Marketing Essentials: H&M and Lush Cosmetics Comparison and Marketing Plan

This report covers the comparison of marketing mix between H&M and Lush cosmetics, and a strategic management plan for H&M. It includes the vision, mission, objectives, strategies, and tactics of H&M. The report also discusses the STP analysis and monitoring and controlling measures for H&M.

Marketing Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................3
Main body........................................................................................................................................3
Marketing mix of H&M ........................................................................................................3
Marketing mix of Lush Cosmetics ........................................................................................5
Marketing Plan ......................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The marketing essential is the concept of defining the promotion of product and service
and how the organisation make the use of promotion technique to give an impression on the
minds of consumers and on industry. In the organisation the marketing is the crucial function
which needs to be communicated in the right way, to the right people in the right time and
people. The marketing essential involves the marketing mix which defines the set of actions that
is used for the promotion of the product (Cardenas, D. and Fuchs-Tarlovsky, V., 2018). The
marketing essential is on the H&M which is the Swedish multinational clothing-retail company
for the men, women, teenagers and children. The company was founded in the 1947 by Erling
Persson. Its headquarter is located in Stockholm, Sweden and the first shop was opened by the
name Hennes which was exclusively selling the women clothing. The report covers the
comparison of marketing mix between H&M and Lush cosmetics. Further marketing plan is
prepared for the H&M company.
Main body
Marketing mix of H&M
The marketing mix is the framework of marketing tools which the organisation uses to
purse the objectives of marketing in the target market. It is a framework for the marketing
management decisions. The marketing strategy is established to have the desired result of H&M
and Lush cosmetic in the market. The marketing mix involves the 7Ps.
 Product- It is one of the trusted apparel brand which has 2786 merchandises under its
portfolio. The range of the product involves everything from the designer collaboration to
everyday basic and yoga wear. The H&M also includes the other products such as shoes,
bags, accessories and beauty products. The brand focuses on the quality and too at the
reasonable prices which helps in launching the newer product lines. The famous designer
are Isabel Marant, Jimmy Choo. (Das, S., 2021).
 Price- The H&M adopted the pricing strategy which suits to the large sphere of buyer
and merchandiser. A medium pricing strategy is maintained by H&M which kept the lot
of stock in the discounted section. On the fresh and core stock the several discounts and
schemes is offered by the company. The prices also change depending on the location

they sale in which is the outcome of shipping price, additional taxes and regulations for
some countries.
 Place- The H&M in the world is the second ranked retailer of clothing line. The products
are made at nearly 800 factories that are situated in Asia and Europe. For the customers it
is really convenient store to shop different products at one store. The H&M offers
product through franchising partners due to regulatory norms. For the distribution
channel it used the policy of direst purchasing of raw material from suppliers and finished
item is sell directly to the retail outlets (Loura, I., 2018).
 Promotion- The H&M has taken the specific care of the promotional activities. For
sponsoring the hit shows like MTV it utilised the electronic media of television. For the
brand promotion the H&M was associated with the celebrities like Jimmy Choo. The
H&M make the use of TV advertisements which focuses on the innovative designs. It has
its own YOU TUBE channel which comes with the unique ad campaigns to engage with
the customers.
 People- The H&M employees are trained at all level very well. It has modern work
culture where the employees are on the rotation basis at ever department and provided
motivation to innovate and come with best clothing wear. To make latest trend in fashion
the H&M has tie-ups with many fashion designers through out the world. The employees
have the special skills as they come from diverse backgrounds and employees personal
and professional development is promoted highly (Pereira, R.Cand et.al., 2019).
 Process- The H&M gives high importance to the customer relationship management. The
highly profitable customers are retain as trained employees provides better services and
offers. The H&M staff puts the effort in resolving the customer complaints and the
facility of customer service is provided to solve their queries. The H&M staff at outlets
helps the customers in choice the foremost merchandise for them. It provides the quick
delivery and service time to have customer satisfaction.
 Physical evidence- The stores of H&M are suitably lit with the great atmosphere and
humble staff. In the stores the dress are arranged to give nice look which attracts to
customers. The merchandise is of latest trend with excellent equality. The H&M is
entering into more international market and diversifying its portfolio. The celebrities are
invited to create the Buzz in the market (Prabhakar, H and et.al.,2019).

