Global Marketing Report: Analysis of H&M's International Strategy

This report provides a comprehensive analysis of H&M's global marketing strategies, covering various aspects such as market entry, the EPRG concept, and the advantages and disadvantages of franchising. The report begins with an introduction to global marketing, defining its key elements and its importance in today's business environment. It then delves into the growth and development of global marketing, followed by a discussion of the EPRG framework. The report further examines the Chinese market, including its background, political and economic environments, and the advantages and disadvantages of entering this new market. The study then focuses on H&M, analyzing the factors influencing its entry into new markets. Finally, the report explores the advantages and disadvantages of franchising for fashion retailers like H&M, including the benefits of choosing this strategy for international expansion. The report utilizes academic sources to support its findings, providing a detailed overview of H&M's global marketing approach.

Global marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Task 1..............................................................................................................................................1
(a) Explanation of growth and development of aspects of global marketing.........................1
(b) Three academic sources related to concept......................................................................1
(c) EPRG concept...................................................................................................................2
Task 2..............................................................................................................................................2
Background of the china country...........................................................................................2
political risk in china..............................................................................................................2
Economic environment of the china.......................................................................................3
Advantage and disadvantage of entering into new market....................................................3
Task 3..............................................................................................................................................3
(a) Background of H&M company.......................................................................................3
(b) factors that are affecting the firm to enter into new market.............................................4
Task 4..............................................................................................................................................4
Advantage and disadvantage of the of using franchise..........................................................4
Benefit of the choosing franchise for the fashion retailer......................................................5
CONCLUSION...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
International Marketing may be refer as marketing on a worldwide standard reconciling.
Global marketing include planning, placing, producing and advertising a business merchandise
or service in global market. Global marketing is the specific skills, global marketing is the part of
the marketing, global marketing is the one of the important part of the marketing. Under this
report H&M taken as the company. H&M chosen company under this report, it offers amazing
quality fashion products to all range of consumers., EPRG concept , background of the china
country, economic environment of the china country , benefit advantage and disadvantage of the
choosing franchise.
MAIN BODY
Task 1
(a) Explanation of growth and development of aspects of global marketing
Development of the global marketing may be define as the overall improvement of global
marketing activities. Development means the improvement or evolution of the marketing.
Development of the global marketing concentrate on the investment of a company's assets and
merchandise world wide. The term development of global marketing means that development of
the marketing activities In the global world. Global marketing is the procedure of the set up
company's merchandise and services globally with the intellect ion of the scope, users and
country of origin and essential logos such as trademarks , metaphor, mood (Charter and
Polonsky, 2017). The world-wide marketplace has been changed by alteration in commerce
technique, level and practices, these modification have been reinforced and retained by new
method or technique and developing worldwide relationship between the companies and
organization. The abstract view of the global marketing commerce is being counter equilibrium
by a high world wide view of markets.
(b) Three academic sources related to concept
Global marketing concentrate on the searching right product for the customer In place of
the searching right customer for the products, developing of the global market concept
settled on the four tower such as consumers requirements, incorporated market , target
market and gaining. This is the concept that ensures to develop global brand image of
business and run the firm in new market successfully (Gillespie, 2015). By conducting
effective marketing tactics companies can generate more revenues and can gain attention
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of mass audience. Developing of global marketing concept proceed with a well defined
world wide market, concentrate on the customer needs of global marketing, coordination
all the inter relation activities which impacts consumers and rapid increase the profits by
bringing more positive customers. Development of global marketing concept concentrate
on achieving organizational objective by making a firm that is more efficient and effective
than other competitor by making , delivering and communicating customer value to
selected targets markets.
(c) EPRG concept
Polycentric concept maybe define as a management frequently unconscious premise that
country in which a H&M does business is specific. This premise profane the fundamental for
each auxiliary to develop its specific business and global marketing strategies in order to win, the
multinational company such as the H&M use this structure for instance H&M managers looks
needs of citizen of country and manage operations accordingly, Polycentric H&M management
means head office of the H&M keep bit control on activities in world-wide
market(Schlegelmilch., 2016).
REFERENCES
Books & journal
Charter, M. and Polonsky, M.J., 2017. Greener marketing: a global perspective on greening
marketing practice. Routledge.
Gillespie, K., 2015. Global marketing. Routledge.
Schlegelmilch, B.B., 2016. Global Marketing Strategy. Management for Professionals.
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Task 2
Background of the china country.
China is the one of the biggest and oldest continuous civilization in the world with the
organized society existing for more than 10000 years the china country had a complicated and
dynamic past. The china country decrease the number of the citizen living in the poverty. China
has great economic condition and population has capacity to buy products (Rao-Nicholson and
Khan., 2017).
political risk in china
Some of the common political risk faced by the china country which are mentioned
below:
 china country facing a political risk of trade and currency dispute within the whole
country , this currency fluctuation is created problem for companies.
 Google dispute is another risk in China.
 China country is facing risk of the social stability china political theory party has so far
retained general potency
Economic environment of the china
Economic reforms program has been initiated by government of China, which has helped
the country in reaching to the position of ninth in GDP. As its GDP was recorded 24 billion.
Though China has faced economic crises situation but effective economic policies have helped
the government in managing such problem in effective manner as compare to other countries.
Government is now committed on that there would be no derail structural reforms which will
help the nation in continuously growing and improving its economic value significantly. China
outer position is higher dry (Marketing, 2015). Its capital account is in the positon of bold
control. Government has put hard efforts to reduce its labour cost hence statistical records show
that its labour cost is low as compare to other nations.
Advantage and disadvantage of entering into new market
There are the many advantage or disadvantage of china country for moving in completely new
nation . Advantage of the china country to move into the new markets are it helps the china
country to reaching the new customers, spreading business risk, helps china country in accessing
new talent,securing foreign investment etc. advantage of moving into new market for the china is
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it increased immunity to trends, improved customer confidence (Kasemsap, 2016). On the other
hand disadvantage for country to move into in the new market are mentioned like handling
logistics, foreign rules and regulation, coordinating time zones are the main disadvantage for the
country in entering into new market.
REFERENCES
Books & journal
Kasemsap, K., 2016. Implementing electronic commerce in global marketing. In Encyclopedia of
e-commerce development, implementation, and management (pp. 591-602). IGI Global.
Marketing, G., 2015. International Marketing. Social Cognition. 26(2). pp.248-258.
Rao-Nicholson, R. and Khan, Z., 2017. Standardization versus adaptation of global marketing
strategies in emerging market cross-border acquisitions. International Marketing
Review. 34(1). pp.138-158.
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Task 3
(a) Background of H&M company
H&M is the chosen company from the real business world. It is the firm which operates
across the world and offer amazing fashionable cloths to all range of customers. (Shultz and
et.al., 2015). It has branches in around 62 nations and also it has around 4500 stores. In the
year 2015 H&M has hired approx. 132000 employees those who are serving across the world.
Company has also its website from which it sales its products globally. It has consumers in
international market as well which has made the brand the leading fashion firm globally. In the
year 2008 H&M has started selling home furnishing items as well which helped the organization
in attracting more consumers towards the brand.
(b) factors that are affecting the firm to enter into new market
This is not so easy to get entered into new market successfully, companies have to get
prepare in advance and have to ensure that its entry decision gives positive result to business unit
otherwise it may get failed to sustain in market for longer duration. There are various kinds of
elements that affect companies in entering into new market successfully. Some of the external
factors are mentioned below:
 Population of new country, its project size affect decision of organisation in entering
into new market.
 Cost of raw material, productive agents, economic value are the major factors which
impact on entry decision of companies (Marketing., 2015).
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(Source: Quinn, 2016)
Internal factors
 Price discretion is considered as major element which affect such kind of decision of
company.
 Companies have to take care about local production entry strategy otherwise it may
cause problem to business unit
 Technologies are another key factor which affect its decision (Leonidou and et.al.,
2018).
REFERENCES
Books & journal
Leonidou, L.C and et.al., 2018. Advances in Global Marketing. Springer.
Marketing, G., 2015. International Marketing. Social Cognition. 26(2). pp.248-258.
Shultz, C.J and et.al., 2015. The Global Marketing and Consumption of Sport. In Proceedings of
the 2010 Academy of Marketing Science (AMS) Annual Conference (pp. 223-224).
Springer, Cham.
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Illustration 1: Factors influencing entry mode decision

