Marketing Essentials: H&M Marketing Strategy Analysis Report

This report provides a comprehensive analysis of H&M's marketing strategies, focusing on the application of marketing principles within the UK fashion industry. The report begins with an overview of the marketing concept, key roles, and responsibilities within a marketing function. It then delves into the 7Ps of the marketing mix (Product, Price, Promotion, Place, People, Process, and Physical Evidence), examining their significance in H&M's operations. The report further includes a basic marketing plan for H&M, incorporating company and market analysis, internal and external environment analysis, SWOT analysis, and strategic objectives. It also covers segmentation, targeting, and positioning strategies, alongside tactics and action plans. The analysis explores the interrelation of marketing with other functional departments and emphasizes the importance of effective interdepartmental collaboration. The report offers insights into H&M's competitive advantages and its approach to the fashion market, concluding with a summary of key findings and recommendations.

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Marketing Essentials
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Marketing Essentials
Table of Contents
Task 1..........................................................................................................................................................3
The concept of Marketing............................................................................................................................3
Key roles and responsibilities of the marketing function.............................................................................4
Importance of role and responsibilities of the marketing function...............................................................6
The interrelation of the marketing with other functional departments of H&M..........................................7
Significance of effective interrelationship between different functional departments of H&M...................8
Task 2..........................................................................................................................................................9
7Ps of marketing mix...................................................................................................................................9
Product....................................................................................................................................................9
Price......................................................................................................................................................10
Promotion..............................................................................................................................................10
Place......................................................................................................................................................11
People....................................................................................................................................................11
Process...................................................................................................................................................12
Physical evidence..................................................................................................................................12
Summary...............................................................................................................................................12
Task 3........................................................................................................................................................14
Produce and evaluate a basic marketing plan for H&M.............................................................................14
Company overview................................................................................................................................14
Market analysis......................................................................................................................................14
Internal analysis.....................................................................................................................................14
External analysis....................................................................................................................................15
SWOT analysis......................................................................................................................................15
Objectives..............................................................................................................................................16
Strategy.................................................................................................................................................16
Segmentation, targeting and positioning................................................................................................17
Tactics & Action....................................................................................................................................18
Conclusion.............................................................................................................................................18
References.................................................................................................................................................19
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Task 1
The concept of Marketing
The fashion industry of the UK count on upon the consumer dependability and client loyalty.
Discussing the H&M which is a popular fashion retailer of the UK which includes marketing
concept along with few components, for example, wishes of clients, the rate of products and
current market opportunity. Every single portion of the marketing concept has its separate
essentialness. Other than that, requirements of the clients are the conspicuous part in the
marketing concept. As demonstrated by Paul (1996), to meet the desire of clients, the
management of H&M needs to give a refreshed form and low priced fashion clothes to their
clients. Along with this side, with the assistance of this marketing strategy, the management of
H&M can expand the rate of their potential clients by providing good clothes and accessories in
low price. Along with that, the cost of fabric is one of the delicate issues from the side of the
client's end. At the end of the day, the vast majority of the clients require the latest fashion at the
least rate. Consequently, the management of H&M needs to think about current rival companies
like ZARA (Ellis, 2002).
Strategy: in order to increase sales revenue, H&M needs to implement effective marketing
strategies such as low price strategy, discount strategy and promotional strategy.
Market research: in order to determine current market opportunity, the market research technique
is mainly used. Market research includes interviews, questionnaire and respondents who provide
response as information.
Product Development: product development process is measured by information which is
collected from primary and secondary data collection research methods.
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Communications: the feedback of the customers help the management to improve product
development process which is based effective communication system.
Sales Support: with the help of sales report, the management can determine current trending and
demanding products and services.
Events: events can be considered as promotional activities as marketing process which increase
product demand.
Key roles and responsibilities of the marketing function
The H&M needs to observe the marketing process to increase the revenue. Along with that, the
form industry integrates diverse kinds of the marketing function. Different types of marketing
function are a strategy, market research, product development, communications, sales support
and events. Every single part of the marketing has its personal significance. Other than that,
H&M has different stores around the UK, and every single outlet contains most modern fabrics
and design articulation fabricated by H&M. Aside from that, in the process of conveyance, a
transportation framework required by the management of H&M. At the end of the day, through a
vehicle different kinds of clothes and accessories have been conveyed to various outlets of the
H&M. The last process is client's review accumulation or market research. In this process, the
management of H&M can dissect and decide the assembling shortcomings which done amid the
cloth manufacture process (Griffiths, 2006).
External environment influences: external environment includes following factors:
Political factor: this factor is influenced by governmental rules and legislations.
Economic factor: this factor effects the financial stability of H&M through unstable exchange
rate, currency value and GDP.
