BSB126 - H&M Marketing Plan: A Comprehensive Analysis & Strategy

This marketing plan for H&M outlines strategies for enhancing market penetration and achieving growth. It includes a situation analysis utilizing SWOT and PESTEL frameworks to assess the company's strengths, weaknesses, opportunities, and threats, as well as external environmental factors. The plan defines specific marketing goals, such as expanding into African and Asian markets, and details target customers and value propositions. It also covers marketing tactics, including product, price, promotion, and place/distribution strategies, emphasizing affordable pricing and a broad product mix to appeal to diverse customer segments. The plan aims to improve H&M's market share and income level through strategic marketing efforts.

Running head: Marketing Plan 1
Marketing Plan
Student’s Name
University
Course
Date

Marketing Plan 2
Overview
H&M Company is an organization in Swedish which deals with clothing brand of different
genders like children, women and men. The following is the marketing plan of H&M Company
indicating on how to improve and penetrate in the market using different marketing strategies.
Situation analysis
Situation analysis is very significant when performing out the market planning since it helps the
marketing manager to gain the general knowledge of what is happening within the market
environment. Several tools like SWOT and PESTEL analysis are used during situational analysis
(Tsangas, et al., 2019).
The SWOT analysis tool will identify the Strength of the H&M organization, and they will be
used to win the marketing goals. The weakness are used to identify the loopholes in the market.
Opportunities are the chances which the company is required to utilize in the market while the
threats are the factors which are against the strength of the organization.
SWOT analysis according to the H&M Company.
Strengths
Wide variety of products. H&M Company offers several types of products in the market
including cosmetics, accessories, and apparels rather than primarily clothes in the market.
Brands are identified uniquely. All brands are classified according to the target customer in the
market therefore easily recognized locally and globally.

Marketing Plan 3
Spread in global presence. H&M Company has a big presence in all geographical area across
the world. The Company has many outlets located in more 60 states across all the six continents.
Currently, H&M Company has opened new stores in the potential market like Africa and Asia.
H&M Company is able to minimize risk in the business. The company through spreading in
every market in the world is technique of minimizing the risks while increasing the income level.
Strong financial presentation. When analyses is done, it has been realized that H&M is having
strong financial presentation over the past financial years. Good performance in financial sector
increases the investor’s confidence to invest with the company.
Weakness
The company has little power over production. H&M Company depends on other sources of
supply thus having little control in the production process. Therefore, in case of failure of output,
the image of the organization will affect without control of the H&M management.
They are succeeding after trends. Their products are affordable depending many suppliers
from different independent suppliers; therefore, H&M Company selling the product trend form
the luxury image.
The company lies with third party suppliers. The company has been depending a lot with the
third party sellers to outsource their products. This means the company has low control over his
production thus, being independent in the market.
Cheap price. The cheap price influences the quality of product within the Company. Affordable
clothes from H&M Company are being affected by the quality of the clothes.
Opportunities

Marketing Plan 4
Improve the expansion rate in the market. H&M Company is focusing on having a high
percentage of expanding its stores over the whole world since the possibilities are many and
available.
E-commerce trading. H&M Company is available in online business in several countries,
therefore is required to expand more on online platforms which will contribute to market share
increase.
Expand in the upcoming market. The coming is willing to spread its products and services to
the potential markets emerging in Africa and Asia.
Improving lifestyle. The lifestyle of the people in the market is improving at high rate meaning
the company can utilize that opportunity to create new product for the customers.
Threats
Stiff competition. H&M Company is experiencing intense competition from both local and
international brands which acts as an alternative product.
Foreign exchange variations. The company group in Swedish is experiencing the risk of
currency exchange high rate which is from developed countries.
High labor cost. Investing in the developed countries has risen the labor cost thus, affecting the
general production within the company, therefore, influencing the profitability level.
Loopholes in the online market. E-commerce has been allowing the new entrance of more
companies thus threating the popular brands in the market. Similar platforms have been created
thus confusing the customers about the original product.
PESTEL analysis.

Marketing Plan 5
Politics. H&M Company is having the pressure from different countries which does not
recognize international business law, like Israel. The Company does not support any side.
Economic. The company is trying the best to set and maintain the affordable rate of the product
in the economy despite the stiff competition in the market. The big challenge in the marketplace
is from currency and inflation rate on different products.
Social. H&M Company has employment many women in the office thus balancing the equality
in the economy. Another social factor is that the organization is working to improve the wages of
their workers and ensuring the right working conditions.
Technological. H&M Company is embracing new ideas of technology despite the complexity in
the clothing industry. This has helped the business to meet the market demand and adhering
respond to the economic change of the fashions.
Legal. H&M Company has been complying with the national and international laws of doing
business despite the challenges in different countries. For example, no child labor, this is
amongst the law the organization has obeyed.
Marketing goal
H&M Company is aiming to penetrate the local and global market by offering a different variety
of products rather clothes only, thus increasing market share and income level. In the next two
financial year the Company will penetrate fully in Africa and Asia continent using the below
describe marketing strategies and mix. This will be achieved through improving and producing
variety of clothes since the lifestyle of the market is also improving as the time goes.

