Marketing Plan for H&M: A Comparative Analysis with Next and Adidas

Desklib provides past papers and solved assignments for students. This report analyzes H&M's marketing strategies.

MARKETING ESSENTIALS - PART 2
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Contents
Introduction................................................................................................................................4
LO2............................................................................................................................................4
P3 Compare the ways in which H&M and Next apply the marketing mix to the marketing
planning process to achieve business objectives....................................................................4
M3 Using your knowledge as marketing assistance, evaluate different tactics applied by
H&M and Adidas to demonstrate business objectives can be achieved................................6
LO3............................................................................................................................................7
P4 Produce and evaluate marketing plan for H&M...............................................................7
M4 In your role as marketing assistance produces a detailed, coherent based marketing
plan for H&M.........................................................................................................................9
D2 As marketing assistance designs a strategic plan that tactically applies the use of the
7Ps to achieve overall marketing objectives for H&M..........................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
Unlike the old times, marketing not only deals to communicate the product to customers but
also the activity is found in each and every aspect of the business. In the present scenario,
small and large both types of companies are moving to compete in the same market. Thus, the
role of marketing is crucial for obtaining the desired goals and objectives (Chaffey and Ellis-
Chadwick, 2019). This report is an attempt to define the marketing mix of H&M and Next as
it is required to process of the marketing plan. Additionally, the marketing plan of the
company will also develop.
LO2
P3 Compare the ways in which H&M and Next apply the marketing mix to the
marketing planning process to achieve business objectives.
Companies want to get their products or services out among numerous prospective customers
who are ready, willing and able to buy as much as possible. To do this, marketing managers
apply the concept of the marketing mix as an analytical framework which assists to look out
and monitor all the features which may affect marketing. Marketing mix carries seven
elements, i.e. product, price, place, promotion, people, process and physical evidence
(Lovelock and Patterson, 2015). By leveraging these components in order to take advantage
of strengths, H&M and Next Plc can raise the chances of effective marketing of their
offerings. Therefore, by applying marketing mix tactics in its marketing planning process
both organisations can achieve desired goals and objectives in a required manner.
Below is defined marketing mix of H&M and Next –
Basis H&M Next
Product This element of the marketing mix
entails with what is being offered by
the organisation. As a leading
clothing brand, H&M has brought
six special brands for customers,
these brands render to needs of
various customer segments by
The organisation’s products are
primarily targeting mainstream
fashion for middle and upper-
middle-class people. Next Plc is
famous for clothing products as it
highly focuses on quality and
latest trends of the market.
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following up different pricing
strategy (Chari, et. al., 2014). The
core range of products under H&M
are – accessories and clothing
likewise men, women and kids wear,
winter wears, shoes, purse etc.
Price H&M has acquired a pricing
strategy which suits to every sphere
of buyers. Although, as a popular
clothing brand H&M follows
premium price. The organisation
also keeps a median pricing strategy;
under this, it kept huge stock in the
discount section. Furthermore, due
to the high quality and considerably
low prices helps to appeal to youth
and lead to rising sales of the
company.
The pricing strategy of Next is
tending towards occupying the
middle ground of the market as it
is neither market skimming nor
market penetration. Instead of
this, Next has adopted a neutral
zone pricing strategy which
contributes to portrays the image
of quality as well as attaining
large group of the client base.
Place The business organisation sells its
products through its outlets or
exclusive stores in major cities over
the world. In some countries, H&M
offers its products from franchise
partners even it also provides
products via online and official
website as well. H&M has enhanced
its supply chain over the years so as
to reach a wide range of customers.
The organisation runs a multi-
channel running strategy with
numerous avenues; it enables
customers to browse and
purchase products (Davari and
Strutton, 2014). Next is having
almost 500 stores in the UK and
Ireland where people can easily
reach.
Promotion H&M group has great product
portfolio for each segment, so it uses
a multi-channel promotional
strategy. The brand promotes its
products via television
Promotion strategy for Next
appears to shift focus to online
communication, promotion and
advertisement as it displayed
from the official website.
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advertisements, public relations,
sponsorships, digital marketing,
social media sites, promo codes,
discounts etc. plays an effective role
in attaining and retaining customers.
However, the online strategy of
the company is not individually
reliant on its website and the
rapid use of social media, i.e.
Facebook, Instagram etc.
attracted much attention from the
retailing world.
Process The business organisation gives high
attention to customer relationship
management even employees are
trained in such manner as they
provide better services to customers.
Furthermore, service and delivery
time is fast which lead to gain
satisfied customers.
Next Plc focus on keeping
customers’ happy, thus it makes
acquirement of products online
and offline.
People Employees in H&M are well-trained
and qualified; it follows a modern
organisational cultural. Employees'
work on a rotation basis in all
departments to come up with
innovative ideas in the market.
As a customer-oriented company,
Next Plc emphasis on satisfying
customers' needs in the best
possible. For this, it also invests
in research and development.
Physical evidence H&M stores are appropriately lit
with their attractive interior,
ambience and humble staff. The
entire apparel is designed to have a
decent look which appeals
customers to visit at least once.
Stores of Next categorised
products into different sections
thus people can easily find them
as per their requirements.
M3 Using your knowledge as marketing assistance, evaluate different tactics applied by
H&M and Adidas to demonstrate business objectives can be achieved.