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Social factor: this factor is mainly influenced by socio-cultural aspects of the local population.
Technological factor: with the help of this factor, H&M can adopt technical support to expand
the business.
Marketing mix:
H&M can observe and identify the current market opportunities with the help of effective
marketing mix. The marketing mix is one of the essential elements which includes price, place,
promotion, and product. Different factors of the marketing mix are discussed below:
Price: Price estimation is one of the critical issues for an organization before launching a product
in the market. There are giant fashion companies like ZARA already exists in the UK fashion
industry. The mission and vision of H&M conclude that they are offering latest fashionable
clothes and accessories in affordable price to their customers. The rival companies of H&M offer
highly expensive products to their customers. So, there is a huge opportunity to attract those
customers towards their company through low price strategy (McKeever, 2011).
Promotion: In this case, H&M applies various types of promotional theories to provide product
related information to the customers. Through online promotion, H&M can attract and aware
most of the customers who wants stylish and latest clothes within a reasonable price(Price and
Jaffe, 2015). An organization need promotional activity to spread the awareness about a specific
product or service. There are different types of media such that television, radio, newspaper,
magazine and internet, basically utilised by many companies for promotional activities.
Place: The decoration of showroom also helps the organisation to attract the mind of a customer.
As a result, the place is the very crucial factor of the marketing mix. In order to expand the
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business, H&M needs to determine and select appropriate place. In other words, the outlets of
H&M should be placed in a crowded area such as shopping mall, market, etc.
Product: According to the case study, H&M is one of the best fashion retailers in the UK and
the product of this organization are men's wear, women's wear, children's wear, cosmetics and
accessories. The quality of the product provided by the H&M can give the tough competition to
the rival companies when the price is concerned(Price and Jaffe, 2015). Each and every product
are available at the outlet of H&M in the European market.
Functions for B2C and B2B: some companies conduct B2B as business to business which means
that, one company sales products to another company. Besides that, H&M belongs to B2C
business which stands for business to customers. Moreover, H&M sales products directly to the
customers.
Importance of role and responsibilities of the marketing function
Different categories of parts and duties of the marketing functions have been used for the
different causes. On the other hand, the marketing division is working under the perception of
the marketing manager. Along with that, the marketing manager places and arranges distinctive
marketing movements, for example, determination of the potential clients, creating marketing
efforts and concentrating on the exercises of various groups. Besides that, the marketing manager
additionally creates a strategy for success with a specific end goal to execute different marketing
procedures (Hill-Smith, 2010). This also helps to build the benefit of the organisation. Aside
from that, some notable fragments of the marketing managers are that analyzing immediate
market openings, implement the strategy, distinguish the market destinations, regulate the
movements of colleagues and set up an activity anticipate future decorations.
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Internal Environment include:
The internal business environment of H&M includes employees, managers, production process
and management structure.
Macro environment
In order to expand the business, H&M needs to pay more attention to the macro environment
factors such as political, economic, social and technological for smooth marketing. Segments of
marketing functions like strategy, market research, product development, communications, sales
support and events are interrelated with macro factors (Lin, 2013).
Political factor: this factor is influenced by governmental rules and legislations.
Economic factor: this factor effects the financial stability of H&M through unstable exchange
rate, currency value and GDP.
Social factor: this factor is mainly influenced by socio-cultural aspects of the local population.
Technological factor: with the help of this factor, H&M can adopt technical support to expand
the business.
Micro Environment:
The micro environment of H&M includes Customers, Suppliers, and Stakeholders.
The interrelation of the marketing with other functional departments of H&M
As initially specified, the marketing manager of H&M finishes up a legal strategy for success
which incorporates different systems and procedures to build the benefit of the organisation.
Along with that, the CEO of the H&M needs to affirm the business proposition of the marketing
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manager for up and coming phases of strategy usage. Although, the creation division needs to
distinguish changes which incorporate the strategy for success planned by the marketing
manager (Moeller, Landry and Kinni, 2009). Apart from this, HR division is Along with this side
impacted by the strategy for the success of the marketing manager because the HR manager has
to know the adjustment related data for the determination process. Thus, HR manager of H&M
can select a more effective employee for customer satisfaction. Along with that, client benefit
approaches additionally improved by the strategy for the success of the marketing manager of the
H&M. Additionally, the relationship between the marketing & other functional departments
incorporates different kinds of significant value and significance, for example, dismembering
client's aspiration, assembly sufficient data acknowledged with new materials and evaluating the
cost for new and up and coming fabrics (Norris, 2010).
