Marketing Essentials: A Comparative Analysis of H&M and Next

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MARKETING ESSENTIALS
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Table of Contents
Introduction...................................................................................................................... 3
Task 2.............................................................................................................................. 4
P3 Compare the ways in which H&M and Next apply the marketing mix to the marketing
planning process to achieve business objectives.............................................................4
M3.................................................................................................................................... 6
P4 produce and evaluate a basic marketing plan for H&M..............................................8
M4.................................................................................................................................. 10
D2.................................................................................................................................. 10
Conclusion..................................................................................................................... 12
References.....................................................................................................................13
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Introduction
Marketing is considered to be the study as well as management for exchange
relationships. However, marketing is termed as a business process for creating
relationships along with satisfying the customers. Hence, with the focus upon
customers, marketing is known to be the premier component for business management.
Thus, the present study focuses upon the concept of marketing essentials within the
organization of H&M. It is a retail multinational clothing organization that is `mainly
considered for its fast fashion clothing for women, men, children and teenagers as well.
This company is known to operate across 62 countries. Mission of H&M is to drive a
positive change that is long lasting and to improve the living conditions through
investing in communities, people along with innovative ideas as well.
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Task 2
P3 Compare the ways in which H&M and Next apply the marketing mix to the
marketing planning process to achieve business objectives
The term marketing mix is known as a toolbox through which, the marketers may
choose elements for influencing the target market (Blythe and Martin, 2019).
Factors H&M Next Plc
Product H&M company is known to be a
trusted apparel brand and mainly
focuses upon the quality along with
latest fashion trends with an
affordable price and can launch a
new product with regular intervals.
Thus, they seem to appeal for
younger segments and result out
to have higher product sales.
The concerned organization
consists of a wider range of
products, which involves clothing,
food and similar other services as
well. For catering product line
expansion, it has expanded the
organization to online marketing as
well.
Place This organization is ranked as
second retail clothing line across
the globe. The customers finds the
outlet of H&M in a convenient
place as, they can shop for various
products in one store. However,
the organization has expanded on
different locations at a faster rate
that can be easily accessible along
with reasonable price.
Next also consists of various
stores that are spread far as well
as wide within the world (Nextplc.
2019). Moreover, it comprises of
two channels for distribution
regarding the services and
products that is for offline and
online. The offline forum of the
company has different kinds of
stores. Hence, it uses small stores
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for making easier accessibility.
Price H&M consists of such a pricing
strategy that has a broader range
of pricing for suiting each sphere of
the buyers along with
merchandiser. For maintaining
median strategy of pricing, the
company has a lot of stock within
the discounted section. Apart from
this, they also offers schemes and
discounts upon their fresh and core
stocks.
Next maintains a low price without
the reduction of product quality or
loss. For maintaining all
advantages of cost to their
customers and at the same time to
keep them satisfied, the company
makes use of various measures
that involves economies of scale
that is enjoyed. Apart from this, it
also makes use of a club card
system that allows their customers
to collect points regarding the
purchase.
Promotion This company have always been
up for its promotional strategies
and marketing. Based on the use
of exceptional strategies for the
concerned organization, they have
been known to get associated with
various exclusive designers who
have a unique brand of marketing
(H&M. 2019).
The main advantage of this
organization is its affordable and
reasonable price that makes it
stand out from the chain of
supermarket. However, it also
provide certain attractive offers for
the customers. Nevertheless,
additional discounts are offered to
the customers through the use of
club card system.
Physical
evidence
This company is more into the
exterior decoration and presence
of the business. For instance, it
involves uniforms for the
The stores of Next are not
elaborated. The reason is that, the
company do not spend much more
than the necessary amount for
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employees, signage and
stationary, advertising material,
business cards and similar other
factors.
furnishing stores. Hence, it is easy
for navigating categorization of
products.
People H&M makes use of different
training and development
programs for the employees for
educating them about new and
innovative products and services.
This in turn makes the employees
stress free and provide good
service to the customers as well.
The sales assistants of Next are
equally responsible for the
success. It makes use of various
programs like colleague Privilege
card, Buy as you earn, Save as
you earn for gaining the
commitment of its employees.
Process For retaining the target customers
and attracting new base of
customers, H&M make use of
different activities such as online
delivery system. The company
mainly focuses upon employment
of competent staff and also paying
attention for the customer
grievances along with any issues.
The aspect of process within the
particular organization is
concerned with making the
customers happy and satisfied.
This involves activities like fast
billing service along with easy
accessibility of products within its
online and offline stores.
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Figure 1: Marketing mix
Source: (Malhotra, 2018)
M3
Every organization has their own strategies to achieve their business objectives for
being stable within the market (Bauer, 2018). In comparison with Adidas, H&M aims for
achieving a positive climate value chain through 2040. However, for ensuring fair
business objectives, the company works for implementing better wages regarding the
workers. On the other hand Adidas goals for increasing their sales through 60% by
increasing the net income around 15% within the next few years. Thus, both the
companies make use of different marketing strategies for obtaining their objectives in
best possible ways. These strategies are discussed below:
Strategies of H&M
Cost leadership strategy: This strategy highlights to become the lowest competitor of
cost. Cost leadership is generally acquired through technological economies,
economies of scale and through unique access over raw materials (Zahay et al., 2018).
