Business Development Report: H&M's New Product Launch Analysis

This report provides a comprehensive analysis of Hennes & Mauritz (H&M)'s new product launch, focusing on its introduction during London Fashion Week. The report begins with an introduction to globalization and H&M's business, setting the stage for a detailed examination of the project's background, aims, and objectives. It outlines the project management plan, including cost, time, quality, risk, communication, and scope considerations. The report then delves into the work breakdown structure and utilizes a Gantt chart for project visualization. Furthermore, it explores qualitative and quantitative research methods, with a preference for qualitative research, and details data collection methods, including primary and secondary data sources, along with a questionnaire used to gather customer insights. The report analyzes the collected data, presents findings related to consumer awareness, and identifies key factors influencing product introduction. The report provides valuable insights into H&M's strategic approach to new product development and market analysis, offering actionable recommendations for enhancing business profitability.

Managing A
Successful Business

INTRODUCTION
Globalisation is referring to a procedure through which company is providing its products
services to all around the globe (Ahmed, Jimenez and Martínez, 2013). This will help company
to increase its sales and enhancing overall profitability of organisation. Globalisation a
movement of people, goods, services across the geographical boundaries in order to grow
business and its market share. This report is based of Hennes & Mauritz company. This
organisation was founded by Erling Persson in 1947 and it is providing its services all around the
world. It is a Swedish multinational company which is dealing in clothing retail industry. This
company is planning to launch its new product in Landon Fashion Week which is going to
happen in 16th - 20th November 2019. This report cover aims and objective to conduct research as
well as project management plan and research methodology. It also covers data analyses and
recommendation are provided on the bases of research.
TASK 1
P1
Background of Project: Hennes & Mauritz AB is a multinational Swedish company
which is dealing in fashions retail industry. This company is producing different fashionable
products from both men and women. It is one of the worlds largest company which is providing
its clothing products all around the globe. Hennes & Mauritz company was established in 1947
and it was founded by Erling Persson. Headquarter of this company is located in Stockholm,
Sweden and it is providing it services worldwide. This company is located in approx 62 countries
with more them four thousand stores. Hennes & Mauritz is planning to introduce it new sports
shoes product in London Fashion Week. Manager of H&M needs to carefully analyse the market
area as well as requirement of customers in order to provide new and creative products to
customers. London fashion week taking place on the 16th to 20th November 2019 so company
have hired a researcher to evaluate needs and wants of customers (Crane and Matten, 2016). For
this, investigator needs to develop various strategies and formulate specific aims and objective
for conducting effective and efficient research. Research aim and objective in mention below.
Research aim: To determine the significance of new product development for business
in enhancing its profitability. A Study on H&M
1

Research Objectives
 To analyse the concept of new product development.
 To identify the different ways through which H&M can launch their product in market.
 To determine the relationship between new product development and business growth.
Research Questions
 What is the concept of developing new product?
 What are the different ways through which H&M can launch their product in market?
 What is the relationship between development of new product and business growth?
P2
Project management plan can be defining as a proper planning in order to implement and
effective and efficient project for organisation. This includes a documentation that help in
developing comprehensive baselines for achieving set goals and objective (DenVan and De Jong
2010). This is very essential to develop an effective plan after determine various factors so that
project can smoothly run and reach to set goals. Project management plan is a framework that
includes various strategies and step to complete project work. It is very important to carefully
analyse various factors which affect project management plan such as cost involved, time
required, quality, risk, communication as well as scope.
 Cost: This is very essential factor to carry the plan into actual actions. Cost rest to
amount of money that is required to perform and effective research. This play a very
crucial role in smooth function of research plan. Researcher needs to plan a proper budget
plan to conduct research. For this research, investigator is expecting total cost that is
required to complete research is approx 60000 pounds.
 Time: It refers to the time period required to effective complete research. In order to
timely completion of research it is very important that all activities of this should start at
right time so that all task complete in required time span (Eckerson, 2010). Researcher
who is conducting this research project has evaluated that this research required approx 7
months’ time to complete this.
 Quality: This is standard for conducting research. Quality of research is very important
aspect that needs to be decides by investigator before conducting research. This will help
in differentiating it from various other researcher. Quality of research should be high in
order to represent an effective and qualitative research. By setting high quality of
2

research will help investigator to set standards of research which will help them in
measuring actual research.
 Risk: This factor will leads to have huge negative effect on research. It is very important
for research to identify amount of risk involved in carrying out a research (Gebauer,
Edvardsson and Bjurko, 2010). Investigator should analyse risk in advance so that they
can develop effective strategies to deal with risk. Risk factors includes shortage of
manpower, funds or time. Researcher should be planned to deal with various risk and
complete research effectively.
 Communication: This is required for researcher to effectively interact with team
members as well as other person who are helping in conducting research. Communication
is essential part of research in order to collect data from various sources (Incelli, 2013).
Effective communication will also help in motivating team to complete required task as
well as effective flow of research process.
 Scope: Scope of research will help in analysing its effectiveness in future and market
area. In order to lunch a new product, it is significant to analyse probability of
successfulness of product in market area. By analysing its scope, it is will help
investigator to identify chances of failure and success of new launched product in market
area.
P3
Work breakdown structure
This is a structure in which is divided into various parts in order to organize team work.
Work breakdown structure can be defining as a hierarchical representation of task which needs to
be implemented by member of a project team. This is a method which help is solving complex
and multi-step projects. Work breakdown structure is in a form of tree structure that provide
outlines to project and breaking into smaller parts so that completed portion can be easily
measurable.
3

