International Marketing and Strategy of H&M Group: A Detailed Analysis

This project provides a comprehensive analysis of H&M's international marketing and strategy. It begins with a company background, highlighting H&M's global presence and financial performance. The research explores the challenges and opportunities in international marketing, focusing on the application of marketing principles like specialization, differentiation, segmentation, and concentration. The study examines the marketing mix, segmentation, targeting, and positioning strategies of H&M and compares them with those of Zara. The research uses frameworks like the Ansoff Matrix, SWOT analysis, and BCG matrix to assess H&M's competitive position and strategic choices. The project also includes a literature review on international marketing concepts and theories, and a detailed research methodology. The findings highlight H&M's strengths in online delivery, product development, and brand identity. The project concludes with recommendations for H&M to enhance its international marketing strategies and improve sales performance, emphasizing the importance of promotional strategies and product innovation.

Running head: H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
H&M Group International Marketing and Strategy
Name of the University:
Name of the Student:
Authors Note:

1H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Executive Summary
The international marketing process also takes into consideration analysis of the needs and
expectations of target consumers and according developing international marketing strategies for
increasing sales of company’s offerings. Considering same, the research was particularly
focussed on analysing the strategic as well as marketing practices implemented by the fashion
brand H & M within the global marketplace. The research findings revealed that H & M’s
process based marketing strategy is also deemed to be effective in attaining high sales in
comparison to its rival fashion brand Zara. In addition, the fashion brand has competitive
advantage over Zara in improving its international sales performance as it has an online delivery
process through which orders are received within a computer system based on which selected
products are shipped to consumers in a prompt manner with no shipping charges. The research
also revealed that H & M Fashion brand’s product development strategy is focussed on offering
new and innovative products to all its target consumers. This strategy of the fashion brand has
facilitated the company to attain competitive advantages over its competitor Zara where through
strategic alliances with the famous designers. As both the fashion brands H & M and Zara are
observed to have strong brand identity to attain a leading position in terms of sales margin, H &
M Company is recommended to make certain innovative adjustments in its international
marketing strategies and make its target consumers more exposed to its unique offerings. The
promotional strategy of the fashion brad must consider using selective advertisements with
maintaining a strong apparel line that is anticipated to increase its sales performance.

2H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Acknowledgement
It is a great pleasure for me to acknowledge the assistance and contributions of many individuals
in making this dissertation a success.
First and foremost, I would like to thank my supervisor, for her assistance, ideas, and feedbacks
during the process in doing this dissertation. Without her guidance and support, this dissertation
cannot be completed on time.
Lastly, I wish to express my sincere gratitude to my family for their encouragement and moral
support.

3H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Table of Contents
Chapter 1: Introduction....................................................................................................................6
1.1. Company Background.......................................................................................................6
1.2. Research Background and Problem..................................................................................6
1.3. Research Rationale and Significance................................................................................8
1.4. Research Aim and Objectives.............................................................................................10
1.4. Research Questions.........................................................................................................10
1.6. Dissertation Structure.........................................................................................................11
Chapter 2: Literature Review.........................................................................................................12
2.1. Introduction.........................................................................................................................12
2.2. Concept of International Marketing....................................................................................12
2.3. Different Perspectives of International Marketing Approaches.........................................14
2.4. Principles of Marketing Strategy........................................................................................18
2.5. Basic Marketing Theories...................................................................................................20
2.6. Research Gap......................................................................................................................23
2.7. Conceptual Framework.......................................................................................................24
2.8. Summary.............................................................................................................................26
Chapter 3: Research Methodology................................................................................................27
3.1. Introduction.........................................................................................................................27

