Marketing Essentials Report: Analysis of H&M Marketing Strategies

This report provides a comprehensive analysis of H&M's marketing strategies. It begins with an introduction to the importance of marketing in business growth and success, followed by an examination of the roles and responsibilities of marketing functions within an organization. The report delves into the interrelationship between the marketing department and other functional units, highlighting the significance of collaboration. A key aspect of the report involves comparing the marketing mix of H&M with that of Zara, offering insights into their different approaches. Finally, a basic marketing plan is developed to achieve the goals and objectives of the firm, including product, price, place, promotion, people, process, and physical evidence. The report emphasizes the importance of understanding the target market, managing the brand, and adapting to customer needs to drive sales and profitability.

Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of marketing functions ................................................................1
P2 Interrelationship of marketing department with other functional units.................................3
TASK 2............................................................................................................................................4
P3 Marketing mix of two different organisations.......................................................................4
P4 Develop a basic marketing plan.............................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing plays an imperative role in growth and success of every business organisation.
Its main objective is to attract more and more customers from target customers by providing
them qualitative products and services. Along with this, marketing department of the company is
also liable for conducting marketing research in order to know needs and wants of people
(Baines, Fill and Page, 2013). H & M is the chosen organisation in this present assignment; it is
the largest fashion retailer in Europe. It has around 1500 outlets over 40 countries and the annual
turnover of the company is $112 billion. Apart from this, the report will be described roles and
responsibilities of marketing functions and how it is interrelated with overall organisation. There
will be a comparison between marketing mix of two companies. Furthermore, a basic marketing
plan is developed in order to achieve goals and objectives of the firm.
TASK 1
P1 Roles and responsibilities of marketing functions
“Before understanding roles and responsibilities of marketing functions, readers came to
know the core concept of marketing.
Marketing - “Good marketing makes the company look smart and great marketing makes the
customers feel smart”. Beside this, marketing is a management process through which products
and services are moved from its customers. It is an activities that helps companies to generate
values within their offerings in order to increase sales and profitability. Along with this, the
marketing manager of H&M is liable for all this administration so that all tasks can be done in
proper manner. Below mentioned are the various roles and responsibilities of marketing
department: -
 Marketing helps a firm in defining as well as managing its brand at marketplace, thus
more and more customers can be attracted.
 It also demonstrate the products and focus on overall sales cycle.
 Another responsibility of marketing department is to listen customers needs and try to
satisfy them in an effective manner. Beside this, it also helps in interacting with target
audiences so as to resolve their all queries and problems (Berkowitz, 2016).

 Marketing manger develop a marketing plan by analysing all necessary factors that will
affect business performance and productivity.
Therefore, in order to manage all things in proper manner; marketing department of
H&M needs to follow certain functions. It aids firm to achieve its goals and objectives in a
certain time period.
Roles and responsibilities of marketing functions Buying and selling- When applied to marketing, purchasing function refers to decide
which kind of products to be purchased. In multinational organisations, decisions are
based upon customers needs and demand. Buying includes thousands of merchandise
orders that vary in quality and quantity. Apart from this, selling function works very
closely with marketing; it is known as central activity of the company (Blythe, 2012). In
H & M selling encompasses with identifying customers and evolve a promotional
campaign in order to bring large number of people. Transporting – Transporting is the another function of marketing; companies are
engaged with this for selling its goodies into target market. In other words, it is the
procedure of moving products from its production place to marketplace so that users can
easily buy it. In H&M, manufacturer uses this function for shipping goodies to whole
sellers or retailers. Hence, transportation is an important function it makes purchasing
process easier and flexible. Storing – There is a time lag among manufacturing and buying of goodies and its sale.
It is fundamental for managers to store products at safe place during this period. Now
these days, firms prefer to store its products into warehouses until they are demanded.
