Marketing Management Project

H&M
By:
Om Shinde J066
Shashank Sharma J062
Miit Matlani J034
Megh Chavan J012

A marketing plan is a report that outlines your marketing strategy for the
coming year, quarter or month. Typically, a marketing plan includes:
 An overview of your business’s marketing and advertising goals.
 A description of your business’s current marketing position.
 A timeline of when tasks within your strategy will be completed.
 Key performance indicators (KPIs) you will be tracking.
 A description of your business’s target market and customer needs.

This analysis documents an overview of the industry that H&M will participate
in. H&M always comes up with new products that increase the customer's
desire for clothing, that too at an affordable cost. Their only notion is fashion
and quality at the best price.
They have everything that a person may look for, from normal wear to
business suits, sports wear to lingerie sets all at a reasonable price. They
collaborate with other top brands to establish a fresh style.

Industry:
H&M operates in the retail clothing industry. This industry sells clothing,
accessories, and footwear for all age groups and genders. The most profitable
segment of the industry is women’s clothing, generating 53% of the industry’s
total profit. The industry contains a large number of firms, many of which are
well-known brands that operate internationally.

Market Structure:
H&M operates in a monopolistic competition. A monopolistic competition is a
type of imperfect competition that is characterised by the large number of
firms that sell similar, but not identical products. The four basic assumptions
for monopolistic competition are:

 The industry contains quite a large number of firms.

 The sizes of the firms are relatively small compared to the size of the
industry, meaning that the actions of one firm are unlikely to have an
effect on the industry as a whole.
 The products produced by the different firms are slightly differentiated
by non-price factors, for example, packaging, advertisements or
customer service. Slight differentiation makes it possible for consumers
to tell the difference between one product from another, but this also
creates strong competition between the different firms.
 There are no major barriers to entry or exit, giving firms the freedom to
enter or leave the industry.

Company Background
Since 1947, Hennes and Mauritz (H&M), the world's second largest fashion
retailer, has done a good job of creating and sustaining client trust. Erling
Persson started the Swedish Company, launching the first store in Västers
under the name Hennes (Swedish for "hers"), which specialised in trendy
women's clothing. In 1968, he bought Mauritz Wildforss, a Stockholm-based
hunting and fishing equipment store, and began expanding into men's and
children's apparel lines. H&M then diversified throughout time, adding
accessories, shoes, top-to-toe beauty care goods and cosmetics, and home
furnishing styles to its product line.
H&M has rapidly expanded into global markets since its founding, with more
than 3924 outlets in 61 countries (Cruz, 2012) and more than 148,000
employees (Hm.com, 2015). H&M has created a name for themselves in
Singapore.its 5thSoutheast Asian debut in 2011 after Hong Kong, Shanghai,
Japan, Korea and has robustly expanded across the island and opened ten
stores within five years after entering the market.
Goals and objective:
H&M vision statement is “to lead the change towards circular and renewable
fashion while being a fair and equal company.”
It has the following parts:
1. Lead the change
 2. Fair and equal

H&M stays on top of developing trends while also launching new ones. H&M's
fairness and equality are expressed in a variety of ways, including its
welcoming demeanour, commitment to sustainability, and competitive pricing
on its items.
SWOT Analysis:
For a reason, Hennes & Mauritz AB (H&M) is the world's second largest fashion
retailer. For one thing, the company's fast-fashion strategy has aided its
success and given it a significant competitive advantage.
We can learn a lot from H&M's strengths and flaws, as well as the company's
potential and dangers, as it has grown from a single-store Swedish company
over 65 years ago to a recognised fashion retailer with thousands of outlets
across six continents.
Here is the H&M SWOT Analysis.

