Marketing_H^L0M_STP ANALYSIS INCLUDED AND MARKET TRENDS OF H&M_.pptx
- 2. About H&M • Name: H&M (Hennes & Mauritz AB). • Founded: 1947. • Type: Multinational clothing retail company. • Focus: Fast-fashion, offering trendy and affordable clothing. • Global Presence: Operates in numerous countries with thousands of stores. • Business Model: Fast-fashion, emphasizing quick production and delivery to meet current trends. • Brands: Owns various brands, including COS, Monki, Weekday, and & Other Stories. • Sustainability Initiatives: Actively promotes sustainability in the fashion industry, with efforts such as garment recycling and the use of sustainable materials. • VISION – “TO LEAD THE CHANGE TOWARDS CIRCULAR AND CLIMATE POSITIVE FASHION WHILE BEING A FAIR AND EQUAL COMPANY” • MISSION-" TO MAKE FASHION AND ENJOYABLE FOR ALL”
- 3. Marketing Mix Of H&M Product Women's Clothing: • Dresses • Tops • Bottoms (pants, skirts, shorts) • Outerwear (coats, jackets) • Activewear • Lingerie Men's Clothing: • Shirts • T-shirts • Jeans • Trousers • Jackets • Suits • Activewear Children's Clothing: • Clothing for various age groups (infants, toddlers, kids) • Playful and age-appropriate designs Accessories: • Bags (handbags, backpacks) • Hats • Scarves • Jewellery • Sunglasses Footwear: • Shoes for men, women, and children • Sneakers • Boots • Sandals Beauty: • Makeup • Skincare • Haircare • Beauty accessories
- 4. What are the core benefits does product at H&M provides to customers. • Affordable Fashion :Trendy designs at accessible prices. • Trend-Forward: Constantly updated with the latest fashion trends. • Variety & Diversity: Wide range of products for different preferences. • Quality & Value: Balancing affordability with reasonable quality. • Global Accessibility: Wide global presence, both in-store and online. • Inclusive for All Ages: Fashion options for men, women, teenagers, and children. • Sustainability Initiatives: Commitment to eco- friendly practices. • Exclusive Collaborations: Limited-edition collections for added excitement. Understanding H&M's Product Quality and Unique Features How do H&M ensure product quality and what features distinguish from competitors? Ensuring Product Quality: • Supplier Standards. • Rigorous Quality Control. • Compliance with Regulations. • Product Testing. • Customer Feedback Loop. Distinguishing Features: • Fast-Fashion Model for Trend Responsiveness • Exclusive Collaborations and Collections • Sustainability Initiatives • Global Accessibility • Inclusive Product Range
- 5. Place H&M Distribution Channels Manufacturer Warehouse Retail store Consumer • Smart Network: H&M uses smart warehouses and quick delivery methods to send clothes to their stores worldwide. • Lots of Steps: Clothes go through many steps before reaching the store, involving different suppliers in different stages. • Being Flexible: H&M can change and adapt to what people want in different places and make sure clothes arrive on time. • Good Friends with Suppliers: H&M makes good and long-lasting friendships with the people who make the clothes, so everyone can trust each other.
- 6. PRICE • Pricing strategy 1.Competitive pricing 2.Cost leadership 3.Dynamic pricing 4.Value perception Factors influencing pricing decisions In general, retail companies like H&M frequently review prices based on various factors. Some common factors that influence pricing decisions in the retail industry include: 1. Costs of Production 2. Market Conditions 3. Competitor Pricing 4. Seasonal Trends 5. Promotions and Discounts
- 7. PROMOTION • Promotion strategies:- 1. Advertising (Print media, billboards etc.) 2. Influencer marketing and collaborations 3. Sales promotions and discounts 4. Public relations and events 5. Social media marketing 6. Email marketing and loyalty programs
- 8. Recent Promotional Campaigns • H&M found that the campaign that included virtual creator content significantly lifted brand metrics, achieving the following between December 12–21, 2022: • 11X increase in ad recall with a mix of virtual creator content and campaign video, compared to ads with campaign video only • 91% decrease in cost per person recalling seeing ads with a mix of virtual creator content and campaign video, compared to ads with campaign video only • 38% decrease in cost per person recalling seeing ads with a mix of virtual creator content and campaign video, compared to previous video ad campaign with the same audience
- 9. H&M Goes Digital • in 2018, H&M launched a new, improved online shopping platform and mobile app. Similar to Nike, Walmart and LVMH. • omni-channel shopping • When the COVID-19 crisis hit, H&M was forced to shutter 80% of its stores. If it had not already built up its digital infrastructure, it would have surely gone bankrupt. • H&M Group chief executive Helena Helmers son explained in a recent financial briefing, “The recent years’ transformation initiatives and investments, focusing on the digital,
- 10. SWOT ANALYSIS.
- 11. Decoding Market Trends and Customer Behavior for H&M • Social listening: Monitoring conversations on platforms like Instagram and TikTok to identify emerging trends, brand sentiment, and competitor buzz. • Market research: Analyzing reports and surveys to understand demographics, buying habits, and evolving customer preferences. • Website analytics: Tracking website traffic, browsing patterns, and purchase behavior to identify popular products and potential areas for improvement. • Customer surveys: Gathering direct feedback on brand perception, satisfaction, and product suggestions. • Competitor analysis: Keeping tabs on competitor strategies, pricing, and product offerings to identify opportunities for differentiation.