Even small as large business association are using this concept. The largest fashion
retailer, i.e. H & M also have its own warehouses or other storing spaces. It helps in
supplying products and services when they are demanded by customers. Financing – There are different aspects financing in marketing field. of This function
relates with paying for raw material to sell and composing credit for buyers. Along with
this, managers require huge amount to purchase raw material and they also have to pay
to merchandise at the end of the month. As a business owner, management requires high
finance in order to produce new products and innovation, advertisement, promotion etc.
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 Risk taking – It is the process of assuming the risk taking capacity of the company. In
order to perform effectively in target market, it is essential for management to identify
future risks and make proper strategies for the same (Dibb and Simkin, 2013). In
addition, marketing managers need to take risks in order to gain high competitive
advantage and growth at market place.
 Product designing and development – Creating new and innovative products plays a
significant role within workplace. H & M always focuses on producing new goodies in
order to improve its brand image and attaining more customers. Furthermore, the
company which products are more innovative and well designed can easily gain higher
sales and productivity.
P2 Interrelationship of marketing department with other functional units
In this corporate worlds, it is essential for all departments to work together in order to
increase the effectiveness of its working activities and functions. In context of marketing, all
functional units are worked together for improving performance and productivity. The prime
objective of H&M is to extend its business over the world. Hence, below given are some major
responsibilities of marketing with other functional units: - Finance department – This department is liable to cope all financial resources of the firm
in a systematic way. Strong finance is the blood of every business entity; finance
manager of the company takes long and short term investment decisions. Beside this, in
order to fulfil marketing activities managers are required huge funds or amount. The
marketing plan of the company should be developed by recognising financial condition of
the firm. Human resource department – The growth and success of every business organisation,
like H&M is to have well skilled and qualified employees. The HR department of the
company is liable to hire such candidates who can meet firm requirements whereas
marketing needs those persons who are capable to communicate with customers in an
effective manner (Durmaz, 2011). Therefore, both departments need to consult with each
other. Production and operational department – The functional unit is responsible for
determining in advance about firm's growth and success. Operational manager of the
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company focuses on improving the quality of the products in order to increases sales and
profitability of the company. They take feedbacks and reviews from buyers and make
essential improvements in existing products. Beside this, marketing officers are aware
towards future challenges and threats. This information will be assistive for operational
department to work accordingly and render effective facilities to people. Research and development department – The main aim of research and development
department is to identifying customers need and demands and tries to fulfil them in the
best possible manner. It also determine competitors' strategies and policies. It is really
useful for marketing officers to upgrade their plan accordingly and make more imperative
policies. Customer service department – The customer service department of the company is
liable for resolving problems and queries of buyers. Its workers focuses on how to
develop public relations. It helps marketing officers in order to manage healthy and
positive relationship with their customers (Jones and Rowley, 2011). With this
assistance, employers can also take feedbacks and reviews from customers.
 Technical support department – There are several technical issues and problems which
can hamper customers' interest. The department is responsible for generating innovative
tools an techniques in production therefore firm can achieve its performance goals and
objectives. It is also beneficial for marketing department in order to attain and retain
people in an effective manner.
TASK 2
P3 Marketing mix of two different organisations
Marketing mix works as a foundation model in marketing. It is refereed as the set of
merchandising tools which will be utilised in order to pursue goals and objectives of the
company. Marketing mix has seven key elements, such as- product, price, place, promotion,
people, process and physical evidence. There is given a marketing mix of two different business
organisations and their comparison, which is described as under: -
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(Source: The Marketing Mix 4P’s and 7P’s Explained, 2017)
Basic H&M ZARA
Product H&M faiths that customer services are
the incredible part of shopping
experience. The main product of the
company is clothing; therefore, it always
focusing on improving the quality of
brand and offerings. The clothing brand
is highly focused on men and women
products; for this certain specialists are
hired who designs cloths for the
company (Lamb, Hair and McDaniel,
2011). H&M regularly launches its new
products especially for women.