H&M’s Strengths:

Effective Selling Methods: The fashion retail sector relies on effective selling
strategies to increase merchandise turnover. H&M operates on a rapid fashion
concept, providing designer tables with the latest fashion trends. This
technique allows for speedy delivery of items from the designer's table to the
showroom floor.
Global presence: H&M has a global presence with 5,076 locations in 74
markets on six continents. From Europe to North America, Asia, Australia,
Africa, and Latin America, the company's global business reduces risk and
increases sustainability and stability.
Competitive Pricing: Price is crucial regardless of the product. The firm wants
to be the most ecologically friendly fashion retailer by leveraging the fast
fashion model's flexibility and cost-effectiveness to offer high-quality products
at cheaper prices.
Product Variety: Customers are attracted to a wide selection of products.
Cheap Monday, H&M Home, and ARKET are among of the company's unique
brands, which sell anything from garments to cosmetics, shoes, boiled eggs,
blankets, pots, candle holders, and more.
Valuable brand: H&M has embraced a customer-centric approach to business
management since its inception. As a result, the business has built a strong
brand. In 2019, it was recognised as the 58th most valuable brand in the world.
Strong Online Channels: In the digital age, companies who efficiently adapt
and exploit the internet have a significant competitive advantage. H&M has a
significant online following that is funnelled into eCommerce sales thanks to its
excellent online presence across a multitude of platforms.

H&M’s Weaknesses:

Overdependence on Outsourcing: H&M outsources the majority of its

production to over 900 independent suppliers across Europe and Asia, rather
than producing in-house. While this strategy has aided the company's success,
it also leaves it vulnerable to its suppliers.
H&M items were boycotted by customers from all around the world in 2018
because they promoted racism. The company's hoodie included the words
"Coolest Monkey in the Jungle," which was modelled on a black child.
Uninspired Fashion: The H&M's quick fashion approach has a flaw in that it
relies on large designer companies to establish fashion trends. This is a serious
problem since fashionistas are more interested in fresh and radical designs
than in existing fashion trends.

H&M’s Opportunities:

Diversify Products: Stores that sell a diverse selection of items are more stable
and profitable. H&M can increase its profitability by adding sportswear to its
product assortment.
 Fully utilise e-Commerce: In terms of e-Commerce channel exploitation and
revenue generated from online sales, H&M trails behind other fashion stores
such as Zara. The company will be able to reap the full benefits of e-Commerce
as more individuals shop online.
Focus on Emerging Markets: Emerging economies' increasing middle classes
offer the strongest opportunity for fashion companies like H&M to expand,
from Asia to Africa.

H&M’s Threats:
Impending Recession: Even though clothing is required, fashionable designer
apparel, footwear, and underwear are considered luxury. As Europe and other
regions enter recession, fashion shops such as H&M will see a sharp drop in
sales and profits, and may even go out of business.
Intense Competition: H&M is up against new and established companies such
as Zara, Macy's, Gap, Boohoo, and others. All of H&M's competitors are
attempting to gain market share and lower demand for their items.
Increase in Counterfeits: Fake items are most prevalent in the fashion
business. With the growing global trade in counterfeit goods, income from
H&M's premium designer labels may suffer in the future.
Rising Operation Costs: As the cost of labour and raw materials rises around
the world, retailer earnings are rapidly declining. H&M's profitability is
threatened by rising operating and production costs.

Porter Five Forces Analysis:

Porter's Five Forces Analysis H&M's competitive landscape as well as the
factors affecting its industry are covered in this analysis. The study focuses on
assessing the company's position in light of dynamics like as new entrants,
substitutes, buyer bargaining power, supplier bargaining power, and
competitive rivalry.
H&M's Five Forces study aids in determining the company's current market
position based on aspects such as competitors, customers, suppliers, financial
strength, and alternative solutions.

H&M Porter Five Forces Analysis:

Threat of New Entrants: high

Because the barriers to entry are relatively low, no significant technical
knowledge is required, and the product is becoming more accessible and
easier to sell online thanks to the emergence of several online platforms such
as Amazon, the threat of new in the apparel industry is high.
H&M seeks to give consumers with attractive yet inexpensive apparel and
accessories. It is the world's third largest market stockholder. The brand
presents itself as a go-to brand for people looking for attractive clothes that
isn't too pricey. They are largely targeted towards the working class, middle
class, and students who want to stay on top of the current fashion trends
without breaking the bank. Given the very unpredictable nature of the
garment sector, the barrier to entry is essentially non-existent, and customer
loyalty to a brand is virtually non-existent.

