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Marketing Essentials: Evaluating H&M's Marketing Mix Strategies and Developing a Basic Marketing Plan

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Added on 2024/06/28

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This report examines the effective use of marketing mix strategies and procedures by businesses to achieve their goals and objectives. It analyzes H&M's marketing mix, highlighting its strengths and weaknesses, and develops a basic marketing plan for the company. The report explores the 7Ps of marketing, including product, price, place, promotion, people, process, and physical evidence, and how they contribute to H&M's success. It also delves into SWOT analysis, market segmentation, target market identification, and the development of a comprehensive marketing strategy for H&M.

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MARKETING ESSENTIALS

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INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................2
MAIN BODY.............................................................................................................................2
Evaluating ways in which businesses make effective use of marketing mix strategies and
procedures to achieve aim and objectives.............................................................................. 2
Developing a basic marketing plan for H&M........................................................................5
CONCLUSION.......................................................................................................................... 8
REFERENCES...........................................................................................................................9

INTRODUCTION
It is very important for every organisation to have effective marketing functions within
business to improve business growth and development. Hennes & Mauritz, (H&M) is a
Swedish multinational clothing retail organisation known for its quality clothing at premium
prices. in this regards, the report will cover ways in which businesses make effective use of
marketing mix strategies and procedures to achieve aim and objectives and a basic marketing
plan for H&M.
1

TASK 1
MAIN BODY
Evaluating ways in which businesses make effective use of marketing mix strategies and
procedures to achieve aim and objectives
It can be said that every organisation requires effective marketing strategies and policies to
manage their operations as per the requirement of market. Marketing strategies help
organisation in allocating resources and other techniques at the right place and time to
improve business efficiency. It is a set of strategies, actions and tactics that are required to
promote business operations in terms of products and services in marketplace. He marketing
concept of H&M must be based on needs and desire of customers (The Marketing Mix,
2015). In this regards, marketing manager is responsible for talking decisions regarding
business strategies to improve operations. Basically, there are four elements of marketing mix
such as product, price, place and promotion. However, the strategies include people, process
and physical evidence including these four. In this regards, below is the use of marketing
strategies by H&M is provided in order to determine its concepts, philosophies and tactics to
remain effective in market. Further, for the comparison of strategies, Morrison’s marketing
strategies are also discussed to compare ways in which organisations make use of marketing
mix strategies.
Figure 1 Marketing mix 7P's
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Product: H&M is operating in a clothing retail sector which demands quality products in
order to remain competitive in market. In this regards, H&M offers wide range of fashion
clothing for women, men and children. The firm has also a wide range of product portfolio
from which it has been successful to manage schemes such as Cheap Monday, Monki,
Weekday etc. these are all the product strategies used by H&M in order to remain effective in
market by providing luxury clothing and other services. This helps in achieving satisfaction
and loyalty of customers that helps in increasing customer base (Pike, 2015). The focus must
be on quality to improve effectiveness of product in market to attract consumers. On the other
hand, Morrison which also a well-known retailer operating in UK and has wide range of
products and services to customers. In this regards, the organisation also focus on quality to
improve their services.
Price: H&M is known for its quality products and services and maintain premium price for
their customers. As a part of marketing pricing strategy, H&M products are relatively low in
price as compared to its competitors such as ZARA and GAP. The firm has a major focus on
cost minimisation strategies to control low cost of manufacturing and transportation. H&M
also has wide range of products and services as compared to ZARA. The price can be
compared that a product price at H&M is &35 whereas that of ZARA is $55. Hence, the
focus of organisation is to attract youth with its high quality services at premium prices to
increase sales of business. On the other hand, Morrison is also managing low pricing
strategies as compared to its competitors such as Tesco and Sainsbury. Luxury food and other
clothing products are offered by Morrison at low prices to attract customers.
Place: The head office of H&M is located in Sweden from where it takes control of every
aspect involved in services. It is the second ranked retailer organisation with a network with
55 nations. 8oo factories are there to manufacture products situated in Europe and Asia. From
the point of view of customers, H&M is a very convenient place for them to shop as they are
able to find variety of products under one roof (Campbell, Martin and Fabos, 2018). The
distribution of products is based on business policy which is to purchase raw materials from
suppliers and sell finished goods to retail stores directly. The firm also has an effective online
presence which helps increasing its sales as the customers are able to access its services
online through internet. However, Morrison also has number of retail stores where the
consumers are able to find quality products. In addition, online presence of Morrison also
helps in enhancing its sales and profits.
3

