THE 

H&M GROUP INCLUDES EIGHT CLEARLY DEFINED BRANDS – H&M, COS, MONKI, WEEKDAY, & OTHER STORIES, CHEAP
MONDAY, H&M HOME AND ARKET. TOGETHER OUR BRANDS OFFER CUSTOMERS A WEALTH OF STYLES AND TRENDS IN FASHION,
BEAUTY, ACCESSORIES AND HOMEWARES – AS WELL AS EXPERIENCES THAT NOW ALSO INCLUDE MODERN, HEALTHY FOOD.

HOW WOULD YOU DESCRIBE H&M?

HENNES & MAURITZ: H&M IS A SWEDISH MULTINATIONAL CLOTHING-RETAIL COMPANY KNOWN FOR ITS FAST-FASHION
CLOTHING FOR MEN, WOMEN, TEENAGERS AND CHILDREN. ... IT IS THE SECOND-LARGEST GLOBAL CLOTHING RETAILER,
BEHIND SPAIN-BASED INDITEX (PARENT COMPANY OF ZARA).

HOW DOES HM PROMOTE PRODUCTS?

PROMOTION – H&M FOCUSES A VAST AMOUNT OF TIME ON PROMOTION AND ADVERTISING. DIRECT MARKETING IS

ALSO USED AS PART OF H&MS CAMPAIGN. H&M USES CELEBRITIES, PRESS AND BLOGGERS TO CARRY OUT THE
ADVERTISING MESSAGE. SOCIAL MEDIA, VIDEO AND PRINT TO MAKE ITS PRODUCTS AND SERVICES KNOWN
TO ITS CUSTOMERS.
FOUNDED IN 1947, SWEDISH CLOTHING RETAILER H & M HENNES & MAURITZ AB (STO: HM-B), COMMONLY
KNOWN AS H&M, HAS GROWN INTO ONE OF THE MOST RECOGNIZABLE BRANDS IN THE FASHION INDUSTRY. AS
REPORTED BY BLOOMBERG, H&M HAS ALMOST 4000 STORES WORLDWIDE AND HAS PLANS FOR 7000-8000 MORE
STORES IN THE FUTURE.

PRODUCTS: (MEN, WOMEN, KIDS, DIVIDED, MAGAZINE, SUSTAINABILITY)

 MARKETING GOALS & OBJECTIVES

HOW TO SET UP YOUR MARKETING OBJECTIVES IN 6 STEPS

1. STEP ONE: REMEMBER YOUR MISSION STATEMENT.

2. STEP TWO: SET YOUR MARKETING OBJECTIVES.

3. STEP THREE: TIE YOUR MARKETING GOALS INTO YOUR MARKETING OBJECTIVES.

4. STEP FOUR: DEVELOP A MARKETING STRATEGY.

5. STEP FIVE: ALIGN YOUR MARKETING GOALS WITH YOUR MARKETING FUNNEL.

 PRICING DETAILS
HOW EXPENSIVE IS H&M?

THE MAJORITY OF THEIR ITEMS (JEWELRY, T-SHIRTS, SHOES ETC.) ARE INEXPENSIVE RANGING FROM $5-$30+. THE
MOST EXPENSIVE ITEMS ARE USUALLY THE BLAZERS. I HAVEN'T SEEN ONE THAT COSTS MORE THAN $50 BUT YOU CAN
GET GREAT DEALS WHEN YOU SHOP THEIR SALES.

DOES H&M DO PRICE MATCH?

H&M WILL HONOR ALL HM.COM/US PRICES, PROMOTIONS AND OFFERS IN OUR US STORES. JUST SHOW THE ONLINE
ITEM, OFFER OR PROMOTION ON YOUR MOBILE DEVICE TO AN H&M SALES ADVISOR AT CHECKOUT AND
THE PRICE WILL BE HONORED THEN AND THERE. ITEMS MUST BE AVAILABLE IN-STORE AT THE TIME A PRICE
MATCH IS REQUESTED.

IS H&M A LUXURY BRAND?

H&M AND GUCCI TOP LIST OF MOST TRANSPARENT BRANDS IN MAINSTREAM AND LUXURY FASHION.

WHAT IS H&M PRICING STRATEGY?

