Snapshot of Consumer Behaviors of March 2024-EOLiSurvey (EN).pdf
Marketing_H^L0M_STP ANALYSIS INCLUDED AND MARKET TRENDS OF H&M_.pptx
1.
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”
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,
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.