Threat of Substitutes: high

The threat of substitutes is mild for H&M since individuals tend to change to
newer styles of clothing by following the newest fashion trends, and so the
threat of substitution increases if H&M does not consistently innovate and
follow the fashion trend.
Despite the threat, current H&M customers tend to continue with the
company since it provides trendy yet less expensive alternatives to expensive
trends; H&M's target demographic typically does not want to pay a lot and
would rather stick to H&M.
The apparel market is highly volatile and constantly changing, and one must
stay on their toes to ensure that they do not fall behind in this race; the threat
of substitution by a replacement product is relatively low, and the need for
clothes is constant; however, with the rise of online communication and WFH
culture, the demand for trendier clothes has dipped, and thus platforms like
Zoom and Google Meet that allow people to meet without the need to travel
have risen in popularity.

Bargaining Power of Customers: high

The client's bargaining power is considerably higher, there is little to no cost of
moving, and the competition is severe; the customer can simply switch to the
competitors, and thus the customer's bargaining power is much higher in this
business.
Customers, on the other hand, rarely bargain because the company currently
offers apparel at a lower price than competitors while retaining the same level
of quality.
The brand recognises this and ensures that customers are satisfied with the
prices, resulting in customer retention for a longer period of time; evidence of
this can be found in the fact that H&M's market share has steadily increased
over the last five years, and H&M's brand loyalty is relatively higher than that
of the market leaders. The Brand caters to a certain niche and has identified a
specific target demographic.
After considering all of the factors, we may conclude that H&M's customer
bargaining power is moderate.
Bargaining Power of Suppliers: moderate to high
In this domain, suppliers have moderate to strong bargaining strength. With
approximately 700 suppliers, H&M is constantly under pressure. With an
average relationship length of 6 years and a maximum of 25 years, H&M has to
cope with a wide range of suppliers. Because the supply chain is so important
in this business, it must be well managed.
With almost no entry barriers and little to no technical skills required, the
prospect of suppliers becoming rivals is quite real, and hence the supplier's
leverage is considerable.
Another reason for this is that raw material quality is critical to a brand's
image, and obtaining the same quality raw material from a different vendor is
difficult, and the expense of replacing the source is significant.
As a result, suppliers' overall bargaining strength for H&M is moderate to
strong.
Competitive Rivalry: high
H&M faces fierce competition; despite the fact that they have a niche market
and are the dominating player in it, the apparel sector is very competitive and
dynamic. As previously stated, the cost of switching in the apparel sector is
quite cheap, but the danger of competition is extremely high.
Competitive rivalry is one of the industry's driving motivations, particularly for
H&M, which, although being the market leader, is always threatened by
competition stealing its market share.
Given that the business is incredibly dynamic and changes on a regular basis
due to shifting market trends, it all boils down to altering in response to
market demand, and the company that does so first earns a significant market
share.
After considering all the facts we can conclude that the overall competitive
rivalry is high for H&M.
To conclude, the above H&M Porter Five Forces Analysis highlights the various
elements which impact its competitive environment. This understanding helps
to evaluate the various external business factors for any company

Environmental Analysis:
Political Factors:
The majority of H&M's manufacture takes place in Turkey, Egypt, and Lebanon.
Before and after independence, Lebanon was a politically unstable country.
Over time, there is a shift in supreme power, which usually culminates in war
and other comparable circumstances. Not only for H&M, but for the entire
sector, the US-China trade war is a huge concern. As a result of its impact,
textile product prices have risen. Since then, the worker's demand has risen.
They want better working conditions, a safer workplace, and higher pay.
Developing countries with stable governments alter labour laws such that the
minimum salaries that must be paid increase the overall cost of manufacturing.
Brexit has also created a tough political environment in which to operate. The
net effect is that things made become more expensive, causing customers to
seek for cheaper alternatives.
Economic Factors:
Despite Brexit, sales increased by 7%. This is regarded as a positive indicator
for the company, as such a significant political shift had no effect on its profit
margins. The labour regulations of various countries differ greatly. Because
developing countries have a low labour rate, establishing manufacturing
operations in those countries might be profitable. The disposable income of
people is increasing as the global economy improves. They have more money
to spend on luxury products, such as high-end apparel. Tax rules alter
throughout time, which has an impact on the firm's economic stability.
Corporate tax policies differ by country, and H&M must adjust its operations
appropriately.
Social Factors:
People are directly impacted by social media and celebrities in the world of
clothing. They are more interested in the brand that their favourite celebrity
endorses. As a result, it's critical to promote products on social media and
generate discussion around the channels. The buyer's mindset is shifting. They
prefer designer clothing these days, and demand for it is higher than it has
ever been. This shifting trend in attitude and purchasing behaviour must be
investigated so that no social group is overlooked.

