H&M Marketing Essentials: Analysis and Marketing Plan Report

This report provides a detailed analysis of H&M's marketing essentials, including the marketing mix, extended marketing mix, and marketing planning process. It discusses H&M's strategies for product, place, price, promotion, people, processes, and physical evidence, comparing them with Zara's approaches. The report also outlines the marketing planning process, covering analysis, planning, implementation, and control. Furthermore, it presents a comprehensive marketing plan for H&M, including an executive summary, company overview, internal (SWOT) and external (PEST) analyses, segmentation, targeting, positioning (STP) strategies, marketing mix, budget, and monitoring and controlling measures, aiming to enhance H&M's competitive advantage and expand its business in the international market. Desklib provides this report and many other resources to help students excel in their studies.

Running Head: Marketing essentials
H&M
Marketing Essentials

Marketing Essentials 1
Table of Contents
Introduction......................................................................................................................................2
Task 2 Marketing Mix.....................................................................................................................3
Extended marketing mix..............................................................................................................3
Introduction..............................................................................................................................3
Marketing Planning Process.....................................................................................................6
Conclusion................................................................................................................................7
Task 3 Marketing Plan.....................................................................................................................8
Executive Summary.....................................................................................................................8
Introduction..................................................................................................................................8
Marketing planning objectives.....................................................................................................8
Company Overview.....................................................................................................................8
Internal Analysis (SWOT)...........................................................................................................9
External Analysis (PEST)..........................................................................................................10
Segmentation, targeting and positioning....................................................................................10
Marketing Mix...........................................................................................................................11
Budget........................................................................................................................................13
Monitoring and controlling measures........................................................................................13
Conclusion.................................................................................................................................14

Marketing Essentials 2
References......................................................................................................................................15

Marketing Essentials 3
Introduction
H & M Hennes & Mauritz Ab is known for producing fashionable apparels for teenager, men,
and women as well as for children. It is a multinational clothing brand based in Sweden and
popular for delivering qualitative and fast-fashion apparels. As per the research conducted in
2015, company owned more than 4500 stores in more than 62 countries and along with this,
approximately 132000 employees are engaged within the worldwide operations of the
organization. Under this report, importance of the marketing will be discussed and along with
this, its core functionalities which help the organization to gain adequate competitive advantage
will be covered in relevance with the H & M. In the first phase of the report, core functions of
the marketing in relation with the business operations will be discussed and apart from these key
roles and the responsibilities will be covered for enhancing the efficiency of the organization in
the international market. Along with this, the second phase of the report will include the
marketing mix functionalities to generate the opportunities for the organization for expanding
their functionalities in the overseas market. Further, this report includes the marketing plan in
relevance with the functionalities of the H & M and this will enhance the opportunities for the
organization in terms of expanding their business in the international activities.

Marketing Essentials 4
Task 2 Marketing Mix
Extended marketing mix
Introduction
Marketing mix is the technique used to introduce the new product or business in the target
market in order to attain the expectations set up by the management of the organization. Under
this report, marketing mix techniques of H&M will be discussed for gaining the competitive
advantage and other business objectives. Further, business strategies of H&M and Zara will be
compared for evaluating the effectiveness of the marketing strategies to attain the goals and the
objectives. Marketing mix is the core activity of marketing plan which helps the organization to
deal with the external factors as well as it is effective in order to attain the competitive advantage
in the target market. This also helps the organization to gain the demand of their products in the
target market in comparison of their competitors’ products.
(P3), (D2)
With the effective marketing mix technique, H&M has set up its presence in most parts of the
globe and due to this, it is known as the fast emerging fashion retail industry. With H&M, there
are few more brands such as Zara who have also set up their effective image in the fashion retail
industry and this is the major reason H&M has decided to modify their marketing mix technique
for gaining the competitive advantage as well as to attain the goals and the objectives (Abril &
Rodriguez-Cánovas, 2016). Following are crucial components of marketing mix technique of
H&M which helps them to attain their goals and the objectives:

Marketing Essentials 5
Product: H&M has adopted the strategy in order to provide qualitative and sustainable products
to its consumers for improving their brand image as well as to fulfil the customer’s expectations
with the apparels. H&M is known for providing latest fashion and quality at affordable prices
with huge options. They are also known as the most trusted fashionable brand for apparels and
along with this, approximately 2086 merchandises comes under their portfolio range. H&M
majorly deals in accessories and clothing such as jackets, jewellery, purses, shoes, t-shirts, etc.
Another crucial objective of H&M in relevance with their products is that they launch new range
of products at regular intervals and on the basis of consumer’s expectations. While Zara is being
able to amend its products’ range for attracting the consumers towards their side and with this
effect; adequate competitive advantage could easily be gained. With these advanced strategies
and features, Organization will be able to enhance their chances for growth and expansion of
their stores in the international market (Lues & De Klerk, 2016).
Place: Place is considered as the place where consumer will be able to get the products for
consumption purpose. For this, H&M has adopted the strategies in order to expand their stores in
the international market and with this effect; they have introduced more than 400 stores in the
global market since their start up. Further, they have also concentrated over the e-commerce
platform for enhancing the demand of their products and to develop an effective positive image
in consumer’s mind. Trading over the e-commerce platforms helps the organization to gain more
number of consumers as it provides better services at reasonable efforts. Consumers could easily
order the products on the basis of their requirements using mobile application and website of
H&M. In addition to this, H&M has also concentrated over enhancing its market share by setting
up their stores at the centralised and easily approachable locations in order to enhance the

Marketing Essentials 6
demand of their products in the target market (Ohlsson & Riihimäki, 2015). While the same has
not been followed by the Zara through which their sales platforms are limited due to which they
are not able to enhance their market share.
Price: H&M has adopted the pricing strategy which is based on the broader pricing range
concept. With this strategy, H&M could easily produce apparels in various categories on the
basis of price and this is done to satisfy the different classes of consumers and suppliers. Apart
from this, H&M also takes the help of discounts and offers in order to attract the consumers and
for clearing the dead stock. Zara has adopted broader pricing range concept, along with this, they
had adopted the cost-effective strategy for reducing their costs and for controlling their
unnecessary costs to maintain the reasonable prices for their finished products.
Promotion: In terms of promotion, H&M has developed a separate section in their company for
promoting and advertising their products in the global market effectively. Apart from this
strategy, H&M has adopted the promotional campaign technique under which trending strategies
such as electronic media and the effective platforms of print media are being used for enhancing
the demand of their products in the global market. Zara has also sponsored various famous
television shows and channels to showcase their brand name as this is the most effective strategy
to develop a sticky image in the consumers’ mind-sets (Warrink, 2015).
People: This element of marketing mix technique helps the organization to gain adequate
positive responses. Staff of the organization is responsible for gaining this advantage, as staff’s
behaviour, their attitude towards the customer and the services offered to customer plays crucial
role in developing and maintaining positive image for the organization in customers’ mind-sets.
Zara has adopted the training and development programs for increasing the effectiveness of their

Marketing Essentials 7
employees. In order to uplift their performance, they had adopted the strategies for improving the
customer service for establishing an effective image.
Processes: H&M has adopted the strategy under which customers get the products on their
requirement basis and as per the latest fashion trends. Apart from this, processes part of
marketing mix technique deals with the process used by the organization to deliver the products
i.e. customers should get the equivalent valuable products for which customers pays. The same
process has been followed by the Zara in order to uplift their performance and for establishing an
effective image in the target market.
Physical Evidence: Physical evidences are generally provided for the services rendered but as
H&M is engaged in distributing tangible products, hence, the services rendered along with the
products comes in the physical evidences for them. In terms of improving the customer base,
they have adopted the strategy under which their staff members are trained in an adequate
manner for rendering effective and valuable services to them (Samson & Sheela, 2016).
Marketing Planning Process
It is the strategy under which goals and the objectives are considered in relevance with
enhancing the demand of their products and setting up their effective image in the target market.
The major focus of marketing planning process is including effective and adequate promotional
strategies for enhancing their market share in the target market. Following are components of
marketing planning process:
(M3)
Analysis: Under analysis part, market research activities are conducted in order to evaluate the
market conditions, external factors impact on the target market, etc. After evaluating the factors,

