Principles of Marketing: SWOT Analysis and Marketing Process at H&M

This article discusses the principles of marketing through the SWOT analysis and marketing process of H&M. It covers the situational analysis, marketing strategy, marketing mix decision, and promotional tools for B2B services. The article also highlights the strengths, weaknesses, opportunities, and threats of H&M.

Principles of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Swot analysis..........................................................................................................................1
Marketing process at H&M:...................................................................................................3
Marketing Variables for B2B Services:.................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The heart of any firm is its marketing. Through marketing to the customer, the product or service
is introduced. The success of the company is impossible without efficient marketing tactics.
Considerate the idea of marketing and STP tactics is the main goal of this assignment on
marketing fundamentals (Cannon, Lohtia and Paulich, 2021). Marketing is the process of
developing, disseminating, delivering, and exchanging offerings that customers find valuable.
2015 American Marketing Association The science and art of marketing involve discovering,
producing, and delivering value to customers with the goal of meeting their requirements and
generating profit for the business. Hennes and Mauritz (H&M) has been chosen as the subject of
the assignment's investigation. H&M opened in 1976 and has since expanded to rank as the
second-largest clothing retailer globally.
MAIN BODY
Swot analysis
The Hennes & Mauritz AB (H&M) group is a Swedish business that creates and sells
clothing and other items. H&M operates in more than 60 countries and maintains a sizable
internet presence. The second-largest apparel company in the world, H&M is renowned for its
quick-turnaround clothing.
Strengths in the SWOT Analysis of H&M:
 Vast variety of Products: For a variety of clientele, H&M sells a large selection of
clothes, shoes, accessories, and cosmetics. In addition to other items, the H&M company
also sells blankets, a variety of vases and pots, candles, and candleholders.
 A distinctive identity for all brands: H&M sells its whole product line under a variety
of names, such as H&M, COS, Weekday, Monki, etc. Each of its brands has a unique
identity depending on the customer target group.
 Global presence that is diversified: H&M is geographically present in many different
regions of the world (Bonaparte, 2019). H&M has locations in more than 60 nations
across six continents. H&M has expanded recently in lucrative regions like Asia and
Africa. Due to the organization's significant global presence, business risks can be
reduced.
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 Strong financial performance: H&M had a successful financial year in the previous
fiscal year. When compared to FY 2014, H&M reported a 19.4% rise in revenue. A
strong financial performance gives the company financial freedom and increases investor
confidence.
Weaknesses in the SWOT Analysis of H&M:
 Over-reliance on external suppliers: H&M is unduly dependent on external suppliers for
its products. Due to the outsourcing of product manufacturing to about 800 different
vendors, H&M has less control over the production process. Overreliance on a vendor
may affect the company's ability to fulfil order commitments, and any unfavourable
customer experiences may damage the reputation of the brand.
 H&M creates reasonably priced clothing, relies on numerous independent suppliers, and
adopts fashions from high-end brands (McDermott and et. al., 2021).
 Although H&M is well known for producing economical clothing, the quality of its
clothing and other products can occasionally suffer as a result.
Opportunities in the SWOT Analysis of H&M:
 Focus on growth to increase profitability: H&M has consistently prioritised growing its
global retail footprint. In FY 2016, the business opened 400 new stores. Such expansion
strategies could benefit H&M's bottom line in addition to its top line.
 In many different countries, H&M is also accessible via online shopping platforms. H&M
must further improve its e-commerce infrastructure in order to reach a larger market. If
H&M wants e-commerce to have a future in the clothing industry, it needs to use the
platform to its maximum potential.
 Expand in emerging markets: The garment sector has a lot of potential in emerging
markets around the world. To capitalise on the increased demand, H&M must investigate
developing markets in Asia and Africa.
 Lifestyle Improvement: People's purchasing power and standard of living are rising
everywhere. People are more brand aware, which gives companies like H&M a chance to
profit from the demand created.
Threats in the SWOT Analysis of H&M:
 Fashion trends that are always changing: The apparel business is prone to abrupt shifts as
a result of this. Social internet has accelerated the process of shifting fashion trends.
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H&M must produce in line with the most recent market trends in order to avoid falling
behind its competitors (Tuten, 2019).
 New entrants are made possible by e-commerce, which benefits existing businesses but
also poses a threat to them because it allows lesser-known brands to compete with well-
known brands on the same platform, which might hurt H&M's sales.
 Competition is fierce in the apparel sector from both domestic and international firms.
For each business to keep up with the latest styles and trends, it is necessary to be aware
of the competition (Ortikov, 2021).
 Increasing labour expenses in industrialised nations have an impact on the cost of
manufacturing for the sector. Such rising costs have an impact on the business's
profitability.
 Although the H&M Group reports its sales in the Swedish krona, the majority of its sales
come from developed nations like the US and Europe. The risk of a shifting foreign
exchange rate in connection to strong currencies could have an effect on profitability.