4H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
3.2. Research Onion...................................................................................................................28
3.3. Research Design.................................................................................................................29
3.4. Research Approach.............................................................................................................29
3.5. Research Philosophy...........................................................................................................30
3.6. Data Collection Method......................................................................................................30
3.7. Data Analysis Methods.......................................................................................................31
3.8. Ethical Considerations........................................................................................................32
3.9. Summary.............................................................................................................................32
Chapter 4: Data Analysis and Findings.........................................................................................33
4.1. Data Analysis and Findings Discussion.............................................................................33
4.1.1. Marketing Principles Comparison between H & M and Zara.....................................33
4.1.2. Segmentation, Targeting and Positioning Strategy Comparison.................................35
4.1.3. Unique Selling Proposition Comparison.....................................................................37
4.1.4. Marketing Mix Strategy Comparison between H & M and Zara................................38
4.1.5. Ansoff Matrix Comparison between of H & M and Zara...........................................44
5.1.6. SWOT Analysis Comparison between H & M and Zara............................................48
5.1.7. BCG Matrix Comparison between H & M and Zara...................................................49
Chapter 5: Conclusion and Recommendations..............................................................................51
5.1. Conclusion..........................................................................................................................51
5.2. Recommendations...............................................................................................................53

5H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
References......................................................................................................................................55

6H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
Chapter 1: Introduction
1.1. Company Background
H & M is a company that is positioned as the world’s renowned fashion organisation and it
has its online shopping with around 47 markets along with 4900 physical stores all through the
world within 72 markets (Hmgroup.com. 2019). In the financial year of 2019, more than 335
new stores are planned to be opened that will be solely H & M stores. More than 95 stores are
considered to be brand stores and the group encompass eight major brands like H & M, Monki,
COS, Weekday, H & M Home, Afound and ARKET (Hansen, Jensen and Petersen 2016). The
brand has constantly indicated exceptional performance with maintaining high consumer
experience as well as its vision for maintaining a sustainable fashion industry. The company has
recorded net sales of SEK 210 Billion in the year 2018 (Hmgroup.com. 2019). The research will
also particularly be focussed on analysing the strategic as well as marketing practices
implemented by the fashion brand H & M within the global marketplace. In addition, the
research will also discuss the subject in a broad manner through associating it with relevant
marketing theories as well as practices.
1.2. Research Background and Problem
In the recent era of changing business environment, most of the organisations and
specifically the fashion brands wish to attain successful market expansion across several nations.
All the companies operate within an international business framework for capturing maximum
faction of the international market (Alon, Jaffe, Prange and Vianelli 2016). There is considerable
pace of globalisation within today’s business and the same can be articulated from the fact that
the organisations operate their business within the country’s boundaries might deal with the issue

7H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
of domestic shortages of labour. It has been observed that the most of the businesses operating
internationally face issues in differentiating both the terms internationalisation and globalisation
and realise that both these terms lead to increased exposure to global factors (Arrigo 2018). Such
issue can result in the companies to develop ineffective international marketing strategies that
can facilitate them in suitably and competitively driving sales in the global marketplace.
Considering this research problem, it has been gathered that the fashion businesses like H & M
requires understanding the process of international marketing focusing in the nature of the
changing business world (Attas et al. 2017). Expanding business within the international market
is employed to signify westernisation in developing nations and the fashion brands like H & M
must analyse several economic conditions along with remaining aware of the related global
issues affecting its business sales and successful implementation of its international marketing
strategy.
It has been observed that the four major principles of marketing strategy are considered
important for successful implementation of international marketing strategies. The major
marketing principles include specialisation, differentiation, segmentation and concentration
(Bartsch et al. 2016). Through applying such principles it can be stated that specialisation is
evidenced to offer fashion brands with increased competitive advantages through ensuring their
specialisation on a specific aspect or product. Concentration international marketing principle
facilitates the organisation to realise the products and services offered by them and the offerings
that are not yet introduced by the organisation that can offer increased clarity to international
strategy of the business.
From analysing the business issue faced by H & M in maintaining its competitive edge
within the international marketplace, the company must take into consideration suitable

