H&M: Marketing Plan 1

Marketing Plan
Prepared for:
Mr. Alain Jomarie Santos

Prepared by:
Baccay, Dominique
Balin, Aika
Garcia, Anne Sherina Bianca
Sernande, Penelope Germaine
August 6, 2011

SITUATION ANALYSIS

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The Market
Market Trends
H&M provides fashionable casual clothing for all occasions. The brand
makes sure that customers get clothes which not only stick to the current
trends, but also those which fit their body, figure and style perfectly. It aims
to make the consumers buy the clothes that suit them, those which allow
them to move with freedom and ease at all times.

The company also provides in-season clothing; there are times that the
consumers have to wear clothes that suit the current weather and season.
The company provides costumers variety of decent clothes to choose. H&M
helps customers to choose versatile clothes so that they will not stick with
the same clothes and just don jackets or sweater to keep up with the current
season.

H&M believes that all customers deserve to look stylish no matter what
condition theyre in. This is one advocacy the brand tries to live up with, and
that's to make their customers look good all the time. The brand's clothing
collections prove to be versatile and functional, and they would allow the
customers to look stylish all the time without the need for a change in
wardrobe just a change in accessories and hair style.

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Market Growth
H&M target market growth is to increase the number of stores by 10-15
percent a year. This is why H&M holds the greatest market share Germany
and UK. H&M aims to continually expand, and by expanding their market the
market share will increase continuously. At the same time, consciously aware
of sales at existing stores. The attractiveness of the store is the crucial factor
in the rate of expansion.

H&M opened 193 new stores in 2007 but 16 of them were closed. Yet
this maintains H&M as a financial strong company. The company has a goal
to expand their company but still maintain profitability. H&Ms market size is
quite large because H&M covers and handles 1700 stores around the world
diverse into different regions. The four big ones are Europe, Asia, North
America and Middle East which all has their own different fashion identity.
The growth of market of H&M pave way to expansion which means that the
company will grow in size because of the growth in number of stores around
the world.

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Macroenvironment
The macro environment of H&M covers from Political, Socio-cultural
and Demographics, The Environmental consciousness, technological and
economical factors.
1. Political
H&M is a public limited company. The company has the capacity or the
ability to offer shares on the stock market which make it easier to raise
capital. However the accounts of the company are in the public domain.
All financial records, including the directors reports must be audited and
available to the Registrar of Companies at the Companies House.
Furthermore, the company is vulnerable from take-overs as rivals have the
option to purchase shares. To achieve such status the H&M provides a
minimum share capital of 50,000 or roughly 82,000 United States dollars.
2. Socio Cultural and Demographics
The identity of the companys product follows the newest trends. The
company also provide the latest Western standard of fashion and style. The
company enjoys a strong following among women, particularly those in
younger age groups, which covers the majority of its customers.
By selling a broad range of fashionable collections which are renewed
frequently, by offering attractive prices, and by maintaining a strong
presence in prime shopping locations, H&M has ensured that its stores enjoy
a steady flow of customers. H&M follows the newest trends and the Western
standard of fashion concerning quality and style.

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Therefore it is especially popular for students and fashion-conscious people.
Because the good price and the good quality it makes itself even more
attractive to students, which often do not have the highest income. The
company also has various offers to not only women, also men and children.
3. Environmental consciousness
H&M promotes a healthy environment. The company is aware and
active in promoting a special environmental consciousness in production.
H&M considers recycling as a vital move to promote environmental
understanding amongst people. By using bio-cotton, bio-wool, bio-linen or
recycling-polyester and recyclable product helps in creating a move in
preventing pollution. In addition to that they promote an eco-friendly
transport of the products with low pollution.
4. Technological
H&M is a fashion label which provides excellence in its products. But not only
H&M plays as a fashion label in the market there are competitors are present
to topple H&Ms products. This creates a challenge for H&M to satisfy
costumers by producing such excellence more.
To provide such excellence they own different manufacturing facilities in
different countries, so this makes transport and technology easier to deal
with and a matter of the sites itself. This also opens for technological
innovations within the company.

5. Economic

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H&M has about 73.000 employees and about 20 manufacturing facilities.
Everyday new ware is supplied to each store. The company itself has about
100 own designers. The garments manufactured at different locations across
the world were sent to a central warehouse located in Hamburg, Germany. In
every country in which it operated, H&M had a distribution center. From
Hamburg, the garments were sent to these distribution centers, from where
they were distributed locally. The garments were replenished every day
depending on the demand. With constant replenishment, H&M maintained
novelty in its products, due to which the customers visited the company's
store repeatedly.
The company buy large quantities of the same garments direct from the
supplier, with few middlemen, and sell the garments in our own stores. H&M
has long experience of the textile industry and great knowledge of which
goods should be bought from which market. In addition, we have invested a
lot in a fast and cost-efficient distribution system. H&M is also permeated by
cost-consciousness at every level, allowing us to offer the goods to the end
customer at the very best price possible.

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The Company
The Sweddish based Hennes and Mauritz has grown into a major
multinational clothes and cosmetics retailer company. H&M has become a
forefront of affordable and wide-range based styles for the fashionable chic.
H&M now has over 1500 outlets in 28 countries and is one of the first to
challenge the retail clothing sector by delivering and offering fast fashion at
low prices. The company offers and presents different concepts and styles for
women, men, teenagers and children, which includes everything from
modern basics of clothing, to high fashion. The collections of H&M are
supplemented by matching accessories, nightwear, underwear and
cosmetics. H&M has a multitude of buyers and designers for a clothing trend
at affordable prices. H&M lives by its business concept, fashion and quality
at the best price.

