Marketing Essentials: H&M Marketing Report - Strategies and Analysis

This report offers an in-depth analysis of H&M's marketing strategies. It begins by outlining the key roles and responsibilities of the marketing function within H&M, emphasizing its importance in driving sales and growth. The report then explores the interrelationships between the marketing department and other crucial departments such as HR, finance, production, sales, IT, and logistics, highlighting the collaborative efforts required for effective marketing. Furthermore, the report includes a comparative analysis of the marketing mix (7Ps) of H&M and Zara, examining how each company applies these elements to achieve its business objectives. Finally, the report concludes with the development and evaluation of a basic marketing plan tailored for H&M, aiming to enhance its market presence and profitability. The report utilizes various sources and comparisons to deliver a comprehensive overview of H&M's marketing approach.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Key roles and responsibilities of marketing function in H&M........................................1
P2: Interrelation of the marketing department with other departments of the organisation...2
TASK 2............................................................................................................................................4
P3: Compare the ways in which different organisations apply the marketing mix to achieve
business objectives.................................................................................................................4
TASK 3............................................................................................................................................7
P4: Develop and evaluate a basic marketing plan..................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is the process of creating, organising and promoting of products and services
in an organisation for satisfying the needs and requirements of consumers in order to gain more
profitability and revenue. It is essential for any firm to have their unique marketing strategies and
policies for enhancing their sales and growth in the market. The taken organisation in this report
is H&M which is a large retail clothing company in Europe. This report is consist of two parts,
1st part is presentation on key roles and responsibilities of the marketing along with
interrelationships between marketing and other departments in an organisation. 2nd part will
cover the comparison of 7p's of marketing mix of two companies i.e. H&M and Zara for
accomplishing the desired organisational and worker's goals. A basic marketing plan for the
H&M is being developed for the organisation for gaining more sales and growth in the given
market.
TASK 1
P1: Key roles and responsibilities of marketing function in H&M
Marketing department plays a crucial role in the development of an organisation. Without
a proper marketing department, sales and growth of the company can be decreased. So, it is the
prime responsibility of an organisation to properly use their marketing department for enhancing
the sales of a product. Marketing function helps the firms to identify their potential products and
then promote these products by differentiating them from regular products. The main role of
marketing department of is to collect the statistics regarding the changes in customer's behaviour
and trends of market and implementing required policies and strategies for the success of the
products and the company. Marketing function includes doing market research, developing a
marketing plan, development of promotion strategies, distribution, customer relations etc.
Various roles and responsibilities of marketing department are given below:
Pricing: Marketing department is responsible for setting the prices of a product. The
price is set by combining the cost of production, transportation, promotion etc. The prices set by
the marketing manager of H&M are affordable for the customers and quality of the products are
not compromised which will help in retaining the old customers and attracting new potential
customers.
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Product management: It involves designing, development, maintenance of the products.
It is also useful for improving the quality of products provided by the firm. H&M managers are
doing their best for improving the quality of their products by taking feedbacks and suggestions
from the customers and improve the areas in which change is required.
Distribution: It is the major responsibility of marketing department to determine the best
channel of distribution and supply chain for delivering the products on time and unharmed.
Marketing managers of H&M are analysing the various distribution channels for selecting the
best option available in order to provide the products to the customers on the required time.
Financing: Marketing department decides the budget required for marketing and
promotion strategies to perform their operations carefully in a predetermined time. Managers of
H&M are providing financial assistance to their end users for buying their products and services.
This will help in increasing the sales of products and hence improve the productivity of the
company.
Promotion: Marketing department communicates with the end users in order to achieve
the desired growth and sales. This department influences the mind of customer to purchase their
products according to the demand through advertising, publicity, public relations etc. for driving
the growth in the sales of the product.
P2: Interrelation of the marketing department with other departments of the organisation
Marketing department alone cannot work efficiently and effectively without the help of
other departments. It needs help from various departments such as HR, production, logistics,
sales and finance department in order to enhance the sales and growth of the products. With the
cooperation of these departments, marketing department can effectively perform their operation
for promotion and advertisements of the various products. Interrelation of some of the
departments with marketing department are given below:
HR department with Marketing department: Human resource department is responsible
for recruiting the potential and skilled candidates to the company. So, it is necessary for HR
department to select potential and knowledgeable candidates for marketing department in order
to achieve the targets and goals of marketing department. With skilled and knowledgeable
candidates, marketing department can perform their activities and operations effectively without
any barriers for increasing the sales.
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Finance department with Marketing department: Finance department allocates the
required budget to various departments for performing their operations properly. The marketing
department needs help from finance department for purchasing the expensive tools required for
promotion and marketing of products. With proper funds, marketing department can purchase the
necessary tools required for the implementation of marketing strategies for ensuring the
enhanced drive in the growth of sales of the products.
Production department with Marketing department: Production department controls the
process of production from raw materials to the finished product. Marketing department needs
information and unique qualities of products for conveying these to the customers for influencing
their decisions to purchase the products. The marketing department then ensures to convey this
information to the customers through promotional and marketing campaigns for the growth in
sales and profit of the products.
