Marketing Strategy of H&M analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on H&M marketing mix, help the brand succeed in the market.
H&M marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the H&M Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
In this article:
- Product Strategy
- Pricing Strategy
- Place and Distribution Strategy
- Promotional and Advertising Strategy
- Service Strategy
H&M Product Strategy:
The product strategy and mix in H&M marketing strategy can be explained as follows:
H&M is a clothing retail company. It offers fast fashion clothing for men, women and children. H&M offers following clothing brands in various countries across the globe:
•H&M: The range includes everything from designer collaborations to everyday basics and yoga wear.
•& Other Stories: Women wear: shoes, bags, accessories, beauty, ready to wear
•Cheap Monday: Denim, fashion collections and accessories for men and women. The brand is connected with music and pop culture.
•COS: Classics and wardrobe essentials for men, women and children. The brand had designs inspired by art and technology from across the world.
•Monki: On-trend lifestyle collections for young women.
•Weekday: It makes clothing for young and style aware young adults.
All these cover the product strategy in the marketing mix of H&M.
Image: Wikimedia
H&M Price/Pricing Strategy:
Below is the pricing strategy in H&M marketing strategy:
H&M offers high quality clothes at a premium price.
The major competitors of H&M are GAP and Zara. As compared to both of these brands, H&M products are prices relatively lower as a part of it marketing mix pricing strategy. These is due to lower cost of manufacturing and transportation costs by H&M (Main focus is given on cost minimization). As compared to Zara H&M offers more variety of products. On an average H&M products are prices at $25 whereas that of Zara are $45. High quality and considerably lower prices attract the youth and hence leads to increase in sales for the company.
H&M Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read
H&M Place & Distribution Strategy:
Following is the distribution strategy in the H&M marketing mix:
H&M sells its products through its exclusive stores located in major cities across the globe (4135 stores). In some countries due to regulatory norms, H&M offers its products through franchising partners. It also offers its products through online stores from where the customer can choose from the list of available products and purchase them through online payment. The products are delivered at your stated address. Cheap Monday is sold through selected retailers worldwide and through standalone stores including its flagship store in London. The products are manufactured in countries where cheap labour is available in order to reduce costs. The clothes are designed by H&M and its other brands according to segment they are targeting. H&M has developed an excellent supply chain over the years. The delivery time is instant and the transportation costs are kept at a minimum.
The manufactured clothes are transported to the warehouse from where they are distributed to various stores.
The promotional and advertising strategy in the H&M marketing strategy is as follows:
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 advertisem*nts: H&M comes with creative ads which focus on its latest innovative designs. Each brand handles its own marketing decisions. The ads are telecasted at regular intervals and on channels mainly watched by youth, to increase its awareness.
•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.
•Sponsorships: H&M signed deal with The Weeknd, sponsors Caitlyn Jenner, sponsors Musee Des Arts Decoratifs, Creative collaborations with high end designers and style icons, Collaborations with pop stars and sport stars
•CSR: Water, Planet, Education, Equality
As a part of its awareness towards social development, the brand also promoted young kids who can become role models.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of H&M.
People:
The employees at H&M are trained well at every level. The work culture is very modern and employees are on a rotation basis at every department and are motivated to innovate and come up with the best clothing wear. H&M also tie up with many clothing designers throughout the world to make latest trends in fashion. Employees come from diverse backgrounds having special skills. Personal and Professional development of employees is highly promoted.
Process:
High importance is given to customer relationship management. Employees are trained to retain highly profitable customers by giving them better service and offers. In case of any complaints the staff at H&M puts in every effort to resolve them at the earliest. There is a customer care number through which the customer queries are resolved. Staff at H&M outlets help the customers in selecting the best merchandise for them. Thus the service and delivery time is very quick thus gaining satisfied customers. As a part of enhancing its business, the company is using artificial intelligence to understand its customer needs, and showcase the best products online.
