Marketing Strategies of H&M and Next: A Comparative Analysis

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MARKETING ESSENTIALS - PART 2

Contents
LO2..................................................................................................................................................3
P3 Compare ways in which H&M and Next apply marketing mix to the marketing planning
process to achieve business objectives.........................................................................................3
M3. Different tactics applied by H&M and Adidas to demonstrate how business objectives
can be achieved............................................................................................................................6
D2 As assistant manager design a strategic marketing plan to apply 7P’s to achieve marketing
objectives of H&M.......................................................................................................................8
LO3..................................................................................................................................................9
P4 Produce and evaluate a basic marketing plan for H&M (M4)................................................9
References......................................................................................................................................12

LO2
P3 Compare ways in which H&M and Next apply marketing mix to the marketing
planning process to achieve business objectives.
In order to achieve the business objective H&M and Next have been applying the marketing mix
in the following ways:
Marketing mix H&M Next
People  Covers almost sections of the
market which includes all gender,
ages.
 Also covers sports personal and
activity, prone customers
 They cover the age of 25-
45
 Apart from that, the
company deals with all
age groups
 They also deal with
footwear seeking
customers
Price  Mostly low price products
 Cost effective for all classes
 Price is moderately
higher than H&M thus
the same affects the
demands
 Based on the quality the
prices are high to sustain
the same
Place  They are situated in all famous
locations and shopping malls
 They have also introduced online
stores to browse products online
 They have a multi-
channel retailing strategy
 Over 500 stores around
the UK and also online

stores to access
customers around the
world
Promotion  They mostly do outdoor
advertising
 Direct selling of products
 They use famous celebrities to
promote the brand
 E-marketing is also used to
promote the brand (Singh, 2012).
 Small campaigns are run
in various sections
 Advertising is done on
the large level
 Online advertising is
more using Tweeter and
Facebook.
Product  A wide range of clothing and
accessories at a low price.
 They believe in everyday low
price products
 They also offer lingerie,
sportswear, cosmetics, and home
department products
 Major products offered
are garments for male,
female and kids.
 They also offer
accessories and cosmetics
 Home décor products are
also there (Singh, 2012).
Process  The process is mostly focused on
customer-centric structure.
 They are mostly led by business
and its activities.
 Major process that has
been including It-
technology and public
dealing
 The process also includes
customer feedback
collection and
improvisation
Physical  They can be available in all the  Evidence can be seen on

evidence major stores and online stores
available in order to deal with the
needs of the customers.
 As per feedback, appropriate
changes are done in the business
model (Rosenbloom, 2012).
mainly online stores and
also in some retail stores.

M3. Different tactics applied by H&M and Adidas to demonstrate how business objectives
can be achieved
In order to develop business and capture a good market position it is required by the company to
follow some tactics to remove current issues and develop future strategies, some of them are:
H&M
Customer Feedback: Company has been working to get feedback from the customers and make
effective changes in the products and services. This also helps in maintaining relations with
customers. The company has been working effectively to connect with the customers and
develop future aspects of business growth.
Mission and vision: Company develops mission and vision based on new changes in the market.
this can be done by doing appropriate market analysis and competition in the industry. This has
helped H&M to develop a better output and detailed scenario to work on in the future. The
mission can help the team to set targets and make effective application of the same in the growth
of the company (Rosenbloom, 2012).
Internal and external testing: The Company also uses internal testing to identify the strength
and weakness and convert them into opportunities. They test the external environment as well in
order to identify the potential needs and threats in the industry. The external testing is necessary
to develop the overall needs of the company and make effective application of the same in the
formation of a competitive strategy.
Testing: Appropriate and timely testing of the products and the services can help in the
development of future needs of the consumer and make changes in the process effectively.
Adidas
Measuring progress: Adidas always measures its progress and calculate all the factors
contributing to the development of the company and adapt that strategy. They also make
changes in their business strategy to develop business opportunities in the future.

Long term goals in short term tactics: Company always believes in developing long term goals
which they divide into small sections and set small targets to deal with the needs of the market
and tries to attain small targets. This is helpful in collectively delivering better business structure.
Aligning the team: They align the team and apply rule and regulations accordingly, to make
effective changes in the business environment. They make an effective application of the same in
the business strategies.
Competition knowledge: Collecting knowledge from the competition is necessary to identify
the needs if the company and also study the tactics and changes applied by the competitors.
Adapting that strategy in Adidas can help in the development of the same in the future (Abril and
Rodriguez-Cánovas, 2016).