In order to ensure future growth and success, it is essential for every business organisation to
integrate a variety of strategies into the marketing plan. These strategies or tactics reflect the
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reality of business affairs and the firm's goals for that product line. Furthermore, to achieve
marketing goals and objectives managers can follow up various marketing strategies, i.e.
marketing mix as this will enable them to put the right product on the right place by making
them availing for many customers. H&M and Adidas both are leading brands, in this sense,
they are focusing on making the effective quality of products which appeals to many people
from the target market. Furthermore, another element of the marketing mix is price thus it
must be ensured that prices are able to affordable by all people. In order to promote their
products and services, Adidas has acquired digital marketing strategies which make it able to
interact directly with target audiences (Baker, 2016). Besides this, H&M mostly uses promo
codes and social media sites to promote or advertise its goods over the globe. It is the second
largest company in terms of significant online presence by having revenue of
US$25.191 billion.
LO3
P4 Produce and evaluate marketing plan for H&M
There is a defined marketing plan for M&M -
Introduction of the company – H&M is an international clothing retailing company which
is known for fast fashion clothing for men, women and children. The brand is operating in 62
countries, 4500 stores and 145000 employees across the globe. It is known as the second
largest company in terms of online presence by having revenue of US$25.191 billion.
Vision and mission of the company – The vision statement of H&M is to share the same
value, same beliefs in fairness, diversity and equity by having the ambition to lead the change
of sustainable growth in the fashion industry (Khan, 2014). Besides this, the mission
statement of the company is to strive to embrace and tackle challenges by continuing work
and learning from stakeholders.
Situational analysis – It can be done through by analysing internal and external environment
of the company; in which strength and weakness will dictate the internal environment
whereas opportunities and threats help to know the external environment.
Strength
Largest clothing brand
Weaknesses
Limited success outside the core business
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Having a wide customer base
Reliable suppliers
Successful track record of product
innovation.
Need more investment in technologies
Opportunities
New taxation policy improves the way of
doing business
New customers from online channels
Emerging markets and a lower inflation rate
Threats
Shortage of skilled workforce in the global
market
New environmental regulations
Political instability and economic recessions
Develop marketing strategies – The business organisation is following growth strategies as
its marketing strategies. There are four aspects of growth strategy, such as – market
penetration, market development, product development and diversification. Among all these
strategies product development is an effective strategy which tends towards developing new
or innovative products thus to satisfy customers' needs in an effective manner. Although,
while developing any product H&M needs to conduct market research; it helps the firm to
recognise current market trends.
Define the target market – In this stage, it is required to acquire a target market in which
firm will serve its products or services. For H&M, it has targeted geographical regions which
divide customers on the basis of gender, age, interest, preferences, values, beliefs etc.
Geographical market segmentation aids H&M to satisfy buyers' needs in the best possible
manner (Armstrong, et. al., 2015).
Formulate a marketing budget – After this, marketing manager of H&M develop a
marketing budget thus to analyse how much amount will be spent on various activities.
Allocation of resources – In this stage, it is required to ensure proper allocation of resources,
such as – human, financial, technical and physical resources. For example – the availability
of human resources helps in accomplishing all tasks or activities in the required manner.
Whereas having sufficient financial sources aid to spend money on various marketing
activities.
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Implement and monitor the plan – At last, after consulting with staff members marketing
managers implement the plan within the organisation; he also monitor the progress of the
plan by taking feedbacks from stakeholders.
M4 In your role as marketing assistance produces a detailed, coherent based marketing
plan for H&M.
As marketing assistance, it is the responsibility of the person to develop an effective
marketing plan which enables to deliver high growth and success to the company. While
developing the marketing plan, it is must ensure by managers that the plan is able to compete
with all competitors and helps the company to achieve a high competitive edge. As the
marketing objective for the company is to attain an interest in a wide range of customers' in
this sense marketing plan of HRM is able to achieve its objective in an effective manner.
D2 As marketing assistance designs a strategic plan that tactically applies the use of the
7Ps to achieve overall marketing objectives for H&M.
The above-mentioned marketing plan is successfully implemented in H&M by applying
marketing mix tactics as it ensures that all products or services are placed in the right place.
There are several elements of the marketing mix, such as – product, price, place, promotion
etc. hence while deciding target market product and pricing policy needs to be implemented
properly. It enables to attract many customers, besides this to promote H&M products'
promotional channels, i.e. digital marketing, public relations etc. would be supportive.
Therefore, it can be said that the proper alignment of marketing mix elements assists in
achieving the marketing goals and objectives of the company.
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Conclusion
From this above mentioned report, it get concluded that marketing is the significant task in
business growth and development. The report has stated role of marketing mix in
accomplishing business objectives. A marketing plan is also prepared later.
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References
 Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V. and Gaudet, D., 2015.
Marketing: an introduction.
 Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42).
Routledge.
 Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
 Chari, S., Katsikeas, C.S., Balabanis, G. and Robson, M.J., 2014. Emergent marketing
strategies and performance: the effects of market uncertainty and strategic feedback
systems. British Journal of Management, 25(2), pp.145-165.
 Davari, A. and Strutton, D., 2014. Marketing mix strategies for closing the gap
between green consumers' pro-environmental beliefs and behaviors. Journal of
Strategic Marketing, 22(7), pp.563-586.
 Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual
review paper). International journal of information, business and management, 6(2),
p.95.
 Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
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