An Analysis of H&M's Marketing Strategies: STP, Mix, and Relationships

This report provides a comprehensive analysis of H&M's marketing strategies. It begins with an examination of the company's STP (Segmentation, Targeting, and Positioning) strategy, detailing how H&M segments its market demographically and targets young, fashion-conscious consumers, and positions itself as a premium brand offering trendy clothing. The report then delves into H&M's marketing mix, focusing on the 4Ps: Product (apparel, cosmetics), Price (psychological pricing), Place (global distribution channels), and Promotion (campaigns and digital channels). The analysis highlights the advantages and disadvantages of these strategies. Finally, the report assesses H&M's relationship marketing strategy, emphasizing tactics used to build long-term customer relationships. The report concludes with recommendations based on the findings.

Your Tasks As an
independent
consultant you are
required to choose an
organisation from the
fashion, food or
cosmetics industry
and assess the effe

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................4
Analyse STP strategy, providing and insight into how segmentation, targeting and positioning are
currently applied by chosen organisation...........................................................................................4
Examine their marketing mix, focusing on the 4Ps that your chosen organisation is currently
applying.............................................................................................................................................6
Assess their relationship marketing strategy with an emphasis on their current tactics.....................9
Recommendations...........................................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12
Books & Journal:.............................................................................................................................12

INTRODUCTION
In business sector, marketing strategy plays important role as because without
implementation of strategy and tactics it is not possible to achieve goals and objectives.
Marketing strategy is defined as a set of actions which are used to achieve competitive benefit
in market (Andaleeb, 2016). The concept of marketing management is wider and broader
which is needed to be understood with proper considerations. Main purpose of this report is
to critically understand the importance of marketing management and strategy used to
achieve objectives. H & M, multinational retailing company headquartered in Sweden. Firm
deals in cosmetics, apparels and fashion etc. There are many competitors such as Zara,
Forever 21, Macy's etc. This report comprises of STP strategy, marketing mix, relationship
marketing strategy and recommendations.
MAIN BODY
Analyse STP strategy, providing and insight into how segmentation, targeting and positioning
are currently applied by chosen organisation
In marketing, strategies and tactics are implemented by enterprises to achieve
competitive advantage with the marketplace. STP, which is also known as segmentation
targeting and positioning is a marketing approach which is used by company to determine
and analyse the market sector. It is a statistical approach which is needed to be adopted in
effective manner. (Andaleeb, 2016). In retailing and fashion industry, competition has been
increasing at rapid scale and it is becoming important to be aware about market potential
customers so that profit and sales can be increased. Moreover it has been also stated that to
survive in this competitive market marketing approaches and methods are needed to be
adopted by corporation. It is a time consuming process as because it requires a deep level of
market information and analysis so that it is easy to uses approach of marketing in most
efficient manner.
Overview of H & M
It is the largest manufacturing and retailing company which deals in clothes cosmetics
and other consumable items and products. It is located at global level and has larger customer
base. Competitors such as GAP, Macy's, Forever 21 etc. Impact upon enterprise sales and

profit.to deal with these competitors and accomplish their objectives within a set period of
time effective strategies are being used by organisation. Their main motive is to provide
better quality of products and services two customers so that total satisfaction is being
delivered. By applying this method of STP Strategy Company to improve their decision
making and achieve goals within the period of time. So concept of STP is further discussion
below-
Segmentation- It is the first component of STP in which it is defined as segmentation
of market on the basis of different variables such as demographic, psychographic, geographic
etc. It is important to segment the market so that potential customers are identified and also
market is examined which is beneficial for company (Chinwendu, 2018). In context of H and
M, they segment there market on the basis of demographic variable and targets young people
who like to wear new and trendy clothes. With the help of segmentation, potential market
easily determined and identified which helps in planning and other functions of Management.
Targeting- It is the second component of STP in which main purpose of this is to
target the potential customers as well as market who can actually purchases the product or
service of a company (Cunningham, 2018.
It is necessary to target customers so that planning and resources of activities are
done accordingly. With the help of targeting decision making within business is being carried
out properly. In context of selected organisation, they target young and adults who wear new
clothes on daily basis and fashionable. Manager of the company make a show that targeting is
being done with proper market analysis so that market activities are performed in effective
way.
Positioning- It is a large component of this marketing approach in which position is
defined as creating a Goodwill in the minds of customer. It is often seen that customers
frequently purchase the product as well as services of a company when it has a strong
positioning in the market. So, it has been seen that it has a deep impact on customers mind
and needed to be carried out appropriately. In viewpoint of H and M, they positioned
themselves as a premium brand who delivers new and better products to customers. Through
improving positioning of a brand it is easy for selected company to access to customers in
easier way.
Advantages-