Promotion: It can be said that the firm has understood potential of promotional activities.
Hence, it is managing all the promotional activities including advertisement, electronic
media, social media etc. the advertisements are focused on qualitative apparel image
including reasonable price. In this regards, other social media platforms are also very well
managed by organisation such as Facebook, Instagram etc. to remain active towards people.
Exceptional strategies are considered by business to market their products. Most of the
famous celebrities are promoting H&M. The marketing plan for promotional activities is
changed by business as per the requirement such as collection through mobile phones, a
distinctive strategy is recently applied to enhance customer base. On the other hand, Morrison
is also making effective use of promotional activities to provide information regarding their
services to customers effectively.
People: It can be said that there is an effective human workforce managed and controlled by
organisation at each and every level. In this regards, the modern working culture and
employees are trained to perform better. H&M tie up with may popular and famous fashion
designers so that it can produce new and trending fashion in clothing (Lane, 2016).
Employees have different religion, cast, professionalism, personality and skills within
business and they are promoted for the development. On the other hand, Morrison is focused
on improving knowledge and skills of their employees in order to increase their ability and
performance. In this way, they are able to focus on quality to satisfy needs of consumers.
Process: H&M is focused on improving customer relations for which employees are trained
and developed to produce high quality services to satisfy customers and their requirements.
The staff is also very effective in resolving issues within business procedures and complaints.
In this regards, staff is responsible for helping customers in selecting the best things they
want. Hence, the services are effective in and providing satisfaction to consumers. Further,
Morrison is also managing quality business procedures to deliver satisfaction to customers
through its skilled staff. In this way, they are able to perform well and gain competitive
advantage.
Physical evidence: H&M stores managed very well in terms of apparel and looks. The staff
is also very humble and helpful which helps in providing a decent image to stores. The firm is
also expanding its operations to increase its portfolio into international markets. In this
regards, several strategies are adopted by business such as inviting celebrities at launch
events to create Buzz in market (Larson. and Draper, 2015). Recommendations and
4

feedbacks are valued by organisation which helps in increasing engagement of customers
with brand. On the other hand, Morrison is managing both retail and online services for its
customers to provide them a large portfolio. In this regards, staff and other employees are
also very effective in managing customer needs.
Hence, it can be said that n\both Morrison and H&M is making quality use of marketing mix
strategies to become competitive in the market as per the requirement. Both have great skills
and knowledge to perform in market. However, H&M is providing quality services at
premium prices and focused on clothing accessories. In this way, they are able to manage
their services effectively.
Developing a basic marketing plan for H&M
Strategic marketing plan: It can be said that it is very important to have quality strategic
marketing plan in order to manage products and services as per the requirement of market to
achieve success (Marketing Plan, 2015). In this regards, strategies help in improving
performance of operations.
Figure 2 Basic Marketing Plan
H&M Mission: The mission of H&M is to drive positive changes in long terms to improve
living standard and condition by investing in innovative ideas, strategies, communities and
people.
SWOT ANALYSIS OF H&M
Strengths: A wide range of product portfolio
helps organisation to attract number of
Weaknesses: However, there are some
weaknesses such as it is depended on third party
5

