Analyzing H&M's Marketing Strategy: Market Research & Techniques

This report provides a comprehensive analysis of H&M's marketing strategies, focusing on the market research conducted for launching a new product, the 'Customised Graphic T-shirt/Top.' It details the market analysis process, target market selection, and implementation and control measures used by H&M. The report debates how market research findings aid in planning activities, including identifying potential customers, understanding existing customer preferences, setting realistic targets, and developing effective strategies. Furthermore, it explores the marketing mix elements (product, price, place, promotion) and various marketing techniques employed by H&M to maximize profits and sales, emphasizing the importance of advertising and promotions in achieving business objectives. The report concludes that H&M uses market orientation to fulfill customer needs by continuous monitoring of consumer behavior and preferences.

Business

Table of content
Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
The benefits and process of conducting market research............................................................3
Debate how the findings of market research could aid the organisation in planning its activity 3
Within the Marketing Mix describe how and why customers and consumers are targeted
through the marketing activity. Discuss how the activity is tailored to the target market?.........5
Describe and give examples of different marketing techniques..................................................6
Conclusion.......................................................................................................................................6
REFERENCES................................................................................................................................7

Introduction
Marketing of a product is defined as process that includes positioning, messaging and launching
of product. The main aim of this is to increase demand and usage of product (Bustos and
Pomares-Quimbaya, 2020). There is need to conduct strong researches in order to estimate
growth and development of product in market. The following report describes product of a well-
known brand H&M. This is a Swedish brand that sells fast fashion clothing for women, men and
teenagers. This report discusses about new product which is launched by H&M. this provides
detailed process that can be used by this company to market and promote its product effectively.
Main Body
The benefits and process of conducting market research
Marketing process is conducted by organisations for analysing product’s performance within
market (Fang, Zhao and Yu, 2018). H&M has launched a new product – “Customised Graphic T-
shirt/Top”. For this, marketing process used by H&M are mentioned below –
Market analysis – This step includes gathering information by using different channels
including market research, focus groups, surveys regarding condition of market. The main
objective of market investigation is to manage appeal of marketplace and enhance familiarity
among evolving aspects and threat for the company in launching the product.
Selection of target market – This consists of dividing the whole market into segments. This
depends upon division of set of consumers and managing that market efficiently. In context of
new product developed by H&M i.e. “Customised Graphic T-shirt”, the target customers are
teenagers and women of age less than 40. It is considered that the selection of target customers
efficiently will help this company to invest in right manner (Gonos, 2019). The marketing,
advertising and promoting of this T-shirt is properly done for target customers.
Implementation and control - This step includes implementing and controlling market
activities effectively. This includes measuring the marketing performance of product. This helps
to evaluate whether the product will make profits for the company or not.
Debate how the findings of market research could aid the organisation in planning its activity
Market research is known as process of analysing, gathering, interpreting and collecting
information regarding market, product and services offered (Hart and Zingales, 2017). This

provides help in solving marketing challenges faced by companies in foreign markets. There are
different strategies like market segmentation and product differentiation cannot be developed by
H&M if there is no market research. For the new customised graphic T-Shirt, it is concluded that
H&M must undergo market research. The process for assessing viability of this T-shirt is
important for H&M to manage the processing of T-shirt (Marwala and Hurwitz, 2017). Market
research provides help to this company for knowing the target market and what is the thinking of
consumers regarding product. Market research can be conducted for discovering information
about target customer and their perspectives. For H&M, market research is essential as it will
help in knowing success rate of new product. When market research is conducted on regular
basis then it is helpful for keeping up with new market trends (McKercher, 2020). This also
provides help in help in maintaining competitive advantage. For H&M, there are several issues
which are highlighted while market research is implemented. These issues are mentioned below -
 Identification of potential customers – This includes the management of H&M to know
about details of the product. In context of customised graphic T-shirt, it is concluded that
sales of this T-shirt will be high. Reason behind this is there is unique feature for this T-
shirt as customers can customise designs on it. The potential customers for customised
graphic T-shirt are women and teenagers.
 Understanding of existing customers – Graphic T-shirt is basically for those customers
who prefer casual comfortable T-shirts. This product is having soft texture and fabric. It
is cotton T-shirt and provides comfortable feel to people. That is why customers will be
attracted to this product. The buying decision of customers for T-shirt starts with
comfortable fabric, colour, graphic and texture. All these are very good in context of
H&M graphic T-shirt.
 Setting realistic targets – In the market research, information and data are collected
about preference of people towards T shirt. The research conducted by managers of
H&M was about the graphic T-shirt and how it will be providing comfort for people.
 Developing effective strategies – Promotions and marketing of H&M graphic T-shirt is
effectively conducted by the company. This helps in increasing popularity about the
product among customers. There is need to improvise the advertising and promotional
activities so that this graphic T-shirt is accessible by each and every potential customer.