Main benefit of focusing on STP model is that it help firm to be aware about market
criteria’s which helps them to execute their business operation and functions.
Another benefit of this model is that H and M is able to understand customer’s
behaviour because of acquiring reliable information of their target market.
Disadvantages-
Drawback of this model is that it is not applicable at all aspects as because market in
retailing industry is flexible which makes it difficult for them to use this strategy at this level.
Another limitation of STP is that H M has to update and adopt new strategies
whenever any situation arises in market which leads to time consuming and cost expensive
procedure.
After analysing of above method, it has been examined that it is crucial for entity to
adopt marketing approach and tactics so that benefits achieved at appropriate level. With this
concept of STP it is easier for H and M to increase their effectiveness in market and improve
effectiveness at wider approach. Prior to focusing on this approach of marketing it is essential
for chosen enterprise to have a proper knowledge and information about marketing
approaches that are being applied.
Examine their marketing mix, focusing on the 4Ps that your chosen organisation is currently
applying.
In this competitive market, it is important to increase profit and sales revenue of a
company so that sustainability period increases for longer period of time. It is crucial be
aware about these approaches of marketing as they help in delivering better results to
business. With changing consumer behaviour and attitude, it is becoming essential to focus
on these concepts of marketing so that activities functions and operations are processed
appropriately. With the adoption of this concept, it leads to carrying out business activities in
most effective way and using of resources efficiently.
Marketing Mix- It is marketing strategy approach, which is defined as a set of
actions or tactics used by organisation to promote their brand or product. To adopt this
process of marketing mix a wide range of information and data is required so that it is carried
out by H and M in most efficient manner. In relevance of Chosen Corporation, they also
focus on the concept of marketing mix which helps them to achieve advantage in market and
execute their marketing activities appropriately. This concept is important as because by

adopting it become easier for company to approach to target customers and market easily.
There are various types of advantage of marketing mix such as Help Company to understand
their marketing activities according to market conditions and customer needs, moreover
decision making in this is being undertaken by properly examining of elements which are
linked with marketing mix. This also reduces chances of elimination of risk and error. It
includes four types of P'S which are being further explained below-
Product Product refers to commodity which is used for exchange
process. It is important for corporation to have a
product so that sale and purchase of goods or
product can be done in effective manner. In
reference of H&M, they also have large number
of product portfolio such as apparel and fashion,
cosmetic products, and many more. They
changes product portfolio depending upon
market trends which leads to attracting of
customers at larger scale (Khan, 2019).
Price
Without price it is not possible sell or purchase product
with the marketplace. There are different types of price
strategies which are used by companies such as price
skimming, penetration pricing, psychological pricing etc.
It is duty of a manager to make assure that appropriate
price strategy is being used so that it is easy to target
potential market. In relation of given organisation, they
use psychological pricing within business (Khan, 2019).
Place
A place is to be defined as distribution channel through
which products or services are distributed or produced to
customer. In business it is necessary to have a both
physical and non-physical place so that it is convenient
for customers to purchase products from anywhere. In
viewpoint of H and M, they also have a large number of
distribution channels which makes it convenient for
customers to access to their stores as because they are
large number of suppliers supermarket stores which help

in distribution of products within market. The company
is located globally and has wide numbers of stores that is
easily convenient for customers to reach and purchase
the product or service (Iturralde, 2020).
Promotion
Promotion is defined as the marketing of products and
services through using different tools and techniques. As
the level of competition is increasing and to enlarge
customer base promotion and advertising are adopted by
companies to market their activities at large scale. There
are different ways of promotions which are Undertaken
such as promoting of a brand or a product through using
social media tools like Facebook, Instagram, YouTube
and many more (Khan, 2019). There is also another way
of promoting advertising such as by adopting traditional
methods like town cries, billboards etc. It depends upon
entity to choose the most appropriate method depending
upon the on needs and requirement. In relation of
selected firm, they promote their brand through
campaigns and digital channels.
Advantages-
By using this marketing mix help H & M to make their decisions regarding functions
and operations appropriately. It also leads to achieving of sales and profit revenues.
Another benefit of marketing mix is that it gives a deep inside about market and other
key elements which are needed to be considered when approaching to so H and M easily
approach to their target market (Khan, 2019).
Disadvantages-
Limitation of this concept is that it is a cost expensive method of marketing because
to gain deep insight of information about market research analysis is needed. In case of H &
M they have to manage their expenses to use this approach.

