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H&M Brand Audit

Strategic Brand Management- Green Team (6)

Marie-Hélène Terro

on 8 May 2013

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Transcript of H&M Brand Audit

Brand Inventory Brand Audit Brief history of the brand... Current brand elements Brand Positioning Supporting marketing + Product strategies Brand Awareness Holly Cheung 10548046D
Fredrik Englund 12151925X
Joona-Matias Stedt 12152273X
Kirsten Van Klooster 12151787X
Manon Tisné 12150806X
Marie-Hélène Terreault 12152846X Brand Exploratory Recommendations Brand Image Brand Value Different products will be sold according to the local’s needs Segmentation & Targeting Geographic Segmentation Gender and Age  (Women, Men and Kids)
Mainly targeting on women clothing
Bigger variety and selection of the women's' clothing
Always a new collection launching for the women
A line for teenagers and another line for women. Demographic Segmentation Divided the market by the usual activities and interests Psychographic Segmentation Behavioral Segmentation Based on customer behavior toward products
Divided the customers into different occasions
Seasonal sales Positioning

Points-of-parity (POPs)
Not necessarily unique to the brand but may in fact be shared with other brands

H&M’s POPs
Multiple retail stores all over HK
Wide range of product variety
Trendiness H&M: $99 H&M: $79.90 Zara: $199 Zara: $179 Positioning

Points-of-difference (PODs)
are attributes or benefits that consumers strongly associate
positively evaluate
believe that they could not find to the same extent with a competitive brand

H&M’s PODs
A lower price range

H&M : less than $100
Zara : More than $100 Positioning

H&M’s PODs
Larger product variety

Swimwear Accessories Cosmetics Sportswear Positioning

H&M’s PODs
A very interactive website
virtual fitting room that you can do the mix and match Positioning

H&M’s PODs
Heavier promotion than its competitors
Advertisement on the television
On the streets and magazine Based on 2 Questions

Where would you place the following brands in terms of the attributes...

Casual or dressed up?
Affordable or luxury? Perceptual Map Some competitors don’t have (Pull and Bear and Zara)
a bit dressed up
very affordable.
not expensive and easily to afford by everyone. Slightly more expensive
More dressed More expensive
More casual Much more casual
More Expensive Much more dressed up
More luxury Good positioning according to the association with “great value for money” characteristics Awareness Showed them different brand
Ask if they known them
List of five brand names Brand recognition We ask the respondents to give us three
“great value for money brand” of clothing in Hong Kong without showing any brand...


Results :
Zara biggest competitor
Big advantage on brand recall Brand Recall Well know in the Hong Kong market since a bit more of 85% of the respondents know the brand But...
Not meaningful
Not high likability

Letters visually pleasing =? coincidently = short + simple

Abbreviation easier to...
To recognize
To recall
To pronounce
To spell
... Across borders! Offensive Logo
brand name
red = warm + outstanding + noticeable
handwritten = warm + welcoming

“Fashion and quality at the best price”
H&M = company + corporate culture

Plastic, cheap bags with logo clearly visible Tactics Same advertisement campaigns globally
Model in clothes
Big price tag
White background, visible

Media strategy customized locally = "glocal" Supporting marketing programs Product Strategies Poor quality:

Admitting campaign
New clear page
Example Domino “Our pizza suckED” campaign 1. Quality Boost Unhealthy brand:

Child labour and inhuman labour environments rumors
Fair-trade label
Lift up likability and health of brand 2. H&M Fair trade Standard sizes = not working

USA different standards sizes then Asia
Unsuitable 3. Tailor made the size for people in different geographic area Expand market for men:

Men wants: trendy + cheap 4. Expand the variety of products for men 12 stores in Hong Kong:

Not well positioned
2 only on Hong Kong Island
No stores in Tsuen Wan, Ma On Shan, Tai Po
Easier for customers
H&M can reach more potential customers 5. Increase the number of retail stores Transferable
Easy to use across: categories, geographic boundaries, cultures
Legally protected online and offline Defensive One bigger campaigns (besides the several smaller)
Claudia Shiffer
Naomi Campell
Giselle Bündchen
David Beckham
Collaboration with Haute-Couture
Karl Lagerfeld
Stella McCartney
Victor & Rolf Association with celebrities Product Portfolio Competitors Thank you for listening, any Questions? 2006: Cambodian workers were forced to produce clothes in deplorable conditions

2009: Cotton is produced by forced child labor 18 people answered « poor quality »
Poor fabrics
Fast Fashion industry Negative brand image For the majority of people: Fashionable clothes
Positive answers (1 respondent « poor style ») Products category 46 above 81 people answered « cheap »
Match the aim of the quality: sell cheap clothes Price category « What are the first 5 things that come to mind when thinking about H&M? » Consumer subjective perception about a brand
Set of beliefs
Important for every company
Should be unique, positive and instant

H&M wants to convey a particular image:

Fashion and quality at the best price Brand image 12 people mentioned it

Famous people represent the brand
Collaboration with famous designers
Campaigns for particular causes Marketing strategy Campaigns Famous people Collaboration designers Colors Big marketing strategy Lot of stores Variety Swedish Basic Cheap Clothes for everyone Bad quality Fashionable Next step: Survey 5 categories:
Others Bad quality: Scandals Source: http://humorchic.blogspot.hk/2012/10/humor-chic-adolf-hitler-for-h-loves.html In summary...
Founded in 1947 by Erling Persson in Vasteras, Sweden

Hennes + Mauritz  Hennes & Mauritz (H&M)

Stores in more then 49 countries in the world
Today more then 2900 stores and 104.000 employees
Most sold stock on the Swedish stock exchange

“Achieve great fashion and quality at a low price” Very broad range of fashion products:

Shoes, clothes & accessories dressed up and leisure
Wide customer range  young and old, women and men
Provide both basics and more fashionable style let the customer mix its own originality
Collaboration with famous designers
Balance between fashion and quality at low price
Mother brand of Monki, Weekday, Cos, Cheap Monday Defines the branded product’s value for a customer over an unbranded product
Customer’s willingness to pay more of a branded product
Formed of brand awareness and brand image Brand Equity The tool from which the management can predict the status and the popularity of the brand in the present and in the future

Based on the survey results:

Unhealthy brand
Smaller relevance than the differentiation
Means that even though the brand is very likely used, its uniqueness has faded
More of a commodity Brand Health Smaller esteem than the knowledge:

Brand is better known than liked
Consumers have a strong image of the brand which makes the brand dislikable even though they still might like the actual products themselves
Assumptions of low quality or the use of child labor H&M is still one of the leading brands in the industry
A Declining Leader
Risk to fall into the category of Challenged Brands

H&M should maintain its current status:
Increasing the brand’s differentiation and esteem
Providing better quality and correcting the information BAV Power Grid Mass production + small customization

After-marketing strategies
Track of customer data
Facebook page

Loyalty program
“My-H&M” on website
Gift-card => H&M is a very famous brand: high brand awareness
=> Its net income is increasing, in spite of the economic crisis

=> H&M suffers from recent scandals
=> The brand value is unhealthy

To remain competitive and leader in the market...
=> H&M should implement innovative ideas
=> We suggest them to firstly develop a prime product line
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