SWEDISH FASHION RETAILER HENNES & MAURITZ'S PRICING STRATEGY IS DESIGNED BASED ON THEIR CUSTOMERS'
NEEDS WHICH ARE LOW PRICE AND HIGH FASHION. ... H&M ACHIEVES THIS BY OUTSOURCING THE PRODUCTION TO
THE COUNTRIES WHERE CHEAP LABOUR IS AVAILABLE.
 H&M MASTERS THE ART OF INTEGRATED
MARKETING COMMUNICATIONS

ABOUT SIX YEARS AGO ON ONE OF MY TRIPS TO NEW YORK, I WAS WALKING THROUGH THE
STREETS OF MANHATTAN WITH MY SISTER. SHE TOLD ME SHE WAS GOING TO TAKE ME TO A STORE
SHE KNEW I WAS GOING TO LOVE. WHEN WE ARRIVED I LOOKED UP AND SAW TWO BIG RED
LETTERS, H&M. I LOOKED THROUGH THE WINDOW AND INSTANTLY FELL IN LOVE. I MADE MY WAY
INSIDE THE STORE, SAW THE PRICE POINT AND I WAS COMPLETELY SOLD.
I WAS REAL EXCITED WHEN I FOUND OUT THAT H&M WAS PLANNING TO OPEN STORES IN LOS
ANGELES. SINCE COMING TO LOS ANGELES, H&M HAS BEEN A STRONG COMPETITOR IN THE RETAIL
MARKET. H&M OFFERS QUALITY CLOTHES FOR REASONABLE PRICES FOR THE WHOLE FAMILY.
H&M HAS MASTERED THE ART OF INTEGRATED MARKETING. THEY HAVE UTILIZED VARIOUS MEDIA
OUTLETS – WEBSITE, CATALOG, BLOGS, SOCIAL MEDIA, BILLBOARDS, ADS, BANNER ADS, EMAIL, IN-
STORE PROMOTIONS AND SALES, FASHION STAR TELEVISION SHOW (WHICH DRIVES BUSINESS TO
THEIR COMPANY) AND EFFECTIVE COMMERCIALS.
VIEW THE LATEST SPRING 2013 DAVID BECKHAM FOR H&M COMMERCIAL:

IF YOU HAVE NOT FIGURED OUT YET, DAVID BECKHAM IS THE NEW CAMPAIGN FOR H&M. THIS YEAR, 2013, H&M
USED THIS CAMPAIGN IN THEIR FIRST EVER SUPERBOWL COMMERCIAL. H&M AIMS TO DRIVE MORE IN-STORE
TRAFFIC; AND ARE “BRIDGING SOCIAL MEDIA AND MOBILE WITH A LOCATION-BASED” MARKETING STRATEGY
BY PUTTING “MOBILE ADVERTISING AT THE FOREFRONT OF A SOCIAL MEDIA FUELED CAMPAIGN.” (JOHNSON,
2012)

IN NEW YORK, SAN FRANCISCO AND LOS ANGELES H&M WILL BE RUNNING THIS CAMPAIGN UNTIL AUGUST 31,
2013. THIS CAMPAIGN ALSO CONSISTS OF A SCAVENGER HUNT. STATUES OF DAVID BECKHAM HAVE BEEN PUT
AROUND THESE THREE MARKETS – ALL YOU HAVE TO DO IS SNAP AND WIN. CONSUMERS ARE TO SNAP A
PICTURE OF ONE OF THE STATUES “USING THE INSTAGRAM MOBILE APPLICATION WITH THE HASHTAG
#HMBECKHAM AND ARE ENTERED TO WIN A $1000 GIFT CARD AND OTHER PRIZES.” (JOHNSON, 2012)
CONSUMERS ALSO HAVE A CHANCE TO WIN BY FOLLOWING H&M ON TWITTER AND OR SIGNING UP FOR THEIR
NEWSLETTER.
This is not the first campaign H&M has done via social media. Recently, the company used a mobile ad
inside the iPhone Pandora App. In 2010, they teamed up with “GoldRun” on a location based initiative
that used augmented reality to allow users to virtually try on products from store windows. Each
participant was compensated with a 10% discount to be redeemed within the store.
By: LeiLani Lemle-Macias
18 RESPONSES TO H&M MASTERS THE ART OF INTEGRATED MARKETING COMMUNICATIONS:
AFLORES SAYS:

MARCH 12, 2013 AT 6:00 AM

HI LEILANI,

VERY INTERESTING POST. IT SEEMS LIKE AN GOOD EXAMPLE OF IMC, BUT I WAS IMPRESSED BY THEIR SOCIAL
MEDIA STRATEGY. I WONDER IF THEY ARE USING AN AGENCY OR IF THEY HAVE AN INTERNAL SOCIAL MEDIA
GURU. THEIR USE OF TWITTER TO BRING IN CUSTOMERS WAS CREATIVE AND THEY CAN DEFINITELY MEASURE
IMPACT.
THANKS FOR SHARING.