Marketing process at H&M:
Understanding the needs, wants, and demands of the market is essential to developing
products and services that can meet those needs. The marketing procedure can be explained as
follows:
Situational Analysis- The core idea behind marketing is to meet the demands of the consumer.
To achieve this goal, the company must conduct a situational analysis, also referred to as
situational assessment. Situational analysis is the process of analysing both the internal and
external surroundings. A corporation can examine its ability to carry out specific tasks and put
forth specific plans by conducting an internal environment study. While the evaluation of the
external environment aids in determining the opportunities that are open to a corporation. H&M
was able to comprehend the needs of the trend-loving but low-earning youth in the UK thanks to
situational analysis (George, 2021).
Marketing Strategy: Following a thorough examination, the organisation learns about the many
opportunities it can take advantage of as well as the challenges that could endanger it. The firm
then develops its strategy following the discovery of the opportunities. This tactic aims to take
advantage of the chance to meet the unmet wants of clients. A company's marketing plan
includes:
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Segmentation: The entire market cannot be exploited. Thus, the company splits the entire
market into various markets in order to develop the best marketing plan. Segmentation is the
term for this division. The segmentation of H&M's merchandise is created on consumer
demographics such as age, tastes, lifestyle, and economic level.
Targeting: Targeting is the process of choosing the market to meet the needs of a specific
market group (Jobber and Ellis-Chadwick, 2019). Teenagers who are attending college or other
formal education and desire a big selection of stylish clothing at a reasonable price have been
targeted by H&M.
Positioning: Positioning is the process of enhancing a company's perceived value among
customers. The positioning of H&M's product may be summed up as positioning for the
customer's benefit because it provides high-quality goods at lower pricing.
Marketing Mix Decision: The choice of what a company should do to promote its brand is
known as the marketing mix decision (Volchek and Buhalis, 2022).
Control and Implementation: These tactics need to be put into action after the environment has
been evaluated, a product mix selection has been made, and a marketing plan has been created.
However, simply implementing the strategy won't guarantee its success; the company must also
closely evaluate the overall plan and make adjustments as needed.
The 4Ps of the business are another name for the marketing mix. The marketing mix
variables include the company's product, pricing, location, and promotion. The choice on the 4Ps
of marketing must be made before releasing any new product (Crick, 2018). There are 4 Ps:
Marketing Variables for B2B Services:
Product: In B2B services, the products are bought and sold in large quantities, so the vendor
must sell the product that corresponds to the buyer company's description.
Price: B2B transactions typically do not involve haggling. When purchasing a mass-produced
item, consumers always seek out strong brands and exclusive deals.
Place: It is essential to comprehend how the B2B is distributed. B2B distribution can be
explained as follows:
Promotion: Promotion is crucial in both B2C and B2B relationships. The business must
establish a brand (Palmatier, Petersen and Germann, 2022). The offerings of the seller company
must be known to the purchasing company.
Promotional Tools in B2B:
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 A well-known brand.
 A memorable logo.
 Email advertising
 A newspaper ad with an announcement
 The White Pages
 Trade events; electronic newsletters.
 Commercials on television
 Radio advertisement.
CONCLUSION
From the above report it is concluded that individual have a solid understanding of many
marketing concepts and tactics thanks to the project. After finishing the assignment, Students
learned about the actual use of market segmentation and targeting, as well as the numerous
positioning tactics used by the company for its product or service. Definitely learned how to use
marketing mix variables in various contexts thanks to the assignment.
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REFERENCES
Books and Journals
Bonaparte, Y.L., 2019. Sustainable outcomes of an experiential learning project in a principles of
marketing course. Journal of Global Scholars of Marketing Science, 29(1), pp.7-14.
Cannon, J.P., Lohtia, R. and Paulich, B.J., 2021. Blended Learning in Principles of Marketing:
The Effects of Student Differences on Student Performance. Journal of Marketing
Education, p.02734753211058357.
Crick, J.M., 2018. Teaching marketing to non-marketers: some experiences from New Zealand
and the UK. Education+ Training.
George, R., 2021. Marketing tourism and hospitality: Concepts and cases. Springer Nature.
Jobber, D. and Ellis-Chadwick, F., 2019. EBOOK: Principles and Practice of Marketing, 9e.
McGraw Hill.
McDermott, M. and et. al., 2021. Improving mastery of principles of marketing concepts through
interdisciplinary learning and integrated business projects. Marketing Education
Review, 31(2), pp.183-189.
Ortikov, A.B., 2021. Prospects of application of the principles of marketing in the development
of light industry enterprises in the region. Cognitio rerum, (7), pp.29-32.
Palmatier, R.W., Petersen, J.A. and Germann, F., 2022. Marketing Analytics: Based on First
Principles. Bloomsbury Publishing.
Tuten, T.L., 2019. Principles of Marketing for a Digital Age. SAGE.
Volchek, K. and Buhalis, D., 2022. Marketing Attribution. In Encyclopedia of Tourism
Management and Marketing. Edward Elgar Publishing.
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