- 12. Market Potential for H&M : Metrics & Tools • Sales growth: Tracking overall and segment-specific sales to measure performance and identify growth opportunities. • Customer acquisition cost (CAC): Analyzing marketing costs associated with acquiring new customers to optimize campaign effectiveness. • Brand awareness: Measuring brand recognition and perception through surveys and social media monitoring. • Social media engagement: Tracking likes, shares, and comments to gauge customer interaction and brand sentiment. • A/B testing: Experimenting with different marketing messages, product offerings, and website features to optimize performance. • Heatmaps: Analyzing user behavior on the website to identify areas of improvement and optimize user experience. • Customer segmentation platforms: Grouping customers based on shared characteristics for targeted marketing campaigns. • Sentiment analysis tools: Understanding the emotions and opinions expressed by customers in online reviews and social media conversations.
- 13. The key objectives of H&M current marketing plan include: 1.Omni-channel Growth: H&M is focusing on integrating its digital and physical stores to provide a seamless customer journey 2.Expansion: H&M has around 4,375 stores in 77 markets, with online sales available in 60 markets. The company aims to expand its presence in emerging markets and strengthen its position in existing markets. 3.Sustainability: H&M is committed to integrating sustainability into its business operations, offering organic and recycled materials in its products
- 14. Competitor Analysis of H&M Metric H&M Zara (Inditex) Uniqlo (Fast Retailing) Brand Positioning Trend-driven, youthful, value-conscious Fashion-forward, trendsetter, slightly higher price point Minimalist, basics-focused, high-quality materials Product Mix Wide range of apparel, accessories, footwear, and homeware More focus on apparel, emphasis on trendy designs and frequent new collections Strong focus on basics, known for high-quality fabrics and innovative materials Pricing Strategy Competitive, value-driven, with frequent sales and promotions Slightly higher than H&M, but still considered affordable Premium pricing for basics, justifying it with quality and durability Store Network Extensive global presence with over 5,000 stores Largest fast-fashion retailer with over 7,000 stores Strong global presence, particularly in Asia, with over 2,300 stores Supply Chain Vertically integrated, controlling most of its production and sourcing Vertically integrated, known for its speed and agility in responding to trends Primarily relies on external suppliers, but emphasizes ethical sourcing Digital Presence E-commerce platform with growing importance, but physical stores remain dominant Strong online presence with seamless integration between online and offline channels Robust e-commerce platform, focus on integrating technology in stores Sustainability Efforts Increasing focus on sustainability initiatives, but criticized for some practices Leader in sustainable practices, using recycled materials and encouraging ethical production Strong focus on sustainability, using recycled materials and promoting ethical labor practices
- 15. Outmaneuvering H&M : 3 Key Strategies for Competitors Embrace Sustainable Innovation: • Go beyond recycled materials: Offer innovative fabrics, low-impact dyes, and circular design solutions. • Transparency & Traceability: Build trust by showcasing ethical sourcing and production practices. • Personalization & Customization: Cater to individual styles and reduce overproduction with on- demand options. 2. Hyper-personalization & Customer Centricity: • AI-powered shopping experiences: Recommend styles, suggest outfits, and personalize product recommendations. • Omnichannel integration: Seamless online-to-offline experience with click-and-collect, virtual try-on, and personalized in-store recommendations. • Community & Engagement: Foster loyalty through interactive platforms, exclusive events, and co- creation opportunities. 3. Niche & Value-driven Differentiation: • Target specific micro-trends: Cater to unique styles and subcultures beyond mainstream fashion. • Superior craftsmanship & quality: Offer premium basics with longer lifespans and a focus on ethical sourcing. • Local production & sourcing: Reduce carbon footprint and build community connections with regional partnerships.
- 16. STP ANALYSIS OF H&M SEGMENTATION Regarding H&M (Hennes & Mauritz), segmentation is the process by which the business splits up its target market into various categories according to particular attributes. 1.Segmentation by Demographics: • Age: H&M offers clothing for teenagers and adults alike. • Gender: Both men's and women's apparel and accessories are available. 2.Psychographic Segmentation: • Lifestyle: Fashion-conscious people who appreciate stylish yet reasonably priced apparel is the target market for H&M. • Values: Attracts clients that place a high priority on sustainability because H&M offers programmes for ethical and environmentally responsible fashion. • Income: Provides a selection of pricing points to accommodate varying income brackets. 3.Behaviour Segmentation: • Shopping Behaviour: Targets frequent shoppers and fashion enthusiasts. • Brand Loyalty: Encourages customer loyalty through membership programs and incentives. 4.Geographic Segmentation: • Global Presence: H&M is present all over the world and serves a variety of markets in various nations and areas.
- 17. TARGETING H&M employs an undifferentiated targeting strategy, meaning it targets a broad and diverse audience rather than focusing on a specific niche. Its target market includes: • Fashion-conscious individuals across various age groups. • Budget-conscious consumers looking for affordable yet stylish clothing. • Ethical and environmentally conscious consumers interested in sustainable fashion.
- 18. POSITIONING H&M positions itself as a leading, affordable, and stylish fashion brand, emphasizing inclusivity and sustainability, appealing to diverse consumers. • Affordable Style: H&M is renowned for its fashionable apparel that is reasonably priced, enabling everyone to possess the newest styles. • Quick Fashion Leader: They ensure that customers receive the newest styles as soon as possible by bringing runway trends into stores quickly. • Sustainability Focus: H&M uses eco-friendly procedures, recycles clothing, and sources materials ethically because they are concerned about the environment. • Diversity & Inclusivity: The brand encourages a sense of style in everyone by providing clothing for people of all ages, shapes, and sizes. • Global Reach: H&M is a well-known international brand that adjusts its merchandise to local preferences while upholding its standing as a provider of reasonably priced, stylish, and socially conscious apparel.