ADRIANA

LEMLEMAC SAYS:

MARCH 13, 2013 AT 8:48 PM

HI ADRIANA,

THANKS FOR YOUR RESPONSE. I AGREE THEIR SOCIAL MEDIA STATEGY IS ON POINT AND HIGHLY EFFECTIVE. I
AM NOT SURE IF THEY USE AN AGENCY OR NOT BUT WHO EVER IS BEHIND IT IS SURE MAKING H&M’S
PRESENCE KNOWN.

LEILANI
ALLISON CORDOVA SAYS:

MARCH 13, 2013 AT 2:53 AM

HI LEILANI,

YOU FORGOT TO MENTION WHERE I CAN GET ONE OF THESE DAVID BECKHAM STATUES FOR MY LIVING ROOM!
LOL GOOD POST ABOUT H&M’S INTEGRATED MARKETING EFFORTS. I CAME ACROSS MY FIRST H&M IN EUROPE
AND I REMEMBER BEING VERY EXCITED WHEN I LEARNED ONE IN LAS VEGAS WAS OPENING UP. VERY
INTERESTING USE OF CELEBRITY ENDORSEMENT FOR THIS PARTICULAR CAMPAIGN. I THINK WHAT THEY DID
WITH THE STATUES AND SOCIAL MEDIA WAS VERY CLEVER! ALSO A GOOD EXAMPLE OF CONSISTENCY ACROSS
EXECUTION. THANKS FOR SHARING!

ALLISON

LEMLEMAC SAYS:

MARCH 15, 2013 AT 2:47 AM

THANKS FOR YOUR RESPONSE. I WENT INTO H&M YESTERDAY LOOKING FOR THE STATUE. IMC HARD AT WORK
– ONCE I WAS IN THERE I ENDED UP BUYING 3 SWEATERS, 3 SHIRTS AND A PAIR OF PANTS FOR UNDER $100 (I
LOVE H&M).
THEY USE A LOT OF CELEBRITIES TO ENDORSEMENTS, AND FAMOUS GUEST COLLECTIONS(I.E. DESIGNS BY
VESACE).

LEILANI
PDOMICO SAYS:

MARCH 13, 2013 AT 4:21 AM

HI LEILANI!

I REMEMBER WALKING INTO AN H&M IN MANHATTAN LAST SUMMER AND I HAD THE SAME FEELING YOU DID – HERE’S A
STORE THAT HAS QUALITY PRODUCTS AT DECENT PRICES. THEY ALWAYS SEEM TO HAVE GOOD DEALS (EXCEPT I STILL
CAN’T JUSTIFY PAYING $20 FOR A PAIR OF BECKHAM-BACKED BRITCHES). STILL, THE COMPANY IS CONSISTENT IN IT’S LOOK
AND FEEL; I CAN SPOT AN H&M PRINT AD BEFORE I SEE THEIR LOGO PLACEMENT. GREAT ANALYSIS, LEILANI!
LEMLEMAC SAYS:
MARCH 15, 2013 AT 2:50 AM
THANK YOU FOR YOUR RESPONSE. H&M’S BRAND IS VERY RECOGNIZABLE. I AGREE THEY HAVE GREAT DEALS.
LEILANI

LYNNHOFF17 SAYS:

MARCH 13, 2013 AT 4:32 AM

LELIANI:

I THINK THE BRILLIANCE IN H&MS IMC LIES NOT ONLY IN THE SEAMLESS EXECUTION ACROSS MEDIA BUT ALSO IN THE
COMPANY’S OBVIOUS ACUTE AWARENESS OF WHO THEIR TARGET “JANE CUSTOMER” IS. THEY HAVE A CLEAR PICTURE OF
WHO JANE IS–WHERE SHE’LL BE HANGING OUT, WHAT TECHNOLOGY SHE’LL BE USING AND HOW, WHAT DRIVES HER AND
MOTIVATES HER. KIND OF LIKE THAT “IDEAL” CUSTOMER THAT SONG AIRLINES CAME UP WITH, SUCCESSFULLY USED IN
THIS CASE.

LYNN
 LEMLEMAC SAYS:
MARCH 15, 2013 AT 2:54 AM
THANKS FOR YOUR RESOPONSE. H&M IS VERY AWARE OF WHO THERE TARGET AUDIENCE IS.
SHE IS FASHIONABLE, ON THE GO, AND LIKES TO MAKE A STATEMENT ON A CONSERVATIVE
DOLLAR (AND WANTS HER FAMILY TO BE JUST AS FASHIONABLE – IF SHE HAS ONE).
LEILANI

DAYNEY SAYS:

MARCH 13, 2013 AT 4:36 AM

HI LEILANI,

DEFINITELY A GOOD EXAMPLE OF IMC, BUT AS A CONSUMER, I FOUND MYSELF GROOVING TO

THE SONG. I GUESS I’M A MID-BRAIN CONSUMER AND I THINK THAT H&M DID A GREAT JOB OF
UTILIZING THE BALANCE THEORY IN THEIR COMMERCIAL TO APPEAL TO THEIR TARGET MARKET
VIA CONSUMER EXPERIENCE.