Marketing mix of Lush Cosmetics
 Product- The lush is been divided as verdant, green and fresh. It is brand of healthcare
producing body products by using vegetarian recipes. It provides 100% vegetarian items
which is having main ingredient like coconut, papaya, rosemary oil and many more. It
has a large product portfolio involving face, shower, bath, hair, fragrances and body.
 Price- It is known for the hand made cosmetics and positioned himself as natural brand
without use of any preservatives. The company paid particular attention to keeping
packaging costs as low as possible in order to reduce costs. All products are handmade
and natural and therefore usually a bit expensive. Lush has pursued a premium pricing
strategy for its products that tends towards medium premium prices.
 Place- It is a global brand having presence in more than 50 countries. The journey was
started with the small place at Poole in England. It has being provided in various places
like United Kingdom, Zagreb in Croatia, Ontario, Toronto, British Columbia and
Vancouver in Canada and Dusseldorf in Germany. It has come with partnership to sell
their products in international market.
 Promotion- Lush is a popular organic brand that has implemented several marketing
guidelines to promote their products in the consumer market. It is known for its unique
products and in order to maintain this quality, the company takes care to label its products
in the black tub with the unique trademark. The company has an in-store catalogue in the
newspaper-style format and launched Charity Pot campaign.
 People- The Lush cosmetics employees are very well trained at all levels. It has a modern
work culture in which the employees have the special skills as they come from different
backgrounds and the personal and professional development of the employees is strongly
encouraged.
 Process- Lush cosmetic products are made from various vegan products and natural
plants. Also, they buy the raw materials from the outside and make handmade products to
keep them fresh. Cosmetic products are also manufactured in compliance with the correct
environmental guidelines.
 Physical evidence- The packaging of Lush cosmetics is very colorful and appealing. In
addition, all the layouts of this company are well decorated. The display system of the

products is also very attractive to increase visibility. All stores are clean and very easy to
see for customers.
Marketing Plan
Strategic management plan
Executive summary The H&M is planning of bring new variations in cosmetics that will
offered to attract more customers. It is operated in 74 countries with
over 5000 stores. This plan covers the company vision, objectives,
strategies and tactics. With this the company will take controlling
measures to track the progress and deviations.
Vision Its vision statement is to handle both current and future generation
wants. It also looks at consistency for fulfilling consumer wants.
Mission Its mission statement is to “invest in people, communities and
innovative ideas to drive long-lasting positive change and improve
living conditions.”
Objectives  To gain profitability in next 1 year.
 To enhance sales by 20% in next 6 months.
 The goal of H&M is to deliver fashion and quality to its
consumers at the correct price
Strategy To analyses the strategy of H&M it consider SWOT model.
 Strength- It offers wide range of products, competitive pricing,
rapid potential for growth, high brand image, having good
marketing strategies are some of the strength of H&M which
helps in gaining competitive edge.
 Weakness- The H&M has low profitability, rely on third party
supplier, having threat of currency fluctuations, and lack of
marketing management are some weaknesses for the company
which might affect on the performance and productivity.
 Opportunities- There is opportunity of increasing
globalization, economies of scale, strategic alliances by having

partnership with other groups. The company also have
opportunity of offering wide range of products in H&M.
 Threats- The H&M faces threat of increasing competition
from the competitors, increase in labour cost and counterfeits,
change in currency and inflation. The rivals entering in H&M
industry is also an threat.
Tactics The tactics involves marketing mix and STP for having competitive
edge over competitors.
 Product: The H&M has the special designer team for
designing the product of cosmetics which results in high sale of
product by appealing to young segments.
 Price: It offers the high quality products with considerably
lower prices which helps in attracting youth and increases the
company sales of cosmetics. On the basis of the prices offered
for the product the H&M differentiates itself.
 Place: The product are sell through the exclusive stores which
are located in the big cities, city centres and shopping malls.
The H&M also have its own website to sell the products
directly to the customers.
 Promotion:The H&M uses the promo codes and discounts
which is offered on both online and retail stores. It also male
the use of digital platform involving website and app to interact
with customers.
STP ANALYSIS
 Segmentation-People who love to spice up their wardrobe and
want to look super stylish at all times and to have cosmetic
brands for look beautiful.
 Targeting- Women, men, teenagers with medium to high
purchasing power and an absolutely lively and rebellious
attitude for the fashion and cosmetics.

 Positioning- H&M offers the perfect combination of high
quality brands and trendy fashion at affordable prices according
to needs and preferences of customers.
Monitoring and
controlling
The H&M will use bench marking tool so that it can compare its actual
performance with the plan.
CONCLUSION
It has been concluded that H&M has the high marketing mix which helped in forecasting
the statistical techniques. The marketing mix helps in knowing the customer needs and
implemented in directive market products. The competition and pricing marketing is examined
with the marketing mix of Lush cosmetics and H&M. The strategic plan helps companies in
knowing their progress and what changes they need to have great success and large customer
base.

REFERENCES
Books and Journals
Cardenas, D. and Fuchs-Tarlovsky, V., 2018. Is multi-level marketing of nutrition supplements a
legal and an ethical practice?. Clinical nutrition ESPEN, 25, pp.133-138.
Das, S., 2021. Search engine optimization and marketing: A recipe for success in digital
marketing. CRC Press.
Loura, I., 2018. 5Ps: A Conceptual Framework for Digital Marketing Campaign. ASBM Journal
of Management, 11(2), pp.65-77.
Pereira, R.Cand et.al., 2019. Exploring claims and marketing techniques in Brazilian food
labels. British Food Journal.
Prabhakar, H and et.al.,2019. Essentials of Geriatric Neuroanesthesia. CRC Press.
Raval, N., 2018. Six Sigma Marketing: An innovative approach to achieve strategic
goals (Doctoral dissertation, Maharaja Sayajirao University of Baroda (India)).
Van den Bossche, P. and Prévost, D., 2021. Essentials of WTO law. Cambridge University Press.