Marketing Strategies and Mix for H&M: A Comparative Analysis with Next

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MARKETING PLAN WITH SUPPORTING ANALYSIS
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Executive summary
This report focuses on the marketing environment and planning of H&M. H&M is a MNC
clothing company and is known for its fast-fashion clothing for men, teenagers, women, and
children. Company overview has been given to develop a basic marketing plan with STP
analysis and marketing objectives, targeting and positioning technique to develop a strategy.
SWOT analysis has been used to analyze the internal environment of the company with
PESTEL analysis.

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Table of Contents
Introduction................................................................................................................................4
Task 2.........................................................................................................................................4
LO2 Contrast the practices of marketing mix elements (7ps) by the organization for
accomplishment of organizational goals....................................................................................4
P3: Compare ways where H&M and Next applies market mix to market plan process to
attain the business objectives.................................................................................................4
LO3 Develop and assess a basic strategy for marketing............................................................8
P4: Evaluate a basic market plan for H&M...........................................................................8
Company overview................................................................................................................8
PESTEL analysis:...................................................................................................................8
SWOT Analysis:....................................................................................................................9
Marketing objectives:.............................................................................................................9
Market Strategies:................................................................................................................10
Segmentation, Targeting, Positioning (STP):......................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
In this report, we will discuss about the marketing concepts of H&M (Hennes & Mauritz).
We will start the discussion with marketing mix and the elements used by H&M to achieve
its business objectives. Here we will use the concept of 7ps to elaborate the marketing mix.
Then we will move towards the development of a basic marketing plan and its execution. The
marketing plan consists of all the elements, which help the company to achieve its marketing
objectives. In this report, a discussion of marketing plan of H&M with some suggestions can
help the company to evaluate those plans attractively. This will be followed with an executive
summary, in which we will discuss how these marketing mix and development of marketing
plan helped H&M to achieve its objectives.
Task 2
LO2 Contrast the practices of marketing mix elements (7ps) by the organization for
accomplishment of organizational goals.
P3: Compare ways where H&M and Next applies market mix to market plan process to
attain the business objectives
Marketing mix is a business plan to put a right product at a right place in right time and to
execute this plan properly 7ps are used (Cronin et al. 2011). Marketing mix primarily consists
of 4ps but it is now extended to 7ps, which we will be discussing further. The main
components of marketing mix are product, price, place, and promotion. The extended 3ps
include people, process, and physical evidence. Here we will compare the marketing mix of
H&M with one of its competitors Next.
Marketing Mix Tools H&M Next
Product The company provides a wide
range of clothes and accessories
at a lower price. The quality of
product given by H&M is
The British company provides
the customers with clothing,
footwear, and home products.
The products provided by Next

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reasonable and is inspired by
the latest trends (Dach and
Allmendinger, 2014). The
concept used by the company
for its product is ‘EDLP’
(Everyday Low-Price Product).
Maternity products, Lingerie,
Sportswear, Home department,
cosmetics are some of the
products provided by H&M.
are targeting the middle-class
families in the 25-45 age range.
The focus on high quality in
clothing and other departments
has been a major factor in the
establishment as a brand
(Limited, 2019).
Price Cost based pricing technique is
used by the company. So as if
manufacturing cost is lower in a
country the selling price will
also be less than other
countries. The products sold by
H&M are cheap and affordable
in all the countries (H&M,
2019).
Next pricing technique is neither
market skimming nor
penetration pricing. It resides in
the middle of these two and
provides a suitable price to the
customers (Gordon, 2012). This
neutral pricing technique helps
next to maintain flexibility for
promotional and seasonal offers.
Place The stores and departments of
H&M are in well-known and
famous streets. The company
provides its customers with the
access of online shopping and
servers the customers with a
wide variety of products and
services (Hashim and Hamzah,
2014). Customers can browse
through the products and the
services offered anytime and
anywhere as per their
convenience.
Next, have more than 500 stores
in all over the UK and Ireland.
Various avenues are provided to
the customers where they can
browse and purchase the
products (Limited, 2019). Other
channels of Next through which
a customer can shop include
directory, a catalogue, in which
customers orders and receives
by post and online website.
Promotion A lot of time is spent on Next mainly uses online method

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promotion, direct marketing,
and outdoor advertising.
Famous bloggers press and
celebrities are used by the
company to carry out their
message. The use of technology
is promotion is done by the
company in video advertising,
print advertising, and e
marketing to make the services
and products known to the
customers (H&M, 2019).
to promote its products. The
official website of Next displays
advertising and promotional
offers of the company
(Hinckson et al. 2011). The
company has fully put to use the
social media to promote their
products. The company also
uses celebrities to promote their
products on social media
platforms such as face book,
Instagram.
People More than 132,000 are
employed in 4500 outlets of the
company. A 24*7 online
service is provided by the
company for its customers. The
main principle of the company
is to gain market value by
increasing the sales (Huang and
Sarigöllü, 2014). Managers,
employees and other
intermediaries help the
company to achieve its
objective.
Next offers employment to more
than 49,033 peoples in 538
stores located in UK and
Ireland. The market of Next plc
is expanding in Asian countries
and the number of people
associated with it will increase
in the upcoming years (Limited,
2019). The more the people are
involved, the success factor of
the company increases.
Process Process that makes the products
plays an important role in
success of any brand. H&M
receives benefit from its highly
developed process, whether it
be designing or marketing. Due
to its process, the company is
able to deliver fast fashion at
The use of technology in the
development of processes makes
the process and the company
more profitable. This can be
seen in Next plc. Simplicity of
the products is believed to be the
best experience (Kim and Hyun,
2011). The different processes