Technological Factors:
The mobile phone era is arrived. People are less interested in visiting to a store
and purchasing clothing when they can do so via a mobile application.
Customers can order from their job, home, or anyplace using technology.
H&M, like other companies, must stay up with technology improvements and
shifting behaviour. Reward points, either directly in the application used to
place the order or in the form of discounts, are a good method for increasing
the client base when combined with technology. Along with the ordering apps,
H&M has partnered with Hermes, a logistics company that is cutting-edge in
terms of technology. Analytics and artificial intelligence may be used to
develop merchandise, observe, and analyse customers in order to supply them
with appropriate services and products.
Legal Factors:
Each country has its own set of regulations. Firms operating in those firms
must follow the guidelines in order to run a successful business. H&M, for
example, has to work with franchise partners in the UAE, Kuwait, and Oman,
even though franchising was not part of the company's expansion strategy.
Intellectual property rights are a key source of worry. Let's say H&M creates a
new design, but if it isn't legally protected, it can be stolen by competitors, and
the innovation that could have given them a competitive advantage fades
quickly.

Environmental Factors:
After the oil and petroleum industries, the textile industry is the second most
polluting industry. Water bodies are polluted by the large amount of water
waste generated. The people who live near those bodies of water are infected
with a variety of terrible diseases.
As a result of the clothing manufacturing process, the air becomes polluted.
There are government regulations in place to regulate these emissions into the
air, but the damage can never be completely managed. H&M has set a target
of using entirely recycled clothing materials in their manufacture.
To conclude, the above H&M PESTLE Analysis highlights the various elements
which impact its business performance. This understanding helps to evaluate
the criticality of external business factors for any brand.

Value Chain Analysis of H&M:

H&M has risen to the top of the fast fashion industry by leveraging its supply
chain and technology as key competitive advantages. H&M's business
philosophy is based on providing clients with value by providing fashion and
quality at the lowest possible price. H&M has clothing for ladies, men,
teenagers, and kids. H&M sells through shops as well as its own website,
H&M.com.

H&M's collections are decided by a team of about 160 in-house designers and
100 pattern makers. Each year, the company presents two main collections,
one in the spring and one in the fall.
H&M has two design processes: long-term collection planning and real-time
design based on market customer trends. H&M can respond to the market
more quickly and be more flexible in the eyes of the customer thanks to the
real-time design.

  Manufacturing: Independent suppliers, but strong relationships:

H&M does not have its own manufacturing facilities. Its products are made by
850 independent suppliers, the majority of whom are based in Asia and
Europe. Items with longer lead times are typically manufactured in Asia, while
products with shorter lead times are typically manufactured in Europe.

H&M has production offices in strategic locations close to suppliers. Production

offices have several functions:

 They are the liaison between the designers and the suppliers. They work
with information from both to choose the suppliers that are more
convenient and efficient for a specific product.
 Act as auditors and perform extensive safety and quality testing to
ensure requirements of the company are being met.
 Create a closer relationship with suppliers and help them improve
working conditions and standards. This allows the company to work with
suppliers to reduce lead times.
Ordering the product at the right time is very important to obtain the best
price, quality and lower lead times. H&M manufactures 80% of its inventory
in advance and introduces the remaining 20% based on current market
trends. Lead times vary from a few weeks to six months, with garments
such as basics and children’s wear ordered in advance while more trendy
clothes that require smaller quantities may be produced at a shorter notice.

 Logistics: Managing inventory out of the stores

The majority of factory-produced goods are delivered directly to logistics

facilities, from whence they are distributed to stores in the surrounding area.
There are no back-up stockpiles in stores; instead, product is maintained in
regional replenishment centres and supplied to stores.

 Technology: Integrating the system, from product design to sales

The corporation relies on a well-developed IT system that integrates the
headquarters, administrative offices, manufacturing offices, and stores due to
the supply chain's complexity. This makes it possible to communicate in real
time.
 The company has access to information about the fabrics available from
each supplier through IT, allowing it to make informed judgments about
where to put a given order.
 The corporation can make informed selections about where to place a
certain order using IT because it has knowledge about the fabrics that
each supplier has.
• • The head office can track sales patterns in each store and use this data
to make customer-centric design and manufacturing decisions.