Marketing Essentials 8
further processes i.e. planning, implementing and controlling measures are updated in order to
enhance the organizational performance (Rakic & Rakic, 2015).
Planning: Planning process consist the strategies required to implement in the organizational
workplace for the purpose of attainment of goals and the objectives. A set of strategies and the
alternative strategies are evaluated under this step for performing the functionalities of the
organization in a smoother manner (Mo, 2015).
Implementing: Implementation step comes after the planning step and under this; all the
strategies planned and suggested are sequenced to generate expected outcomes. With the help of
this, organization will be able to attain its targets as well as competitive advantage would easily
be attained.
Control: Under controlling procedure, all the strategies and the activities will be reviewed in
order to ascertain challenges and the issues faced by the organization. Further amendments and
the modifications are done in those strategies for enhancing the effectiveness of the marketing
planning process in order to attain its goals and the objectives (Kerr & Patti, 2015).
Conclusion
It has been concluded from the above information that, extended marketing mix technique will
be useful for the organization in terms of attaining its goals and the objectives. Apart from the
extended marketing mix technique, this report concludes the planning process of the marketing
for promoting the products of H&M in the target market with the view to expand the business.
Further, this report concluded the effectiveness of the marketing planning process and the benefit
of the marketing mix technique to attain competitive advantage in the target market.

Marketing Essentials 9
Task 3 Marketing Plan (P4), (M4) & (D2)
Executive Summary
This report will focus over the marketing plan of H&M in order to expand their business in the
international market. Under this report, H&M’s marketing objectives, overview and background
of the company, internal and external analysis in consideration with the company, STP strategies
for targeting the audience and marketing mix, budget and monitoring and controlling activities
will be included.
Introduction
Marketing plan is the source through which organization could set up its place in the target
market. In terms of launching a new product in the target market too, marketing plan stagey turns
into an effective strategy. Under this report, marketing plan activities in relation with H&M will
be covered.
Marketing planning objectives
H&M has various objectives in order to expand their business and to achieve certain goals and
the objectives for enhancing their brand value in terms of fashion retail industry. Enhancement in
sales and revenues, enhancing brand value and brand awareness, increasing customer base and
market share, targeting new audience, increase customer and supplier relationships, etc. are
certain crucial marketing objectives for H&M (Kim & Yang, 2015).

Marketing Essentials 10
Company Overview
H&M Hennes & Mauritz AB is a Swedish fashion retail company founded in 1947 and engaged
in producing and distributing fast fashion apparels for men, women, and children and for
teenagers. H&M has developed their brand awareness in more than 62 countries through
distributing qualitative as affordable prices cloths. With more than 4500 stores and more than
132000 employees, organization is engaged in enhancing the customer relationship along with
the enhancement in the demand of their products (H&M, 2017).
Internal Analysis (SWOT)
Strengths
 Wide range of products
 Qualitative and affordable prices
apparels
 Huge reputation in terms of trending
fashion retail chain
 Strong finance situation
Weaknesses
 Dependent over third party suppliers
 No uniqueness, production on the basis
of trend
 Compromise with quality while
producing affordable pricing apparels
Opportunities
 Expansion in the rest parts of the globe
in terms of enhancing the profitability
 Adaptation of E-commerce business
platforms for enhancing revenues
 Manufacturing own designs
Threats
 Dynamic fashion industry and trends
 Threat of new entrants over e-
commerce business platforms
 Aggressive competition from primary
competitors such as ZARA
 Increasing labour costs in developed

Marketing Essentials 11
countries (Cortez, et. al., 2014).
External Analysis (PEST)
P: Political impact over the performance of H&M is huge. Relocation of production factories
and the policies in relation with imports and exports needs to be considered in order to perform
all the functionalities in smooth and fair manner.
E: Consumer buying power, tax system, inflation rate, economic stability, etc. factors should be
considered while introducing the new product or new store in the target market. This will help
the organization to attain its goals and the objectives in fair manner.
S: H&M manufacturers apparels for all age group and for both sexes audiences in order to
enhance its customer base. Along with this, H&M should also consider the consumer’s tastes,
preferences, and the trending fashion as this will help them to enhance their product demand as
well as it will lead to consumer satisfaction (Thompson & McLarney, 2017).
T: In technological terms, H&M has adopted advanced strategies for promotion, supply chain
management, logistic management, etc. For enhancing their market share, they have also adopted
the e-commerce business platforms to enhance the options for the consumers to consume and
avail the products and services respectively in an adequate manner (Hammoudeh, 2014).
Segmentation, targeting and positioning
Segmentation approach includes the components of demographic, geographic, behavioural and
psychographic which helps the organization to target their audience in order to expand their
customer base and market share in the target market. H&M has made their identity as brand
manufacturer and distributor of fast fashion apparels across the globe. Due to this, their target