Physical Evidence:
H&M stores are appropriately lit with great ambience and humble staff. The apparel is arranged to have a decent look which appeals to the customers. The merchandise is of excellent quality and latest trends. H&M is diversifying its portfolio and entering into more international markets. To create a Buzz in the market, it engages in PR activities. For example, celebrities were invited during its launch which created a Buzz in the market. User stories and recommendations are always welcomed by the brand which also helps in customer engagement with the brand. Hence, this completes the H&M marketing mix.
About H&M:
H&M or Hennes and Mauritz is a Swedish multinational clothing company. It operates in 60+ countries with over 130000 employees across the world.
The H&M company was founded in 1947 and is headquartered in Stockholm. Its revenue in 2016 was $21.5 Billion.
This article has been researched & authored by the . It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse marketing strategy and 4Ps analysis of more brands similar to H&M. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.
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FAQs
The marketing mix, also known as the four P's of marketing, refers to the four key elements of a marketing strategy: product, price, place and promotion.
What is 4p in H&M? ›
Marketing Strategy of H&M analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc.
What are the 4 Ps of the marketing mix and briefly explain? ›
The 4Ps of marketing is a model for enhancing the components of your "marketing mix" – the way in which you take a new product or service to market. It helps you to define your marketing options in terms of price, product, promotion, and place so that your offering meets a specific customer need or demand.
What are the 4 Ps of marketing for clothing brand? ›
The 4 Ps of marketing include product, price, place, and promotion. These are the key elements that must be united to effectively foster and promote a brand's unique value, and help it stand out from the competition.
Which of the 4Ps of the marketing mix do you think is the most important and why? ›
Although pricing is the #1 factor impacting online marketing results, it is still rarely used as input for marketing management. Without pricing context, it's hard to evaluate the performance of online marketing campaigns.
How do you use H&M one 4? ›
To payment with a One4All gift card, you will need to:
- Go to the checkout page.
- Select Visa/Visa Debit as the payment type, use your name as the name on the card.
- Enter the 'valid thru' date in the expiry box.
- Enter the CVV2 code from the back of the One4All card into the security code box.
H&M works to double sales through a multichannel strategy – while more than halving its carbon footprint - Internet Retailing.
How do you use one 4 all on H&M? ›
H&M
- Select “Pay with Debit/Credit Card”
- Select Visa Electron as the card type.
- Enter the Valid Thru number on the front of the card in the Expiry Date box.
- Enter the CVV2 number from the back of the card in the Security Code box.
- Use your Delivery address as the “Billing Address”
The 4P's of marketing, also known as the producer-oriented model, have been used by marketers around the world for decades. Created by Jerome McCarthy in 1960, the 4Ps encourages a focus on Product, Price, Promotion and Place.
What are the 4 Ps of marketing please list them below? ›
The 4 P's of marketing are price, promotion, place, and product—the four key factors every marketer should use to guide their campaign strategy. Our guide covers the 4 P's of marketing and gives a breakdown of each step involved. Product, price, place, and promotion.
Defined by 4 P's. product, place, promotion, and price, which together make up the marketing mix.
How do you use the 4Ps of the marketing mix to sell a product? ›
- Understand the product you're working with. Most of you probably already have a product or service in mind—or at least an idea for it. ...
- Decide on a price. ...
- Choose a place to sell your product. ...
- Create a promotion strategy.
The marketing mix is the set of controllable, tactical marketing tools that a company uses to produce a desired response from its target market. It consists of everything that a company can do to influence demand for its product. It is also a tool to help marketing planning and execution.
What is marketing strategy with example? ›
A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services. A marketing strategy contains the company's value proposition, key brand messaging, data on target customer demographics, and other high-level elements.
What are the 4 types of marketing mix? ›
What are the 4 P's of marketing mix? The 4 P's are Product, Price, Place, and Promotion.