Product life cycle :

H&M Product Solutions is a major retail product life cycle management and
strategy firm. In the past, the retail product market has been exceedingly
demanding while also being extremely cost conscious. The retail industry is
always seeking for ways to increase profits.
Retail merchandise items and services are divided into five phases:
1. Market development
2. Market introduction
3. Market growth
4. Market maturity
5. Market decline
Each stage of a retail product's life might reveal the merchandise's backstory.
For effective data compilation, tracking, distribution, and inventory, a business
like HM Product Solutions can analyse these separate phases. HM Product
Solutions can determine where the gaps are and what has to be done to fill
them based on the examination of all factors.With their problems, an
international retail merchant called HM Product Solutions. The lifecycle
responsibilities for their present product were time intensive, resulting in
higher expenses and lower revenues. The inventory required to keep up with
the demands was continually running short and/or out. After over 70 years as a
popular retail location, H&M has reached maturity. They have no room for
expansion because they are already a well-established corporation. They do
not, however, appear to be on the decline because they continue to sell stylish,
current, and in-style clothing.
MARKET RESEARCH AND STRATEGY
The secret to this brand's success is a combination of qualities that set it apart
from the competition. In the corporate sector, these attributes also provide
the brand a competitive advantage.

Fast Fashion:
One of the reasons for H&M's success is their rapid fashion strategy. Fast
fashion is now very popular, with many companies embracing it, although it
was unheard of decades ago. People used to have to save for months in order
to purchase a fashion item that was only worn on rare occasions. But, of
course, this was before leading fashion houses began making runway looks
attainable. This action ushered in a new clothing line, allowing people of all
socioeconomic strata to purchase high-end designer clothing.Fast fashion
began to attract an increasing number of customers. Fortunately, H&M was
strategically positioned to profit from this expansion, and it appealed to the
middle class. The brand's business model is uncomplicated and simple. The
brand has kept its promise to bring fashion and quality at an affordable price.
They provide clothing for ladies, men, and children, and all of their designs are
based on the latest fashion trends. So, whether you're looking for a simple
piece or a prom dress, the H&M fast fashion brand has you covered.Daily
shipments of new outfits to the company's stores in over 60 different locations
are also part of the fast-fashion strategy. One of the reasons people keep
coming back is the daily selection of new items.
Brand Collaboration:
Collaboration is another key factor in H&M's success. The brand's marketing
strategy is to position itself as a high-end fashion alternative. The brand has an
annual collection with a luxury designer house to sell this. This marketing
strategy is one of the most notable features that distinguishes H&M quick
fashion businesses from competitors such as Zara. It hasn't stopped since H&M
began collaborating in 2004. Versace, Karl Lagerfeld, and Balmain are among
the brand's most notable collaborations. To generate excitement for their
upcoming cooperation promotions. They leverage their social media presence
to make products rare.
H&M recognises that when high-end fashion meets high-street costs,
fashionistas go insane.
In 2014, this brand collaborated with Alexander Wang on a collection. Many
people think, however, that their most successful cooperation was with
Balmain. They were able to surf the waves with the help of superstars such as
the Kardashian-Jenner family. They were able to keep everyone's attention on
the ad until the pieces arrived, and it was a huge success in the fashion
industry.