Sales department with Marketing department: Sales department is responsible for
bringing the potential clients to the company for improving the profit and sales. Whereas the
marketing department brings the customers to the firm using marketing techniques and strategies
for increasing the sales. Marketing department can take help from sales department for targetting
only the potential customers. The marketing department can also take help from sales department
regarding posting jobs on online platforms for providing potential candidates to marketing
department.
IT department with Marketing department: IT departments supplies the required
technology and tools to various departments for increasing their efficiency. In case of H&M, IT
department is responsible for providing the latest tools and technology to marketing department
for effectively promoting their products and services in the market. With the right tools and
technology, marketing department can control and monitor activities of promotion and
advertisement towards achieving the desired goals.
Logistics department with Marketing department: Logistics department is responsible
for the supply and distribution of the products in predetermined time. Marketing departments
needs help from logistics department to ensure the delivery of products are on right time and that
the products are unharmed during the transportation process. It will help the marketing
department to provide the unharmed and quality products to the customers on the right time of
demand.
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TASK 2
P3: Compare the ways in which different organisations apply the marketing mix to achieve
business objectives
H&M desires to increase their customer base by offering quality based products and
services in order to increase their profit and revenue. Marketing mix helps the companies to
identify the various factors which can influence their sales and growth of a new or particular
product. It is also called as integrated marketing approach as it involves combined efforts of the
workforce for carrying out their activities in a proper manner. The 7P's of marketing mix are
price, product, promotion, place, process, people and physical evidence. H&M and Zara is using
the marketing mix for determining the effect of various factors on their new or existing products
performance. The comparison of 7p's of marketing mix are discussed below in detail:
SOURCE: 7P's Marketing Mix. 2018
Marketing mix of H&M and Zara
Basis H&M Zara
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Illustration 1: 7P's Marketing Mix

Price The prices of the products and
services provided by the H&M
is very cheap and reasonable
along with the good quality.
H&M is also providing
discounts and offer son their
products for low prices. H&M
is using economy pricing
strategy for their products.
Zara is using premium pricing
strategy for setting the prices
of their products. Some of the
products of company are
affordable for every customer
whereas some of the products
of the company are expensive
due to the quality of products
and raw materials used for
production of these products.
The prices are sets by
optimising the training and
development costs.
Products H&M has a wide range of
clothes and accessories with
reasonable price and quality.
The product concept of H&M
is EDLP (everyday low-price
product). H&M also provides
sportswear, lingerie, cosmetics
etc.
Zara is providing wide range
of products such as men's and
women's clothing, children's
clothing. The products are
supplied on the basis of
customer's trends and changes
in the market. The products of
cloths are processed in the
distribution centre at Spain.
Place The stores of H&M are
situated at well-known and
famous shopping streets.
H&M also has an online
website which provide access
to the customers to various
products and services offered
Zara is designing, producing
and distributing their products
by itself. The places of Zara
stores are mostly located on
famous streets where the
customer shop more frequently
for quality based products.
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by them. Through this website,
Customers can browse, search
and book their product from
anywhere.
These outlets are located
keeping in mind regarding the
high demands and needs of
customers who desires to live
quality standard and lavish
lifestyle.
Promotion H&M is investing huge
amount of money in the
promotion of their products.
Company is using various
techniques such as outdoor
advertising, video, print
advertisements and direct
marketing for their marketing
process. H&M is also using
famous celebrities for
promotion and advertising
campaigns.
Zara is using 'zero investment
in marketing' strategy for
promotion instead the
company is using this amount
in opening new stores.
Company thought that a firm
does not need any promotion
for their products if the
provided quality is very good.
Moreover the brand image of
Zara is very strong in the
market and known all over the
world.
Process H&M is using latest
technology for their supply
and production process such as
implementing new payment
gateways for the customer's
ease which restricts them to
stand in queue for a long time.
R&D department of H&M is
working continuously for
increasing the efficiency of
their business operations.
Zara is producing their
products themselves in the
distribution centre at Spain.
Zara is using vertical retail
integrations for achieving
growth. The store managers
continuously take feedbacks
and suggestions from the
customers for improving the
quality of their products and
services. The operations and
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Sustainable sources are used
by the company to produce
their products.
supply chain management of
Zara is very good which
ensures that products are
delivered on right time.
People Employees of H&M are
providing good customer
service to enhance the sales of
their products. The workers of
H&M are friendly, interactive
and knowledgeable for
influencing the customer's
mind to purchase the products.
Even the company is providing
them training and other
development programmes for
enhancing their skills.
Zara hires fresh and talented
individuals for their stores and
are trained by the company
itself. These individuals carry
out their activities effectively
in serving the customer best
product on the basis of their
need and requirement. The
communication skills of the
workforce are highly
interactive and leaves a
positive image of store on the
customers.