DAYNA
 Lemlemac says:
March 15, 2013 at 2:57 am
Thanks for your response. I’m sure H&M has thought of it all the way down to the music – capturing the
attention of consumers and bringing awareness to their store is an effective use of IMC.
LeiLani
Andrea Lavin says:
March 13, 2013 at 4:39 am
Hey Leilani,
I really enjoyed your blog post! I visited H&M before before it came to LA too, circa 2001 and totally loved it.
I remember buying a lot while I was there and wishing they would come to LA too.
Their marketing campaigns are always really awesome.
I remember the Madonna spreads on huge billboards around LA a few years back.
Thank you for posting those beautiful pictures and you tube video of Becks. LOVE him          
~Andrea
 LEMLEMAC SAYS:
MARCH 15, 2013 AT 3:00 AM
THANKS FOR YOUR POST. YOU ARE WELCOME, BUT REALLY THANKS TO H&M FOR EVOKING EMOTION
THROUGH THEIR COMMERCIAL (IT IS EFFECTIVE -LOL).
LEILANI

ALINA HARDY SAYS:
MARCH 13, 2013 AT 4:41 AM
LEILANI!
GREAT EXAMPLE – I AGREE, I THINK THEY DO A GREAT JOB OF INTEGRATING EVERYTHING. I ALSO
LOVE HOW LONG THEY STRETCH THIS CAMPAIGN. I FEEL LIKE WITH SOCIAL MEDIA MARKETING,
BECAUSE ORGANIZATIONS ARE STILL TRYING NEW THINGS AND TESTING THE WATERS, COMPANIES
TEND TO NOT RUN A CAMPAIGN FOR TOO LONG. I’M CURIOUS TO SEE HOW THIS ONE PLAYS OUT.
THIS IS DEFINITELY THE KIND OF CAMPAIGN THAT WOULD WORK IN EVERY MARKET OR FOR
EVERY DEMOGRAPHIC. I THINK H&M DEFINITELY KNOWS THEIR AUDIENCE, AND THEY’RE PLAYING
IT RIGHT.
THANKS FOR SHARING!
ALINA
 LEMLEMAC SAYS:
MARCH 15, 2013 AT 3:02 AM
ALINA, THANKS FOR YOUR RESPONSE. H&M IS A GREAT ROLE MODEL FOR OTHER COMPETITORS. I AM INTRIGUED BY
THIS CAMPAIGN.
LEILANI

YEIRANG LEE SAYS:
MARCH 14, 2013 AT 2:36 AM
LELIANI,
GREAT POST! I LOVED WATCHING BECKHAM UNDERWEAR COMMERCIAL. VERY INTERESTING.
I REMEMBER MY FIRST TIME EXPERIENCING H&M AT SWEDEN IN 2002. EVEN BEFORE I LOOKED AROUND THE
CLOTHES, I FELL IN LOVE WITH THIS BRAND BECAUSE OF THEIR STORE ATMOSPHERE. IT WAS VERY
SOPHISTICATED, TRENDY BUT AT THE SAME TIME VERY ACTIVE, PERFECT FIT TO MY AGE THAT TIME, MID 20’S.
WHEN I READ YOUR WRITING, I FELT EXACTLY SAME WHEN I FIRST EXPERIENCE THE COMPANY. THEIR IMC IS
VERY SOPHISTICATED AND ACTIVE. I ESPECIALLY LIKED THEIR NEW CAMPAIGN WITH BECKHAM. COMMERCIAL
WAS OF COURSE VERY ATTRACTIVE, BUT BECKHAM STATUE EVENT WITH SOCIAL MEDIA WAS BRILLIANT. IT’S
PERFECT TO DRAW ATTENTION FROM YOUNG PEOPLE.
GREAT POST!
YEIRANG.
 lemlemac says:
March 15, 2013 at 3:08 am
Hi Yeirang, thanks for your response. H&M has massive reach. Just from these responses, they have reached consumers in Eurpoe, NY, and Los Angeles.
I would say using Beckham in anything is brilliant!
LeiLani
•kcn13 says:
March 14, 2013 at 4:56 am
Hi Leilani,
Your was similar to mine the first time I went to their NYC 5th Ave store in 2000, great prices and oh so trendy and fun!
They have definitely grown in the US over the past decade. I never really thought of H&M’s marketing strategy before reading your post,
so this was very interesting and insightful for me. I love their use of social media to augment their advertising strategy.
They really do a good job of creating harmony with traditional marketing media and new media.
Thanks for sharing this great example!
-Kristy
•lemlemac says:
March 15, 2013 at 3:12 am
Thanks for your response Kristy. I never though of their strategy either. When I was thinking about this blog –
I wanted to tie marketing into my fashion passion and since H&M is my favorite store, it just made sense.
LeiLani
 ADVERTISING PLANT
SINCE H&M GROUP HAS A WIDE RANGE OF PRODUCT PORTFOLIO CATERING TO DIFFERENT SEGMENTS, IT