Gantt chart
This is a horizontal chart that is developed for controlling invention practices of
organisation. This is basically introduced by henry L. Gantt in 1917 to analyse and evaluate work
done by production department. This can be define as a graphical tool which help in representing
activities done in certain time period (Jones and Lubinski, 2012). Gantt chart is a very popular
tool in project management and it drill down all activities which is needs to be performed in a
fixed period of time. This chart has horizontal and vertical axis where vertical axis shows task
that needs to accomplish whereas horizontal axis represent time spend for completing given task.
4

TASK 2
P4
There are various ways will help in active set goals and objective of organisation.
Researchers needs to carefully evaluate and analyse these methods in order to choose correct and
appropriate methods. Qualitative and quantitative methods are mentioned below.
Qualitative research: This includes different practices of gathering as well as analysing
information which cannot be represent in numerical form (Kankaanranta and Planken, 2010).
Qualitative methods are very important for collection in depth and high quality information or
knowledge. Data collected in this type of research will provide insights about issue or problems.
Qualitative research is very helpful in collection and evaluating data in order to underlying
reasons and opinions.
5

Quantitative research: This type of method is very helpful in identifying and analysing
data that can be represent in numerical data as well as this can be transfer into statistics to get
proper and accurate information. Qualitative methods helps researcher to find solution to a
problem in more effective and efficient way.
From the above two methods, most preferable methods chosen by investigator to
effectively conducted this research is qualitative method. This methods of research will help in
collecting and evaluating in depth knowledge and information which is required in this research.
Data collection
There are various methods from collecting and evaluation information and data which
help researcher in finding solution to problems (Lai and Ong, 2010). Data collection can be
divided into two categories that are primary and secondary data. These methods are mention
below in detail.
 Primary method: This is referring to information which is collected by researcher for
the first time and researcher who finds this information is consider as own of data.
Primary information is gathered though numerous ways that can be interview,
observation, questionnaire, surveys etc. In order to collect through this methods,
researcher needs to have proper knowledge and information. Collecting data from this
method is quite time consuming as well as requires huge amount of money.
 Secondary methods: This method is very help in collecting fast data as this information
are already collected in primary research (Lin and Chen, 2012). Secondary method is
comparative easy and there are various sources available to collected these data. Various
methods for collecting secondary data is internet, newspaper, government documents,
business papers, books and so on.
In order to conduct an effective research, investigator is using both primary and
secondary method. Researcher is developing questionnaire related to research topic through
primary methods. Secondary methods are also used by researcher for getting more and detailed
information about projects.
Questionnaire
Q1. Are you aware about the concept of launching a new product in the market?
 Yes
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 No
Q2. What are the common things that H&M needs to consider while introducing their new
product in market?
 Product price
 Customer’s requirement and need
 Product design and features
 All of the above
Q3. How much customers are interested in buying this new product of H&M?
 Extremely interested
 Somewhat interested
 Not at all interested
Q4. According to your views, does H&M requires to implement promotional practices in order
to introduce their new product in target market?
 Yes
 No
Q5. How H&M can promote their new product in target market?
 Online advertisement
 Offline promotional activities
 Both of the above
Q6. What are the feature of new shoes that will attract more customers towards H&M?
 Comfortable to wear
 Affordable price
 Attractive design
 All of the above
Q7. Who can be the major competitors of H&M while introducing their new range of shoes in
London fashion week?
 Marks and Spencer
 Zara
 NEXT plc
 All of the above
Q8. Do you think introducing this new product will be helping in enhancing business
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profitability of H&M?
 Yes
 No
Q9. Does new shoes launch in London fashion week will be a profitable move for H&M in
context of gain desired revenue?
Q10. Any suggestions for additional improvement in business practices of H&M?
TASK 3
P5
Theme 1: Concept of launching new product in market area.
Q1. Are you aware about the concept of launching a new product in
the market?
Frequency
 Yes 22
 No 8
Interpretation: From the above collected data it can be analyses that most of the
customers are aware about new launched product. It has be identified that 22 respondents out of
8
22
8
Yes
No

30 has agreed that they are aware of new products launched by H&M organization whereas only
8 respondents were not aware of new product.
Theme 2: Things to consider while introducing new product in market.
Q2. What are the common things that H&M needs to consider while
introducing their new product in market?
Frequency
 Product price 7
 Customer’s requirement and need 8
 Product design and features 6
 All of the above 9
Interpretation: As per the above presentation it is easy to understand that majorly of
participants feel that company should consider various factors such as product prices, needs and
wants of customers as well as design of product. It is identified that 8 and 7 respondents
9
7
8 6
9
Product price
Customer’s requirement and
need
Product design and features
All of the above

suggested that company should focus on customer's requirement and product prices respectively
where as only 6 respondents feel that product design and its features are more important.
Theme 3: Interest of customers in purchasing new product.
Q3. How much customers are interested in buying this new product
of H&M?
Frequency
 Extremely interested 11
 Somewhat interested 14
 Not at all interested 5
Interpretation: As per the above gathered information it has been analyses that majority
of consumers are interest in collecting data whereas only 5 respondents out of 30 were not much
interested in buying new lunched product. Out of 30 respondents 14 and 11 where interest and
extremely interested in new product of H&M company.
Theme 4: Need of promotional practices in introducing new product.
Q4. According to your views, does H&M requires to implement
promotional practices in order to introduce their new product in
Frequency
10
11
14
5
Extremely interested
Somewhat interested
Not at all interested