2. Introduction
1. Sweden multinational clothing-
retail, known for fast-fashion
clothing.
2. 62 countries, 4500 stores,
1,32,000 employees (as of
2015)
3. Second largest global clothing
retailer, behind Inditex.
4. Online shopping available in
30+ countries.
3.
4. Tagline
Who’s next; Get ready to do
some serious shopping; You
look nice today.
USP
Collaboration of chic ,
stylish clothes along with a
classic look at affordable
prices.
5. STP
SEGMENT:
People who love to spice up their wardrobe and want
to look uber stylish at all times.
TARGET GROUP:
Women, Men , Teenagers who have medium to high
purchasing power and have a completely vibrant and
rebellious attitude.
POSITIONING:
H&M offers the perfect combination of high class
brands along with trendy fashion at affordable prices.
6. 6
STRENGTHS
1. One of the largest global clothing retailer.
2. Have about 2300 stores in approx 45 countries.
3. The store offers quality and trendy clothing.
4. Affordable price.
4. Their overall delivery time is very low.
5. Guest designers coming in for different lines in the store.
7. Associated with celebrities and designers
8.Present in many complimentary businesses which offers them better
control and flexibility.
STRENGTHS
1. Strong brand image.
2. Quality and trend
3. Affordability
4. Low delivery time
5. Guest designers for different lines.
6. Celebrity endorsements
8. Better control and flexibility.
9. Social media presence
WEAKNESSES
1. Overstocking leading to heavy discounts.
2. High capital and maintenance fee.
3. Customer retainment
OPPORTUNITIES
1. Online marketplace
2. Emerging economies
3. Sustainability.
THREATS
1. Severe competition
2. Low sales in Europe.
3. Unemployment
SWOT
ANALYSIS
7. PRODUCT
• Fast and throw-away fashion
• Homogenous shopping products
• Large product mix width.
• New product lines coming up frequently.
• Short product life cycle.
MARKETING MIX
8. PRICE
• Low price, high fashion
• Outsourcing production from low cost labour
countries.
• Strict cost control plan.
9. PROMOTION
•Target customer- young women who
want more fashion clothes at low
price.
• A multi-channel promotion strategy
including advertising, internet
promotion, sales promotion, celebrity
endorsements.
• Advertising creates awareness of
their low price.
•Eye-catching event promotion
10. PLACE
• Simplicity, reliability
and transparency.
• Direct distribution from producer to
customers.
Red- countries H&M operates in. Pink- planned expansion
Source- Trusted clothes
11. Recommendations
• More cost in promotion for targeting upper class
segment.
• Strong observation system and customer
interaction.
• Domestic production
• Expanding into E-commerce segment.
• Low price also give H&M a image of bad quality
which hinders H&M from keeping
their customers.
• Perception gap.
• Inventory overstocking.
• Expanding into online marketplace.
Challenges Faced