USES MULTI-CHANNEL PROMOTIONAL STRATEGY IN ITS MARKETING MIX. TV ADVERTISEMENTS: H&M

COMES WITH CREATIVE ADS WHICH FOCUS ON ITS LATEST INNOVATIVE DESIGNS. EACH BRAND HANDLES

ITS OWN MARKETING DECISIONS.

HOW DOES H&M ADVERTISE?

THEY SPENT UNDER $100 MILLION ON ADVERTISING IN DIGITAL, PRINT, AND NATIONAL TV IN THE LAST

YEAR. THEY INVEST IN PREMIUM AD UNITS AND ADVERTISED ON OVER 250 DIFFERENT MEDIA

PROPERTIES IN THE LAST YEAR ACROSS MULTIPLE MEDIA FORMATS. H&M LAUNCHED AND ADVERTISED 1

NEW PRODUCT IN THE PAST TWELVE MONTHS.

 POSITIONING DIFFERENTIATION
H&M DIFFERENTIATES ITS BRAND BY VIRTUE OF PROPOSING LOW PRICES FOR HIGH QUALITY AND DESIGN
PRODUCTS. THE COMPANY WINS THE PRICING BATTLE WITH COMPETITORS WHO SUGGEST A SIMILAR DRESS
OR SHIRT APPROXIMATELY TWICE EXPENSIVE. THIS IS DUE TO THEIR FOCUS ON COST MINIMIZATION IN TERMS
OF MANUFACTURING AND TRANSPORTATION.

WHAT SEGMENTATION STRATEGIES DOES H&M APPLY?

THE COMMERCIAL AIMED TO SEND A MESSAGE OF COMFORTABILITY AND LIFE WITHOUT BIASES. WE NEED TO
LIVE WITHOUT SEGREGATION, AND AS IT IS NICE TO US. ONE CAN WEAR A HAT INSIDE, OR BROWN SHOES IN
THE EVENING. EVEN IF IT IS OUT OF STANDARD FOR MEN TO WEAR A SKIRT OR AN OUTFIT ENTIRELY IN PINK
COLOR, THEY ARE NORMAL. THE COMPANY SUGGESTS CLOTHES, SHOES, AND ACCESSORIES FOR ALL PEOPLE
WITHOUT DISCRIMINATION. ANOTHER FACTOR THAT H&M PUTS FORTH IS GIVING CUSTOMERS A CHANCE TO BE
DIFFERENT AND CONFIDENT BY VIRTUE OF THEIR PRODUCTS. IT IS VITAL FOR THEM TO MEET CUSTOMERS’
NEEDS IN TERMS OF THE TRUST FOR ADVANCING SELF-ESTEEM, DIFFERENTIATION, CONVENIENCE, AND
MAINTAIN VOGUISH AND UNBIASED CULTURE.

THE COMPANY’S FOCUS ABOUT SEGMENTATION IS MORE THAN HEALTHY AND CURIOUS WHERE ONE CAN FIND
IT’S TARGET SEGMENT. THE TYPICAL FACETS DISCUSSED ABOVE RESEMBLE THE TARGET SEGMENT
OF PEACOCKS.
Who are Peacocks?
Values and Beliefs
Peacocks always need to be differentiated by all means. It is more than essential to stand out from the crowd. Even though
they tend to be domineering in a team, they usually feel the lack of friends around them. Peacocks are prone to exert all their
efforts in order to seem over-confident individuals. Their choice of clothes, friends, visited places, etc. highly speak about
these points. It is peculiar that Peacocks opt for friends who look like them in case of values and the way of thinking to make
them sure they believe and act unmistakably. 
The target segment is always ready for new challenges and adventures. Getting to the top point of their career and job is a
must because they like to lead but not be told what to do. Money plays a significant role in Peacocks’ life as it is their kind of
success measurement tool. Maintaining their position in society as a patriotic persona is essential. They are ambitious and like
their country, if it can assist them in getting to the point of desired success.
SHOPPING ATTITUDES