There is also need for managing and developing the marketing promotional campaigns on
social media as it helps to increase the sales of this graphic T-shirt.
Within the Marketing Mix describe how and why customers and consumers are targeted through
the marketing activity. Discuss how the activity is tailored to the target market?
Marketing strategy used by H&M helps in analysing brand and this is done with the help of
marketing mix (Mosteanu, 2020). This company is involved in innovating products, pricing
approach, promotion planning and many more. The marketing mix of H&M in context of new
graphic T-shirt is mentioned below-
Product – H&M is a well reputed clothing retailer across the world. It offers fast fashion
clothing for women, men and children. The range of designer collaborations are also made for
customers. Denim, fashion collections and accessories are also provided to women and men.
This graphic T- shirt is designed especially for women and teenagers. The new graphic T-shirt
provides opportunity for customers to provide graphic of their own on their T-shirt.
Price – The pricing strategy used by H&M is premium pricing. It offers quality products to
customers. GAP and ZARA are two competitors of H&M pricing strategy of H&M makes this
company more competitive in business world. The main reason for this is lower cost of
manufacturing and transportation cost. In context of graphic T-shirt offered by H&M, the pricing
strategy used is premium pricing (Smith, 2019). This means product will be sold to customers by
adopting the pricing that is competitive. High quality graphic T-shirt is provided to customers at
premium pricing.
Place – H&M is selling its products at exclusive stores and these are generally located at
major cities across the world. There are several norms and regulations which this company has to
follow and it uses franchising strategy while operating business. It is seen that H&M graphic T-
shirt is provided to customers at these stores. For the convenience of customers, this graphic T-
shirt is provided online also.
Promotion - The promotions and advertising of H&M is done in order to enhance the marketing
of product and reach to potential customers. This is concluded that in H&M the graphic T-shirt is
promoted and advertised online. Several campaigns will be conducted for this graphic T-shirt.
People can customise their T-shirt according to their own choice. The promotions of graphic T-

shirt are done through social media (So, Chu and Chan, 2021). This influences preference of
customers and helps to increase sales of the product.
Describe and give examples of different marketing techniques
Marketing techniques are known as strategies used by H&M for managing the promotions and
advertising of products offered by the company. The concept of marketing in an organisation
provides help in maximising profits and sales. H&M wisely chooses target customers and
market. The selection of potential customers is done through analysing the need of customers for
fashionable clothing. H&M is offering accessories and clothing for different age group people.
This provides an opportunity for this Graphic T-shirt sales. people can consider this unique
customised T-shirt and buy it (Wade, 2018). This company is a clothing retailer which is looking
to provide its customers with a high quality product. This reflects that customised graphic t-shirt
is of high quality. The strategy used by H&M for providing this product to potential customers is
promotion strategy. This means that this product is effectively advertised and promoted online so
that potential customers can buy it.
Conclusion
From the above discussion, it is concluded that marketing of any product requires deep
analysis of market scenario. This provides an explanation for managing company’s activities
towards product advertising and development. Market research is used by companies to evaluate
the performance of product in market. Advertising and promotions are very essential factors for
an organisation as they are directly related to sales and profits of the company. H&M uses
market orientation to fulfil needs and wants of their customer. H&M continuously monitors the
customer behaviour, preferences. In H&M, the current parameters of consumer needs, after a
serious research and surveys provides a product to customers which fulfil their needs. H&M
analysis the present scenario of the market and recognise that it is not easy to sell expensive
clothes to customers. H&M targeted the fashion conscious teenagers which becomes a huge
customer group.

REFERENCES
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Marwala, T., & Hurwitz, E. (2017). (Vol. 1). Springer International Publishing.
McKercher, B. (2020). Cultural tourism market: a perspective paper.
Mosteanu, N. R. (2020). Finance digitalization and its impact on labour market. 8. 598.
Smith, J. (2019). Navigating our way between market and state. 29(1). 127-141.
So, M. K., Chu, A. M., & Chan, T. W. (2021). Impacts of the COVID-19 pandemic on financial
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Wade, R. (2018). Princeton University Press.