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Agenda

About H&M
Current & Desired Brand Knowledge
Building & Managing Brand Equity
Management Recommended Direction

H&M Markets
Always located in the best business location,
whether in a big city or a shopping centre.
This has been a firm principle of H&M since
the first store opened and is still true today.

40 markets
2,200 stores
87,000 employees

H&M Brand Hierarchy

H&M... has thus far been reluctant


to tinker with its successful
single-brand format.
-- Womens Wear Daily
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H&M Brands
Monki is both a way of doing life and doing fashion.
Monki is a store concept and a fashion brand. The stores are a
part of a Monki world that constantly tells new stories.
The clothes have a style that represents personality and
independence, an alternative thats full of dreams.
COS is for women and men who want high fashion
with good quality at an affordable price.
Products [] manufactured under good working
conditions. This is why we have a code of conduct.
From the start Weekday carried high-fashion and
exclusive denim brands mixed with second hand
clothing a blend that attracted young, trendy
Stockholmers.
[O]ur original idea still remains: to offer our
customers pieces that compete with high-end
brands both in attitude and fashion-level as well as
in quality always at an extremely good price.
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H&M Concept
H&M offers a broad and varied range that allows customers
to find their own personal style. The collections are created
with H&Ms broad clientele in mind and the aim is to satisfy
many different tastes and requirements. (H&M.com)
H&M is aimed at everyone with an interest in fashion.
Customers should always be able to find clothes and
accessories at H&M for every occasion. The collections are
extensive and new items come into the stores every day.
(H&M.com)

The 62-year-old Swedish fast-fashion retailer was


fueled by its offer of fashion, value and exclusive
designer collections at affordable prices... (Women Wear
Daily)

Fast Fashion Competitive Landscape

Mental Map
Variety
Fashionable

Edgy

Accesible

Affordable

Quality
Everchanging

Lifestyle

Core Brand Associations


Accessible

Runway for me

Fashionable

Affordable

Variety

"In"

"Great for the


price"

Something for
Everyone

Latest Trends

"Cheap"

Creative

Stylish

"Inexpensive"

Designer
Collaboration

Cute

Edgy

"Super trendy"

Everchanging

Quality

Lifestyle

"Constantly
changing lines"

"Sewn perfectly"

Fun

"Fast turnaroud
from catwalk to
stores"

"Material...great
for the price"

"Youthful"

Better purchase
now

Brand Pyramid
Stages of Brand
Development
Relationships:
What about you & me?

Response:
What about you?

Meaning:
What are you?

Identity:
Who are you?

Branding Objectives
At Each Stage

Resonance:
Enabler Of Expression

Judgments:
Quality, Variety,
Affordable

Performance:
Inspired by High Fashion,
Good Value, Average Quality,
Low Prices, Quick To Market,
Variety, Designer Names on
Some Collections

Feelings:
Fun, Unique, Social
Distinction, Self
Expression
Imagery:
Social Responsibility,
European & Scandinavian,
Young Fashionable,
Versatile (usage situations),
Hip, Unique, Creative, Urban

Salience:
Fast Fashion, Accessible (location, image, price)

Intense,
active loyalty

Positive,
accessible reactions

Points of parity
and difference

Deep, broad
brand awareness

Consumer
Target

Consumer
Takeaway

Young, Trend
Conscious, Fashion
Enthusiast

Consumer
Insight
Want to have the
latest fashion seen
on the runway in
their own closest as
quickly and
affordably as
possible

H&M offers the


fastest and most
affordable route to
runway fashion for
every consumer.

Current

Youthful

Trendy

FAST to market

Runway Looks

Urban

Creative

Sustainability (Europe)
Store Location and Ambiance
Price
Fashion &
Variety
Trends

Unique

Versatile

Low Prices

Consumer
Need State
Desire for fashion
seen on the most
current models that
is both affordable
and versatile for
casual and party
wear

Consumer
Product Set
Trendy clothing
that is reflective of
hip runway fashion

Red (Logo)

Variety
Hip, Expressive
Speed
to
Quickly
Fashion
market
revolving lines
Designer Collaborations
Sustainability (U.S.)
Product
Good Quality
Turnover

High-Fashion
Models

Top Designer Names


Edgy Imagery

BRAND

POSITIONING

SCHEMATIC

Designers Association
Matthew Wiliamson | Lanvin | Jimmy Choo | Victor & Rolf | Roberto Cavali | Sonia Rykiel

Sustainability

H&M Supplier Code of Conduct


No Sand-blasted Jeans
Better Cotton Initiative
Training schools in supplier countries
No child labor
Partnership with UNICEF
Reducing CO2 emissions

POD in the U.S., POP in Europe


Todays fashion customers take a keen interest in how
the clothes they buy have been made. As well as a wide
fashionable range, sustainability -- taking
responsibility for people and the environment -- is an
important part of H&Ms offering. - H&M 2010 Annual
Report

H&M: A Strong Brand?


What Makes a Strong Brand?
Understand brand meaning and market appropriate products in an appropriate
manner.
Properly position the brand.
Provide superior delivery of desired benefits.
Employ a full range of complementary brand elements, supporting marketing
activities, and secondary associations.
Embrace integrated marketing communications and communicate with a
consistent voice.
Measure consumer perceptions of value and develop a pricing strategy accordingly.
Establish credibility and appropriate brand personality and imagery.
Maintain innovation and relevance for the brand.
Strategically design and implement a brand hierarchy and brand portfolio.
Implement a brand equity management system to ensure that marketing actions
properly reflect the brand equity concept.
Source: Kevin Lane Keller, Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 3 rd Edition (New Jersey: Pearson, 2008).

Whats H&M Doing Wrong?


Seven Deadly Sins of Brand Management
Failure to fully understand the meaning of the brand

Failure to live up to the brand promise


Failure to adequately support the brand
Failure to be patient with the brand

Failure to adequately control the brand


Failure to properly balance consistency and change with the brand
Failure to understand the complexity of brand equity measurement and
management

Source: Kevin Lane Keller, Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 3 rd Edition (New Jersey: Pearson, 2008).

Recommendations for Measuring


Formalize meaning of brand equity for H&M
Implement a brand equity measurement
system
Establish Brand Equity Managers
assesses H&M product and marketing
actions against formalized Brand Equity
Charter.

Recommendations for Measuring


Create Annual Brand Equity Report
Conduct standardized & regular brand
audits
Design brand equity tracking system &
studies

Recommendations for Managing


Create online retail store
Expedite rollout of brick-&-mortar locations
Establish strong strategy for H&M Home Dcor
brand

Questions?