HENNES & MAURITZ

MARKETING PLAN
 1. EXECUTIVE SUMMARY

Swedish apparel giant H&M (Hennes & Mauritz) is well-known for its line of

clothing for kids, teens, and young adults. H&M is one of the best clothing retailers,

ranking a staggering second behind Zara with stores in 62 different nations.

Additionally, H&M provides online shopping in 33 nations and is trying to increase that

number. Our customers are people that work hard to develop fashion trends that appeal

to both men and women, offer good quality at an affordable price, and maintain a

positive customer experience in many different nations throughout the world. A brand

that keeps expanding is H&M.

The well-known H&M (Hennes & Mauritz) clothing line caters to children,

teenagers, and young adults. With outlets in 62 different countries, H&M is one of the

greatest apparel businesses, coming in a startling second place after Zara. H&M also

offers online shopping in 33 countries and is working to expand that number. Our clients

are people that put out a lot of effort to create fashion trends that appeal to both men

and women, provide high quality at competitive prices, and uphold a nice customer

experience in numerous countries across the world. H&M is a company that keeps

growing.
 2. SITUATION ANALYSIS

The Market

Market Trends

H&M offers stylish everyday wear for all occasions. The clothing line makes sure

that consumers receive outfits that precisely complement their bodies, figures, and

personal styles in addition to following current fashion trends. It seeks to influence

people to choose clothing that flatters them and enables them to move freely and easily

at all times. Customers occasionally need to wear apparel appropriate for the present

weather and season, so the company also sells in-season clothing. The business offers

customers a selection of respectable clothing. H&M assists clients in making versatile

clothing selections so they won't wear the same outfits over and over again and instead

add a jacket or sweater to match the season.

Market Growth

H&M aims to grow its market by adding 10 to 15 percent more stores each year.

Because of this, H&M dominates the market in the UK and Germany. H&M wants to

keep growing, and by doing so, its market share will also keep growing. Be mindful of

sales at nearby stores at the same time. The primary determinant of the rate of

expansion is how appealing the store is. In 2007, H&M added 193 new locations, but 16

of them were shut down. Nevertheless, this keeps H&M a financially sound business.

The organization wants to grow while continuing to be profitable. The size of the H&M

market is considerable due to the company's management of 1700 stores globally,

distributed across several geographical areas. Europe, Asia, North America, and the

Middle East are the four major regions, and each has its own own fashion personality.

H&M's expanding market opens the door for further growth, which will result in a larger

corporation due to an increase in the number of locations around the world.

2.0 MARKET SUMMARY

Hennes and Mauritz, a Swedish corporation, has developed into a

significant international retailer of clothing and beauty products. H&M has

established itself as a leader in providing stylish chic with accessible and varied

styles. With more than 1500 locations across 28 countries, H&M was one of the

first to compete in the retail clothing market by supplying and providing rapid

fashion at affordable costs. The brand offers and exhibits a variety of themes and

styles for women, men, teenagers, and children, ranging from high fashion to

contemporary essentials in clothing. H&M also sells complementary accessories,

nightwear, lingerie, and cosmetics to go with its lines. For a fashionable clothing

trend at a reasonable price, H&M has a large number of customers and

designers. The company's motto, "fashion and quality at the best price," guides

all of its operations.

2.2 SWOT ANALYSIS

The following SWOT analysis identifies the company's main strengths and

weaknesses as well as the opportunities and threats it confronts.

STRENGTHS

• The fact that H&M offers contemporary things at affordable prices is one of its

primary selling points.

• The shop sells high-quality apparel at department store pricing.

• The amount of time it takes to deliver an item from its low-cost retail state.

• The stores' brands always feature up-to-date designs, and different lines in the

store often feature guest designers.

WEAKNESS

• Purchasing in bulk does not ensure that every item will be sold.

• This brand caters to a wide spectrum of people.

OPPORTUNITIES

• Mothers and kids wearing complementary attire.

• A wide range of fashion collections based on the retailers.

• Various designs for various types of people.

THREATS

• Zara, a clothes retailer.

• The competitors' quick turnaround on deliveries.

• The apparel brand GAP, which also has a large selection of clothing lines for

various types of individuals and a market for infants.

2.3 COMPETITION

There is currently competition from the following:

• Gap, which sells jeans, khakis, and t-shirts. The company, which has

3,150 locations across the globe, created its enduring casual brand on

essentials for men, women, children, and urban chic.

• Topshop is a British clothing company with locations in more than 20

countries. Some of its markets also have online operations. Sales at

Topshop mostly originate from women's apparel and accessories for

fashion. As a member of the Arcadia Group, it.

• One of the biggest global fashion brands is Zara. It is a part of one of the

biggest distribution corporations in the world, Inditex. It offers clothing for

adults, women, and children.

• Old Navy, a Gap subsidiary that sells goods for men, women, children,

babies, and toddlers.

