Marketing Strategies of Hennes & Mauritz AB: A Comprehensive Report

This report examines the marketing strategies employed by Hennes & Mauritz AB (H&M), focusing on customer relationship management (CRM) and promotional mix techniques. It provides an overview of H&M, including its aim and current marketing strategy, and delves into the marketing mix elements of product, place, price, and promotion. The report explores CRM concepts, techniques such as creating loyalty programs and tailor-made offers, and evaluates their effectiveness in the context of H&M. It also analyzes promotional mix techniques like advertising, personal selling, and public relations, assessing their impact on H&M's market image. Recommendations are provided to improve CRM and promotional strategies, enhancing customer engagement and brand promotion. The report concludes with an overall evaluation of H&M's marketing approach and its implications for the company's success.

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

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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.

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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.

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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).

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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.

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2.3 Customer Centric
A strategy that places the customer at the center of marketing proposal and delivery is known
as Customer centric (Custora U, 2018).
An approach to operate a business that majorly focuses on offering a positive experience to
the customer both at the time of sale and after the sale to earn a profit and attain competitive
advantage is known as Customer Centric (Harrin and Peplow, 2017).
2.3.1 Quotes of Customer Centric
“It is possible that there are customers without brands, but on the other side it is a fact that
there is not a single brand without customers”. – Anon (Dunn, 2012). Brands are dependent
on their consumers and if companies follow this then they will succeed.
“There are various ways that help in serving customers. Information, data, and technology
offer helping hand for the company to lead through. The purpose of saving the money of
people will always remain important, but business will try to attain this goal by following
new ways”. - Doug McMillon (CEO, Walmart). Smart, self-learning automatic customer
service, and engagement engines can help in adding to the company’s technology stack,
which permits to offer instant, well-organized, day-and-night service to the consumers,
without compromising quality.
3.0 Question 1
3.1 Techniques of Customer Relationship Management
Customer Relationship Management
Techniques
Background of Technique
Creating Loyalty Programs Gathering information in the software of
CRM can provide various levels of
commitment by the customers and reflecting

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the most revenue earning accounts. This data
helps in making loyalty programs for valued
customers.
Evaluate performances CRM is used through dashboards to evaluate
the implementation of service and identify
areas for enhancement.
Targets Consumer with the help of tailor-
made offers
The software of CRM gathers the history of
customer's purchase and media consumption
in order to plan the type of offers will attract
customer and which will help in maintaining
the brand's high-value recognition.
Personalizing the Communications The software of CRM supports in viewing
the customers beyond the revenue rates. The
personalization effects have a major impact
on the purchase as well as on the post-
purchase relationship, where it is
correspondingly important to reach to the
customers on regular basis in order to
increase the service value.
Creating a complete “customer journey”
map
Mapping the journey of customer supports in
jotting down main facts of the experience of
customer: from primary contact, through the
engagement process and into a long-lasting
relationship (CRM Consulting, 2016).

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3.2 Customer Relationship Management Techniques followed by Hennes & Mauritz AB
Company
3.2.1 Creating Loyalty Programs
Each brand possesses its share of customers which are loyal, whose experience forced them
to return back on regular basis. The information collected in the software of CRM provides
various engagement levels by the consumer which provide the idea of those accounts that are
the reason behind the most of the revenue. This confirms a positive relationship with these
profitable consumers, making an unforgettable experience for them and also
recommendations from the loyal customers in order to extend target reach.
Effectiveness of Technique
With the help of this technique, H&M Company creates a list of its profitable consumers.
After this, the company invites its customers to join its H&M Club and take the membership.
At every purchase, customers get some points which are added to H&M Club and customer
uses it to unlock fashionable prizes or rewards modified offers and discounts, and get entree
to exclusive events (H&M, 2018). These programs help H&M Company to increase its
customer base and revenue. The sales of the company in the UK touched 7 billion SEK which
placed the market of UK at the third position among the top ten markets (Statista, 2018).
Ineffectiveness of Technique
As per the above technique, information of the customer is gathered in the CRM software in
order to prepare the list of most profitable customers and to offer reward in the form of
points. This process consumes a lot of time of the company's employees as it is not so easy to
identify the most profitable customers from the huge list of the regular customers.
3.2.2 Targets Consumer with the help of tailor-made offers
Each consumer has a different pattern of purchase, by which a company can identify the point
which is suitable for interacting and engaging with the customer for further loyalty. The

