H&M Marketing Strategies: A Comprehensive Report, Fall 2023

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Marketing Essentials
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Table of Contents
Introduction...................................................................................................................... 3
LO1 (P1, P2).................................................................................................................... 4
LO2 (P3)...........................................................................................................................8
LO3 (P4).........................................................................................................................10
Conclusion..................................................................................................................... 14
Reference list................................................................................................................. 15
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Introduction
Marketing plays the most essential role in the development of a business. The chosen
firm for this study is H&M. “H&M” is one of the most popular Swedish fast fashion retail
companies, established in 1947 has more than its presence in over 3598 numbers of
locations (About.hm.com, 2019). In this study the discussion regarding the roles and
responsibilities of marketing will be discusses, which will allow in identifying the
importance of it within the business structure. The study will even be discussing the
ways in which marketing can help the business in determining their capabilities of
performing their activities within their selected market location. Moreover, the study
even involves a business plan and marketing mix, which further helps in identifying the
ways a business like H&M should perform its activities in order to create proper
establishment of their brand.
The study furthers focuses on SWOT analysis and different marketing strategies, which
can help H&M in performing the activities as per the requirement. The study will even
discuss the ways in which different strategies can support the business growth from
different directions. Within the study, the explanation of most suitable strategy will be
discussed and the ways in which the business is benefited out of it will be explained
with additional information of budget making.
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LO1 (P1, P2)
Explain the role of marketing and how it interrelates with other functional units of
an organisation.
P1 Explain the key roles and responsibilities of the marketing function.
Marketing is the most essential way with the help of which a business can understand
various degrees of their suitability within their selected market (Resnick et al., 2016).
Marketing can be defined in two different ways. First of all, marketing can be
considered as a department and secondly, it can even be considered as a function that
the business must practice while performing their activities. Marketing as a department
within H&M plays an essential role in the development of the business as a whole.
While on the other hand, marketing as a function is the crucial tool with the help of
which the chosen organization can perform its activities as per their requirement (Hair et
al., 2015). Marketing being a tools of H&M helps the business in understanding the
market condition and even the demand of their targeted customers, which further guides
the business in producing the products as per the needs and even in meeting the
customer needs. Marketing is a core part of the H&M, which helps the business in
developing various strategies, which helps the firm in incurring better profits.
Marketing helps the business in maintain various areas like, promotion of the brand as a
whole, monitoring and management of the social media platform that are of the brand
and even allows the firm in producing internal communication channels (Thehartford,
2019). This is something that allows the business in create better flow of information
within the business structure. Moreover, it allows the department of the firm in being
connected with each other in a successful manner. Management of customers is
another work of marketing, which allows the chosen organization in determining the
issues that they are facing regarding their products, which allows the production unit in
performing their activities in a quality manner. Arrangement of vendors and other raw
materials are even a part of marketing, which is done for the better flow of work within
the work premises (Thehartford, 2019).
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The marketing department helps the firm in not only taking better decisions regarding
their sales but also for identifying the recent trends of fashion that is preferred by their
targeted customers (Pansari and Kumar, 2017). This allows the business in developing
p[products and their process as per the change in market, which allows the business in
sustaining their process in their selected chosen location. The main role of marketing is
to create knowledge about selling, buying, transportation, storing, financing and even
promotion regarding their products. Additionally, understanding mission and vision of
the business is another role of the marketing. This allows the firm in structuring the
business as per the need of the market flexibility. Management of brand is even done
with the help of marketing.
On the other hand, marketing as a department allows other departments to function in
the most accurate manner (Yu et al., 2019). Marketing department is interrelated with
the other department that are there within H&M. Finance department need to take
information from the marketing department regarding the sales that were made before
and the sales that they need to make now in order to arrange the needed financial
resource for the sustainment of the business process. Finance department with the
guidance of marketing department can assess the needed financial support for the
growth of the business, which they can arrange efficiently. Furthermore, the marketing
department allows the HR department of the business in identifying their capability to
maintain their workforce, which helps the firm in recruiting and selecting the needed
number of workforce for the execution of their activities and at the same time meeting
the set organizational goals and objectives. This helps the business in taking proper
decisions regarding their selection process of employees and even regarding the wages
and its payments among the employees.
Production unit is another department, which runs under the supervision of marketing
(Greif, 2017). With the support of marketing tools and department, business like H&M
enable itself in determining the number of production, which is required for meeting the
customer demands. It shows that the marketing department is not only interrelated to
the promotion and selling of the products but also for the production purpose.
Conduction of campaigning is another responsibility of the marketing department, which
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further helps the firm in knowing the type of fashion preferred by the targeted customers
of their chosen location, which further aid the firm in performing their sales activities
properly. This shows that marketing is essential not just as a tool but also as a
department that supports the business in its decision-making and even in its
structuration (Bjerke, 2018).It is relevant for the developers of the business to consult
the marketing department before taking any decisions, which can affects its sales and
profits.
P2 Explain how roles and responsibilities of marketing relate to the wider
organisational context.
Marketing is a core function that has deep interrelation with other organizational units
such as HR department, finance department, operation department and others (Baker,
2016).
Production department
The production department of “H&M” consults with marketing department and conduct
market research to analyse and asses the needs of the customers as well as the current
trends in modern business scenario. They work together for executing development as
well as research planning to satisfy existing customer base’s needs and demands.
Through conducting proper market research, production department could understand
the customer excitations and modify their products in such manner that it can fulfil the
demands of existing customer base (Foxall, 2014). Hence, marketing department can
easily meet their sales target.
