Task B

Unit 38 : marketing communications in business

What are marketing communication techniques?

- Marketing communication techniques are strategies that a

business uses to deliver the most appropriate marketing
message to their target audience and customers with the use
of appropriate methods and media.

- For example: Advertising, Sales Promotion, Public Relations,

Direct Marketing, Personal Selling, Interactive Marketing
H&M and ZARA

Both H&M and Zara are both famous international clothing

retailers with thousands of stores worldwide. Both
companies target similar markets and similar target
audiences; however, they employ different marketing
strategies.
 How H&M increases awareness and revenue?

H&M’s key focus is to keep their customers satisfied and happy. This is one of the reasons why H&M’s brand loyalty is so
high. This is because when it comes to buying a product, the organisation is designed to offer optimum versatility and
convenience to its customers.

H&M advertises its brand using print advertisements such as magazines, billboard, flyers, etc. H&M also advertises its
brand by broadcasting its advertisements on TV which involves well-known celebrities such as The Weeknd and David
Beckham. Advertising using such media reaches a large and wide amount of audiences, therefore, more people are aware
of the company. On the other hand, H&M has celebrities as brand ambassadors, which encourages their fans to buy their
product as a result of their fan following.

H&M is also very well known for its sales promotions. H&M’s vision statement is “ to lead the change towards circular and
renewable fashion while being a fair and equal company.” This means that company is dedicated to prioritize the
trendiness of fashion and being affordable. The company upgrades it’s products with what’s in demand and the consumers
are able to afford them. H&M also has frequent sales according to the seasons and weathers.
 How ZARA increases awareness and revenue?
The european company has successful diminished the market despite high competition. Their goal is to copy high-end fashion trends
and making them affordable for a mid price market. Zara is devoted to catering to a wide selection of clients from various cultures
and age groups. These core principles were prioritised: beauty, transparency, functionality, and sustainability. Zara finds its customers
to be its most precious brand asset, which is why they offer excellent customer support in all of their stores around the world. This is
the reason why its sales and market shares are rising higher and higher.

ZARA does not often advertise its brand and its products. Whereas, Zara focuses on the experience of their customers. Zara
completely understands the fact that the experience of the customer matters more than the quality of the products. Zara doesn't
invest in advertising and promoting, however, it focuses on investing on the geographical location and the appearance of their
showrooms.

Zara's fast-fashion formula offers a hassle-free shopping experience in a professionally designed environment with limited supply and
new styles rotating on a regular basis. As a result, when customers buy from Zara, they believe other people won’t have the same
outfits which makes them feel unique and trendy. This also makes the customers feel the urge to shop as soon as possible before the
collections disappear as the outfits change according to newer trends and seasons,
Similarities
H&M and ZARA are both international clothing retailers. Both the competitive companies target similar markets and
use different marketing strategies in their businesses; whatsoever, there are similarities between them.

The main motive and values of both companies is to give their customers the best experience. Both the brands have
extraordinary brand loyalty. Both the companies also provide goods for men, women, and children, which makes both
their target audience the same. H&M and ZARA both tend to respond fast towards newer fashion trends and change
according to the interest of their audience. This is because the interest and values of customers change throughout the
years. Both companies also retail clothes which are high in quality and lower in price which makes them affordable for
the mid-price market. The location of both companies are easy to locate and access.
Differences
H&M uses marketing tools which are more commonly used by businesses. For instance, social media, print advertising, media
advertising, blogs, billboards, in-store promotions, commercials. H&M includes famous personalities in its commercials and they
tend to make their commercials about social and on going world events. As they are using celebrities and commercials, they are
reaching a big amount of audience at the same.

However, on the other hand, Zara’s marketing strategy is focusing more on the in-store experience of the customers. Zara also
focuses more on the geographical locations of their outlets. For instance, they would have outlets near premium brands like
Gucci or Louis Vuitton (which has high prices) so that it would psychologically make their customers prefer to buy from Zara as
it is cheaper and more reliable. Zara also focuses more on the materials which are being used in the making of their products as
the quality of products from Zara are slightly more premium than that of H&M; whatsoever, the price tags of Zara are also
slightly higher than H&M.
 Whose strategy is more successful?
Both companies are extremely successful clothing retailers. The key brand asset of both the
companies are their customers, they’re main mission is to provide the best experience for their
customers. As a result, the brand loyalty of both companies are undoubtedly extremely high.

Both the company has exceptional market value and both the companies are equally deserving
to be the largest clothing retailer. This is one of the reasons why both the companies keep
beating each other to become the market leader.

Therefore, the marketing communication strategies seem to work for both the companies.
Based on the units sold
during the financial year of
2018/2019
For the past couple of years, Zara has been the market leader in
the mid-range market, and it’s sales and revenue has been
slightly higher than H&M’s.