Marketing Hennes & Mauritz AB Company

Principles
and
Practices of
Marketing
Hennes & Mauritz AB

MARKETING 1
Table of Contents
Introduction................................................................................................................................2
Overview of Hennes & Mauritz AB Company......................................................................2
The aim of Hennes & Mauritz AB.....................................................................................3
Current Marketing Strategy....................................................................................................3
Marketing Mix of Hennes & Mauritz AB..........................................................................3
Customer Relationship Management.....................................................................................4
Quotes of CRM..................................................................................................................4
Market Orientation.................................................................................................................5
Quotes of Market Orientation............................................................................................5
Customer Centric...................................................................................................................5
Quotes of Customer Centric...............................................................................................5
Techniques of Customer Relationship Management.............................................................6
Customer Relationship Management Techniques followed by Hennes & Mauritz AB
Company................................................................................................................................7
Creating Loyalty Programs................................................................................................7
Targets Consumer with the help of tailor-made offers......................................................8
Recommendations to Improve Current CRM Techniques...............................................10
Promotional Mix Techniques...............................................................................................10
Advertising.......................................................................................................................11
Personal Selling................................................................................................................11
Sales Promotion...............................................................................................................11
Public Relations...............................................................................................................12
Direct Marketing..............................................................................................................12
Promotional Mix Techniques of Hennes & Mauritz AB Company.....................................12
Evaluation of promotional mix techniques......................................................................13
Conclusion................................................................................................................................15
References................................................................................................................................16
Appendix..................................................................................................................................19
Appendix 1...........................................................................................................................19

MARKETING 2
1.0 Introduction
This report is being prepared in order to get the idea of marketing strategies used by Hennes
& Mauritz AB. Marketing includes every activity which is required to maintain the relations
with the customers and to turn them into loyal customers. Therefore, this report will provide
the brief overview of the customer relationship management concept and its techniques.
Along with this, it will analyze the current techniques that Hennes & Mauritz Company is
using and its evaluation. Recommendations will be provided in relation to the customer
relationship management techniques that can help the company in improving its
communication and relation with the customers. Further, the report will explain the concept
of promotional mix and the techniques involved in it. Hennes & Mauritz Company's current
promotional mix techniques will be presented in order to evaluate their effectiveness. In the
end, the recommendation will be provided in relation to promotional mix techniques in order
to help the company in enhancing its market image and promotional strategies.
1.1 Current Marketing Strategy
1.1.1 Overview of Hennes & Mauritz AB Company
Hennes & Mauritz AB is a famous multinational company in Sweden which deals in clothing
retail business. It is a well-known brand in the country for its fast-fashion clothing for
children, women, and men (H&M Group, 2018). H&M along with its associated companies
function in 62 countries with approx. 45000 stores. As per the analysis it employed around
132,000 people in 2015. It is world’s second largest retailer of clothes, just after Inditex
which is the parent company of Zara and is based in Spain. The company has a major online-
presence, offer online shopping options in 33 countries.

MARKETING 3
H&M group is a design and fashion company with the brands ARKET, Monki, H&M Home
and H&M, Weekday Cheap Monday, COS and other stories (H&M Group, 2018). Each
brand has its own and unique identity. All the offerings of the company are created by
considering their passion towards fashion, quality, and design and the determination to dress
consumer in a viable way (Smith, 2016).
1.1.2 The aim of Hennes & Mauritz AB
The company wants to create fashion sustainable. The employees are focused towards their
goals and they are the main reason for company's success. They are dedicated and want to
make better fashion for future.
1.1.3 Marketing Mix of Hennes & Mauritz AB
Source [(Smalley, 2017)]
Product- H&M is considered as the most trusted brand of apparel and acquire a minimum of
2,786 merchandises in its collection. The main products range in this brand contains clothing
and accessories such as basic jumpers, fashion shirts, sleeved jersey dresses, undergarments,
T-shirts, vests, jewelry, pants, jackets, purses, cardigans, jeans, and shoes (Bhasin, 2017). The
focus of the company is majorly on the latest fashion and quality at reasonable prices which
is the reason they launch new products on the continuous basis.

MARKETING 4
Place- The network of H&M is spreading through 55 countries. The head office of the
company is in Sweden which takes care of each factor related to the product, from
manufacturing to the complete scheduling of merchandise. The products of the company are
produced at 800 factories which are established in Europe and Asia. The retail outlets of
H&M are very convenient to the customers because they are able to purchase various items
from a single place.
Price- The pricing strategy that H&M has adopted has a wider range of pricing which can
suit every sphere of merchandiser and buyer. To maintain a median pricing strategy company
has kept its lot of products in the section of discount. In this scheme, the sales volume will
increase which will result in high revenues (Mstoribori, 2013).
Promotions- H&M Company has always understood the potential of marketing and
promotion and henceforth has taken care of its every activity of promotion. The
advertisement of the company is focused towards the image of the apparel that is of
reasonable price with good quality (Pratap, 2017). The television as an electronic media of
promotion has been utilized by the company by sponsoring various trendy and hit shows such
as MTV.
2.0 Question 1
2.1 Customer Relationship Management
Customer Relationship management refers to a strategy of business which is designed to
increase the profit and reduce cost, respond to needs of the company for both potential and
current customers to create relationship value (Fader, 2012).
Customer Relationship management is termed as a strategy for a company to manage its
communication with its customers. (SCN Education, 2013).

MARKETING 5
2.1.1 Quotes of CRM
“A business which is totally focused towards offering Excellent Customer Service will just
have worry about profit. They will be embarrassingly large”. - Sir Henry Ford (Small biz
CRM, 2018). The business offers various discounts, coupons to their customers in order to
increase their customer base but it adversely affects their profit which is a hurdle in the
company's survival in the future.
“The main agenda of a business is to make and maintain a customer” -Peter Drucker.
Nowadays every business is more focused towards maintaining their relationships with the
customers because it results in repurchase and increases customer loyalty.
2.2 Market Orientation
The definition of market orientation is the philosophy of a business where the complete focus
is on recognizing the needs or wants of the customer and fulfilling them. (Market Business
News, 2018).
The direction used by companies which are marketing oriented and majorly focus on the
demands of the customers is known as Market orientation.
2.2.1 Quotes of Market Orientation
“Business cannot ask customers about their needs and then try to offer that to them. In fact,
the time business will build it, the demand of the customer will change”. – Steve Jobs. As per
the trend and fashion, the demand of the customer's changes, therefore, it is very important
for a business to identify their demand on correct time by being proactive.
“The best strategy of a business is its satisfied customers” – Michael LeBoeuf (LeBoeuf,
2018). The ultimate aim of every business is to make their customer satisfaction for which
they use various strategies such as discounts, loyalty cards, quality, etc. The strategy which
helps the company in retaining and satisfying the customers is said to be the best strategy.