H&M Marketing Plan Analysis

This assignment is an analysis of H&M's marketing plan, which involves identifying specific target customers, providing quality services through direct distribution channels, using online promotion, and making an effective budget for implementing the market plan. The analysis includes a breakdown of operating expenses and evaluates profitability. This document aims to provide insights into how H&M effectively implements their market plan to improve performance.

MARKETING
PLAN

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Marketing plan............................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing plan is essential for every organization to attain its end goals and objectives in
systematic way (Steps to Create a Marketing Plan, 2017). This report contain information about
the enterprise which wants to expand its business operations in Chinese market. In order to
expand effectively, it is significant for the firm to carry out PESTLE analysis as this helps in
collecting information about various elements existing in business environment. With the help of
this, company can formulate a better marketing strategy to enter in new market.
Company information
H&M is a multinational clothing retail company which knows by its fast fashion clothes
for men, women and children (Mullin, Hardy and Sutton, 2014). Basically, they focus on their
product’s quality and the latest fashion as well as provide at affordable price. This organization
covers world wide area to enhance their sales value.
Marketing information
China has been a higher success story due to globalisation. This country has many
opportunities for various businesses to expand their operation activities. Recently, China has
GDP worth US $ 11.795 trillion and also having the fastest growing economy. Due to high
population, they have a large customer base market so that every type of business will easily
explore their business in the most effective manner.
MARKETING PLAN
Sales Objectives
This is known as one of the most essential parts of marketing plan and it is very
important for the firm to first describe its sales objective. Sales objective of H&M is to capture a
large market by offering unique products to the local citizens of China. Main focus of firm is to
generate $ 0.8 million revenue in the first year. For achieving the same, firm will take help of
push strategy. In this, firm will acquire the support of various schemes and discounts to influence
customers to buy its products.
Marketing Objectives
 To make a large number of customers aware about its products and offerings
 To offer effective products to its clients to retain them for long period of time
 To increase the sales of its products (Smith, 2011)
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 To collect information about tastes and preferences of customers so that firm can expand
in an effective manner
 To offer high quality products to its customers at lower prices
To achieve these objectives, pull strategy must be used by H&M. Pull strategy is one in
which features and characteristics of goods influence them to buy company’s products.
Overall Marketing Strategies
PESTEL Analysis
Political: Stable political scenario with communist party is a feature of China. Citizens
leads a dignified life as certified in Chinese constitution that it provides basic human rights and
judicial reforms and regulation is strong on bankruptcy, company and labour laws. Company is
benefited by stable political scenario and business friendly attitude whereas certain ethnic
violence had occurred but management team is able to take safety measures over it.
Economic: China has become the fastest growing economy in world and converted from
socialist republic to market economy. Business is able to make surplus profit because GDP of
China is good and there is high living standard as well as technological advancement.
Social: Country consists of a large number of consumers which is beneficial for the firm
to cater their targets but youth are not able to get job according to their capabilities.
Technological: China has advanced techniques which help business to manufacture
products efficiently and use of computer, laptop to keep record of proceedings
Environmental: Climate pollution and reduction of natural resources as large amount of
carbon dioxide and other harmful gases emitted in atmosphere which had made air unhealthy, so
firm to manufacture products which are made and do not destroy surrounding.
Legal: China establishes various regulations to regulate working of investors in foreign
countries, if they want to restrict other firms to build their branch then they impose rules to
restrict their entry in market (Greene, 2011).
Targeting and Positioning
 Segmentation strategy: Company has expanded their stores in various countries to cater
need of variety of customers and they divide market on basis of demographic and psycho
graphic characteristics to fulfil needs properly, therefore product is marketing differently:
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◦ Class segmentation: They offer fashionable dresses at low prices for working class
and students.
◦ Home segmentation: Female of age between 15 to 30 years, who are still living at
home.
◦ Age segmentation: Women of age between 15 to 30 years, ambitious and with highly
enthusiast to purchase product.
◦ Family life segmentation: Girls pursuing graduation or married females but without
children.
Hence H& M will be use age segmentation in which they offer their fashion clothes to
women in order to get better profitability as well as satisfaction in effective manner. Targeting strategy: H&M Company destination is to target younger people as they offer
fashionable and trendy clothes and accessories for female at reasonable rates. As they
have keep their prices low to attract lower- middle married as well as single woman to
shop this brand.
 Positioning strategy: Brand makes it’s distinctive from other as it offer fashionable, high-
quality products and at low price to attract female which are between 15-30 years of age.
They also offer men apparel, children's wear, footwear, etc. and become largest retailer.
Tactical Marketing Mix Strategy Development (5 P's)
Marketing mix is one of the important parts of plan which helps in improving overall sale
of the company. Along with this, H&M includes various elements such as: Product: H&M offer homogeneous products which is inspired with the current fashion to
their customers (Lee and Kotler, 2011). They include variety of categories such as casual
for women, formal for business men's, footwear and accessories. For expanding their
products in China market they sell their products accordingly. Price: H&M price of the products is based on customers’ needs that is affordable price
with quality products. In China market they easily increase their sale as well as
profitability level due to huge population. Price is best example which is used by H&M
company in their marketing activities. Place: For better expand their business at China market they set their outlets simple and
reliable which helps in inviting number of customers. They also use direct distribution
channel which helps in rising he profitability level because they easily offer their
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products to target customers. In this company deliver their products through business to
business in order to attain better results in most effective manner. Promotion: In this H&M set their target customers and that are young women because
they wants fashion clothes at reasonable price. In this they use online promotion in which
they give advertisement to influence their customers. In this activity company use PR, SR
and many more to invite number of customers.
 People: It define staff members of H&M Company. In this, they cover all the customers
and also effectively communicate with them about the services (Cronin-Gilmore, 2012).
With the help of this they easily attain better satisfaction by providing quality services as
per customers demand.
Budget and Financial Analysis
It is also important for H&M to make an effective budget for implementing their market
plan and also include all the income and expenditure to evaluate profitability of the company.
Operating expenses October November December
Payroll 5500 5595 6280
Rent 2000 2000 2000
Marketing 1500 1500 2500
Equipment 200 200 200
Utilities 175 175 175
Insurance 95 95 95
Benefits 2000 2150 2259
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Depreciation 1095 1095 1095
Interest 139 176 198
Others 0 0 0
Total 12704 12986 14802
CONCLUSION
From the above mentioned marketing plan of H&M helps in improving their performance
level by setting specific target customers and provide them quality services in most effective
manner . Along with this its induce various strategies of marketing, budget which leads in
evaluating the actual performance of the company at market place.
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REFERENCES
Books and Journals
Cronin-Gilmore, J., 2012. Exploring marketing strategies in small businesses. Journal of
Marketing Development and Competitiveness. 6(1). p.96.
Greene, H., 2011. Freshmen marketing: A first-year experience with experiential learning.
Marketing Education Review. 21(1). pp.79-88.
Lee, N. R. and Kotler, P., 2011. Social marketing: Influencing behaviors for good. Sage.
Mullin, B. J., Hardy, S. and Sutton, W., 2014. Sport Marketing 4th Edition. Human Kinetics.
Smith, D. A., 2011. Strategic marketing of library resources and services.College &
Undergraduate Libraries. 18(4). pp.333-349.
Online
Steps to Create a Marketing Plan. 2017. [Online]. Available
through.<https://www.thebalance.com/what-is-a-marketing-plan-1794426>.
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