Marketing Concepts and Internal Relations: H&M Report Analysis

This report provides an in-depth analysis of H&M's marketing strategies and internal relations. It begins by outlining the roles and responsibilities of the marketing function within the company, including situation analysis, marketing strategy, and implementation and control. The report then explores the interrelationship between the marketing department and other organizational departments, highlighting their importance for smooth operations. A significant portion of the report is dedicated to the 7Ps of the marketing mix, comparing H&M's strategies with those of Zara. Finally, the report details H&M's marketing plan, including its vision, mission, marketing objectives, STP (segmentation, targeting, and positioning), and a SWOT analysis. The report also covers the 4Ps of H&M and a marketing budget overview, providing a comprehensive understanding of H&M's marketing approach.

Marketing Concepts and
Internal Relations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibility of marketing function................................................................1
P2 Roles and Responsibility to marketing related to wider organisational context...............2
TASK 2 ...........................................................................................................................................4
P3 marketing mix...................................................................................................................4
TASK 3............................................................................................................................................7
P4 marketing plan...................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................10

INTRODUCTION
Marketing is the activity which is associated with company for buying and selling
activity. It is the process which involve several activities of attracting customers and enhancing
sales. This report is based on, H&M which is an retail industry company founded in 1947 by
Erling Persson. Products offering by them are clothes and accessories as well as they are
operating in approx. 62 countries with almost 4500 stores. Below mention report is going to
explain marketing concept along with its current and future trend. Their are several roles and
responsibility of marketing manager within the company (Ahrens, 2011). Department of H&M
are highlighted with their interrelation to each other. In the end, 7Ps of marketing mix are
explained and how they help in achieving objectives as well as marketing plan with with relation
of 7Ps.
TASK 1
P1 Roles and responsibility of marketing function
Marketing process consist of analysing different marketing opportunities, selecting the
the target market, developing marketing mix with management and marketing function that
satisfy the customer's need and demand (Bird, 2012). The marketing process are as follows:
 Situation analysis: Analysing or identifying the opportunities to satisfy the unfulfilled
demand of the consumer. Basically the consumer needs and their purchasing powers. As
the firm understand their own capabilities and the environment in which they want to
operate. Firm analysis the present past and future aspects, as to disclose the gab between
the consumer wants and what are offering to the customer.
 Marketing strategy: One of the best opportunity to satisfy the demand of the customer's.
By developing different strategy plans such as market survey, segmenting the market and
positioning the offering with in the segment. And resulting out in the value proposition to
the different target market.
 Implementation and control: At this stage,the marketing process need to developed and
the product has been launched (Brooks and Simkin,2012). The result of the product
depend on the marketing efforts made by the the firm and continuously monitoring and
adaptation of change is required to fulfil the need and demand. So that the variances of

the product can be adjusted on time. Often one small changes lead to dissatisfaction of
the consumer.
Marketing manager play a most important role in order to conduction marketing activities
properly. They are responsible for each marketing activities as they assign duties to employees
and evaluate the performance of the employees on regular basis. Such as:
 Creates market plans: According to the nature of the marketing the managers of the
marketing Manager of the H&M creates an action plan to launch the product in the
market by analysing the need and demand,forecasting advertising,distribution of the
product etc.. to carry out the marketing goals of the organisation and satisfy their
customers.
 Identifying the potential markets: To create demand of the good and services that is
being produced by the firm (Cabrera and Williams, 2014). The Marketing managers of
H &M continuously identify the new potential markets where the can maintain the
customer relationship with the existing and the new customer.
 Evaluate the products: Customers need and demand differ from time to time. H&M
managers need to evaluate their produces on regular basis so that the can modify or alter
their products according to the need of the customer and satisfy their customer.
 Launch new product and services: H&M mangers attract new customer along with the
exiting customer by evaluating the needs and wants of the consumer. According new
goods and services are offers to the existing customer and to attract new customer as
well.
P2 Roles and Responsibility to marketing related to wider organisational context
Marketing actives is influenced by all the department of the organisation as it
encompasses the entire business of the organisation (Bellenger, Bernhardt and Goldstucker,
2011). In organisation each and every department is interrelated with each other which is
important for easy and smooth flow of H&M. Moreover, it will result in generating high amount
of profitability and employees satisfaction.
 Production Department - H &M production department adequately research according
to the quality of the product to satisfy the current and future trend of the customer.

 Marketing Department - H&M marketing department closely work with the finance
department to adequate the budget to meet the needs of the survey, promotion and
distribution.
 Human Resource Department - H&M marketing department works out with the
human resource department to ensure effective skill staff to research and develop new
ideas and creating ambitious sales team.
TASK 2
P3 marketing mix
Marketing mix is the foundation model in marketing and it is set of marketing tools
which is utilised by the organisation for pursuing its marketing objectives in the target. It
involves mainly 7Ps of marketing. Explanation of these are as follows :-