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H&M organization keeps a lower cost for their products as compared with the other
competitors of the market. The company makes use of this strategy without
compromising their quality of products. This strategy might not provide effective results
in case, the competitor organizations also makes use of it. In that case, the specific
strategy can start the industry within a cost that is cutting death spiral.
Differentiation strategy: This strategy denotes the production of various services and
products that can provide a superior value for the customers (Uncles, 2018). The
particular strategy is known to cost more that eventually allows the company for
charging more as compared with the other organizations for earning above average
profit of industry. However, for offsetting the higher costs, organizations should cut the
other costs in non-core areas.
Focus strategy: This emphasizes in targeting a specific segment of industry and
avoiding the rest (Eletxigerra et al., 2018). Generally, the particular focus area is where
the competitors may be weak. It is a marketing strategy that helps in concentrating upon
the resources of the company for expansion of industry segment and narrow market.
Strategies of Adidas
Segmentation
Adidas is termed as the largest manufacturer company of sportswear in Europe. The
segmentation of this specific organization relies upon the psychographic, demographic
and the behavioural factors as well. Based on its segmentation, Adidas group consists
of four brands within its strong portfolio such as Reebok, Rockport and Taylor and
adidas that made different groups of customer segments.
Targeting
Adidas makes use o0f different strategies for targeting the population of young adults
and children who consist of passion for sports and fitness. However, it targets a base of
customers within the age group of 13-40 (Adidas. 2019). Nevertheless, majority
customers are within the age group of 15-30 years who are known to hail through upper
middle class and the luxurious customers as well.
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Positioning
Adidas makes use of user and benefit of positioning strategy for creating distinctive
image within the mind of prospective customers. Through highlighting the value for
product quality, adidas maintains the brand essence. For instance, the particular
organization comprises its performance within the competitive sports. They also
participate in the sport fashion as well.
P4 produce and evaluate a basic marketing plan for H&M
Marketing Plan
Mission
statement
The purpose based on H&M is to offer their targeted customers with
quality and fashionable products with best affordable price.
However, it aims for driving a positive change that is long lasting and
to improve the conditions of living through investing in communities,
people along with innovative ideas.
Target Market The target market based on H&M and similar other organizations
are men, children and women that are the young adults who are
fashionable, price conscious and are aware of the trends of fashion
for different season. Thus, price points allow the target market of the
organization to stay within the top trends along with updating their
style as well.
Services Regarding the services of H&M, it is committed for providing the
service of a higher level to the customers, contractors, vendors and
many more people who wants to access its services, goods and
facilities.
Promotional or
marketing
H&M is known to spend many efforts for promotion in case of both
outdoor or indoor advertising, and direct market as well. It also
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strategies makes use of H&M magazine and invites press that is the famous
blogger within UK. apart from these, it also makes use of other
promotional and marketing activities that are mentioned below:
 Publicity or public relation
 Advertising
 Sales promotion
 Personal selling
 Direct marketing
Competition There are many competitor organizations of H&M such as Gap,
Zara, URBN, Semard and similar other clothing retail organizations.
These competitors all together have raised across 127.0M within the
estimation of 243.1K employees. However, H&M consists of
171,000 employees and is also ranked first within its top
competitors.
Marketing goals The goals of marketing for H&M are to build a demand for the
sustainable clothing that can ensure that the concerned organization
makes use of accessible points of price. Nevertheless, the award of
Global Change for H&M is considered as a challenge for annual
innovation that looks for new products, ideas along with solutions
which help in making circular fashion as well as protect the planet.
M4
H&M makes use of the above marketing plan for launching any new product or service
and for expanding its business in other locations. The company offers various concept
for men, women, children and teenagers and involves everything through modern
basics to the higher fashion. Thus, the collections of the company are known to be
supplemented by the use of contrasting nightwear, accessories and cosmetics. Thus,
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the above marketing plan for the specific organization is attainable as, they make use of
different strategies and concepts to market their products to the target customers.
D2
Strategic plan of ,marketing is considered as an ongoing process with which, the
concerned organization can create its plans for developing new strategies of marketing
along with its implementations within the target market (Okumus and Cetin, 2018). The
strategic marketing plan based on the use of 7Ps of marketing mix is mentioned below:
Product There are various ranges of products for H&M. it makes use of certain
factors through designer collaborations for yoga wear and everyday
basics. It makes trendy fashionable clothes for young adults.
Price It offers quality based clothes in a premium price. In comparison with the
other competitor organizations of H&M, it is known to offer relatively
lower price based on the pricing strategy.
Place It sells the products within the exclusive stores that are located in larger
cities over the whole world. However, it sells its products by franchising
partners due to the regulatory norms of some countries.
Promotion H&M consists of a wider range of products for portfolio catering within
various segments. It makes use of multi-channel strategy of promotion. It
makes use of digital marketing, sponsorships, TV advertisements and
similar other strategies
Process The company gives importance to the management of customer
relationship. Employees are trained for retaining customers who are
highly profitable through providing better offers and services.
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People The employees of the concerned organization are trained effectively for
every step or level of work. It consist of a modern working culture and
employees are generally with a basis of rotation for every department
and are highly motivated for coming up with the ideas of best clothing
wears.
Physical
evidence
H&M stores comprises of great ambience along with humble staffs.
However, the apparel is arranged for having decent look that appeals for
the customers. Nevertheless, merchandise has excellent quality along
with latest trends as well.
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