H&M Priya

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Submitted By- Priya Pandey

Roll No. - 115


Sub. - Advertising & sales management
Course - M.COM(Part 2)
Objective
1.Product Strategy:
1. H&M is renowned for its fast-fashion clothing stores, consistently delivering high-quality clothes and trendy accessories that
align with fashion trends.
2. The company ensures timely releases of new product lines, offering European-influenced fashion in the American market.
3. Their product strategy spans four stages: Introduction, Growth, Maturity, and Decline. Product managers analyze demand and
supply to devise effective marketing strategies for new products
2.Price Strategy:
1. H&M aims to satisfy customer needs by providing high-quality fashion at affordable prices.
2. While some items may seem expensive, the brand strategically controls transport and labor costs to keep prices reasonable.
3. H&M’s clothing range spans from as low as Rs 399 to as high as Rs 7999
3.Promotion Strategy:
1. H&M employs a multi-channel promotion strategy that includes advertising, sales promotion, and internet marketing.
2. By showcasing low prices during marketing campaigns, the brand builds awareness and attracts customers globally
4.Place Strategy:
1. H&M has established a strong global presence by owning outlets in various geographical locations.
2. This reliable bond between customers and the company ensures accessibility and convenience
5.Supply Chain Management:
1. Efficient supply chain management is fundamental to H&M’s business model.
2. It facilitates cost-effective and rapid product distribution, allowing the brand to stay competitive in the fast-fashion industry
WHOIS ?
All seasons,all styles, all welcome!ButH&Mis morethanjust fashion

➢ H&M, Hennes & Mauritz, is a Swedish multinational


clothing retail company known for its fast fashion clothing
for men, women, teenagers and children's.
➢ H&M was founded by Erling persson
➢ It was founded in 1947, 78 years ago by the name hennes,
later it was renamed as hennes and Mauritz
➢ It is the second-largest global clothing retailer, just behind
Spain-based Inditex (parent company of Zara).
➢ The company has a significant online presence, with online
shopping available in 33 countries.
➢ Quality and sustainability deeply rooted in its DNA
BRANDPRODUCTS

Women’s Wear MaternityWear

Men’sWear
Accessories
TeenageWear
Footwear
Kid’s Wear

Lingerie HomeInteriors
‘h&m’IN THE WORLD
BRANDVALUE
PROMOTIONAL STRATEGIES
➢TV advertisements: H&M comes with creative ads which focus on its latest
innovative designs. Each brand handles its own marketing decisions.

➢YouTube: H&M has its own YouTube channel where it comes up with unique ad
campaigns to engage with the customers.

➢Digital Marketing: It indulges in excessive search engine marketing and social


media marketing to convert the potential buyers into consumers.

➢Promo codes and discounts: Promo codes and discounts are offered during the
end of season sale. The discounts are offered on both online and retail stores.

➢ PR: Parineeti Chopra opened the first H&M outlet in India. Such stunts generate
quick publicity for the company.
Store Analysis

➢ H&M offer many different concepts. They include: Ladies


wear, Mens wear and Children Wear.

➢ Since H&M started back in 1947, they always had ladies


wear, which is always the main focus in every store.

➢ The advertising campaign are designed to clearly show


the seasons design and price of the clothing pictured.

➢ Each season they feature models with different looks,


styles and cultural background linking back to the
customer by showcasing different sized models and
style.
IN HOUSE PRODUCTS

H&M Divided
➢ Divided is often considered a sort of “juniors” line, only because their
sizes run even smaller than everyday pieces.

➢ Divided is full of bright colors ,crazy patterns, and trendy pieces.


H&M Conscious
➢ H&m proably talks about sustainability more than any other fast –fashion
brand .

➢ It produces a conscious collection made using sustainanble and recycled


materials .

➢Creates glossy ad campaigns to encourage garment recycling, and has a


voucher program offering discounts to those who donate their old clothes at
its stores.
VISUAL MERCHANDISING

➢ Visual merchandising is the practice in the retail industry of


developing floor plans and three-dimensional displays in order to
maximize sales.

➢ Both goods and services can be displayed to highlight their


features and benefits.

➢ A display window, also shop window (British English) or


store window (American English), is a window in a shop
displaying items for sale or otherwise designed to attract
customers to the store.

➢ Usually, the term refers to larger windows in the front façade of


the shop.
DISPLAY
➢ h&m usually uses closed, closed and island window display.

➢ The display focuses on a young target market with an


interest into upcoming trends.

➢ The display changes every week to keep up with ‘fast


fashion’ the demand for new current trends.

➢ They always feature objects to link to the theme, creating


the right balance of color trend and details.

CLOSED
WINDOW
DISPLAY
➢ They use spotlights to enhance
their garments.
➢They always use backdrops to
focus on the garments to entice
ISLAND WINDOWDISPLAY

➢ h&m uses island window display


to fill up the space in the store
and also to focus on the latest
products and promotions.
➢ The island display focus captures
attention because of the clean
nature of design.
Strengths of H&M Weaknesses of H&M
1.International Expansion: H&M has successfully expanded its 1.Declining Profit Margin: Despite increasing sales,
presence beyond Sweden since 1964, with over 5,000 stores in H&M’s profit margin has fallen significantly. Since 2008,
more than 70 countries and online shops in 50 countries. This
the margin dropped from 17% to a mere 5.8% in 2019.
global reach is a cornerstone of its growth strategy.
2.Geographic Diversification: H&M’s store base is
This trend poses challenges for profitability.
geographically diversified, reducing dependence on any specific 2.Quality Control Challenges: H&M relies entirely on
region. For instance: third-party suppliers for product manufacturing, which
1. The U.S. accounts for only 10% of all H&M stores limits its control over product quality. Ensuring
worldwide. consistent quality across its vast range of products
2. Germany, its most important market, remains a concern.
contributes 15% of global sales. 3.Inventory Issues: The company faces inventory
3.Strong Cash Flow: H&M maintains a stable operating cash
management challenges, impacting its ability to respond
flow in the range of SEK 20 billion to SEK 29 billion. This
financial stability supports its operations and growth initiatives.
swiftly to changing fashion trends and customer
4.Sustainable Practices: H&M is committed to using sustainable demands.
materials in its products. Initiatives include:
1. Using organic cotton (grown without chemicals and
pesticides).
2. Participating in the Better Cotton Initiative, which
promotes better techniques for cotton growers.

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