PEACOCKS ARE PRONE TO PURCHASE GOODS FROM PREMIUM LEVEL BRANDS. THE ONLY REASON FOR THIS IS
THAT THEY LIKE TO BE SEEN AS USERS OF THOSE BRANDS OR STORES. IT IS THE CORNERSTONE OF THEIR
SHOPPING PREFERENCES TO BUY THINGS THAT ARE OUTSTANDING IN A WAY, AND NOT EASILY AFFORDABLE BY
EVERYONE. IN ANY CASE, THE TARGET SEGMENT GIVES WORTH TO THE QUALITY. SOMETIMES THEY ARE
BRAND LOYAL; HOWEVER, THEY ARE NOT RESISTANT TO TRYING NEW THINGS. THE TARGET SEGMENT IS
CONSIDERED ONE OF THE EARLY ADOPTERS OF NEW PRODUCTS, TRENDS, OR BRANDS BECAUSE BEING UP-TO-
DATED IS A VITAL POINT. 

MARKETING STRATEGIES OF H&M

LIKE OTHER BIG CORPORATIONS, H&M HAS ALSO EXERTED A FEW KEEN MARKETING STRATEGIES THAT
COMPETE INTENSIVELY IN THE CLOTHES RETAIL INDUSTRY. ONE OF THEM IS A PRUDENT INVESTMENT
IN PROMOTIONS AND ADVERTISING. THE COMPANY HAS CHOSEN THE FIELD OF ADVERTISING THE
ONLINE PLATFORM WHERE ADS AND SPECIAL OFFERS APPEAR ON THE SCREENS FREQUENTLY. IT NOT
ONLY ENHANCES BRAND AWARENESS BUT KEEPS PEOPLE INFORMED ABOUT ITS PROMOTIONS,
DISCOUNTS, NEW COLLECTIONS, OR JUST MOTIVATES THEM TO MAKE PURCHASES VIA ONLINE OR
OFFLINE MEANS. 
ANOTHER MARKETING STRATEGY THAT HELPED THE COMPANY TO BECOME POPULAR AND FINANCIALLY
STABLE IS THE PRICING ENTERPRISES. H&M DIFFERENTIATES ITS BRAND BY VIRTUE OF PROPOSING LOW
PRICES FOR HIGH QUALITY AND DESIGN PRODUCTS. THE COMPANY WINS THE PRICING BATTLE WITH
COMPETITORS WHO SUGGEST A SIMILAR DRESS OR SHIRT APPROXIMATELY TWICE EXPENSIVE. THIS IS DUE TO
THEIR FOCUS ON COST MINIMIZATION IN TERMS OF MANUFACTURING AND TRANSPORTATION. 

PROBLEM REMOVAL

H&M BRAND OFFERS EVERYTHING FOR EVERYONE IN ONE PLACE. THEY HAVE GOODS SUCH AS CLOTHES AND
SHOES FOR EVERY OCCASION AND STYLE LIKE WEDDING, PARTY, CASUAL, ETC. SEASONALITY INEVITABLY
IMPACTS INVENTORY; HOWEVER, YOU CAN PURCHASE A WINTER COAT IN SUMMER AND SWIMWEAR IN
WINTER. AGE ALSO DOES NOT PLAY AN OBSTACLE AS THEIR ITEMS ARE FOR EVERY AGE AND GENDER.