Basis H&M ZARA
PRICE H&M has adopt a economic
and affordable pricing strategy
for its all products, which helps
in attracting maximum number
of customer. its main focus is
to maintain affordable price and
high quality products.
ZARA has follows premium
pricing strategy for all
products (Coombs, 2012).
Because premium price
shows its high quality
products.
PRODUCTS H&M has a wide range of
cloths and accessories in its
fashion brand, It offer products
for Man, Woman, and children,
and accessories, Its a one stop
solution for all products.
ZARA is a luxury fashion
brand, It offer products for
Man, Woman, and children,
and in accessories Shoes,
Purses etc.
PLACE H&M has a lots of exclusive
stores in major cities at major
places, he is continuously boost
stores across the world, It also
use online platform for sell his
products.
ZARA products store are
located in posh locations of
the city (Friis, 2012). some
stores are running with
franchising partners. It also
sell products through online
channel .
PROMOTION H&M uses multi channel
promotional strategy, it
includes TV ads, Magazine,
Hoardings at major places,
Social media platform, and they
also hire famous celebrities etc.
ZARA spends less amount
on products promotion. Its
main focus to open new
stores rather than spend
much amount on
advertisement.
PEOPLE H&M has a highly professional
trained employees, who
maintain a better customer
ZARA is spending more
amount on employees skill
development so they will

relationship. deliver a better customer
service
7

PROCESS H&M process strategy is to
maintain a good customer
relationship which is playing an
important role for its business
expend, and it always try to
improve and refine.
ZARA staff is very
customer friendly who assist
his customer a best item, so
it is helpful for the customer
to choose a item. ZARA
main focus to give best
quality and speedily service
and easy process to their
customer,
PHYSICAL EVIDENCE H&M stores are well decorated
and arranged, which is always
appealing for customers, the
staff of the store is also humble
and well trained, they invite
celerities on their product
launch which is create a better
impact on customer.
Looking wise ZARA'S store
simple compare to other
competitors, but mainly they
focus on product quality and
service.
TASK 3
P4 marketing plan
Marketing plan is part of an business plan and there is requirement of solid marketing
strategy for doing planning (Hsu, 2011). H&M is also designing proper plan for brining their
product and services in the target market. Below mention are the steps of marketing plan :-
Vision – H&M Business operation aim is to operate in such a way which is socially,
economically and environmentally sustainable.
Mission – H&M mission is to drive long lasting positive modification for improving
living condition of peoples through investment as well as innovative ideas.
Marketing objective: H&M marketing objective is:
 To attract more and more trendy and fashion loving customers to increase number of its
profits by 10%.
8

 To improve overall sale of company’s products by 20% in coming year.
STP
It is the concept of segmentation, targeting and positioning which is used by H&M for
identifying its market wants and to frame effective policies.
 Segmentation- Organisation subdivide the whole population in various groups on basis
of some common features i.e., demographic, behavioural and psycho-graphic
segmentation.
 Targeting- Enterprise analyse a specific groups of customers. Main target of H&M is
youngsters because they are found of wearing trendy clothes.
 Positioning - H&M wants to position itself as an good retail company that offer quality
products to its target audience in order to attracting customers.
Marketing Mix:
 Product- Deals in clothing and accessories of men's, women's, children.
 price- H&M is using cheap and affordable pricing strategy
 place- Offering in stores and department which is located at popular as well as well
known shopping streets (Ionitã, 2012).
 Promotion- H&M is using advertising, direct marketing as well as campaign for
promotion purpose.
 People- men's, women's and children's
 process- H&M maintain good relation with customers by offering quality products.
 physical evidence- H&M have good ambiance of their stores
SWOT analysis of H&M
9

Strength Weakness
 H & M introduce new and trending
collection every session or month.
 Quality of products is good and
valuable for price.
 H & M do advertisement in bulk
through subways, television, internet
etc.
 Respective company have wide product
range of men, women, children and
home.
 H & M is globally known brand.
 Customer service of H & M is very
poor.
 Brand is referred as cheap.
 E-commerce availability of products in
certain country is poor.
Opportunities Threats
 H & M can introduce more variety on
online sites.
 Respective company can expand in US
and in Asian market.
 H & M can establish more distribution
centre.
 Competitors of H & M is huge like
Zara, Forever 21.
 Decline in consumer confidence is treat
for H & M .
 Manufacturing cost of products in Asia
are increasing.
4 P's of H & M :-
 Product:- H & M is retail company of clothing, it offers clothing for men, women and
children. Product range include everything from designer and trending collection to daily
basics, yoga wear, shoes, bags, accessories, beauty and ready to wear.
 Price:- H & M offers high quality products in affordable price. The main competitors of
respective company are Zara, Forever 21 and GAP, as compare to these company the
price of H & M products is relatively low. Comfortable and high quality at reasonable
price attracts youth costumers.

 Place:- H & M sells its products through stores which is in major cities globally ( 4135
stores). In some places respective company offers its products through franchising
partners it is due to regulatory norms of that place or country.
 Promotion:- H & M use wide channels for promotional strategies like TV advertising,
YouTube, social media, promo codes and discount, sponsorships etc. through which they
cover large amount of target customers.
Marketing Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 7000 10000 12000 10000 10000
Investment 3000 18000 25000 35000 18000
Total 10000 28000 37000 45000 28000
Marketing outlay
Promotion 12000 4000 9000 10000 4000
sales publicity 4000 4000 4000 4000 4000
Direct selling 4000 15000 5000 4000 4000
Total 20000 23000 18000 18000 16000

Monitoring and control: It involve different measures which is applied by marketing
manager for examining the results after implementation of marketing strategies (Langer and
Heil, 2015).
CONCLUSION
From the above discussion it has been concluded that, marketing is important process for
every organisation because it help in attracting customers and increasing sales. H&M is
expanding their business in other countries also so in this procedure there is requirement of
marketing. Their is requirement of professional for entire procedure who is known as marketing
manager.