It is also a drawback of this method that it high skilled and Management employees
are needed by enterprise to understand the concept and it will also disturb their furniture
structure (Khan, 2019).
From above examine to paragraph, it has been stated that marketing mix has become
essential approach which is largely accepted and adopted by business sectors to increase their
goodwill in market.it is a critical process which require dip level of knowledge about market
and other key areas. H and M need to carry out their activities with proper considerations of
marketing mix elements which leads to achieve of targets within time interval. Also,
evolution of marketing mix has been also done and it shows that it is necessary to use and
understand components of 4 P'S. As because, they help in providing a brief understanding of
marketing and situations that can impact upon business.
Assess their relationship marketing strategy with an emphasis on their current tactics.
Relationship management strategy refers to build long term relationship with
customers so that they stay with company for longer run. In this, organisation carried out a
market research in order to know the interest and needs of target audience so that they can
provide products and services accordingly. Main aim of this marketing function is to enhance
customer engagement, loyalty and interact with them in a better manner. There are some tools
used by marketers of H&M which are given as under
Build strong brand identity: In this, organisation use several advertisement and
promotional methods to spread awareness among customers about their products and services
To make long term relationship with the customer, it is really important to identify their
requirements in order to create brand preference. In context of H&M, they carried out online
and offline marketing practises for their customers to know about their preferences that help
to retain them for longer periods of time.
Loyalty rewards: There are several companies that provide rewards and extra benefits
to customers so that they stay connected with brand for longer duration. They not only
purchase products but also refer it to others. In regards of H& M, managers provide rewards
to customers by providing them additional discount on frequent purchase. In addition it also
runs digital loyalty programme I support the current market scenario to attract more number
of buyers.
Communication channels there are several channels of communication are used by managers
to interact with target audience. Nowadays digital marketing has become an important way to

stay connected with Consumers for longer periods of time. In this, personalised emails
content marketing is used by organisations to provide better experience to end users. It is
analysed that H & M Undertake several communication channels such as hoardings, banners
along with digital marketing approaches to attract and retain customers. They also provide
opportunity to customers to provide feedback and suggestions for further improvement by
this way; they are able to have long term relationship with customers.
Therefore, there are several techniques are used by organization that is essential to get
competitive edge by retaining customers for longer duration. In addition, these will help
managers to maintain better relationship with consumers that will further lead it towards
higher growth and success.
In this concept of relationship marketing strategy, selected organisation has to
maintain and develop positive relations with every stakeholder so that they are able to execute
their marketing planning and other activities in correct way without facing any issue or
problem (Khan, 2019).
To implement effective relationship H and M provides additional services the
customer and clients such as discount, offers, vouchers etc.
From above discuss the matter it is analysed that it is crucial for retailing industry to
properly carry out this approach of relationship marketing strategy on the basis of which they
are able to increase their goodwill (Mohammadi, 2018).
Main benefit of managing the strategies that true properly caring of relationship
marketing it is easy to get engaged with customer and fulfil their needs and demands in
proper manner. Focusing on current tactics of H & M, they need to improve their working
pattern and focus on customer attraction so that vision and mission are achieved.
Recommendations
From the above mentioned report has been stated that improvements needed at wider
level because various changes are business sector to survive for longer period. With the help
of this given recommendations it is easy to achieve benefits and better output.
With the help of marketing strategies approaches and theories it is crucial for firm
focus on these improvements area. So recommendations and suggestions have been provided
below-

It is recommended to H &M they have to update their Management and organisation
structure so that they are able to deal with their competitors such as Zara, Gas, Gap, etc.
To use STP approach of marketing, proper market research and analysis is needed to
be carried out on the basis of which it is easy to make decisions within management
Manager of company should higher skilled and efficient employees who have a longer
retaining period so that better results and higher productivity is being achieved at all aspects.
It is responsibility of HR manager to make sure that deserving candidates are hired who has a
potential ability to deliver best and positive results to business.
HR policies and procedures need to be updated and new methods are required to be
used so that it is easier for entity to deal with new changes in correct way.
The above described matter shows that it is necessary for selected corporation to
adopt these recommendations so that they are able to gain benefits easily. By paying attention
to this recommendations help in improving weak areas of company and also so lead them
towards better and new opportunities.

CONCLUSION
After a brief analysis of above report it has been concluded that marketing
management is a crucial concept which is to be understood properly so that decision making
is done in effective way. So, discussions have been made about STP approach, marketing
mix, relationship marketing strategy and recommendations. In retailing in fashion industry,
consumer behaviour and trends changes at frequent level. It makes it difficult for organisation
to achieve their set objectives and for which frameworks approaches are required at all
aspects. These strategies and approaches proper analysis so that they are being employed
within enterprise appropriately on the basis of which it is easy to develop effectiveness of
entity. In this marketing management, deep level of understanding, critical thinking and
KSB's are needed so that advantages obtained properly. This is because management and
marketing are two different concepts which require efficient individuals so that roles and
responsibilities are properly fulfilled.

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