Marketing Essentials 12
market audience belongs to every age group, both sexes, all income group people, various
religion’s audience as well as the people prefers to maintain their lifestyle and those who buy the
products on the basis of their behaviour (Bakker, 2014).
Making the choice between the range of customers to sell the products and services is known as
the targeting strategy. Selected consumers are convinced and influenced towards the company’s
products and services through various marketing activities. The major target market for H&M is
people who follow trends, people who love to wear designer and fast fashionable cloths, etc.
Under this category, majorly people between 16-35 age groups fall. Thus, it can be said that
these age group people are target audience for H&M in the target market and this will help them
to enhance their customer base and market share (Palmatier, et. al., 2016).
Under positioning strategy, appropriate mediums and approaches are being used for making the
brand value in the target market. This helps the organization to build its positive image in the
particular market ad with this; organization could easily enhance the demand of their unique
range of products. In terms of making the effective position, H&M’s marketing team also uses
the offers and discount strategy in order to attract the consumers towards the company and its
products. As H&M is a fashionable apparel manufacturing company and it is known for
delivering high qualitative products at reasonable prices, thus, they could also use this approach
in terms of developing and maintaining a separate image in the customer’s mind-sets (Zawadzka,
2015).

Marketing Essentials 13
Marketing Mix
Product: H&M delivers qualitative and fast fashion apparels at reasonable prices. Along with
this, they focus on satisfying the all types of consumer’s requirements through delivering them
trending range of cloths (Yu & Shi, 2013).
Price: In terms of price, H&M has adopted the strategy under which various range of products
are offered to the audience as per their buying capacity.
Place: H&M has more than 4000 stores in more than 62 countries and with the passing of time,
number of stores are increasing day by day. Along with the physical stores, H&M has also
started distributing its products over the e-commerce business platforms (Gallarza-Granizo, Gil-
Saura & Ruiz-Molina, 2016).
Promotion: In terms of promotion, organization has adopted various strategies in order to spread
their brand awareness amongst the target market. This includes mixture of print medium and the
electronic media platforms of promotion and advertisement.
People: H&M has provided adequate training and counselling sessions to its staff members in
order to provide standardised customer treatment. This is very crucial in terms of developing and
maintaining customer relationships with the organization which will create positive impact over
the demand of the H&M’s fast fashion apparels (Kim, Lee & Lee, 2016).
Processes: This is a part of extended marketing mix technique and with the help of this;
organization would be able to implement its marketing plan in an appropriate manner. After
reviewing the target market’s demand and perceptions, organization could be able to implement
the plan for fulfilling the requirements of the people.

Marketing Essentials 14
Physical Evidence: This is intangible asset for organization which describes the satisfaction
level from the consumption of the company’s products and services. H&M could use this
evidence for improving their functionalities, process and quality of products for enhancing the
customer satisfaction level.
Budget
Particulars Amount ($)
Start-up cost
Rent or leasing of store
Manufacturing cost
Advertisement expenses
Sponsorship cost
Employees’ salary
Distribution cost
Misc. expenses
500000
1000000
650000
840000
150000
1200000
600000
560000
Total expenses 5500000
Expected revenues 9700000
Net profit (assumed) 4200000
Monitoring and controlling measures
For monitoring the strategies implemented within the workplace, H&M could use various
strategies such as feedback from its employees in relation with improving the effectiveness of the
strategies implemented by the organization, feedback from customers in regards to the services

Marketing Essentials 15
and products delivered to them, etc. Along with this, organization could also adopt advanced
strategies in relation with improving the effectiveness of their existing strategies. This helps the
organization to enhance its effectiveness as well as it will also help the organization to gain the
competitive advantage in the target market (Mróz-Gorgoń, 2016).
Conclusion
From the aforesaid information, it can be concluded that the H&M has an adequate market image
in the fast fashion retail industry and with this image; they have been able to expand their
business in more than 62 countries. Along with this, they are still adopting some unique and
advanced strategies through which organization could enhance its operations in rest parts of the
globe too. For the same, this marketing plan has been developed and with this effect, H&M will
be able to attain its goals and the objectives and along with this, competitive advantage would
also be attained easily and in an appropriate manner.

Marketing Essentials 16
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Marketing Essentials 17
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