Significance of effective interrelationship between different functional departments of H&M
H&M includes dissimilar useful separations, for example, human resource department,
production department, conveyance department and service centre. Apart from that, every last
division of H&M is interrelated with each other and creates an effect the organisational
execution and profitability. H&M is a well-settled fashion retaliator of the UK. Along with that,
numerous critical reviews clarified the importance of the development which happens in the
fashion industry most new couple of years. In addition, with the assistance of cooperative,
coordinated effort, the management of H&M can concentrate on the present market pattern to
perceive the prerequisites of the clients. In this advancement, the greater part of the clients needs
full touch screen android or windows based materials in low costs. Moreover, in the wake of
recognising the necessities of the clients, H&M can impact every department to convey strong
customer service to their clients. In this way, the management of H&M perceives the request of
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their potential clients and existing inventive fabric handsets with the assistance of statistical
surveying (Webb and Dickinson, 2012).
Task 2
7Ps of marketing mix
The marketing mix contains seven essential segments which considered as basic parts to
comprehend the present market circumstance. Seven kinds of factors of the 7-Ps marketing mix
will be explained. Besides that, H&M is one of the settled a cloth and embellishments fabricating
retailer in the UK, which is focusing on the present marketing example to draw the consideration
of more clients to the organisation. Other than that, the utilisation of 7P's can redesign the
arranging and execution of different sorts of the marketing strategy of the management. Along
with that, the H&M is the UK's form retailer which gives quality products and service to the
clients (Richter, 2002). In this paper, the hugeness and effect of 7Ps of the marketing mix on
H&M will be assessed, and the results of the process in the organisation are furthermore
classified.
Product
There are two classes of item perspectives are analysed in many reviews, for instance,
unmistakable and indefinable. Though, the impalpable products incorporate the non-clear
belongings or regular sorts of the plan. Along with that, the solid products are considered as
physical which is made in the organisation. In other words, it is moulded by a specific industry
which makes any unmistakable item. On the other hand, according to the point of view of the
management of the H&M, it has been conveyed latest fashion as garments can draw the
consideration of many customers's. Along with this side, most of the multipurpose models which
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indicated in above is accessible in the stores of H&M. On the opposite part, ZARA is an
adversary organisation of H&M with restricted stroke.
Price
So as to finish up the price of the item is one of the crucial decisions which are finished by the
organisation. In any case, the need of the customer is playing a basic to evaluate the price of the
item estimated by the H&M(Coughlan, 2006). On the other hand, the price variable is one of the
fundamental components of the marketing mix which accept an amazing part in the fashion
business. In addition, these elements help to settle an official price of the fashion garments. In
this way, the management needs to audit the feedback and price desire before presenting the
price of the item. Talking about the material price of the H&M which engaging and less costly
than ZARA which is a famous fashion retailer organization in the UK.
Promotion
With a specific end goal to extend the popularity and awareness of the fashion clothes, the
promotion is one of the imperative mechanisms which is used by the H&M. Apart from that, it
can be advised that the promotional program of H&M is a kind straightforward and fruitful
strategy which can draw the impression of client's sole (Bye, 2010). However, with the
assistance of promotional movement, the management of the H&M can spread awareness among
existing and potential clients about the alterations and redesigns in the scope of fashion clothes.
In addition, the promotional workouts can improve and aware about a particular product in the
customer's quintessence. Along with that, the promotion is the fundamental segment which is
utilised by the regular organisation. Other than that, the management can spread product
information through different sorts of media, for instance, web, TV, radio, daily paper (Bye,
2010).
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Place
The place is a tremendous variable of the 7Ps marketing mix, and it strikingly makes an effect on
the present marketing condition to check current place is appropriate for the organisation or not.
Along with that, it is inspected that the UK contains loads of people who visit design stores
constantly. However, the place of marketing must be legitimate for the expansion of the
organization(Cavusgil, Knight and Riesenberger, 2012) In other sense, H&M is presently settled
as a prominent form industry. Other than that, there is a huge request about the popularity of this
organization. In addition, the aggressive market is monstrous in light of the fact that there are
various surely understood a design retailer exist in the UK, for example, ZARA et cetera. In this
manner, to shape the rate of clients and profitability of the organization, they have to make
popular and prevalent cloths.
People
The guideline of the organization is the control and introduction of representatives, and all
business depends on upon the general population or partners. Besides that, Customer
steadfastness is the most basic important to the achievement of the organization. In a manner of
speaking, in the fashion industry, the nature of appearance is a direct segment which can regard
any clients. Along with that, the feedback or input of clients can redesign and upgrade the
interpersonal aptitudes of organization's workers which provoke to the achievement. In other
sense, with the help of positive contributions to clients, the management of H&M can spur and
gives major preparing to workers to improve delegate execution(Cavusgil, Knight and
Riesenberger, 2012).
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