2.4 PRODUCT OFFERINGS

One of the most popular clothing brands in the world and a creator of

clothing for both men and women is H&M. H&M is acclaimed and well-known for

its clothing, which is also noted for its high caliber, well-designed durability, and

funkiness. This company's major objective is to offer distinctive and cutting-edge

clothing designs for various demographics of people, including men, women,

teenagers, and children, in various nations throughout the world. H&M is well

renowned for using clever strategies to offer unique clothing designs that cater to

the interests and demo. The primary goal of H&M is to provide products that are

both fashionable and reasonably priced, such as:

1) Clothing items

a.) fundamentals

b.) pajamas

c.) undergarments

d.) Items in style

2) Cosmetics

3) Accessories

a) Bags

b) Necklaces

c) Earrings

d) Headgear, etc.
 2.5 DISTRIBUTION

The effectiveness of a company's distribution channels is a crucial component of

retailing success. The sourcing and inventory management techniques of Sweden-

based Hennes & Mauritz (H&M) and their reliance on distribution channel partners are

examined in an article by Kerry Capell published in Business Week in 2002. To

compete with more well-established businesses like Gap, Old Navy, Zara, and FCUK,

H&M has created a novel distribution channel plan.

A thorough comprehension of H&M's product philosophy and strategy is

necessary to comprehend their distribution approach. H&M targets a certain subset of

the fashion consumer market, just like Gap and other clothing companies. "Fashion and

quality at the best price" is H&M's motto (H&M, 2004). By offering a range of designs,

from "updated classics and fashion basics" to cutting-edge current trends, H&M keeps

up with its rivals (H&M, 2004).

3. MARKETING STRATEGY

Indicator of Value

H&M offers inexpensive, fashionable clothing for men, women, and kids in

addition to fashionable attire. It specializes in utilizing the newest trends for the

season that are inspired by international design houses.

Crisis issues

H&M is in a speculative stage as an apparel and accessory store. Its main

problems are:

• An obscure brand. Despite its widespread appeal, it has still not been

implemented in the Philippines.

• Lacking own supply chain. With the admirable products and sales, production

process is still less reactive due to not having supply chain management.

3.1 OBJECTIVES

H&M has three key objectives: to be a fair and egalitarian company, to lead the

transition to a sustainable fashion industry, and to become completely circular. to be a

fair and egalitarian business while promoting circular and climate-friendly fashion. It has

a policy that has been authorized by Canopy Style to prevent the clearing of old-growth

and endangered forests, and it uses renewable energy in a portion of its supply chain.

In some of its items, H&M also uses eco-friendly materials including recycled polyester

and organic cotton.

 • Boost consumer acquisition and brand recognition

• Increase online user engagement and adherence

• To draw attention to the fact that H&M's average sale prices are frequently

lower than those of their rivals

3.2 TARGET MARKET

H&M offers reasonably priced apparel for the youthful, fashion-conscious person.

Both men and women are the company's primary target market. H&M also sells a line of

apparel for kids and teenagers.

Messaging

Fashion and quality are most affordable at H&M!

Branding

An increasingly crucial competitive advantage is a strong brand. All of

H&M's communication strives to spread our offer and strengthen the brand over

the long and short terms. Customers should be familiar with the store and

understand what H&M stands for fashion and quality at competitive prices. H&M

should be warm, engaging, and full of surprises for our customers. This method

of thinking has served as a compass throughout H&M's history

3.3 POSITIONING

The corporation will distribute its items to its customers in order to advertise its

goods to the market. The stylish segment of the market, which nevertheless prioritizes

the value and quality of the products they select, is H&M's primary market. Partnering

with a reputable distributor of clothing, cosmetics, and apparel will aid in H&M's

international growth and, by extension, its growth in the Philippines. H&M will offer what

customers want and want. The things that H&M offers are focused on the needs of the

customers and what would make them comfortable and happy. The production and sale

of goods that meet customer demands and needs is a continuing goal.

3.4 STRATEGIES (4PS)

Product Strategy:

The business is known for having "Fast-fashion clothing stores,"

which implies that they never fail to offer us top-notch clothing and eye-

catching accessories that are admired in line with the latest fashion trends.

Additionally, they are constantly ready to launch new product lines on

schedule and offer European-influenced clothing in the American market

because it promotes cross-cultural trends in this population.

Price Strategy:

Customers claim that some H&M clothing is extremely expensive to

purchase since it is good quality. H&M, on the other hand, concentrates

on meeting customer needs by keeping labor and transportation costs as

 low as possible while yet providing high-quality apparel. Prices for H&M

clothing range from Rs 399 to Rs 7999.

Promotional Strategy:

In order to increase brand exposure globally, H&M devised a multi-

channel promotion strategy that includes advertising, sales promotion, and

internet promotion. Additionally, the business attracts clients by enhancing

brand recognition by advertising discounted prices on the goods.

Place Strategy:

By operating stores in numerous locations throughout the globe,

H&M was able to build a trustworthy relationship with its customers. H&M

manufactures its low-end products in Asia while producing its high-end

products in Turkey, and it sells them in its 5000+ owned stores across 73

nations.