D2 As assistant manager design a strategic marketing plan to apply 7P’s to achieve
marketing objectives of H&M.
In order to achieve the overall business objectives, the company has to work in order to align all
the resources and application of them in the business development of the company. This has been
helpful to deal with the internal and external needs of H&M. the major activities to be used are:
 Making appropriate vision and mission in order to deal with the needs of market changes.
 Keeping the pricing if the products pocket-friendly and approachable. Putting the prices
in order to the respective changes in the stock market and changing the position of the
company.
 Developing the products and variety in the clothing and accessories in order to deal with
the needs of the consumer
 Selecting an appropriate target market and developing promotion strategy as per that.
This helps in placing the correct product in the correct market and develops process
according to that.
 Developing proper promoting and placing a strategy that is effective to deal with the
needs of the company and develop better market visibility and gather market leadership.
 The company is needed to identify the proper location to make physical evidence and
application of strategies in future aspects of the business (Chernev, 2015).

LO3
P4 Produce and evaluate a basic marketing plan for H&M (M4)
A marketing plan is helpful for an organization so that they can perform a task in an effective
manner. It is helpful for a business to explore at a wide level so that they can provide a tough
competition to their major rivalries (Wuisang, 2019). H&M is a famous Swedish clothing
company which provides fast fashion clothes to their clients to maximize their experience and
satisfaction. Hence, the marketing manager of a company will be going to prepare a marketing
plan so that they can align operations with fast fashion and maintain a leading position in the
fashion era. This marketing plan will be included the mission, vision, and objectives of a
company. Along with this, it will be defined as some strategies and marketing mix concept so
that business can sustain for a longer duration.
Marketing Plan of H&M
Mission: The major purpose of H&M is to provide best quality fashion to customers on best
prices. The company believes in quality and think that it fulfills customer expectations.
Management and marketing team are putting their efforts to improve the manufacturing of goods
under effective conditions with limited impact on the environment.
Vision: H&M is focusing on better operations which support the economy, social standard, and
environment. It is helpful to fulfill and meet the needs and demands of both present and future
generation. The company vision is to maximize their sales in near future as well and become
leading clothes retailer in the world.
Objectives: Hennes and Mauritz have prepared certain objectives which they want to accomplish
in near future to manage their sales and maximize profit and revenue:
 To grow sales by 10% within the next few years
 To open 50 more outlets within one year at different of Asia, Europe
 To maximize the number of products by 20%

These are the major objectives on which H&M needs to work. These targets become
accomplished with suitable strategies and approaches with consideration of targets. Below is a
marketing mix of H&M which need to understand by managers of a company so that they can
determine the relevant and suitable outcome:
 Product: Company is providing a wide range of products like clothes, accessories and
other material on reasonable rates and prices. They are also providing sportswear,
cosmetics, and home department products. Now, the company is trying to introduce some
more range of clothes like party wear, off shoulder etc. This will be going to support
them in maximizing profit with an increase in the product range.
 Price: H&M is providing cheap products which can be afforded by clients and customers
easily. Now, the company will be going to charge moderate prices like €50 per clothes
and €60 per cosmetics etc. These prices are charged by the company which enables them
to sustain at wider market context.
 Place: H&M has already established its stores at a famous shopping center with online
websites. Now, the company is trying to open more than 20 stores worldwide like in
Asia, Europe. These places will be supported company to put fast fashion in locations at
moderate prices.
 Promotion: H&M is using different aspects for promoting their products and services.
This section has included outdoor advertising, blogs, direct marketing. For the further
promotion of a new range of products and services, H&M will be directed social media.
It is one of the most convenient approaches to facilitate promotion at wide level.
 People: H&M has a different individual like designers, online sellers. Now, the company
is trying to maximize their sales for which they need more innovative people. Hence, they
have to focus on retention of employees at maximum level to manage sales.
 Process: They have to ease the process in an effective manner. This includes the use of
the manufacturing process, social media process etc. Hence, the process is required to
ease by H&M so that they can maintain sales and revenue.
 Physical evidence: H&M have to identify some patents, trademark so that they can
manage physical evidence. Currently, the company will be going to launch digital receipt

as well so that customer facilitates easy exchange of products.
Strategies for development: One of an essential aspect on which managers of H&M need to
focus signifies on different marketing strategies. On the basis of targets, H&M has determined
some strategies. This includes (Ansoff, 2019):
 Market development
 Product development
H&M will be going to use market and product development strategies. These strategies are
concentrated with the objectives of a company so that business can ascertain targets and
anticipate future growth as well.
Market Budget: H&M have to prepare a budget so that all marketing activities get done
properly. Marketing manager of H&M has prepared a market budget so that all operations and
things went in the right direction. The total amount which will be going to spend on marketing
operations include €20 thousand
Activities Amount Total amount (€20,000)
Market research €4000
Identification of customers €3000
Opening of stores €2000
Advertisement €4000
Total €13000 €7000