Marketing Plan 6
Marketing strategy
This marketing strategy involves setting goals on how to have a significant share in the market
by having reasonable price and product strategy in the targeted market (Pitt, et al., 2018). In this
section target clients and the proposition value of the product will be defined well.
Target customers. Without the targeted customer in the market, the company will be doing zero
work; therefore is a must to identify viable customers in the market (Kim, Chang, Vaidyanathan
& Stoel, 2018). For example, H&M Company is targeting men's, women's and children in the
market. Within all stores of H&M Company, woman section is the major due to the high
population of females in the world. Another reason is that woman mostly like they like shopping
themselves without being presented thus being more attractive. The Company is targeting all
woman of the low, middle class and the working class in the market. All fashions are affordable,
with good designs and lower price for all categories including the children and men wears. These
factors have made the H&M Company have a broad geographical segment in the market thus
exploiting more resources. Another idea the company is expressing in the market is that it is
targeting customers from many cultures, religion, and lifestyle. This will made the company to
have easy penetration of the market in both local and international.
H&M Company is focusing on many segments in the market but for the future marketing
strategy is aiming to have peer-to-peer marketing. This strategy will help to capture the
upcoming and growing market as the next market. This will help the business to remain and have
reliable power to control the market. The following is the profile which H&M Company is
developing to win this targeted market. The Company is practicing online marketing in different
countries and accommodating many customers at once. Consumer purchasing power is the point

Marketing Plan 7
under consideration since potential clients are focusing on affordable and quality products in the
market. This is motivated more by the company logo of "Fashion and Quality at the Best Price."
Another factor the company is focusing on is to have a wide variety of product mix in the market
thus excluding nobody from buying the product branded H&M logo.
Value proposition. This is the area which handles the reasons why these targeted customers
always are attracted by the company’s product, therefore be described as a value product
proposition(Payne, Frow& Eggert,2017). Most of the H&M Company products are concentrated
on the affordable price which is low in the market compared to selected goods. Products with
low price in H&M Company cannot be found in other small scale boutique shop with the same
quality. This has been a big challenge in the company because of the low pricing strategies.
Another reason which attracts more customer is stable and high valued fashion which is ranked
as the topmost designers. This encourages the customers despite the low price of the product. In
most countries, the luxurious brand is found in the name of H&M brands because of its high
quality. Another factor which is considered to have contributed a lot to the product value
proposition is the convenience of the company’s product. Most of the H&M Company outlets are
located everywhere in the Swedish market including in shopping center and other metropolitan
centers within the market. Another outlet is that the company is investing online for more digital
customers every in the global market.
This statement will continue to play a significant role in improving the product proposition, "all
categories of Fashion are available at the best price with high quality thus improving the living
standards of the customers. The location of the product is in both local and global markets”.

Marketing Plan 8
Positing statement and map
H&M Company have been using the positing statement to create good relationship between the
customer and the brand value. The company also is strategizing to continue using its positing
statement for the future advantage in the market. The positing statement of H&M Company
product is, “To produce affordable products likes of clothes to all customers of different level of
income, locally and globally with standard quality.” The positing statement is supported by the
positing map of Company which supports to maintain and create new market (Roy, 2019). This
is shown below by the map, more maps for better understanding are attached in the appendix
section.
Source: Manual generated (2019).
SWOT
ANALYSI
S
THE
COMPANY
CUSTOMERS
MARKET
COMPETITORS ZARA
TRENDS
UNI QLD

Marketing Plan 9
Marketing tactics
These marketing tactics involve marketing mix techniques which helps the organization like
H&M to face market competition in different level of the product, price, promotion and
place/distribution of the organization product (Mindtools, 2019).
Product. H&M Company is an organization which is primarily focused on the clothing sector in
the market despite its wide range of products. This product is targeting children, women, and
men in the entire market. Due to the long existence of the clothing fashion now the company is
aiming to advance it to the new fashion style targeting the young generation. In the original plan
new the company is currently seeking to have a new market share on shoes, accessories, and
appliances. This is a new change in the strategies the company is aiming to implement in full in
the market.
Price. Price is the most determinant of the product demand in the market. H&M Company's
product is trending in the market due to its low cost despite the high quality of the products. This
is the critical strategy the business is required to have more attention on it. H&M is facing a lot
of challenge on price but is making it through offering high-quality clothes within its brands
despite the stiff competition in the market. The company is focusing on minimizing the transport
and manufacturing cost amongst the suppliers. This will help to increase the sale and the income
of the company. The company is aiming to use 5C's tool (company, customer, competitors,
collaboration and climate) in setting the price of the product as discussed above the amount the
company management will consider the customer demand and the market competition in
strategizing the market price.

