better marketing plan. Under marketing plan includes the 7p's
of marketing mix which helps in making the product better. In this 7 P's are involved like for an
instance product, place, price, promotion, people,. Process and also physical evidence. It will be
helpful in accomplishing the organisational goals in given time period.
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REFERENCES
Books and Journals
Ogunmokun, G. O. and Tang, E. C. H., 2012. The effect of strategic marketing planning
behaviour on the performance of small-to medium-sized firms. International Journal of
Management. 29(1). p.159.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Pike, S., 2015. Destination Marketing: Essentials. Routledge.
Rowley, J., 2016. Information marketing. Routledge.
Spillan, J. E., 2010. Essentials of International Marketing, by Donald L. Brady: Armonk, NY:
ME Sharpe, Inc., 2010, 432 pages, ISBN: 978-0-7656-2475-8, US $99.95.
Wirtz, J., 2012. Essentials of services marketing. FT Press.
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