Quinn,. M., 2016. Cross cultural negotiation market entry modes. [Online]. Accessed through
<https://slideplayer.com/slide/10346645/>
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Task 4
Advantage and disadvantage of the of using franchise
The main advantage of the H&M company's entering sphere of franchising are mentioned below
 Cost effective expansion franchisees manage the explore and financial backing for outlets
in H&M chain which means H&M do not have to spend there own capital.
 Marketing support H&M franchise uses the same tried and correct marketing plans which
support eliminate the costly guess work when entering a new business H&M have power
or authority of national advertising fund(Gillespie., 2015).
 Scalability depending on H&M company requirements and objective , H&M can make
there franchise understanding to concentrate on high volume regional growth.
Disadvantage of the using franchise
 Using or set up franchise need high investment of both time as well as the money in the
business development(Kasemsap., 2016).
 The franchisees will agree to follow H&M company training and instruction but
company may not able to do any changes without running into disagreement.
 Regulation franchises are governed by the state and federal laws needed the development
of a franchise disclosure document and other governed document with the supportof an
attorney(De Mooij., 2019).
 If the company involve the wrong franchisor, then kit may face difficulty because firm
has to ensure that franchisor has potential to run the business and raise brand image. If
franchisor has capacity to manage the brand name, then company can get success in the
new market otherwise it may get failed to run the firm successfully in foreign market.
 As organization has to pay royalties charges hence it is not a good option (De Mooij.,
2018).
Benefit of the choosing franchise for the fashion retailer
Some of the basic benefit of the choosing franchise for the fashion retailer are mentioned
below
 Constituted business system H&M franchised business will benefit from established
business system and procedure that have been checked and prove in the market place
(Charter and Polonsky., 2017).
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 Training H&M franchise business will benefit from the franchisor continued training
and support this consist of the initial support as well as initial training that should be
current and spread to H&M business procedure or activity and the continued
improvement of the product and services which H&M is offering.
 H&M compared to set up a new business H&M franchised business from very first day
will possess an constituted brand acknowledged by customer(Al‐Khatib and et.al.,
2016).
REFERENCES
Books & journal
Al‐Khatib, J.A and et.al., 2016. The ethical profile of global marketing negotiators. Business
Ethics: A European Review. 25(2). pp.172-186.
Charter, M. and Polonsky, M.J., 2017. Greener marketing: a global perspective on greening
marketing practice. Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Gillespie, K., 2015. Global marketing. Routledge.
Kasemsap, K., 2016. Implementing electronic commerce in global marketing. In Encyclopedia of
e-commerce development, implementation, and management (pp. 591-602). IGI Global.
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CONCLUSION
Above report concluded that information relevant to the background of the china , political
risk and problem in the china country , review on the economic environment of the china. Global
marketing always help companies in giving best results to the organization and managing the
brand image globally in significant manner. This is the tool which gives always monetary and
non monetary benefit to firms. By this way firms can work better and can raise its productivity to
great extent. Under this report provide a brief knowledge and information related to the H&M
company. It is very important that companies use franchise system by looking at capabilities of
franchisors, otherwise it might get failed to generate revenue in the new market.
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