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Mission
H&M's purpose is to offer their customers fashion and quality at the
best price. H&M states numerous of times that quality is more than making
sure that products meet or exceed their customers expectations. H&M is
constantly working to better their products by manufacturing under good
working conditions, and with limited impact on the environment. H&M takes
responsibility for how their operations affect people and the environment
which is the key for their profit and growth.
H&M is committed to integrating social and environmental concerns
into all their business operations and investing in the communities. This
company has a lot of organizations and causes to support, such as charitable
organizations both globally and locally. Some of the global organizations
include: UNICEF, WaterAid, Hand in Hand and Fashion Against Aids. In the US,
they work with Making Strides for the American Cancer Society in multiple
cities to help raise funds for breast cancer research and with the Boys and
Girls Club of America.

Vision
H&Ms business operations shall be run in a way which is economically,
socially and environmentally sustainable. By sustainable we mean that the
needs of both present and future generations must be fulfilled.

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Product Offering
H&M is considered as one of the worlds preferred clothing brand and
designer of apparels for men and women. H&M is renowned and known not
only for their fashion cosmetic, but is also because of the quality, designed
durability, and funkiness of the clothes they offer. The main goal of this
company is to provide unique and innovative designs of clothes and apparels
for different types of people: men, women, teenagers and children, in
different countries all over the world. H&M has been known because of its
strategic methods of providing clothing designs exclusively for each
countrys preferences and needs.
The main objective of H&M are geared towards producing fashionable and
affordable products such as:
1) Clothing garments
a.) basics
b.) nightwear
c.) underwear
d.) fashionable items
2) Cosmetics
3) Accessories
a) Bags
b) Necklaces
c) Earrings
d) Headwear, etc.
Positioning

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In order for the company its products to be made known to the market
place; the products will be distributed to its consumers. The main market of
H&M is the fashionable sector of the market, which still focuses on the
quality and affordability of the products they choose. Venturing with
distinguished distributor of apparels, cosmetics and clothes will help in the
expansion of H&M internationally, thus with its expansion in the Philippines.
H&M will provide what the consumers want and prefer. The products that
H&M provides is directed at the interests of the consumers and what will
bring them comfort and satisfaction. There is a constant goal to produce and
sell products which satisfies the consumer wants demands, and needs.

SWOT Summary
The following SWOT Summary determines the key strengths and weaknesses
of the company, and describes the opportunities and threats which the
company faces.
Strengths

One of the main reasons for H&Ms popularity is its trendy items for low

process.
The store offers quality clothing for department store prices.
The delivery time which takes to get an item from its retail state at low

price retail.
The brand of the stores is always with fresh designs, with guest

designers coming in for different lines in the store.

Keep the prices affordable by using very few middlemen and buy large
volume cost.

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Weaknesses

Buying of large volumes will have no guarantee that all items will be

sold.
Wide range of customers this brand provides for.

Opportunities

Matching clothes for mothers and children.

Wide variety of style collections depending on the stores.
Different designers for different types of people.

Threats

The clothing chain Zara.

The rapid delivery time of the competitors.
The clothing line GAP which also offers wide range of clothing line for
different types of people, and a market for babies as well.

Competition
Current competition includes the following:

Gap - known for providing jeans, khakis, and T-shirts. The firm,
which operates about 3,150 stores worldwide, built its iconic

casual brand on basics for men, women, children and urban Chic.
Topshop - British clothes retailer with stores in over 20 countries
and online operations in some of its markets. Topshop's sales
primarily come from women's clothing and fashion accessories. It

is part of the Arcadia Group.

Zara - one of the largest international fashion companies. It
belongs to Inditex, one of the worlds largest distribution groups.
It provides apparel for men,women and kids.

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Old Navy branched by Gap, it offers products for women, men,

girls, boys, babies and toddlers.

Banana Republic offers elevated essentials and sophisticated
seasonal collections of accessories, shoes, and personal care
products. From work to casual occasions to going out, Banana
Republic offers covetable, uncomplicated style.

MARKETING STRATEGY
Value Proposition
H&M sells more than fashioned clothes; it provides affordable,
stylish clothing for women, men and children. It specializes in taking
advantage of the seasons latest looks inspired by design houses
around the world.
Crirtical Issues
H&M is in a speculative stage as an apparel and accessory store.
Its
critical issues are:

Unrecognized brand. Upon its popularity globaly, its still

not introduced in the Philippines.

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Lacking own supply chain. With the admirable products and

sales, production process is still less reactive due to not
having supply chain management.

Marketing Objectives

Increase brand recognition and customer acquisition

Build user engagement and loyalty online
To focus on the fact that H&Ms average sale prices are
often lower than their Competitors

Target Marketing Strategy

H&M provides affordable clothing to the young-minded, fashionforward individual. The company primarily targets both men and women.
Additionally, H&M also carries a line of teen and childrens clothing.

Messaging
H&M offers fashion and quality at the best price!

Branding
A strong brand is an increasingly important competitive advantage. All
H&Ms communication aims to build the brand both in the long and short
term, as well as communicating our offer. Customers should know their way
around and know what H&M stands for fashion and quality at the best
price. H&M should be inviting, exciting and constantly surprise our

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customers. This way of thinking has been a guiding principle throughout
H&Ms history and has helped to build todays strong brand.

References
Banana Republic. Retrieved July 29,2011 from
http://www.bananarepublic.gap.com
GAP. Retrieved July 29, 2011 from
http://www2.gapinc.com/international/gap/ph/gap_en/index.html
H&M. Retrieved July 29, 2011 from http://about.hm.com
H&M: Welcome to our Sustainability Report 2008. Retrieved July 29, 2011
from
www.hm.com
Old Navy. Retrieved July 29, 2011 from oldnavy.gap.com
TOPSHOP. Retrieved July 29, 2011 from www.topshop.com
ZARA. Retrieved July 29, 2011 from www.zara.com

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