3.5 MARKETING MIX

The marketing mix framework, which includes the 4Ps of product, price, place,

and promotion, is used by H&M's marketing strategy to analyze the brand. There are

numerous marketing tactics, such as pricing strategy, promotion planning, and product

innovation. These business plans, which are based on the marketing mix used by H&M,

aid in the brand's commercial success. The H&M marketing strategy enables the

brand/company to take a competitive position in the market and accomplish its

corporate objectives. Following is an explanation of the product strategy and mix used

by H&M in its marketing strategy and as H&M is a retailer of apparel. It provides rapid

fashion clothing for adults, teenagers, and kids. In numerous nations throughout the

world, H&M carries the following clothing labels:

• H&M: The assortment features everything from everyday essentials and yoga

gear to designer collaborations.

Denim, clothing lines, and accessories for men and women are all on sale every

Monday. The company has ties to pop culture and music.

• COS: For men, women, and kids, classics and wardrobe staples. The

company's designs were influenced by global art and technology.

• Weekday: It creates attire for youthful, fashion-conscious adults. These all

address H&M's product strategy in their marketing mix.

3.6 MARKETING RESEARCH

To "challenge our thinking" and "give us fresh perspectives" on everything from

innovative business and service concepts that explore how consumers will shop for

fashion in the future to the technologies and solutions that will help steer the industry

toward becoming fully circular and sustainable, the internal innovation department,

which launched almost four years ago, is the retail behemoth H&M Group's research

and development platform. Since its start, the center has operated a number of trial
projects. A special collection produced especially for Berlin customers was created as a

result of a collaboration with H&M Germany last year.

4. FINANCIALS

Hennes & Mauritz, also known as H&M, is the oldest of the three. The low-cost

retailer, which was established in Sweden in 1947 and is well-known for its low costs,

has become one of the most renowned names in the fashion industry. In both its home

country of Sweden and the United States, H&M is a publicly-traded company. In

Sweden, it was made public in 1974. Offering customers featured products that have

been touted as designer collaborations with well-known names like Versace and

Alexander Wang is one of H&M's strategies to increase sales. By making these items

available in H&M stores, the company enhances its own reputation by working with

influential members of the fashion industry and provides its customers with additional

lines for purchase that differ in look and style from the company's signature creations.

The first quarter of 2022 had an increase in net sales of 18% in local currencies

for the H&M group as compared to the same period in the previous year. This growth

occurred from 1 December 2021 to 28 February 2022. Net sales grew by 23% to SEK

49,166* m when expressed in SEK (40,060). * The sum is tentative and could vary

significantly from the three-month report, which will be released on March 31, 2022, and

covers the time period from 1 December 2021 to 28 February 2022.

5. CONTROLS

H&M should entirely redesign its supply chain structure in order to get better

control over the inventory as the markets change. Inventory is equivalent to stranded

capital in the business world, and if inventory control is not tightly maintained, H&M may

find itself in a worse predicament than they were in the previous quarter. There are two

approaches to updating the system, as I mentioned earlier. They can either establish a

vertical supply chain integration strategy as Zara does or outsource between 50% and

60% of their manufacturing to European-based partners. First, they should build on their

current assets, such as their internal design expertise, and create product designs that

are as modular as possible.

They want to locate the majority of its industrial partners in Europe, as well.

Small-scale producers ought to be the partners so that H&M can exert better control

and profit from full capacity utilization. They can build up their manufacturing facilities

and contemplate vertical integration, which would increase their cost-benefit ratio given

the volume of product they are producing. In any case, the manufacturing output should

be modules or things that are still under construction to allow for postponement. Third,

they must establish assembly facilities close to their target markets, where the modules

will be assembled in accordance with the fluctuating demand for each style as

determined by data collection and analytics.

5.1 IMPLEMENTATION

When the landlord of the shopping center owns the energy account, it is

frequently impossibly difficult for merchants to apply for utility incentives to enhance

store efficiency. Collaborate with landlords and utilities to develop better methods for

renters to apply for incentives even if they do not possess utility accounts. A global

retailer of clothing with its headquarters in Sweden is H&M. The business runs more

than 4,400 locations in 71 countries, including 575 in the United States. Before moving

on to areas where the landlord is the direct utility customer, H&M and Transformative

Wave first retrofitted RTUs in-store locations where H&M is directly billed as the utility

customer. Because the owner of the utility account can most readily collect utility

rebates, they prioritized in this way. A more complicated approval process is required

where H&M is seeking the rebate, but their landlord is the direct utility customer.

5.2 MARKETING ORGANIZATION

BIBLIOGRAPHY

H&M slammed as racist for 'monkey in the jungle' hoodie". CNBC. 8 January

2018. Retrieved 8 January 2018.

"HM B, HENNES & MAURITZ B, (SE0000106270)". Nasdaqomxnordic.com.

Retrieved 16 February 2022.

"H&M launching collaboration with 1960s designer Richard Allan this summer".

Independent.co.uk. 21 July 2019.

"H&M suspends Brazil leather purchases over Amazon fires". news.yahoo.com.

Retrieved 6 September 2019.

"H&M apologizes for using black child to sell 'coolest monkey' top". CNN. 8

January 2018. Retrieved 8 January 2018.