MARKETING 9
software of CRM successfully gathers the complete history of the customer purchase and
helps in planning about the type of offer must be provided to the customer that can be
appealing and can add relevancy to it (Entrepreneur, 2018).
Effectiveness of Technique
H&M Company has identified various ways to convert the interest of the customer into a
definite purchase which is the main agenda of this technique. The company has achieved this
by offering various discounts and promotion activities in order to add value to the customer’s
experience such as SMS coupons, marketing campaign through mobile in order to promote
the fresh collection and trend, mobile banner ads.
H&M Company has followed all the techniques of CRM which resulted in increasing the
demand by the customers and company succeed in expanding its business in various
locations. The online stores of the company are presently available in 44 markets. The
expansion by using online platform will continue in 2018. The future plan of the company is
to provide e-commerce on every store (H&M Group, 2018).
Ineffectiveness of the Technique
Offering various discounts, coupons, to the customers has the biggest con that they cost you
money. Any form of discount company offers to its clients means less money or profit in its
pocket.
4.0 Question 1
Recommendations to Improve Current CRM Techniques
Foster Word of Mouth Discussions- The world is developing so the ways of
communication. Besides interacting physically with one other people are spending
their most of the time on tablets, computers, or on smartphones. However when it

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comes to what to buy, where to spend the word of mouth has always been the most
effective way to acquire the loyal users.
Expanding online market sales and coverage- The Company should try to create
activities for expanding online sales and coverage.
Taking care of the customers who are frustrated and their feedback should be used to
improve the process of the company.
Maintaining proper track of the customers will help the company in communicating
new schemes and new fashion trends. It also helps in maintaining good relations with
the customers by greeting customers on their birthdays through birthday cards.
5.0 Question 2
5.1 Promotional Mix Techniques
The promotional mix is defined in the marketing as a mixture of different variables of
promotion which are selected by the marketers to support a business in attaining its goals
(Lake, 2017). This technique has been recognized as a subdivision of marketing mix. It is
assumed that there is an elective way of assigning budgets for the various elements in the
promotional mix in order to attain best results of marketing. For the marketers, it is
challenging to identify the right mix of them. Actions acknowledged as elements of the
promotional mix differ, but normally comprise the following:
Source [(Business Jargons, 2018)]

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Advertising
Advertising is the form of a paid promotion and presentation of service, good or idea by an
acknowledged sponsor in a mass medium (Manis, 2014). It is the form of visual or audio
form of communication that uses an openly sponsored, non-personal message in order to
endorse an idea, service, or product. Advertising sponsors are mostly businesses who are
willing to advertise their services or products. It is communicated from different mass media
such as Instances comprise brochures, television, in-store displays, mobile apps, motion
pictures, emails, web pages, print ads, posters, direct mails, radio, catalogs, banner ads,
television, signs, and billboard.
Personal Selling
The procedure of supporting and influencing one or more potential customers to buy a service
or good by an oral presentation, face-to-face interaction or by telephonic conversation is
known as personal selling. Examples comprise sales training, samples, sales presentations,
telemarketing, sales meetings, and incentive programs for intermediary salespeople. Personal
selling arises when a representative of the sales meets with a potential client for transacting a
sale. Various representatives depend on the process of consecutive sales which normally
contains nine steps. This process can be utilized in telemarketing and face-to-face encounters.
Sales Promotion
Sales promotion is a media and non-media marketing communication which is utilized for a
limited pre-determined time in order to increase the demand of the customer, improve the
availability of the product, and stimulate market demand (Lumen, 2018). Instances include
product samples, tie-ins, self-liquidating premiums, exhibitions, coupons, rebates,
sweepstakes, trade shows, and contests.