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H&M: Strategic Marketing

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by

Brandee Eisele

on 17 January 2014

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Transcript of H&M: Strategic Marketing

H&M
Created by:

Anayansi Escobar
Brandee Eisele
Kendall Williams
Sherani Johnson
Overview
Based in Sweden. Founded by Erling Persson in 1947
Product portfolio
Womenswear
Menswear
Childrenswear
Footwear
Accessories
Cosmetics
Home furnishing
About 2500 stores in 40 countries


Customer Analysis
Target Market
Fashionable & trendy consumers
Women 15-40 years of age, Men, Babies/Toddlers, Kids, Teens, College to graduate social status
Most popular segment: females 20-27 years old

Environmental Analysis
Competitor Analysis
Profitability
Customer Satisfaction/Brand Loyalty
Product and Service Quality
Brand/Firm Association
Operating Statement
Financial Worksheet
*NPV = $131,866
*ROI = 11%

Short Term Goals
Mid Term Goals
Long Term Goals
Strengths
Stocked
Sustainability
Brand awareness
Low Price
Quality
Trendy
External Analysis

Geographic Segment
Mostly urban populations
In US mostly east coast and west coast
Demographic Segment
Age: 8 month- 35 years. Most popular segment is females 20-27 years old
Gender: Male and Female
Occupation: Blue Collar +
Education High school + (mostly college to graduate)


Look for affordable fashion
Typically shop at four or more stores
Fashionable consumers who see shopping as a social activity providing pleasure in their daily life
The acquire the most fashionable clothes each season and want to follow trends
Very up to date


Price
Quality
Looking for a specific item for an event
Style
Seeing celebrities in advertisements
Motivations
Forever 21, Zara, Topshop, The GAP
Biggest competitor in US Market: Forever 21
Forever 21
Have a similar target market but more aimed for a younger demographic – teens
Image: trendy, youthful, edgy
Strategies: fast fashion, vast array of style choices, low prices, high customer service.
Strengths: continually bringing in new stock, quantity, customer service, price, distribution channels, store layout
Weaknesses: quality/longevity, vast array of styles, outrageous styles

Technological
Communication/marketing technologies
Blogging
Social media
Apps
Political
Restrictions on imports and exports and Pressure to show social responsibility
Economic
Economic crisis affected consumer spending patterns creating downward pressure on prices

Market & Submarket Analysis
Emerging Submarkets
Size/Growth
Profitability
Industry Chart
Market/Submarket
Analysis Cont'd

Porter's 5 Forces - Entry Barriers
Distribution Systems
Trends
Problems, Constraints & Uncertainties
1) Operating in a Multidomestic Manner despite Centralized Control & Distribution
2) Balance Low price Strategy with Fast Fashion Strategy
3) Balance Long Lead Time of Outsourcing with Agility Fashion Business
4) Quality Issues
5) Dealing with Changing Demographics
Customer Value Proposition
Assets, Competencies & Synergies
Functional Strategies & Programs
Financial Projections for New Strategy
Lifestyle/Personality
Performance Measurement
Strengths
Fast Fashion Retailer
Heavily Advertised/Celebrities
Global Presence
Quality/Price
Weaknesses
Dependent on outsourcing
Distribution Centers
Customer Service
Store Layout/Over-crowding
Selected Strategy
Implement short-term goals
Online Sales
Distribution Centers for online sales
Plus-size clothing
Style-Me Program
Determinants of Strategic Options
SWOT Analysis
SWOT Analysis (Cont'd)
Opportunities
Online retail sales
Plus-size clothing
Threats
Decrease in consumer spending
Increased competition
Low-price pressure by consumers
Strategic Uncertainties
Will there be any other uprisings around the world?
Will there be another recession?
Will we face the huge swings in commodity prices?
Will the European Economy fall apart?
Will China's wages continue to rise?
Product-Market
Investment Strategy
Target Audience and customer need/demand
Strategies for aggressive investment
Strategies for minimal investment
Full transcript