Marketing Analysis of H&M: Promotional Strategies and AIDA Model

This report provides a comprehensive analysis of H&M's marketing strategies, focusing on its promotional mix, application of the AIDA model, and utilization of push and pull strategies. The report begins with a summary of H&M's marketing approach, highlighting its use of social media, online advertisi...Read More

Running head: PRINCIPLES AND PRACTISE OF MARKETING
PRINCIPLES AND PRACTISE OF MARKETING
Name of the Student:
Name of the University:
Author note:

1PRINCIPLES AND PRACTISE OF MARKETING
Table of Contents
Task 1:........................................................................................................................................2
Poster......................................................................................................................................2
Summary on Marketing of H&M...........................................................................................3
Task 2.........................................................................................................................................4
1. Introduction............................................................................................................................4
2. Discussion..............................................................................................................................5
2.1. Promotional Mix of H&M..............................................................................................5
2.1.1. Advertising...............................................................................................................5
2.1.2. Selling......................................................................................................................5
2.1.3. Public Relation.........................................................................................................6
2.1.4. Sales promotion........................................................................................................6
2.1.5. Direct Marketing......................................................................................................6
2.2. How H&M applies AIDA model in its business.............................................................7
2.2.1. Attention...................................................................................................................7
2.2.2. Interest......................................................................................................................7
2.2.3. Desire.......................................................................................................................7
2.2.4. Action.......................................................................................................................7
2.3. Push and Pull Strategies of H&M...................................................................................8
Conclusion..................................................................................................................................8
References:.................................................................................................................................9

2PRINCIPLES AND PRACTISE OF MARKETING
Task 1:
Poster

3PRINCIPLES AND PRACTISE OF MARKETING
Summary on Marketing of H&M
H&M (Hennes & Mauritz) is one of the leading clothing and fashion brand in
Sweden. It was founded by Erling Persson in the year 1947. It is widely known for its
inexpensive, innovative and really fashionable clothing and accessories offerings. The brand
is considered to be one of the worlds’ most preferred and favourite brand of clothing for both
men and women. It is to note that H&M highly use social media platform in order to build
strong relationship with its potential and current customers. Its focus in not only on
advertising but on building strong relationship with its target market. It has newsletters
prevailing on its websites and it advertise online. It is also to mention that the company
highly focus on the U.S market as it is the largest market for e-commerce in the world.
However, there are only eight nations that are able to shop H&M products through online
medium and at present, Germany is the number one market for H&M. H&M have over
1,688,500 followers in Twitter and there are more than 13 million likes in its Facebook posts.
With the same, about 28,000 people have subscribed to its YouTube pages. The supermarket
offers fast fashion clothing for children, women and men and it offers a wide range of
clothing brands all over the globe. Both the apps and websites are the key in their digital
communication strategy as well as their regular updates on the seasonal trends and the
innovative promotional campaigns
On the Facebook page of H&M, one can see posts on its apparel marketing, different
YouTube videos from its YouTube pages, inspirations, sales and discount updates and behind
the scene images and pictures of the photo shoots. The brand has also launched its iPhone app
in order to make people get an easy access to all its product range. It also offers high quality
clothes at premium price. There are a total of 4135 stores of H&M. With the same, it has
several online stored from where the customers can buy, selecting from a wide range of
options of available products. The products are delivered right to the doors of the customers.

