H&M Marketing Strategy Development

This assignment requires students to analyze the marketing situation of H&M and develop a comprehensive marketing plan. The plan includes creating a loyalty program with four tiers, integrating social media platforms, and fostering customer engagement through an open forum. Students must also consider the physical evidence, people, place, process, and promotion aspects of the marketing campaign. References from various sources are provided to support the development of the marketing plan.

Marketing Essentials
Assignment
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[Date]

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Marketing Essentials
Introduction to Report
This report is for Hennes & Mauritz (H&M), a Swedish multinational fashion clothing-retail
company. This report has three parts. At first, the role of marketing and how it interrelates with
other functional units of H&M will be defined and described. In the second part, ways will be
compared in which organisations, H&M and Zara, a Spanish fast fashion (clothing and
accessories) retailer, use marketing mix elements to achieve overall business objectives. In the
third and last part, a basic marketing
will be evaluated and developed for H&M.
Part 1
Explain the role of marketing and how it interrelates with other functional units of an
organisation.
Roles and Responsibilities of Marketing Functions Carried Out by H&M
H&M has some key marketing functions and the following are their basic roles and
responsibilities:
Effective managing method
The main role of H&M’s marketing purposes is to lead the business to convey out their
supervision functions accurately in demand to make them effortlessly vacant to the markets.
They support for the provision of every accomplishments from the raw materials’ collection to
the products’ delivery by the customers’ choice of the products they wanted by assuring effective
managing support. (Mo, 2015)
Guaranteeing customer contentment
Focus of H&M’s management is on getting information associated with the customer’s choice,
manners and observations to meet their preferred products within short time span. From the
customers, they take their opinions through a variety of methods and facilitate customers by

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providing with precisely the same products to make sure their absolute satisfaction. (Earley et al.,
2016)
Observing the standards
The management makes great effort to offer high quality products to the customers than their
competitors by using quality assets from the suppliers. Through this approach, they can pay
attention to the value of both from the customers by earning their loyalty and through their
suppliers by making sure achievement their credibility. (Hooley, 2008)
Using marketing mix
Product: Providing an extensive range of fashion cloths and accessories, along with sportswear,
cosmetics and home appliances, at lower price and with the finest quality, inspired by the latest
catwalk trends. (Tungate, 2014)
Price: Price is based on cost, which is cheap and affordable (Smith, 2018).
Place: H&M focuses on well-known high streets where the brand has established its physical
outlets/stores. H&M is also running a website for online shopping as an e-commerce platform
through which different products and services can be accessed by H&M’s customers. (Smith,
2018)
Promotion: H&M pays strong attention to promotion, which includes advertising, both off-line
and online, and direct marketing (Boone and Kurtz, 2015).
How Marketing Related Roles and Responsibilities Relate to H&M?
H&M needs to pay attention to the following some roles and responsibilities:
Effectiveness and Efficiency
Marketing involves some key activities and tasks, through which goals and objectives are
achieved, and such tasks will make sure achievement of organisation’s effectiveness and
efficiency (Tracy, 2014). Importance of the tasks’ efficiency and effectiveness is much more to
make sure the best performance and productivity.

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Customer Satisfaction
Through marketing process, customers can get their desired products as per their needs (Boone
and Kurtz, 2015). Through best marketing process, H&M becomes successful in ensuring the
consumer satisfaction.
Competitive Advantage
Competitive advantage indicates a company’s unique qualities, over the competitors (Hooley,
2008). H&M’s marketing has been successful and thus they have achieved the competitive edge
by providing unique quality products in the market.
Therefore, the roles and responsibilities lead an organisation, like H&M, to the wider context and
it relates with its both internal and external functions. Internal functions of H&M include
finance, procurements and manufacture and research and development (R&D) function, where as
external functions are managing and serving existing and potential customers, competing and
making relationship with competitors, dealing with suppliers, and making good rapports with
intermediaries supporting the marketing activities to reach the products to the customers. (Tracy,
2014)
Part 2
Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve
overall business objectives.
In past, both H&M and Zara have been using marketing method of advertising and have
similarly done very well. In the early 2008, both giants were far superior but affected by the
economies ruin. The best promotion approach of H&M has been the manageability through
which the company has been made a very productive business (Chow et al., 2017). Zara, on the
other hand, uses the showcasing method through which they have ten thousand single things
annually going through their stores (Tungate, 2014). Both companies have a highly effective
product promotion system. Both giants are indeed amazing and highly preferred fashion brands
among youth.