Physical evidence The stores of H&M are very
spacious along with the proper
lighting and ambience. The
environment is also clean and
hygienic. H&M stores also use
mirrors and glass for the
decoration. These all methods
and tricks are used by the
company to attract more
customers for generating more
profit and revenue.
The stores of Zara are
spacious, well-lit, modern and
predominantly whiter and
walled with mirrors. The stores
left a positive image on the
mind of customers. Customers
of Zara feels same
environment throughout their
stores no matter whether they
are in London, Delhi, Rio de
Janeiro and Paris.
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TASK 3
P4: Develop and evaluate a basic marketing plan
An effective marketing plan is must for any firm to achieve their predetermined goals and
objectives in less time for enhancing their efficiency of sales and performance. It is also known
as the blueprint for carrying out the activities and process of marketing by the marketing
department. The moto of preparing the marketing plan is to decide the path for the promotion
and marketing techniques to be followed in future for increasing the sales and productivity of the
organisation. A marketing plan for H&M is developed and discussed in detail below.
Company background
H&M is the largest clothing retail brand in Europe which is dealing in clothing for men,
women, teenagers and children. H&M is a global company with having 4500 stores in over 62
countries. More than 132,000 people were employed by the company in their stores worldwide.
Company is also operating on online platforms in more than 30 countries. It is the world's second
largest clothing retailer just behind the Zara.
Vision: Vision of H&M is to run their business operations and activities in an
economically, socially and environmentally sustainable way.
Mission: Mission of H&M is to drive long-lasting positive change and improving the
living standards of society by investing in people, communities and innovative ideas.
Provide a smart objective for the marketing plan.
SWOT analysis of H&M
Strengths Weakness
 Large variety of products is a major
strength for the H&M.
 H&M sells their products and services
under different brands which helps in
maintaining unique identity in different
customer's segment.
 H&M is highly dependent on 3rd party
suppliers and these suppliers can effect
the products order commitment.
 Less prices of products often affect the
quality of products produced.
Threats Opportunities
 Changes in clothing trends and fashion
can affect the company. H&M should
 H&M is focusing on emerging and
developed market such as china, India,
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deliver the products according to the
changes in trends.
 Intense competition from Zara in
different segments and countries.
USA etc. which are having huge
opportunities for the company.
 Company has started selling on online
portals which can increase the sales and
profit of the company.
STP of H&M
Segmentation: H&M divides their customers on the basis of sex and age i.e. they are
segmenting their customers on the basis of demographics. H&M can also use geographic
segmentation for their customers on the basis of their economic stability and culture.
Targeting: H&M is targetting men, women, and children of age under 45 for their
products and services. These segments uses fashion clothes often that's why the company is
targetting this segment (Durand and Barlow, 2012).
Positioning: H&M is using various strategies and policies for attracting their potential
customers towards the provided products and services. The company has a good brand image in
many of their operating countries. The products and services offered are also of high quality with
affordable prices.
Marketing strategies
Relationship marketing is most suitable for H&M as it will strengthen the relationship
among workers and customers for generating high profit and growth in the market. The company
can also make their customers loyal and trustful by interaction and taking their feedbacks and
suggestions for improving their products and services. H&M should implement adequate
strategies and policies for improving the quality of their services and products.
Execution
H&M must develop and follow their own and unique marketing plan for carrying out the
activities in a systematic manner towards the desired goals and objectives. Accomplishment of
these goals in a predetermined time will increase the efficiency of company in performing their
operations and activities effectively (Friis, 2012). This will help the company to strengthen their
position and sales in the market.
Evaluation
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This is the process of examining the performance and productivity of the company for
taking decisions considering number, value and amount. It is also the process of evaluating the
business operations which are performed by the organisation in the market. Some methods of
evaluation are given below:
Sales Analysis: It is known as analysis of total sales in a year of a specific product.
Market-Share Analysis: This analysis is used for evaluating the performance of the
products and services of company in the market.
Efficiency Ratios: Ratio of turnover assets- Revenue (Sales)/Net Assets
Cost-Profitability Analysis: This analysis is the evaluation of the expenses with profit
obtained in company (Joshi, 2012).
CONCLUSION
It has been observed from the above report that marketing function is a very vital
function for generating the huge profit and sales. Without proper marketing department, Profit
and sales of the products can be reduced. The marketing department needs help from other
departments such as HR, production, logistics, sales, IT and finance department for performing
effectively in their operations. These all departments must work closely with marketing for
ensuring the increase in sales. The 7p's of marketing mix helps the companies to determine the
potential factors which are effecting the sales and productivity of new or existing products.
These marketing mix must be implemented properly using analysis of Price, product, place,
physical evidence,promotion, people and process. In the end, a effective marketing plan for
H&M has been developed for understanding the importance of marketing essentials.
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Online
7P's Marketing Mix. 2018. [Online]. Available
through:<https://www.smartinsights.com/marketing-planning/marketing-models/how-to-use-the-
7ps-marketing-mix/>.
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