4PRINCIPLES AND PRACTISE OF MARKETING
It also sells its products through exclusive stores that are usually located in the cities all over
the globe. It makes use of Television advertisement with creative ads, YouTube channels for
delivering unique advertisement campaigns, digital marketing strategy where it indulges in
high search engine marketing, promo codes and attractive discounts during as end season
sales and at the same time, engages in sponsorships as well. With the same, the company also
traffic more customers by placing in some audio advertisements on the music player called
Spotify that place them ahead of its competitors. It is to note that H&M raise the interest of
the customers by making use of celebrity endorsements like Lady Gaga. In its online
websites, H&M provides each and every minute detail about its products and servings so that
the viewers can stay clear and choose according to that.
Task 2
1. Introduction
Understanding of the customers is a topic that is often discussed among the business
practitioners and the academicians. In this modern world, market orientation has become one
of the most discussed and most popular business philosophies in all most every major
corporations and in majority of the business schools (Baker 2016). It is a key of the retail
brand strategy. There are several retail business that sell similar products like that of their
competitors but it is very important to form a competitive edge in order to create a unique
position in the business market. The quality of the product, its price, the place it is distributed
and the way it is promoted and advertised plays the most important role in setting a strong
market position for the brand. This report is going to elaborate on describing the promotional
mix strategy used by H&M, a clothing retail company and would also shed light on the
effectiveness of the strategy it uses. However, the main aim of this report is to present how
this supermarket applies the AIDA model and the push and pull strategy in its business.

5PRINCIPLES AND PRACTISE OF MARKETING
2. Discussion
2.1. Promotional Mix of H&M
2.1.1. Advertising
H&M offers fast fashion clothing for children, women and men and it offers a wide
range of clothing brands all over the globe. Its focus in not only on advertising but on
building strong relationship with its target market. It has newsletters prevailing on its
websites and it advertise online. H&M have over 1,688,500 followers in Twitter and there are
more than 13 million likes in its Facebook posts. With the same, about 28,000 people have
subscribed to its YouTube pages. Both the apps and websites are the key in their digital
communication strategy as well as their regular updates on the seasonal trends and the
innovative promotional campaigns
2.1.2. Selling
The supermarket offers high quality clothes at premium price. Its main competitors
include Zara and GAP. When compared to these brands, the product price of H&M are
comparatively lower as a part of its marketing mix pricing strategy. It is because of the fact
that the transportation and the manufacturing costs by H&M are lower. The supermarket
mainly focus on minimising the costs. With the same, as compared to its competitors, this
company offer more range of products. On an average its product prices are 25$ but at the
same time, the same of Zara is 45$ (Viardot and Nylund 2017).
It sells its products through exclusive stores that are usually located in the cities all
over the globe. There are a total of 4135 stores of H&M. In some of the nations because of
the regulatory norms, the company offer all its products by means of its franchising partners.
With the same, it has several online stored from where the customers can buy, selecting from
a wide range of options of available products. The products are delivered right to the doors of
the customers. However, the Cheap Monday products are sold through some selected retailers

6PRINCIPLES AND PRACTISE OF MARKETING
throughout the world and through standalone stores such as its store in London (flagship
store) (Xie, Neill and Schauster 2018).
2.1.3. Public Relation
H&M works on international level, basically with the media relations, the fashion
PR, the investor relations and the internal communication. They collaborate with each and
every departments at their Head Office and with the communication professionals of local in
every markets. The internal communication focus on all the internal corporate inspiration,
communication and information (Chandrasekaran, Srinivasan and Sihi 2018). Fashion PR on
the other hand create international PR activities and at the same time, develop some strategies
for highlighting their fashions and designs. With the same, the Media Relations provide clock
service to the global media and the investor relations ensure that the financial information of
the company are communicated clearly.
2.1.4. Sales promotion
As H&M have a wide range of product portfolio from diverse segments, therefore, it
makes use of multi-channel promotional strategy in its marketing mix. It makes use of
Television advertisement with creative ads, YouTube channels for delivering unique
advertisement campaigns, digital marketing strategy where it indulges in high search engine
marketing, promo codes and attractive discounts during as end season sales and at the same
time, engages in sponsorships as well (Percy 2016). It also engage in CSR activities (Planet,
Equality, Education and Water).
2.1.5. Direct Marketing
H&M sends direct mails and newsletters to the customers’ mailboxes in innovative
ways. The company also engages in sales promotion through different campaigns, event
marketing and the sponsorship PR. It has newsletters prevailing on its websites and it