Zara is one of the leading fashion
brand which has attained too much
growth in a short time of span.
Basically, ZARA deals in men,
women and children cloths; it sells
goodies which can suits to the local
cultural as well.
Price H&M is endorsed broader pricing range
which suits every customers as well as
marketer. In order to retain customers'
ZARA has spread its brand image; the
pricing strategy of the company is
tend at average shopper. It wants to
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Illustration 1: Marketing mix

interest, the firm provides attractive
discounts on the end of the month. Under
this scheme, sales volumes keeps
increasing and it results higher revenues.
provides latest fashion on affordable
rates. This strategy would be helpful
for company to reach large group of
customers.
Place H&M is the second ranked retailer in
clothing market; it operates in all over
the world, i.e. 55 countries. Its products
are made up in eight hundred factories
which are located in Europe and Asia.
People can easily find its outlets and
they can see different products at its
shops. Along with this, the company has
followed the policy of direct distribution
of products from suppliers to retail
outlets. In order to grow in target market,
H&M also set up a large network for
online sales which enhances its
profitability. Consumers can access to all
products through their orders and leisure
via internet.
ZARA is spread all over the world,
i.e. 14 countries where it has 7000
stores. The firm also deals in online
marketing; billion of customers are
also connected here with the brand. In
UK, people prefer to do online
shopping, thus they can easily reach
its website and select any design as
per their choice (Lancaster and
Massingham, 2010).
Promotion H&M always emphasis on special care
of its promotional activities. Its
advertisement are so attractive and
qualitative. In order to promote itself, the
firm utilises electronic and digital media.
H&M also sponsors many programmes
or events for attaining and retaining
customers long term period. Internet is
now become an effective promotional
tool that has an imperative role in brand
ZARA spends low amount on
promotional techniques rather than
other fashion brands. However, it still
doing marketing of products and
brand. In this perspective, the firm is
following pricing and distribution
strategy; it builds brand popularity.
When it comes to the promotion,
ZARA also uses social media
channels and websites.
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expansion at international level.
People In H&M, employees are trained at every
level. It is modern working cultural;
workers perform at rotational level. The
business organisation regularly develops
plans and policies to motivate or
encourage employees as they can
perform better (Lipsman and et. al.,
2012). H&M has its own clothing
designers.
It is customer oriented company; the
main objective of the firm is to gain
interest of customers for long term
period. Beside this, ZARA also tie up
with several clothing designers so as
to be upgraded with latest fashion and
market trend.
Process H&M gives importance to customer
relationship management. There is a
separate customer service department
which resolves customers' queries and
problems' 24 X 7. It also hear public
complaints and provide them effective
solution.
The company emphasis on quality of
products and services. For this
purpose, it uses effective machinery
and production process to generating
something new and innovative.
Physical
evidence
The business organisation trained its
employees as they can behaved politely
with all customers. To build up a buzz in
market, H&M connects with PR
activities.
ZARA also gives importance to its
interior and organisational cultural.
When a customer enter within
showroom he or she attracts with
these services.
P4 Develop a basic marketing plan
Marketing planning is the fundamental work of managers; it is an operation of examining
all key factors which can hamper business growth and vitality in negative manner. Therefore, H
& M has to develop its own marketing plan; it is a written document which outlines marketing
strategy of the company. Marketing plan is prepared for certain specific time period and covers
all aspects, i.e. cost, actions and goals.
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Below described are the steps of marketing plan of H & M: -
Executive summary - Without marketing plan, business organisations cannot achieve its
goals and objectives in an effective manner. It is accessible for managers to reach target and
potential customers of the firm and influence them to buy products. Marketing plan also involves
internal and external analysis of the firm in order to analyse its current situation.
