Marketing Mix Comparison: H&M and Next, 1LO2 P3, M3, LO3 P4, M2 & D2

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Marketing Essentials
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LO2
P3: Comparison of the marketing mix of H&M and Next.
Different companies have different type of customers with varied needs and preferences. The
companies also have to research the market and then tailor their products and services according
to the needs of the target market. Here in this section, a comparison is given beneath between
H&M and Next. The comparison will reflect how both companies use their marketing mix.
Product: H&M offers a wide range of products to its target customers. The product line includes
a wide variety of clothes, accessories, and cosmetics. The products produced by the company are
low priced and are of very high quality. The company is focused on the product concept of
ELDP which is the Everyday low price strategy. If the product of Next plc is analysed, the
company also provides a wide range of products to its customers. The main value of the
company is the focus on its quality. The company offers trendy and fashionable clothing and
footwear to the target market. The company produces products for the people of the age of 25-45
(Next Plc, 2019).
Price: The price aspect of H&M is very reasonable. The products offered by the company are
affordable and cheap. The prices of the products are decided by the cost of the products to the
company (H&M, 2019). In comparison to this, the pricing strategy of Next Plc is neutral. The
company adopts the strategy of discounted prices for the promotion of the products.
Place: The places chosen for the stores of H&M are always very good. The stores of H&M are
always located in a very popular area and mall. The company also operates online, and this gives
freedom to the customers to purchase at any time from anywhere. In the case of Next plc, the
company has a lesser number of stores, but the places of stores are unique and popular. The
places are convenient to be visited by the customers. Next plc also have online operations to give
advantages to its buyers.
Promotion: The pricing strategy of H&M is very intensive. The business invests a lot of money
in the advertising and promotion of its products. The company has adopted the strategy of direct
marketing and outdoor advertising to attract more and more customers. H&M also invest in print
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media and visual media to induce the target market. Talking about the promotion mix of Next
Plc, the company does not believe in the strategy of large scale advertising; rather focus on small
advertising campaigns. The company uses its official website for marketing its products (Next
Plc, 2019).
People: People are the employees and workers working in an organisation. The people working
in H&M are focused and committed towards their work. They are also satisfied with the policies
and values of the company (H&M, 2019). The people working at Next plc are also very
committed and highly skilled. They work to their full potentials to maintain the quality of the
products they manufacture. The employees working with Next Plc are motivated and give their
best to the organisation.
Process: Processes are the ways by which the final products are delivered to the target
customers. H&M has a wide distribution channel. The company has its in-house designers and a
continuous flow of production in China and Turkey. This helps the company to maintain low
cost. The company then delivers the designed and produced products directly in the retail stores.
The company has integrated distribution channel. Next Plc has more than 500 stores across the
UK and Ireland. This enables the company to distribute its products to the target market easily.
The company has multi-channel retailing (Next Plc, 2019).
Physical evidence: Physical evidence is the branding and packaging of the products offered by y
the companies. The branding and packaging of the products of H&M are very attractive and
classic. The carry bags provided by H&M are paper made and recyclable. The logo of the
company is also very attractive that grabs the attention of customers. The logo and packaging of
Next Plc are simple but creative. The carry bags are made up of paper.
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M3: Application of different tactics by H&M and Adidas to achieve business objectives.
The tactics applied by H&M are as follows:
Product: The product concept of H&M is Everyday low price. The company offers products t
very low price.
Price: The Company adopts the pricing strategy of low prices.
Place: The locations of the stores are very attractive and easy to access. The ambience of the
store is also very pleasant. There are many other in-house facilities in the stores that make the
stores more attractive (H&M, 2019).
Promotion: H&M uses intensive promotional strategy to have high sales and achieve the
business objectives.
Physical evidence: The company has adopted the strategy of good packaging and labelling to
attract customers.
People: The employees of H&M are provided with suitable training and motivational programs
to make them fully developed so that they can contribute to their full potentials in the
achievement of the organisational goals.
Process: H&M has integrated distribution channel to deliver its products to the target market.
The tactics applied by Adidas are given below:
Product: The Company offers high-quality clothing and footwear to the target market. The
company offers the latest and trendy footwear and sportswear to its customers.
Price: Adidas has implemented the strategy of price skimming to have a larger market share in
the core market (Adidas, 2019).
Place: The stores of Adidas are located in a very good place that is easily accessible to the
customers. The online presence of Adidas also adds to the convenience of the customers.
Promotion: The Company invests a good amount of money in the advertising of the products.
The advertisements on TV are the main advertising policy for the company.
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People: Adidas is very sensitive to the needs of its employees. The company has integrated the
individual objectives of the employees with the main organisational objective to motivate the
employees.
Physical evidence: The packaging and labelling of Adidas are very simple but elegant. The
company focuses on classic design to attract customers.