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Marketing
Finance
Production Human Resource
Research & Development
Figure 1: Interrelationship of different functional units with marketing
(Source: Burns et al., 2014)
Finance department
Finance department of “H&M” conducts all the financial activities including balance
sheet, annual report and others and undertakes the exhaustive business operations
under the financial capabilities of the particular business organization. Marketing
department consults with the finance department in order to show them the marketing
plan and budgets and then finance department allocates the adequate amount of capital
to complete various marketing activities. Effective promotion and marketing activities
increases sales and profits that provide funds to finance department.
HR department
HR department provides direction and guidance to marketing department and easiest
ways to attract customer attraction so that marketing campaigns can be successful and
company an increases sales number. Marketing department also conducts work
alongside with HR department for making their marketing campaigns unique and they
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can reach out more numbers of customers effectively. The HR department selects best
class candidates for making effective marketing and sales team to meet marketing
targets.
Significance of Interrelationship
According to modern market researchers, it is essential to H&M’s marketing department
to create effective relationship with other organisational functional units in order to bring
positive changes in the firm. Good interrelationship not only improves business
excellence and profitability, but also assists to achieve trust of customers and
stakeholders (Wang and Miao, 2015). Moreover, this interrelationship between
marketing department and other functional units is crucial to business venture in
multiple aspects. For instance, without effective interrelationship with finance unit,
marketing department will not be able to carry forward appropriate pricing strategy in
order to attract the exhaustive customer base. Conducting appropriate market research
and assessing demands and needs of customers without proper interrelationship
between marketing and R&D team of the particular business organization (Ingram et
al.,2015). Thus, “H&M” maintains a healthy and strong interrelationship between
marketing and other functional units.
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LO2 (P3)
Compare ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives
P3 Compare the ways in which different organisations apply the marketing mix to
the marketing planning process to achieve business objectives.
Competition in business context is spontaneously increasing due to entrance of new
competitors, globalisation and many more reasons. Marketing mix is one of the most
useful tools, which can assist to minimise the risks associated various marketing
operations and activities (Huang and Sarigöllü, 2014). In this section, “H&M” is going to
compare its marketing mix strategy with Sainsbury’s for better consideration of the
study.
Elements “H&M” Sainsbury’s
Product Product is heart of business
that is actually served to
customers in order to
create profits. Hence,
“H&M” has used high
quality product materials to
make high quality fast
fashion products. They offer
wide range of new product
segments for exhaustive
customer base (Londhe,
2014). They mainly sale
fashion related items and
has enough stock to attract
customers.
The company has wide
range of product portfolio to
gather attention of
customers. They sell retail,
groceries, fashion items,
cosmetics, food items and
others for creating wide
customer base of different
product segments.
Price Effective pricing of products
allow better engagement of
Sainsbury’s is likely to use
competitive pricing
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customers. Hence, “H&M”
always set affordable
competitive pricing for
selling more numbers of
products to global
customers. The company
uses economic pricing
strategy in order to provide
best quality fashion
products to customer at the
most affordable rate (Nagle
and Müller, 2017).
strategy in order to
maintain their sales
performance along with
keeping their revenue
generation similarly. Apart
from this, they offer multiple
discounts and attractive
season offers at great price
rates to increase their sales
profitability.
Place “H&M” has it presence in
more than 3598 different
locations worldwide, where
they conduct their existing
business operations.
However, in Sweden
market the company has
great demand just like in
other global markets.
Sainsbury’s is likely to
conduct majority of their
vital tasks across UK,
London premises and over
50%of the total revenue of
the company is generated
from UK market place.
However, the company has
multiple stores in different
locations worldwide.
Company uses UK market
as their main business
market place, where they
are conducting business
since 1884.
Promotion The company mainly uses
social media promotion and
online promotion as their
main target customers are
Sainsbury’s is not tech
savvy company and still
they use mostly traditional
promotion techniques with
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youths and college
students. Online promotion
effectively works for the
company to attract huge
customers and increase
sales (Anusha, 2016). Apart
from this, they also
advertise their products in
television, radio, magazines
and newspapers.
billboards, magazines,
television, radio, newspaper
and others to reach out
customers and inform them
regarding products (Ziliani
et al.,2019). Apart from this,
the company uses word of
mouth technique to
promote their products.
People The company has more
than 182,000 –trained
employees to serve high
performance and
satisfaction to customers.
They are trained in such
manner that they can
represent products to
customers in effective
manner. The company
always focus on keeping
their employees motivated
all the while so that they
can contribute their 100%
efforts to achieve business
objectives.
Sainsbury’s also has
186,000-trained employees
and they are experienced
and skilled enough for
providing high satisfaction
to wide range of customers.
Additionally, the company
provides appropriate
training to their new and
existing employees for
updating their employees
with modern systems and
technologies.
Process In the entire business
organization, all the high-
tech modern processes are
used for greater production
and higher profitability of
Sainsbury’s mainly follows
their traditional processes
of business operations and
in recent days, the
company has added few of
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the company. The online
store of “H&M” is popular
enough and generates
revenue for the company as
well.
the new models, principles
and theories for
strengthening their
business processes. The
company is focusing on
adopting technologies for
betterment of their
processes.
Physical evidence “H&M” has more than
3000 stores around the
world to serve products and
satisfaction to wide number
of global customers
(About.hm.com, 2019).
They design their stores
effectively for higher
customer engagement. In
all stores, the company
maintains hygiene and
cleanliness standard for
offering customers a great
experience retail shopping.
The company also has
focused on designing their
stores different compared
to others and royal as well.
The business emperor of
more than 153 years ago of
Sainsbury’s has spread in
several directions. The
company has multiple
global stores, where they
serve customers. The
company focuses on
creating effective design
that can match with the
verity of products in the
store so customers will
show more interest in
shopping.
Table 1: Comparison of Marketing mi x strategy between H&M and Sainsbury’s
(Source: Created by learner)
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