SKINCARE AND BEAUTY PRODUCTS ARE NOT AN EXCEPTION FOR H&M, WHERE ONE CAN UNDOUBTEDLY FIND
HIS/HER FAVORITE CLEAN SCRUB OR COSMETICS. THESE ARE EFFORTS DONE FOR H&M CUSTOMERS TO MAKE
THEIR SHOPPING EASIER WHERE ONE CAN FIND EVERYTHING THEY NEED WITH A SCORE OF VARIETIES IN ONE
AND TRUSTWORTHY BRAND STORES.
H&M COMPANY CONSIDERS THE SUSTAINABILITY ISSUE AS A NOTEWORTHY ONE. THEY ARE PRONE TO VALUE
EQUALITY AND ALWAYS KEEP THE DESEGREGATION PROCESS WHILE OPTING FOR NEW EMPLOYEES. BESIDES,
EQUALITY REFERS ALSO TO WAGES AND WORKING CONDITIONS OF WORKERS, AS EVERYONE DESERVES
JUSTIFIED OPPORTUNITIES. H&M CHAIN RESPECTS HUMAN RIGHTS AND DIVERSITY AND SENDS THIS CALL TO
OTHER CORPORATIONS. ONE CAN ALSO NOTICE THIS FACT FROM THEIR NONDISCRIMINATORY INVENTORY AND
CUSTOMER DIVERSITY.
 EXECUTIVE SUMMARY
INTERNAL ANALYSIS HUMAN CAPABILITIES :> THESE COMPETENCES OF H&M REFER TO THE VOLUME OF STAFF AND THE LEVEL
OF SKILL CONCERNED. THE PHYSICAL CAPABILITIES OF H&M REFER TO THE BUSINESSES LOCATIONS OF OPERATION, WHERE
PRODUCTS ARE PRODUCED AND THE QUALITY PROCESSES WITHIN PRODUCTION. FINANCIAL CAPABILITIES OF H&M ARE THE
FINANCIAL CIRCUMSTANCES OF THE BUSINESS AND THE ABILITY TO RAISE ADDITIONAL CAPITAL. EXTERNAL ANALYSIS
PORTER’S FIVE FORCES ANALYSIS PORTER’S FIVE FORCES IS A STRUCTURE USED FOR BUSINESS INDUSTRY ANALYSIS AND
UNDERSTANDING THE VARIOUS DYNAMICS AMONGST INDUSTRY PLAYERS AND EXTERNAL “FORCES.” IT IS BASED ON THE
THEORY THAT COMPETITION IN ANY BUSINESS INDUSTRY IS DEPENDENT ON 5 BASIC FORCES-POTENTIAL ENTRANTS, INTERNAL
COMPETITION, SUPPLIERS, BUYERS, AND ALTERNATIVES.
INDUSTRY COMPETITION – COMPETITORS REFER TO THE ACTIVITIES AND CAPABILITIES OF BUSINESS RIVALS.
A SWOT ANALYSIS CAN BE CARRIED OUT FOR A BUSINESS, PRODUCT, PLACE, INDUSTRY, OR PERSON. IT PROVIDES A VALUABLE
FRAMEWORK FOR REVIEWING THE POSITION AND DIRECTION OF A BUSINESS.
CURRENT MARKET SITUATION ANALYSIS
INTERNAL ANALYSIS:
HUMAN CAPABILITIES :> THESE CAPABILITIES OF H&M REFER TO THE VOLUME OF STAFF AND THE LEVEL OF SKILL
CONCERNED (MEHTA, 2014). ACCORDING TO H&M ANNUAL REPORT 2014, THEY HAVE A VAST RANGE OF SALES ASSOCIATES IN
OVER 3500 STORES ACROSS 55 COUNTRIES.  OTHER FUNCTIONS INCLUDE IT, HR FINANCE, PURCHASING, PRODUCTION, DESIGN
AND DISTRIBUTION, WHICH HAVE A VAST NUMBER OF ROLES WITHIN THEM.  THEY HAVE OVER 132000 EMPLOYEES.  MOST OF
H&M’S MANAGEMENT ARE INTERNALLY EMPLOYED.  ROLE ROTATION AND DEVELOPMENT IS HIGHLY RECOMMENDED FOR
PERSONAL GROWTH AT ALL LEVELS.  STAFF ALSO TAKE TRAINING PROGRAMS AND ARE OFFERED INCENTIVES TO ASSIST IN
THEM ACCOMPLISHING THEIR GOALS AND PROMOTION WITHIN THE BUSINESS.
PHYSICAL CAPABILITIES :> THE PHYSICAL CAPABILITIES OF H&M REFER TO THE BUSINESSES LOCATIONS OF OPERATION, WHERE
PRODUCTS ARE PRODUCED AND THE QUALITY PROCESSES WITHIN PRODUCTION.  THEY ARE THE SCOPE OF INVESTMENT AND THE NEED
FOR PRESERVATION INVOLVED (MEHTA 2014). WITH OVER 3500 STORES WORLDWIDE AND FUTURE PLANS FOR STORE EXPANSION IN BOTH
EXISTING MARKETS AND OTHER COUNTRIES.  H&M HAVE AN ONLINE STORE AVAILABLE TO 13 COUNTRIES THUS ENABLING FURTHER
REACH OF CUSTOMERS GLOBALLY (H&M, 2014)

FINANCIAL CAPABILITIES :>  FINANCIAL CAPABILITIES OF H&M ARE THE FINANCIAL CIRCUMSTANCES OF THE BUSINESS AND THE ABILITY
TO RAISE ADDITIONAL CAPITAL.  THIS INCLUDE STAKEHOLDER’S CAPITAL, BANK LOANS AND OVERDRAFTS. (MEHTA, 2014) OPENING
MULTIPLE STORES ACROSS THE GLOBE, THEIR FINANCIAL STATUS IS SEEN AS STABLE AND GROWING IN PROFITS, ALLOWING HIGH
CAPABILITY FOR RAISING CAPITAL IN-HOUSE, AND GOING INVESTMENT AND TO REPAY DEBTS.