Marketing goals and objectives – H&M is one of the popular clothing brand; it thrives
on UK market. It is only 15 year old brand which has been evolved exponentially and listing is
top 10 brands. In this context, the key goal and objective of the company is to increase the
number of stores by 15 % per year and for this stores will be established only the best locations
over the globe. Beside this, the organisation also wants to enhance its sales and generate more
traffic on its website (Malhotra Birks and Wills, 2013). In order to accomplish its goals and
objectives the firm is focusing to improve its marketing planning process and its more effective
and efficient.
Company overview – H&M (Hennes & Mauritz) is known for its fast fashion clothing
items for men, women, teenagers and children. The firm also deals in cosmetics, footwear,
accessories etc. In addition, the current marketing situation of the company can be done through
SWOT and PEST analysis: -
SWOT analysis of H&M
STRENGTH
 The major strength of the company is
its loyal customers; it helps to increase
market growth and success.
 H&M has multi brand stores over the
globe.
 It is successful and strong strategic
alliances with Toyota and LG.
 Higher Reputation as a brand which
offers fashionable clothing at a
reasonable price knowledge of the
mainstream customer.
WEAKNESSES
 The major weakness of the company is
difficulty in acquiring funding; ongoing
battle with corporate debts.
 Low e-commerce participation
 Unfriendly policy to environment
OPPORTUNITIES THREATS
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 Due to globalisation, firms will get the
opportunity of strategic alliances,
franchising and digital market.
 Outsourcing production; product
alliances with new partners.
 Expand of Europe and Asian market
 Internet retailing and diversification of
products.
 Slow economy effecting the 10-15%
expansion rate.
 International economic instability put
an adverse impact on supply chains.
PEST analysis of H&M: -
Political factors Economical factors
It involves government rules and regulation
which can impact working activities. H&M has
been under pressure through international
community and denied to take any political
stances.
It encompasses with unemployment, poverty,
interest rate, bank rate etc. Due to economic
recession in 2008-09, UK's population is not
able to spent more amount on purchasing
luxury clothing. This is still affecting sales and
profitability of the company.
Technological factors Social factors
In this competitive era, technological
improvements helps business associations to
upgrade their business functions (Mihart,
2012). But it is not possible for all companies
to use advance technologies due to lack of
financial sources.
Basically, H&M targets youth and adults.
Consumers are classified into different regional
preferences. As the firm serves in global
market; there can be a differentiation between
needs and wants of people at various locations.
Segmenting, targeting and positioning – It is a familiar strategic approach of modern
marketing. STP is also used by H&M in order to prepare marketing communication plan, as it
helps the firm to prioritise its proportional. Through which managers can easily deal with their
target audiences and deliver personalised messages as well.
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Develop a marketing mix – Afterwards, a marketing mix is developed by considering
7Ps of the company, i.e. product, price, place, promotion, process, people and physical evidence.
It is useful in marketing planning by putting right product at right place (Papasolomou, I. and
Melanthiou, 2012). Therefore, customers can easily reach towards it.
Budget – £900000 will be the total budget for the marketing plan. In which, 65% will be
utilised in digital marketing and discount strategies and remaining will be used in improving
product process.
Monitoring and controlling the plan –The overall plan will be monitored and controlled
by top management in order to make it successful.
Conclusion – According to the overall plan, management will easily expand its brand its
target market. All strategies and policies should be followed by team members so as to achieve
maximum sales and profitability.
CONCLUSION
From the above mentioned report it has been summarised that marketing plays a vital role
for business organisations; it helps managers to obtain high competitive advantage and growth.
Under this report, there is a discussion roles and responsibilities of marketing. There are various
types of marketing functions, such as- product designing and development, financing,
transporting, buying, selling etc. Beside, there are various types of units that works in an
association, such as – finance, human resource, production, research, customer service and
others. Furthermore, marketing mix of H & M and Mark and Spencer is an intermixture of 7 Ps,
like product, price, place, promotion, people. Physical evidence and process. Managers needs to
develop a basic marketing plan so as to achieve high market growth and share in an effective
manner.
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