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The following information is all about difference sand similarities between marketing techniques
used by H&M and Zara to promote their products.
Marketing Mix Applied by H&M and Zara
Marketing Mix of H&M
Product: Popular fashion cloths and accessories are for both men and women, and especially for
children, giving a wide scope to influence their thoughts. They also deal in other areas including
cosmetics, home appliances, shoes and much more. The company, all over the world, is
recognised for the best quality fashion garments for all. (Tungate, 2014)
Place: H&M is running almost 25,000 stores globally. The stores locations mainly are high
streets where many standard shopping malls are located targeting urban groups. The company
has also an e-commerce website for online shopping. (Smith, 2018)
Price: H&M is high recognised for their best quality stylish products and competitive price
(Smith, 2018).
Promotion: Their plugs are the highly potential method for getting a thrill on their fashion cloths.
Through interpersonal online interaction through Facebook, Twitter, and Instagram), H&M
targets people aged 18-24. (Boone and Kurtz, 2015)
Physical Evidence: The outlets/stores and visibility globally is the physical evidence of H&M.
People: H&M has been working in the industry with the talent pool for last many years, and they
are not easy to find on all outlets’ floors. Customers may be prompted by them on their
needs/wants at any point. The knowledge base of employees is strong on store offer as they have
strong sense of fashion style. (Boone and Kurtz, 2015)
Process: Inclination of the whole process has been with their fashion products.
Marketing mix of Zara
Product: Zara is high known among youth across the world. The products have exceptional
nature and Zara has the strong potential to respond immediately to the customers’ changing
needs by offering unique products. (Tungate, 2014)

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Price: As Zara provides its products at a cost, that is sensible and affordable, to its customers, it
follows that customer locates its costs unusually direct. (Tungate, 2014)
Promotion: Zara do not invest in marketing and this approach is its unique marketing policy, and
thus they use the advertising money for opening new outlets (Özlen and Handukic, 2013). The
key marketing strategy of Zara is heavily based on four aspects including differentiation,
exclusivity, affordability and experience.
Place: Zara is vertically integrated retailer and this is what makes the company a stand out brand,
suggesting that Zara designs, manufactures and distributes their products itself.
Physical Evidence: Zara has been running 1,400 average sized outlets in urban centres and
fashion districts.
People: Zara has very caring employees as they are trained not to “bother” and solicit customers.
They have high sense about latest fashion styles.
Process: Employees get customers’ feedback/requests and then report to manager managing the
store. After that, daily sales and feedback reports are sent to designers and merchandise
department by such a store manager, and through this approach new garments are designed.
How Business Objectives are achieved by H&M and Zara?
Our team has identified three main objectives that need to be included in our screening
agreements. The three main objectives, H & M, are usually lower than the normal transaction
costs of competitors, and focus on growth opportunities to exploit financial hardship and provide
an easier area, helping to further implementation. H & M brand is more noticeable. Future
development plans.
In the United States, many people do not understand what H & M is and what they offer. Zara
may have a faster preparation time, but an alternative system has been adopted by H & M. A
quarter of inventory consists of quick forms. This is why we believe that H & M will
communicate more with American young people and young adult groups. Some buyers may
fluctuate, so those with more styles may find something in H & M.

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There is another important communication channel on the Internet. We encourage you to create
promotions on the most famous websites, including teens, Facebook and more. As a rule, online
sites are often in the real market.
The second goal of our advertising layout is that some advertising accents are focused on the
average price of a H & M deal, as a rule, lower than the price of competitors. (Özlen and
Handukic, 2013)
H & M aims to focus on cost savings and distribute products as efficiently as possible to
organisations and reduce management costs, low quality and high quality displays (Mo, 2015), H
& M is the shortest focus on promotions, lower prices than younger buyers looking for better
incentives to help protect the brand image (Tungate, 2014).
The third goal of our simplified regulatory procedures is to take advantage of the existing barrier
to registering as an opportunity to more effectively protect low-cost regions in the United States.
“Financial conditions have strengthened, renting H & M stores, especially given the goals and
conditions for providing better quality space in the United States.” (Tracy, 2014). Ultimately,
this will be H & M. Unbelievably good position; ideally, when economic growth slows down,
this opportunity can be expanded to cheaper regions to achieve future market growth.
Part 3
Develop and Evaluate a Basic Marketing Plan
Evaluation of a Basic Marketing Plan for H&M
For H&M, the new product offering will be based on proper administration of online website.
Here, the marketing goal is to improve online site of H&M so that the customers can buy their
desired fashion products at any time. For this administration, the marketing objective is to
contact all H&M’s customers who have not had an opportunity to go into the store and shop.
Marketing Objectives
Marketing objectives of H&M are:

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To make everything in H&M stores available on their e-commerce website and the products
chosen by customers will be delivered to their door step. At this moment, Sonia Rykeil is
illustrating a spread line for the fashion brand and online store will have more fashion cloths and
accessories not available in physical outlets. This approach will be extraordinary for the
customers.)
Product Objectives
Product objectives are:
 To provide elegant attire the fits the most front line customers.
 To offer unique pieces of clothing as well as embellishments that a wide scope of
customers will discover easily.
 To offer unique articles of fashion clothing to reinforce one's closet and restrictive pieces
to light up one's closet.
 All textures utilised will be natural.
Strategic Marketing Plan for H&M
Products and Services
The belief of H&M’s customers is that a very crucial yet critical part of the shopping experience
is the customer service. Nevertheless, customer service can be dreadfully expensive that is run
through employees. H&M will need to keep employee costs low and add the customer service
value, and for this the company could implement a loyalty programme. Such a programme will
involve tiers, consumer cards and point earning deals. Through this programme, consumer
privacy will be protected by keeping their information and shopping habits confidential.
Consumers can benefit from the opportunity to use H&M’s website by signing it up to make an
online profile. H&M will ask consumers to provide their basic demographic details and to take
simple style quizzes. For the consumer’s use, past information about purchasing will be
available.
Price

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Superior Value suggests that it is recognised by the customer that the company is offering a
perfect blend of unique quality, cheap price and extraordinary service, and such a blend is
superior to expectations of customers and for proposition of the market rivals.
Consumers can be encouraged to shop more, and for this the loyalty programme will involve
four tiers on the basis of consumer’s spending habits. When the consumer will reach the top tier,
a new card will be received by them through which their H&M status will directly be indicated.
To ascertain if customers should move tiers, the management will need to re-evaluate the
consumer’s tier based 6 month periods. After meeting the spending level, the management will
need to retain this spending habit to remain there.
Promotion
For engaging the consumers, H&M’s marketing management will need to create a new page,
with the name of Community Forum, on its official website through which different social media
networking platforms will be integrated. The connection of such a new page will be with
Facebook and Twitter. Initially, the development of this page will be fostered on the brand’s
social media platforms as well as on the official blog. For consumers, an open forum will be
created where they can discuss fashion products offered by H&M.
Place and Process
The marketing campaign will consume at least six months. In this marketing campaign, the
strategic approaches and tactics implemented have the strong potential to remain lasting fixtures
in prospective marketing campaigns of H&M.
Physical Evidence
By developing a new webpage called Community Forum, H&M will be able to integrate such a
page with Facebook and Twitter, as mentioned earlier.
People
H&M will need to hire talented employees to run this marketing campaign through social media
and blogging.

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References
Boone, L. and Kurtz, D. (2015). Contemporary marketing. 17th ed. Cengage Learning.
Chow, P., Chiu, C., C. Y. Yip, A. and K. Y. Tang, A. (2017). Contemporary Case Studies on
Fashion Production, Marketing and Operations. Springer.
Earley, R., Vuletich, C., Hadridge, P. and Reitan Andersen, K. (2016). A New ‘T’ for Textiles:
Training Design Researchers to Inspire Buying Office Staff Towards Sustainability at Hennes
and Mauritz (H&M). The Design Journal, 19(2), pp.301-321.
Hooley, G. (2008). Marketing strategy and competitive positioning (4a. ed.). Harlow: Pearson
Educación.
Mo, Z. (2015). Internationalization Process of Fast Fashion Retailers: Evidence of H&M and
Zara. International Journal of Business and Management, 10(3).
Özlen, M. K., Handukic, I., (2013). Fashion Industry Supply Chain Issues: Zara. European
Researcher. Vol. 47 pp. 999 - 1008. [Accessed 26 Nov. 2018].
Smith, K. (2018). H&M's strategy shift: an attempt to safe-guard against soaring Zara? -
EDITED. [online] EDITED. Available at: https://edited.com/blog/2018/02/hms-strategy-shift-
an-attempt-to-safe-guard-against-soaring-zara/ [Accessed 26 Nov. 2018].
Tracy, B. (2014). Marketing. New York: AMACOM.
Tungate, M. (2014). Fashion brands. London: Kogan Page.