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low prices (H&M, 2019). These
processes are economically,
socially, and environmentally
sustainable.
such as manufacturing,
marketing enhance the process
and the products.
Physical Evidence More than 4,500 outlets and
website provides physical
evidence to the company with a
logo of H&M. The stores
provide a great experience to
the customers and this helps the
company to maintain its brand
image (Leonidou et al. 2013).
The websites of the company
make it easier for the customer
to shop online.
The physical evidence of the
company is the logo and the
services provided by the
company online and offline. The
website of the company makes
easier to buy a product and pay
for it easily and the services
provided at the store are very
pleasant (Limited, 2019).
LO3 Develop and assess a basic strategy for marketing
P4: Evaluate a basic market plan for H&M
Company overview
The clothing company has generated revenue of more than $25.191 in the year 2016. The
company was established in the year 2009 and still running pleasantly all over the world. The
increase in growth in market value of the company can be clearly seen by its expansion of
market and the improvement of quality of products (Mkude and Wimmer 2015). The
company provides its customers with the benefit of shopping anywhere with the help of
website and mobile apps.
PESTEL analysis:
Political factors: As a global brand, political factors are important for the success of H&M.
The organization has its outlets in many different countries and cities, which are politically
unstable and may affect the company (Lin, 2011). Because of regulatory concerns, the

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organization has to work together with franchising partners to function their brands in nation
like UAE, Saudi Arabia, Oman, Jordan, Israel etc.
Economic factors: The negative impact of Brexit has brought many changes in the nation,
but H&M was able to rise in this situation. In 2017, the sale of the company rose by 7%
despite Brexit and if converted in SEK the rise was found to be 10%.
Social factors: Customers want transparency in each of the products they purchase and they
investigate where they are investing their money (Olofsson et al. 2013). As an effect of social
concern, H&M began giving their marketing updates quarterly and publishing reports.
Customers are influenced by advertising techniques, so the company invests a huge amount
in the advertising field.
Technological factors: H&M develops apps for mobile devices, which introduce the offers
and new products to their customers in a smart way. H&M has a strong network of
technology support for maintaining its website and the mobile apps (H&M, 2019). The
interface provided in the website is great and attracts customers to motivate them for buying a
product.
Environmental factors: In 2030, H&M aims to be completely circular and renewable. This
means that all the new products will be generated from the old products, they will be recycled
and will be reused (Shen, 2014).
Legal factors: The Company has involved in many disputes over the past two years
regarding the violation of clothing retailer. The most prominent legal dispute occurred in
2015, where retail lost a patent dispute worth millions of pounds in Bras (van Wijngaarden et
al. 2012).
SWOT Analysis:
Strengths:
 Identity of the brand
 Vast global presence
 Strong financial execution
Weaknesses:
 Trust on third party suppliers.
 Reasonable price sometimes affects the quality.

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 Goes after trend
Opportunities:
 Lifestyle improvement
 E-commerce as a huge platform
 Expansion in emerging market
Threats:
 Heavy competition
 New entries in e-commerce platform
 Risk of foreign exchange fluctuation
Marketing objectives:
After analyzing through these techniques, it has been observed that company needs to focus
on making smart goals and objectives to gain high popularity. Some of these objectives are:
 Expansion of market by providing new product
 Modification and diversification of its product range by proper analyzing the factors
 Fulfill the demand of people at most convenient prices.
 Meet the fashion need of the people.
However, the detailed objective would be to gain market share of 15% in the FY2019 so
that new products of H&M could be launched to get good target audience.
Market Strategies:
Marketing strategy needs to be followed to meet these objectives while the launch of a new
product (Sevkli et al. 2012). The strategies are implemented by the organization sometimes to
regenerate the sales value. Besides, the strategy should include the expansion of market,
diversification of the products, and fulfillment of demand of the peoples and meet the fashion
need. A proper budget planning is required to be done to reach the objectives and for
introduction of new products in the market. The annual turnover of this year must cross that
of previous year to build a proper market strategy.
Segmentation, Targeting, Positioning (STP):
Segmentation:

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In this process, market is divided into different segments according to their traits and qualities
(Yuan 2013). H&M will target mainly the upper-middle class people of age group 16-35,
who have high-income level.
Targeting:
After segmentation, H&M needs to target on the weak segments and make them profitable.
H&M targeted on Zara and finally collaborated with it (H&M, 2019). They will mainly target
the people who enjoy a luxury life, and fancies for buying their clothing items.
Positioning:
It portrays an image in mind of the targeted segments is the position. It is the tracking of the
weak segments to make them more profitable. The company makes changes by lowering the
prices of products, so that it can position its market, may be outside UK to stand firm from
other competitors.
Conclusion
H&M holds a very good position in the market and expand its market by its new branding
strategies. After performing the SWOT analysis, and PESTEL analysis, H&M has great
potential to compete in the industry and defend its competitor. The company is continuously
making efforts to stand in the competition and achieve all its goals and objectives. However,
some segments where the company needs to make great effort to improve the marketing
strategies.

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