EXTERNAL ANALYSIS

PORTER’S FIVE FORCES ANALYSIS

PORTER’S FIVE FORCES IS A STRUCTURE USED FOR BUSINESS INDUSTRY ANALYSIS AND UNDERSTANDING THE VARIOUS DYNAMICS
AMONGST INDUSTRY PLAYERS AND EXTERNAL “FORCES.”

IT IS BASED ON THE THEORY THAT COMPETITION IN ANY BUSINESS INDUSTRY IS DEPENDENT ON 5 BASIC FORCES—POTENTIAL ENTRANTS,
INTERNAL COMPETITION, SUPPLIERS, BUYERS, AND ALTERNATIVES (OR COMPLEMENTS). THE COMBINED STRENGTH OF THESE FORCES
DEFINES THE GREATEST PROFIT POTENTIAL AND ALLOCATION IN THE BUSINESS.

USING THIS STRUCTURE, WE CAN DETERMINE HOW TO CATCH THE ATTENTION TO COMPETE IN ANY BUSINESS INDUSTRY, AS WELL AS
WHAT THE PREDOMINANT PLAN SHOULD ONLY TO COMPETE SUCCESSFULLY IN THE INDUSTRY—SUCCESS IS DETERMINED BY THE
CAPABILITY AND ABILITY TO DEVELOP A MAINTAINABLE COMPETITIVE ADVANTAGE. IT CAN ALSO BE USED TO MEASURE WHICH INDUSTRY
TRENDS MAY POSE AS OPPORTUNITIES OR THREATS. (TANG DAVID, 2013)

NEW ENTRANTS – H&M BARRIER POWER IS HIGH AS THEY ARE RECOGNIZED GLOBALLY DUE TO THEIR SIZABLE INVESTMENT IN
MARKETING, AS WELL AS GLOBAL EXPANSION.  NEW ENTRANTS HAS LITTLE ABILITY TO ENTER THE MARKET AND RIVAL H&M AS DOING
SO WOULD REQUIRE MAJOR CAPITAL AND TIME.

CUSTOMERS – H&M PRODUCTS ARE SUBJECTIVE TO CUSTOMER DEMAND.  IF THEY FAIL TO OFFER ON TREND PRODUCTS OF GOOD
 SWOTS ANALYSIS
SWOT ANALYSIS IS AN ACRONYM FOR STRENGTHS, WEAKNESSES, OPPORTUNITIES, A THREATS AND IS A
STRUCTURED PLANNING METHOD THAT EVALUATES THOSE FOUR ELEMENTS OF THE PROJECT OR BUSINESS
VENTURE. A SWOT ANALYSIS CAN BE CARRIED OUT FOR A BUSINESS, PRODUCT, PLACE, INDUSTRY, OR
PERSON. IT INVOLVES IDENTIFYING THE OBJECTIVE OF THE BUSINESS VENTURE OR PROJECT AND
PINPOINTING THE INTERNAL AND EXTERNAL FACTORS THAT ARE FAVOURABLE AND UNFAVOURABLE TO
ACHIEVE THAT GOAL.

YOUR DIFFERENCE: HOW DO YOU DIFFERENTIATE FROM YOUR COMPETITION TO MAKE IT EASIER FOR YOUR
PROSPECTIVE NEW CUSTOMERS TO SELECT YOU?

A SWOT ANALYSIS PROVIDES A VALUABLE FRAMEWORK FOR REVIEWING THE POSITION AND DIRECTION OF
A BUSINESS. IT HELPS REFINE YOUR BUSINESS GOALS, YOUR OBJECTIVES AND YOUR STRATEGIES.

STRENGTHS AND WEAKNESSES ARE INTERNAL FACTORS WHICH YOU HAVE SOME CONTROL OVER, WHEREAS
OPPORTUNITIES AND THREATS ARE COMMONLY DRIVEN BY EXTERNAL MARKET FACTORS.

STRENGTHS AND WEAKNESSES: THE FOCUS IS ON THE PRESENT – THIS IS THE INTERNAL ENVIRONMENT
INSIDE YOUR START-UP THAT YOU CAN SHAPE. FACTORS RELATING TO PRODUCTS, PRICING, COSTS, QUALITY,
PEOPLE, BRAND, SERVICES, REPUTATION, PROCESSES AND INFRASTRUCTURE ARE THINGS TO BE
CONSIDERED.