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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

H&M: Marketing Plan 2 SITUATION ANALYSIS 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.

H&M: Marketing Plan 3

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.

H&M: Marketing Plan 4 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

H&M: Marketing Plan 5 follows the newest trends and the Western standard of fashion concerning quality and style. 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.

H&M: Marketing Plan 6 5. Economic 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.

H&M: Marketing Plan 7 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.

H&M: Marketing Plan 8 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.

H&M: Marketing Plan 9 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.

H&M: Marketing Plan 10 Positioning 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 y One of the main reasons for H&Ms popularity is its trendy items for low process. y y 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. y The brand of the stores is always with fresh designs, with guest designers coming in for different lines in the store.

H&M: Marketing Plan 11 y Keep the prices affordable by using very few middlemen and buy large volume cost. Weaknesses y y Buying of large volumes will have no guarantee that all items will be sold. Wide range of customers this brand provides for.

Opportunities y y y Matching clothes for mothers and children. Wide variety of style collections depending on the stores. Different designers for different types of people.

Threats y y y 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: y 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. y Topshop - British clothes retailer with stores in over 20 countries and online operations in some of its markets. Topshop's sales primarily come

H&M: Marketing Plan 12 from women's clothing and fashion accessories. It is part of the Arcadia Group. y 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. y Old Navy branched by Gap, it offers products for women, men, girls, boys, babies and toddlers. y 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.

H&M: Marketing Plan 13 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: y Unrecognized brand. Upon its popularity globaly, its still not introduced in the Philippines. y 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 y y y 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

H&M: Marketing Plan 14 Target Marketing Strategy H&M provides affordable clothing to the young-minded, fashion-forward 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 customers. This way of thinking has been a guiding principle throughout H&Ms history and has helped to build todays strong brand.

H&M: Marketing Plan 15 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