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H&M: Strategic Marketing
Transcript of H&M: Strategic Marketing
Based in Sweden. Founded by Erling Persson in 1947
About 2500 stores in 40 countries
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
Customer Satisfaction/Brand Loyalty
Product and Service Quality
*NPV = $131,866
*ROI = 11%
Short Term Goals
Mid Term Goals
Long Term Goals
Mostly urban populations
In US mostly east coast and west coast
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
Looking for a specific item for an event
Seeing celebrities in advertisements
Forever 21, Zara, Topshop, The GAP
Biggest competitor in US Market: 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
Restrictions on imports and exports and Pressure to show social responsibility
Economic crisis affected consumer spending patterns creating downward pressure on prices
Market & Submarket Analysis
Porter's 5 Forces - Entry Barriers
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
Fast Fashion Retailer
Dependent on outsourcing
Implement short-term goals
Distribution Centers for online sales
Determinants of Strategic Options
SWOT Analysis (Cont'd)
Online retail sales
Decrease in consumer spending
Low-price pressure by consumers
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?
Target Audience and customer need/demand
Strategies for aggressive investment
Strategies for minimal investment