7PRINCIPLES AND PRACTISE OF MARKETING
advertise online. It places attractive discounts when customers sign up to their apps, websites
or their newsletters.
2.2. How H&M applies AIDA model in its business
2.2.1. Attention
H&M attracts its customers’ attention by placing attractive discounts when customers
sign up to their apps, websites or their newsletters. With the same, the company also traffic
more customers by placing in some audio advertisements on the music player called Spotify
that place them ahead of its competitors like Zara and GAP, who have not yet branched on
this platform (Shaari and Hong 2018).
2.2.2. Interest
It is to note that H&M raise the interest of the customers by making use of celebrity
endorsements like Lady Gaga and at the same time, by sharing their creation of their own
blogs and showcasing their dedication towards the ethical rights. In its online websites, H&M
provides each and every minute detail about its products and servings so that the viewers can
stay clear and choose according to that.
2.2.3. Desire
In order to convince its customers that H&M deliver the product that they desire for,
the company present them in a very clear way and make use of several deals in terms of
seasonal periods. This makes the customers feel that they are receiving more for their money.
2.2.4. Action
In this way they take further actions and buy the products by means of signing up in
online websites or in company apps (Richards, Hamilton and Yonezawa 2017). It is to
mention that both the apps and websites are the key in their digital communication strategy as

8PRINCIPLES AND PRACTISE OF MARKETING
well as their regular updates on the seasonal trends and the innovative promotional
campaigns are something that shape themselves as the key contender.
2.3. Push and Pull Strategies of H&M
By making the brand experience meaningful for its customers and at the same time,
the exchange valuable, H&M is offering the customer products like fashion accessories,
clothing, handbags etc. The company is using the pull strategy where the mass media
advertisement is used in the global market. With the same, it is also using International
Structure for its products’ structure in order to maintain the product value in the international
or global business environment. For H&M, it is also an evident that its market size share
against its competitors is of a great advantage as they are all positioned at low price and
modern market segment. They are also targeted at the contemporary urban consumer. In such
case, H&M provide its target market its product and issues pertaining to the loyal customers.
Also their self-concept and habits are also evaluated by the company. According to Haleem
and Jehangir (2017), the target market of the company is stable. It is pricing its products and
services competitively in the market. The management team of H&M believes that their
products have some defensible yet unique attributes that have the potential to support high
price.
Conclusion
Hence, from the above analysis it is clear that the innovative strategies used by H&M
on both its mobile applications and websites have led it towards becoming a successful and
widely popular fashion brand today. Their websites and apps are very easy to access and have
a very clear layout. Their mobile application depicts their innovation and creativity through
the scan feature that develops in in the online and store connection. With the same, the
company has also engaged itself in engagement and traffic by means of their promotional

9PRINCIPLES AND PRACTISE OF MARKETING
campaigns that comprise of the celebrity endorsements like Lady Gaga. This have lead the
company to achieve a huge marketing success.
References:
Arrigo, E., 2018. The key role of retail stores in fast fashion companies: The H&M case
study. In Contemporary Case Studies on Fashion Production, Marketing and Operations (pp.
121-137). Springer, Singapore.
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Chandrasekaran, D., Srinivasan, R. and Sihi, D., 2018. Effects of offline ad content on online
brand search: Insights from super bowl advertising. Journal of the Academy of Marketing
Science, 46(3), pp.403-430.
Haleem, F. and Jehangir, M., 2017. Strategic Management Practices by H&M PLC, UK.
Analysis, Lessons and Implications. Middle East Journal of Business, 12(3).
Percy, L., 2016. Strategic advertising management. Oxford University Press.
Richards, T.J., Hamilton, S.F. and Yonezawa, K., 2017. Variety and the cost of search in
supermarket retailing. Review of Industrial Organization, 50(3), pp.263-285.
Shaari, A. and Hong, T.T., 2018. Evolution in Fashion Retail: Comparing Fashion Specialty
Store and Department Store in Malaysia. INTERNATIONAL JOURNAL OF ACADEMIC
RESEARCH IN BUSINESS AND SOCIAL SCIENCES, 8(9).
Viardot, E. and Nylund, P.A., 2017. Conquering the Digital Customer: How Zara Is
Confronting the Digital Innovation Revolution. In Socio-Economic Perspectives on
Consumer Engagement and Buying Behavior (pp. 334-354). IGI Global.