Environmental Focus:
H&M is a quick fashion retailer that also promotes itself as being
environmentally aware. The company's goal, according to CEO Karl-Johan
Persson, is to make fashion sustainable and sustainable fashion popular.
Sustainability is a hot topic in this century, and it's just becoming hotter. As a
result, many stakeholders are becoming more aware of their impact on the
environment. With their Conscious line, H&M isn't left out. The brand promises
that with this collection, buyers will have an easier time selecting sustainable
solutions. It also made these environmentally friendly lines accessible to the
average shopper.H&M recruited influencers with significant followings to
generate buzz for the new collection's advertising. On fashion blogs and
lifestyle websites, these personalities discussed the collection. Furthermore,
the advertising targeted teenagers and young adults. H&M's advertising would
not have been as successful without the help of these influencers.
Short Product Life Cycle:
Unlike most fashion manufacturers, H&M's fast-fashion line attempts to keep
garments on the market for a short time. Most people would think this is a
dangerous plan, yet H&M executes it so well that it gives them a competitive
advantage. This marketing plan can do this in two key areas, which we will
discuss further below.
Reducing Discounted Products:
H&M is distinguished by the fact that it does not offer discounts. As they did
with cooperation, they are always attempting to avoid this. This is where the
short product life cycle plan comes into play. It aids in the development of a
brand's long-term business model. Because most things are only on display for
a few weeks, shoppers are compelled to buy them right away. Customers also
don't hold back on prospective reductions because they know they're unlikely
to be offered. As a result, their customers don't want to miss out and buy
things as soon as they become available.
Increases Customer Traffic:
Increased client traffic is another benefit of a short product life cycle for the
H&M quick fashion business. A customer typically visits a fashion store once a
season to see whether there are any new designs. With quick fashion and
H&M's short product life cycle, this isn't always the case. Customers frequent
the store to ensure that they do not miss out on fresh styles. This method
assists the brand in attracting more customers than the average estimate. As a
result of the increased traffic, the brand's chances of earning sales improve.
Strategic Store Locations:
H&M quick fashion outlets, like those of other fashion retailers, are located in
busy shopping districts. The goal is to get as many people to watch as possible.
Store placement is unique in that it is a sort of advertising with no time limit.
Unlike other forms of advertising that have a finite lifespan, this one lasts
forever. H&M has stores in a variety of desirable places around the world.
H&M stores can be found in Fifth Avenue in New York City, Ginza in Tokyo, and
even Bond Street in London. This company also places stores near high-end
brands such as Dior, Chanel, and others. This is done in order to improve the
brand's image.
Inclusive and Targeted Advertising:
In their Stockholm headquarters, the fast fashion giant H&M creates its
advertising campaign. The brand, on the other hand, assigns each regional
marketing team the duty of customising campaigns for their respective
regions. As a result, the company employs models of all ethnicities, cultural
backgrounds, looks, and trends. The goal is to demonstrate to customers that
the brand is all-encompassing. For example, Mariah Idrisi, who wore a hijab for
the marketing film in 2015, was included in one of H&M's advertisements.
Plus-size models, amputees, and other diverse individuals are also used by this
brand. People always laud the brand since it features a broad collection of
people who dress according to their own set of fashion guidelines. H&M wants
to demonstrate clients that they may either follow established fashion norms
or create their own. You could also choose not to observe any regulations at
all. With the H&M fast fashion brand, research is crucial. The company makes
an attempt to get to know their target market in their area. They conduct
study on local cultural taboos and make sure to avoid them in their advertising.

STP (Segmentation, Targeting and Positioning):

Segmentation Strategy:
H&M has nearly reached every cultural, religious, and lifestyle group on the
planet.
• Divided into classes, ranging from the middle class to the upper crust, by
offering low-cost to high-end products.
• Segment by age- H&M caters to both men and women between the ages of
15 and 30 by offering contemporary clothing and accessories.
Targeting Strategy:
H&M caters mostly to fashionable and trend-setting clientele who want to
invest in high-quality goods. H&M focuses on women in particular because
they tend to spend a lot of money on fashionable items like apparel,
accessories, shoes, and garment care.
Positioning Strategy:
H&M is a fast-fashion clothes business that produces products in rented or
owned stores and sells them all over the world. Those attractive European
clothes, for example, are brought into the American market to generate
demand. Furthermore, the company operates both online and offline by
recognising social, economic, and environmental sustainability.

Marketing Strategy:
H&M's marketing strategy examines the brand using the marketing mix
framework, which includes the four Ps (Product, Price, Place, Promotion).
Product innovation, pricing strategy, promotion planning, and so on are all
examples of marketing strategies. Based on the H&M marketing mix, these
business methods aid the brand's success. H&M's marketing strategy aids the
brand's/competitive company's positioning in the market as well as the
achievement of its business goals and objectives.

Product Strategy:
In H&M's marketing strategy, the product strategy and mix are as follows:
H&M is a retailer of apparel. It sells men's, women's, and children's quick
fashion apparel. In various countries throughout the world, H&M offers the
following clothing brands:
• H&M: From designer collaborations to everyday staples and yoga gear, H&M
has it all.
• Women's Fashion: Shoes, Bags, Accessories, Beauty, and Ready-to-Wear•
Cheap Monday: Men's and women's denim, fashion collections, and
accessories. Music and pop culture are associated with the brand.
• COS: Men's, women's, and children's classics and wardrobe basics. The
company's designs were influenced by art and technology from all across the
world.
• Monki: Young women's lifestyle collections that are on-trend.
• Weekday: It creates apparel for style-conscious young adults.
All of these are part of H&M's product strategy in their marketing mix.

