H&M Marketing Strategy Report: A Comprehensive Analysis

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Marketing Essentials

Table of Contents
Introduction................................................................................................................................2
Mission statement.......................................................................................................................3
Situation Analysis......................................................................................................................3
Marketing Objectives.................................................................................................................4
Target Market.............................................................................................................................4
Marketing Strategy.....................................................................................................................4
Marketing Control......................................................................................................................5
Conclusion..................................................................................................................................5

Introduction
Hennes & Maurtiz AB is an international clothing company from the house of fashion based
in Sweden. The companies those are associated with H&M operates in more than sixty two
countries having more than 4500 stores and around 132000 people working as an employee
all throughout the globe in these stores. H&M is a group of family in producing the
extraordinary and exclusive brands of clothing and accessories which are process by the
passion of common so as to create great designs those are accessible to everyone and that
leads the way towards a sustainable development and more inclusive all throughout the globe
(Morgan et al. 2019). There are mainly eight brands in the house of H&M; they are ARKET,
H&M, COS, Monki, Weekday, & Other Stories, Afound and H&M Home. These brands
offer customers with styles wealth and the several latest trends within fashion, homewares,
accessories and beauty products.
Mission statement
The mission statement of the company as given in the case study is that goes beyond the
value of the company’s group while having the complement to sustainably work within the
organisation sphere. The mission of the company is to drive on to for longer period of time in
order to bring and develop positive changes and to improve the living condition through
making investments on the people, technology, innovation, and in communities.
Situation Analysis
SWOT Analysis:
Strengths –
Wide varieties of products – The Company serves huge varieties in products which offers
cosmetics, apparels, accessories, shoes, clothing to cater to large number of different
customers. This company also sells products like vases, pots, candle stands, blankets, bronze
statues, etc.
Strong performance in finance – The Company has displayed its strong and rigid financial
performance in its financial years. In the financial year 2015, the company has disclosed an
increase in revenue of 19.4 per cent over the financial year 2014. Hence, the company serves
a strong financial growth and performance providing the financial and performance flexibility
to the business (Wensley 2016).
Exclusive identity for several brands – The Company sells the portfolio of its products via
several brands like ARKET, H&M, COS, Monki, Weekday, & Other Stories, Afound and
H&M Home.
Diversification in the global presence of the company – The Company has its own rigid and
strong background which is present all throughout the world. The company operates over
more than sixty countries throughout six continents. Presently, this company has extended
into the formation of the potential market in the continents like Africa and Asia.
Weaknesses –
Trend following – The Company produces clothing those are affordable and may suppliers
those who are independent, are being dependant by this company which choosing the utmost
luxurious brands from the on-going trend.

Dependant on the suppliers of the third party – The Company is fully dependant on the
suppliers of the third party in supplying the raw materials. The out sources of the product of
the company which is manufactured about eight hundred independent suppliers lowering the
production control.
Quality gets affected with affordable prices – The Company is usually famous for creating
clothing which is basically affordable by the consumer, and in the process of making the
products affordable the quality of the products get hampered.
Opportunities –
Focusing on the expansion as a reason to improve profit – The Company has been constantly
focusing on the expansion of the value of the store base throughout the world. The company
has recently included four hundred stores in financial year 2016.
Improvement of the lifestyle – The lifestyle and purchasing power of the people has been
improving in a growing pace all throughout the world. The tastes and preferences of the
customers are changing day by day all across the world.
E-commerce making a platform – The Company is also based on the mode of e-commerce in
various countries. The requirement of the company in the platform of the E-Commerce is to
cater to the huge market all across the globe (Baker and Saren 2016).
Expansion of the company in emerging markets – Presently, the market which is emerging all
across the world carries a huge potential as per as the industry of apparel, clothing and
accessories are concerned. The company needs to explore the markets those are emerging like
the markets in Africa and Asia in order to capitalise on the creation of the new demand.
Threats:
Switching costs – Presently, the social media platform helps in switching the costs of the
product in making change in the taste and preferences of the customer. So the company has to
catering products according to the new demands stated or otherwise it will be lagging behind
in the market.
New entrants – There are several threats of the new entrants for the products which have been
allowed by the e-commerce to share the same platform.
Rigorous competition – The competition arise when several new companies come into
existence be it a local brand or a global brand.
Fluctuations in the foreign exchange rates – The foreign exchange rate of the currency
throughout the world fluctuates affecting the profitability rate of the company.
Marketing Objectives
The objectives of the marketing of the company given in the case study is maintain it
sustainability on the ground of economy, society and environment. This means that the
business is going to achieve the requirements of both the generations of future and present. It
is something like initiating the change of the fashion according to the needs and preferences
of the customers. Customer satisfaction is considered the vital objective for this company
(Palmatier and Crecelius 2019).

Target Market
In the year 2018, the company tends to open new stores of around three hundred and ninety
with a basic focus on the H&M for the emerging markets based in Japan, Europe and China.
Marketing Strategy
The segmentation, targeting and positioning in the company operates within the industrial
usage of several geographic, psychographic, and demographic variable such as race, gender,
income, ethnicity, etc.
The company has its employee working in the stores throughout the globe for more than
161000 workers. The distribution of this company is reaching into the various nations
worldwide.
The life cycle of the product for this company is very low while the market operates in a very
risky situation of the inventory those are unsold due to the rapid change in the fashion trend.
The company for providing the customer with more exclusive apparels has conducted the
customer analysis.
Marketing Control
The marketing control or the implementation control is done through the help of the product
that is design and that has been created to serve the environment, as in the products needs to
be econ-friendly in a manner that it does not harm the environment and focusing upon the
sustainable growth and development (Kanagal 2015).
Conclusion
It can be concluded by saying that this marketing report of the company helped in making the
efficient usage of the marketing tactic and roles as played the company provided in the case
study. Surely, there are much more to be considered in the process of marketing and
development of the business. The company in order to meet the required goal of the company
and to exist in the market that is constantly changing must fulfil the mission and vision
statement and there has been a huge rate of competition in the market.

Reference
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Kanagal, N.B., 2015. Innovation and product innovation in marketing strategy. Journal of
Management and marketing research, 18, pp.1-25.
Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2019. Research in marketing
strategy. Journal of the Academy of Marketing Science, 47(1), pp.4-29.
Palmatier, R.W. and Crecelius, A.T., 2019. The “first principles” of marketing strategy. AMS
Review, pp.1-22.
Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107).
Routledge.