8H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
implementation of marketing mix strategies as per their applicability in various nations
(Bookman and Hall 2019). In addition, the research will have useful implications in addressing
the identified research problem as it will analyse various factors impacting the entry mode of the
companies in the global markets (Burt, Johansson and Dawson 2017). There are several ways in
which the companies can enhance their international marketing strategies and these consider
analysing whether the product will attain success in the international market, adjustment of
media mix based on the target nations culture and evaluation of the local customs that can
support the company’s expansion and growth decisions (Cuervo‐Cazurra et al. 2017). Extended
7Ps theory includes process people and physical evidence that is also considered important t be
implemented in international marketing research. People aspect is considered to be one of the
major aspects that ensure marketing strategy success. It includes employees, organisational
culture and management (Cuervo‐Cazurra et al. 2017). The process aspect in this marketing mix
theory includes back-office operations that indicate the manner in which the organisation’s
products and services are offered. This model implementation in case of H & M company can
facilitate in analysing the issues faced by the company in driving its sales through
implementation of its international marketing strategies.
1.3. Research Rationale and Significance
The rationale of the current research is to analyse the effectiveness of H & M Company’s
international marketing strategies in attaining global competitive edge. In analysing the same,
comparative evaluation of the international marketing strategies by H & M and its major
competitor Zara is also carried out. This facilitated in gathering useful study implications in the
form of revealing the major sales performance issues faced by the fashion brand in comparison
to its competitors in the industry (de Jorge Moreno and Carrasco 2016). The significance of the

9H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
current research is to evaluate various international marketing recommendations applicable for H
& M to improve its marketing strategies and thereby increasing its sales performance in the
future years. Moreover, significance of current research is focussed on analysing the marketing
discipline from variety of distinct marketing perspectives that includes the commodities,
institutional, functional, managerial and the environmental approach.
The purpose of the study is also to carry out the study of marketing approaches in the
fashion retail industry has considered the study of individual products along with analysing the
wholesalers, retailers along with agents (Duma et al. 2016). The approach to such study of
marketing is deemed to pass through several stages prior to attaining the present stage. From
analysing the study results, it can be gathered that these relevant marketing models and
principles can facilitate in making better comparison of the international marketing strategies
implemented by H & M and its competitor, Zara over years to increase their sales performance.
Considering the interrelations indicated in the research findings, it is evident from the
research that the international marketing strategies implemented by fashion brands serve as an
effective scheme through which the management intends to transfer its services or products to
target consumers (Ghauri et al. 2016). Significance of the current research is also to analyse the
combination of several aspects included within the marketing mix theory with the four aspects of
the marketing strategy that can facilitate in developing an effective marketing plan. The study
revealed that few markets are observed to be alike and it is considered important to adapt the
marketing mix that can facilitate in making sure that necessary customisation exist for satisfying
buyers’ needs to every market (Gomes 2017).

10H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
The research also has the rationale of explaining that international marketing process also
takes into consideration analysis of the needs and expectations of target consumers and
accordingly developing international marketing strategies for increasing sales of company’s
offerings. Considering such aspects related with implementation of international marketing
successfully, the findings gathered from this study implies that the marketer requires evaluating
all the necessary factors related to successful international marketing strategy implementation to
attain increased sales margin in the global marketplace.
1.4. Research Aim and Objectives
The aim of this current research is to analyse the effectiveness of H & M Company’s
international marketing strategies in attaining global competitive edge. The research objectives
that are to be addressed in this study are indicated below:
 To recognise the marketing strategy of the H & M Company within the global
marketplace
 To evaluate the efficiency of the company H & M’s marketing practice
 To compare and contrast the marketing practice of H & M Company from its major
competitors (Zara)
1.4. Research Questions
Primary Research Question
How the H & M Company implement their marketing approaches and related strategies
in increasing their sales within the global marketplace?
Secondary Research Questions

11H & M GROUP INTERNATIONAL MARKETING AND STRATEGY
 What are the international marketing and related strategies implemented by H & M over
the recent years?
 How to compare the success of international marketing strategies of H & M with its
major competitor Zara?
 What are the relevant marketing theories and practices that can be implemented for
evaluating the effectiveness of H & M’s international marketing strategies?
1.6. Dissertation Structure
The first chapter of the research report elaborates the company background, research
problem, rationale along with aim and objectives of the study. The second chapter explains the
existing literature on the international marketing and strategy implemented by the fashion brans
in previous years for attaining competitive edge. Relevant theories that are argued to be useful in
successful strategy implementation analysis are explained in this section. The third chapter
focuses on explaining the relevant research methodologies including the study design, approach,
philosophy and data collection as well as data analysis methods used in the current study. The
fourth chapter of this dissertation includes data analysis and findings that will consider analysing
the success of international marketing strategies implementation by H & M in comparison to its
competitor brand. The fifth chapter of the research concludes the major findings of the research
along with offering suitable recommendations to the company that can offer useful implications
to the company’s manager ensuring international success of the company.