H&M Brand Analysis: Brand Value, Extension, and PESTLE Factors

This report provides a comprehensive analysis of H&M's marketing strategies, focusing on its core brand values, extension into the H&M Home market, and the impact of PESTLE factors (Political, Economic, Social, Technological, Legal, and Environmental) on its operations. It delves into H&M's brand extension strategy, particularly its expansion into home products, highlighting the company's focus on low-priced, high-quality goods and sustainable packaging. Furthermore, the report includes a comparative analysis with ZARA, examining differences in supply chain management, inspiration sources, outsourcing practices, and production capacities. The analysis draws upon cited references to support its findings and provide a well-rounded perspective on H&M's market positioning and strategic decisions.

PRINCIPLES OF
MARKETING
H&M

TABLE OF CONTENT
• Introduction
• Brand value
• Brand extension
• H&M home
• PESTLE analysis
• Comparative analysis

INTRODUCTION
• H&M is a Swedish multinational company, that was establishes in 1974. it has over 5000
stores in 74 countries, with over 120000 employees. And with net revenue of $24.8
billion.

BRAND VALUES
The brand value of H&M is that they believe in people
and entrepreneurial spirit.
With cost improvement and cost conscious products
serving the needs of its customers. In other words it
identifies one sellers product as distinct from those of
others.

BRAND EXTENSION
• H&M is mainly known for its high street fashion,
however, they are extending their brand toward
H&M home.
• Where it will sell home products like pillows,
lamps, towels etc.

H&M HOME
• That is it has extended its brand, where they will sell home appliances and
accessories such as pillows, towels, bed sheets lamps etc. products that
are low priced and high quality
• H&M has a packaging strategy that reduce, innovate and re-use its
packaging

PESTLE ANALYSIS
Pestle factors Issues
Political Global unstable international market
parameters
Economical currency fluctuations
Social Requirement od sustainable products
Technological Technological advancement in supply chain

COMPARATIVE ANALYSIS
ZARA H&M
SUPPLY CHAIN Vertically integrated supply chain Dual supply chain
INSPIRATION Inspiration comes mainly from stores Inspiration comes from designers
and trends
OUTSOURCING Own production capacity but
outsource sewing
Fully outsourcing its production to
suppliers
PRODUCTION Production mainly in Portugal and
Spain
Fashionable clothes produced in
Europe

REFERENCES
• Jan, A. D. A. and Victor, S., 2019. Measuring the Effectiveness of Segmentation,
Targeting and Positioning Strategy of L’oreal Products in Kingdom of Saudi Arabia.
IJO-
International Journal of Business Management. 2(09). pp.68-79.
• Kalam, K. K., 2020. Market Segmentation, Targeting and Positioning Strategy
Adaptation for the Global Business of Vodafone Telecommunication
Company.
International Journal of Research and Innovation in Social Science
(IJRISS). 4.