Process: The process of distribution adopted by the company is a direct distribution channel. By
the direct distribution channel, the company can reduce the cost to the company and earn higher
profits (Adidas, 2019).
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LO3
P4, M2 & D2: Marketing Plan of H&M
Aims and Objectives
H&M aims at sustainable development of the society along with the company. The main aim of
the company is to make effective use of the resources and deliver the best quality and affordable
products to the target customers.
(Fig. 1: Three ambitions of H&M)
(Source: H&M, 2019)
Mission
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H&M has the mission to work on sustainability. The company has a mission to bring a positive
change in society and improve the conditions of society by making a suitable investment in the
community and the welfare of society.
Vision
H&M has the vision to provide fashionable and trendy clothing to everyone at very affordable
prices. The company displays value and ethics in its operations (H&M, 2019).
Long term strategies
 Market orientation: The market of H&M must be highly oriented. The main focus of the
company is to satisfy the diverse needs of its customers. The customer’s orientation can
be different according to the locations. There is a key component that must be included in
the company which is the strategy to always have a competitive advantage over the
competitors. The target of the company is the younger generation which can be another
aspect of its market orientation (Kotler and Armstrong, 2015).
 Market segmentation: Another long term marketing strategy adopted by the company
can be market segmentation. The market of the company should be properly segmented.
The segmentation can be dependent upon the geographical, demographic and
psychographic aspects of the consumers. The segmentation will increase the
competitiveness in the market and also add to the advantage of the company (Liu, et. al.,
2017).
 Limited Edition: The strategy of limited edition clothing can be a very good strategy of
H&M. People love to have clothes that are not possessed by anyone. This strategy will
prove to be efficient and advantageous for the company to have a large number of
customers.
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(Fig. 2: long term strategies of H&M) (Source: By author)
Short-term marketing strategies
 Social media marketing: The trend that must be adopted by H&M is marketing by social
media platforms. The active marketing on social media platforms will be very beneficial
for the company to have customer engagement and interest in the products of the
company (Ashley and Tuten, 2015).
 Sale and discounts: To promote the products, the company should also give discounts at
the end of seasons to the target customers, and this strategy is very effective in earning
larger profits and clearing out the stock.
(Fig. 3: Short term strategies) (Source: By author)
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Market orientation
Market segmentation
Limited Edition
Sale and
discounts Social media
marketing

Marketing Mix
 Product: The company must add more products to its product line. The company must
try to have global trends in the styles of products that they produce. The target market of
the company is the younger generation, and it is important for the company to take care
of the needs of the target market by providing them with the latest and trendy products.
 Price: The pricing strategy of the company is good. There is another strategy that the
company can implement is deciding the prices according to the pricing strategies of the
competitors.
 Place: The stores of the brand must be available very easily so that everyone can visit the
store for making a purchase. The online stores must have a user-friendly interface so that
the customers do not have any difficulty in selecting and ordering their chosen products.
 Promotion: The Company is investing a lot of money in the promotional strategy. One
more strategy that can help the brand to increase its sales in the digital and social media
marketing. The activeness on Twitter, Instagram and other social media platforms will
create a positive image of the company in the minds of the target customers (Armstrong,
G., et. al., 2015).
 People: The employees of the organisation must be involved in the decision-making
process so that more innovative ideas can be generated for the production of the products.
 Process: The Company must adopt the strategy of intensive distribution and a very
transparent distribution channel to increase the sales and profitability of the brand
(Dolnicar, et. al., 2018).
 Physical evidence: The labelling and packaging of the company can be made more
attractive and interesting by using attractive graphics and designing a new logo for the
brand.
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References
 Adidas, 2019. About Adidas. [Online]. Adidas. Available at: https://www.adidas.com/us.
[Accessed 14 Mar. 2019].
 Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V. and Gaudet, D., 2015. Marketing: an
introduction.
 Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An
exploratory study of branded social content and consumer engagement. Psychology &
Marketing, 32(1), pp.15-27.
 Dolnicar, S., Grün, B. and Leisch, F., 2018. Step 9: Customising the Marketing Mix.
In Market Segmentation Analysis. Springer, Singapore. pp. 245-254.
 H&M, 2019. Vision & Strategy. [Online]. H&M group. Available at:
https://about.hm.com/en/sustainability/vision-and-strategy.html [Accessed 14 Mar.
2019].
 Kotler, P. and Armstrong, G., 2015. Principles of Marketing-Global Edition. Pearson.
 Liu, Y., Li, K.J., Chen, H. and Balachander, S., 2017. The effects of products’ aesthetic
design on demand and marketing-mix effectiveness: The role of segment prototypicality
and brand consistency. Journal of Marketing, 81(1), pp.83-102.
 Next Plc, 2019. About Next. [Online]. Next Plc. Available at: https://www.nextplc.co.uk/
[Accessed 14 Mar. 2019].
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