Marketing Management: Analysis of H&M's STP Strategy and Marketing Mix

Marketing
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
1. STP analysis of H&M..............................................................................................................2
2. Marketing mix of H&M...........................................................................................................4
3. Analysis of H&M relationship marketing strategy..................................................................7
4. Recommendations for improving H&M marketing strategy...................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The marketing management is used to execute all the activities related to marketing
function. Marketing function also identifies the opportunities and establishes the strategies to
explore those opportunities in effective manner. The marketing management involves decision-
making, planning before doing any operation in the market. H&M is an international retailer of
clothing in the world founded by Erling (Deepak and Jeyakumar, 2019). Famous for its rapid-
fashion in man, women as well as kids. H&M is second largest retailer in the entire world having
various stores in different countries they also sell their products online. H&M first store is at
Sweden. The company provide a premium quality of product at a affordable pricing to
customers. This report will evaluate the STP strategy of H&M and marketing mix 4Ps which
H&M has to reach the customers. This will further evaluate the relationship market strategy with
actual plan of action and the recommendation of marketing strategy to improve the marketing of
H&M (Haider and et. al., 2017).
MAIN BODY
1. STP analysis of H&M
STP stands for segmentation, targeting and position of business. This model is of three
stage help to develop the marketing strategically activities. As H&M is offering its potential and
fresh customer's inspiring buying experience from past long time. H&M use to positioned on airy
outlook on being ahead in the market trend giving the fresh styles at affordable price.
Segmentation strategy of H&M
With this strategy the H&M subdivide the market and customers into segment they make
groups of similar characteristic (Chen and et. al., 2017). The psycho graphic and
Demographics segments are made by H&M to reach all the potential and fresh customers. As
the company is operating throughout the globe so H&M is targeting different religion, their
cultures and way of living hence, the people and their living style is different so marketing is also
done differently in different areas.
Segmentation by class : H&M is targetting teenagers, normal class peoples and students because
the company is offering trendy style with affordable price and teenagers and students are likely
attracted with this only.
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Segmentation by age: H&M company is well aware of the women's buying ability to buy the
products. The company know popular segment of women age between 20 and 30 are having high
desire to buy the products for themselves, for their children and husband.
Segmentation by home: According to H&M the popular segment of women is static living in
their house or student dorm or in first home in urban area so their preference of products also
depends on that (Bai and et. al., 2020).
Segmentation by habits: Generally the habits of all the similar age group are same, and they are
doing their habitual things like., an individual needs sports clothes for performing its habitual
activities and an individual having habit of tracking needed the respects dress so the H&M is
focusing on this and producing goods for them.
Effects: Personal, social, religion which is result in better lifestyle and individual personality
development. H&M is providing low price fashion at its every shop in the world for their
customers who use shopping as social work, and they get joy by performing this in their day-to-
day lives. H&M pricing and high quality of clothing attracts the people very much and this
differ the brand from its competitors.
Targeting strategy of H&M
H&M has selected their current customer's to be more important because they have to sell
their product and services to them. The market which H&M has chosen is a collection
fashionable and new trend market customers and the shopping gives them a different kind of
pleasure. Basically companies target market is society’s younger peoples. Yet H&M is offers
clothing and accessory for all age group but women are generally the target market of H&M.
According to H&M women uses to shop more than others because they buy for their children as
well as their husband. H&M targetted middle and working class women because the general
preference of such women is to be fashionable and trendy with time. The middle class women
preference also depends on the price of product so H&M is offering low price product for
reaching maximum customer's of society (Saputra and Suwandi, 2019). The customers are
generally not stick to a particular brand instead of this they are in search of new fashionable
products in the market. H&M know the customer attraction is normally higher than their loyalty
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