Marketing Plan 10
Distribution. Also, it is recognized as a "place." This is described as the means which the
product is channeled from the primary producer to the final consumer. This means should be
viable, convenient and adequate in reaching many customers in the market without delay. H&M
Company should have excellent and reliable channels which will attract the trust of the
customers to the company. Currently, the company is using different outlets in the main town
and shopping areas in both locally and internationally. Other means the company is utilizing is
using the third party in the market by forming a franchising partnership with other famous
organization in the market. Online stores are also available which facilitate online means of
payment and delivery of the product to the doorstep of the client. This is an emerging trend in the
market thus making the selling and purchasing process very simple and convenient at any time of
the demand. All the above is the current means the company is using as the supply chain means
while trying to expand more through e-commerce trading.
Promotion. This is the means of advertising and making product awareness in the market
(Andrews & Shimp, 2017). This is a very significant activity since the company cannot
manufacture the product and offer them in the exchange without customers’ knowledge.
Therefore, this is an important process which introduces and improves the awareness of the
company's product in the market. If this is performed well by the organization, it improves the
image of the product thus increasing the sales and market share. This promotion is conducted
using different means like direct marketing, public relation, digital marketing, advertisement, and
personal marketing communication.
H&M Company has embraced this promotional strategy through having advertisement through
TV, YouTube, digital marketing (social media marketing), sponsorship, franchise methods, cash
discounts, and promotion codes. All these means have improved a lot the image and awareness

Marketing Plan 11
of the product in the market despite the healthy competition available. Using all these means the
company is required to finance the promotional methods to achieve the marketing objectives and
goals. The company is aiming to utilize this mechanism of Integrated Marketing Communication
tool in the market, therefore, making the marketing goals currently and in the future. This means
provides effective and efficient communication between the existing and potential customers and
the company itself thus helping in making marketing decisions. This has identified through
several means which H&M Company has selected like, advertising, sale promotion, public
relations, direct marketing, sales promotion, personal selling, and internet marketing. The
following is the budget of $ 50,000 which H&M Company is planning to spend and achieve
valid product promotion in the entire market.
ICM TOOL Projected cost (per year) Temporary/Permanent
Advertising $ 10,000 Permanent
Public relation $ 9,000 Temporary
Sales promotion $ 7,500 Permanent
Direct Marketing $ 7,000 Temporary
Personal selling $ 7,500 Permanent
Internet Marketing $ 9,000 Permanent
TOTAL $ 50,000
Source: Manually created (2019).
H&M Company will use this budget over one year to control the promotion activities in the
market. Some of the integrated Communication Promotion tools will be used temporarily while
other permanent meaning some of them are more powerful for an extended period.

Marketing Plan 12
References
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education. https://www.amazon.com/Advertising-
Promotion-Integrated-Marketing-Communications/dp/0324593600
Kim, P., Chang, H., Vaidyanathan, R., & Stoel, L. (2018). Artist-brand alliances to target new
consumers: can visual artists recruit new consumers to a brand? Journal of Product &
Brand Management, 27(3), 308-319. https://www.emeraldinsight.com/journal/jpbm
Mindtools.com. (2019). The Marketing Mix and the 4PsUnderstanding How to Position Your
Market Offering. [online] Available at:
https://www.mindtools.com/pages/article/newSTR_94.htm [Accessed 23 Apr. 2019].
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), 467-489.
https://www.researchgate.net/publication/315435070_The_customer_value_proposition_
evolution_development_and_application_in_marketing.
Pitt, C., Berthon, P., Cross, I., Hooper, V., & Ferreira, J. (2018, June). Marketing Strategy
Implications of Employee Brand Engagement: Optimism and Commonality: An Abstract.
In Academy of Marketing Science World Marketing Congress, (pp. 285-285). Springer,
Cham.
https://www.researchgate.net/publication/325389756_Employee_brand_engagement_on_
social_media_Managing_optimism_and_commonality