Place & Distribution Strategy:

H&M sells its products through a network of exclusive stores in key cities
across the world (4135 stores). H&M sells their items through franchise
partners in various countries due to regulatory requirements. It also sells its
products through online stores, where customers may choose from a list of
available items and pay for them using a credit card. The products are sent to
the address you provide. Cheap Monday is available at a number of merchants
throughout the world as well as in standalone stores, including its flagship
location in London. To keep costs down, the products are made in countries
with cheap labour. H&M and its other brands develop clothes based on the
market niche they are targeting. Over the years, H&M has created an
exceptional supply network. The delivery is immediate, and transportation
costs are minimised to a bare minimum.
The finished garments are delivered to a warehouse, where they are
distributed to various retailers.

Price/Pricing Strategy:
GAP and Zara are two of H&M's main competitors. As part of its marketing mix
pricing strategy, H&M products are priced lower than those of both of these
brands. H&M's cheaper manufacturing and transportation expenses are the
reason behind this (Main focus is given on cost minimization). In comparison to
Zara, H&M has a wider range of items. On average, H&M products cost $25,
whereas Zara products cost $45. The youth are attracted to high quality and
reduced pricing, which leads to an increase in sales for the company.

Promotion & Advertising Strategy:

The following is the H&M marketing strategy's promotional and advertising
strategy:
H&M uses a multi-channel promotional strategy in its marketing mix because it
has a diverse product portfolio catering to various segments.
• TV commercials: H&M has a variety of imaginative commercials that highlight
its latest inventive designs. Each brand is in charge of its own marketing
strategy. To raise awareness, the commercials are aired at regular intervals and
on networks that are mostly watched by young people.• YouTube: H&M has its
own YouTube account where it creates distinctive ad campaigns in order to
engage customers.
• Digital Marketing: To convert potential buyers into customers, it engages in a
lot of search engine marketing and social media marketing.

• Promotional codes and discounts: During the end-of-season sale,

promotional codes and discounts are available. Discounts are available in both
online and physical locations.• PR: Parineeti Chopra opened India's first H&M
store. Such antics help the company gain a lot of attention quickly.
• Sponsorships: H&M negotiated a deal with The Weeknd, sponsors Caitlyn
Jenner, sponsors Musee Des Arts Decoratifs, creative collaborations with high-
end designers and style icons, collaborations with pop stars and athletes

• Corporate Social Responsibility (CSR): Water, the Environment, Education,

and Equality

The firm also encouraged young youngsters who can be role models as part of
its social development awareness.

Because this is a service marketing brand, the remaining three Ps are listed
below to complete H&M's 7Ps marketing mix.

People:
H&M staff are well-trained at every level. Employees go through each area on
a rotating basis, and they are encouraged to create and come up with the best
apparel wear. H&M also collaborates with a number of international apparel
designers to create the current fashion trends. Employees come from a variety
of backgrounds and possess a variety of abilities. Employees' personal and
professional growth is prioritised.
Process:
Customer relationship management is given a lot of weight. Employees are
taught how to keep high-profit customers by providing superior service and
offers. If there are any concerns, the H&M personnel makes every attempt to
settle them as soon as possible. Customers' questions are answered by calling
a customer service number. H&M employees assist consumers in choosing the
best merchandise for them. As a result, the service and delivery times are quite
short, resulting in delighted consumers. The company is employing artificial
intelligence to better understand its customers' demands and to offer the best
products online as part of its business strategy.
Physical Evidence:
H&M stores are well-lit, with a pleasant atmosphere and friendly employees.
The clothing is designed to have a pleasing appearance that will appeal to
customers. The goods are of high quality and up to date. H&M is diversifying its
product and expanding into new markets throughout the world. It participates
in public relations initiatives to generate buzz in the market. During its launch,
for example, celebrities were invited, creating a buzz in the market. User tales
and recommendations are always appreciated by the brand, and they aid in
customer engagement. As a result, the H&M marketing mix is complete.