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customers including accessories, shoes,
clothing, cosmetic and apparels. According to
the target group, H&M has unique identity of
brands such as COS, H&M, Monki etc. Strong
financial performance in previous years is
helping in increasing confidence of investors to
provide financial stability to business.
suppliers. Hence, there is a low control over
manufacturing and other operational activities.
The fashion trend is also adopted by business
after luxury brands. The quality sometimes is
affected by affordable pricing.
Opportunities: The firm is focused on
improving its global presence. In this regards,
there are number of stores across the globe are
managed by business. In addition, through e-
commerce, organisation is able to serve large
market to its customers. Emerging markets are
also a growth opportunity for business to
expand its market. Brands such as H&M are
improving lifestyle of people which is helping
in capitalising on the requirement.
Threats: It can be said that the major changes
in fashion industry is one of the biggest threat
for business which is affecting its production
and strategies. Social media is a major part of
this change process in fashion (Ryan, 2016). E-
commerce also allow others to enter into market
which is affecting the market share. Further the
competition and rising labour costs in developed
nations is also a threat for business.
Competitors: The major competitors of H&M are Zara, GAP, Uniqlo, ASOS, forever 21,
Macy’s etc. which are affecting its market share and customer base. In this regards, strategies
must be managed by business to remain competitive and different from others.
Marketing strategy: The fir must have market research data and information to formulate
strategies regarding market to ensure that the business is working as per the vision and
mission. the market information will help in analysing the strategies.
Market segmentation: It is important for the business to divide their market into different
segmentation on the basis of demographic, geographic, behavioural and psychological
segments (Fine, 2017). this will help in determining the target customers as per the
requirement of business to improve sales and profits.
Target market: Target market must be analysed in order to provide products and services to
customers as per the requirement of market and demand of customers. target market must be
provided with relevant product information to increase brand awareness and revenues.
Product strategy: The firm has also a wide range of product portfolio. H&M is operating in
a clothing retail sector which demands quality products in order to remain competitive in
6

market. In this regards, H&M offers wide range of fashion clothing for women, men and
children. hence, product strategy must be analysed towards target market.
Price strategy: As a part of marketing pricing strategy, H&M products are relatively low in
price as compared to its competitors. The firm has a major focus on cost minimisation
strategies to control low cost of manufacturing and transportation. in this regards, price must
be managed as per the target market.
Promotional strategy: The firm must manage all the promotional activities including
advertisement, electronic media, social media etc. In this regards, other social media
platforms are also very well managed by organisation such as Facebook, Instagram etc. to
remain active towards people.
Distribution strategy: In order to provide products and services, both online and retail
market platform is effective so that customers can access to services offered by H&M in
market effectively.
Implementation and control: The marketing plan must be monitored after its
implementation to determine its effectiveness. this will help in making certain changes as per
the requirement to increase business sales (Yagelski, 2016). hence, the plan must be under
control and flexible enough to adopt changes in order to achieve success.
7

CONCLUSION
It is concluded from this report that H&M is making effective use of marketing mix
strategies to remain competitive and effective in market. in this regards, several strategies are
managed by them to improve business efficiency in terms of operations and customer base. in
addition, a marketing plan is made for H&M which is helpful in identifying the target market
to provide products and services to enhance sales and profits.
8

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REFERENCES
Pike, S., 2015. Destination marketing: essentials. Routledge.
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Lane, P., 2016. Human resources marketing and recruiting: essentials of employer
branding. Handbook of Human Resources Management, pp.23-52.
Larson, J. and Draper, S., 2015. Internet marketing essentials. Idaho Falls, ID: Stukent
Incorporated.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the
digital generation. Kogan Page Publishers.
Fine, S.H., 2017. Marketing the public sector: Promoting the causes of public and nonprofit
agencies. Routledge.
Yagelski, R.P., 2016. The Essentials of Writing: Ten Core Concepts. Cengage Learning.
Marketing plan, 2015. Strategic Marketing Plan. [Online] [Assessed through]:
https://www.smartsheet.com/strategic-marketing-processes-and-planning [Assessed on 4th
June 2019]
The Marketing Mix. 2015. Marketing Mix Model. [Online] [Assessed through] :<
http://marketingmix.co.uk/ > [Accessed on 4th June 2019].
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