Which company uses 4Ps? ›
McDonald's Corporation's marketing mix (4Ps) involves approaches that meet business concerns in different markets around the world. The marketing mix defines the strategies and tactics that the fast-food restaurant company uses to reach target customers, in terms of products, place, promotion, and price (the 4Ps).
What is product example in marketing mix? ›
A product mix is a group of everything a company sells. However, the product line is a subset of the product mix. A product line refers to a unique product category or product brand a company offers. For example, Patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc.
Are 4 Ps enough for marketing? ›
Considered to be one of the most effective elements of marketing, the 4 Ps form an inevitable part of any business strategy. They constitute product, price, place, and promotion.
What marketing mix do you think is the most important and why? ›
What is the most important part of a marketing mix? Pricing is the most important element of your marketing mix. The price you set for a product or service will significantly influence your potential customers' choice to purchase it.
Why is it important for marketers to keep the 4 Ps in balance? ›
The 4 P's help you understand what consumers want, how to meet the needs of your target audience, where they will look for products that suit their needs, and how to create the perception of value. The 4 P's are a tool to help marketers consider everything about their product or service.
There is a €50 limit for orders with One4All gift cards. For further information please refer to the One4All website.
Can you use one for all at H&M? ›
The One4all Multi-Store Gift Card can be spent in over 22,000 outlets, including H&M! Give the gift of choice with a One4all Gift Card.
How do you use all 4 1? ›
To spend in-store, simply click the 'Spend In-Store' button below your gift card and download the One4all app to your device. Log in with your One4all account (the same details you used earlier) and you'll have access to your gift card. If you have an iPhone, use this app to load your gift card into your Apple Pay app.
What makes H&M successful? ›
The Secret to H&M's Success: Fast Fashion
Aimed at young, fashion-conscious urban consumers, their products are trendy and they're cheap, bordering on disposable. Fast fashion retailers make their profits by having a high merchandise turnover and by constantly resupplying the product pipeline with the latest trends.
What strategic issues are H&M facing? ›
Avoidance of Fast Fashion
The increased activism against fast fashion is a massive threat for H&M and other similar brands. People have started advocating against these companies for many reasons. Many often say that these fast fashion products are cheaply made and hence not durable.
Where is the product code on H&M clothes? ›
Where exactly is the product code on H&M items? After some research I found that the product code is printed on the inside of tags, right next to “P/N”. Once you have the product code you can then search the item online and see if they still have it in stock. It's that easy.
How do I use my H&M points on the app? ›
Redeem your rewards online
You'll find all your available rewards and offers on your account page in the H&M app or at hm.com. When you shop online, sign in and select the offer you'd like to use. It will automatically be applied to your shopping bag when you're ready to check out.
How do I change my delivery method on H&M? ›
We are delivering everywhere except containment zones.
You may choose to have your order delivered to your home or an alternative address. In checkout you can change the delivery address and/or add a new one. For our Terms & Conditions, click here.
What is marketing mix in simple words? ›
A company's marketing mix is the combination of products, pricing, places and promotions it uses to differentiate itself from the competition. These four elements are commonly referred to as the “four Ps.” There is strong dependency between each of the Ps.
What is the first step in the 4ps of marketing? ›
1. Product. The right product to satisfy the needs of your target customer.
Most people have heard of the four P's used in social marketing: Product (key benefits, service or behavior change), Price (the cost of stopping an unhealthy behavior or adopting a healthy one), Place (the opportunities and access to products, services and places to engage in the behaviors), and Promotion ( ...
What are the 4 concepts of marketing? ›
The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.
Why is marketing mix important? ›
Importance of Marketing Mix
Helps understand what your product or service can offer to your customers. Helps plan a successful product offering. Helps with planning, developing and executing effective marketing strategies. Helps businesses make use of their strengths and avoid unnecessary costs.
What are the four Ps of the marketing mix how might you use them to frame a social marketing campaign to encourage the use of iodized salt? ›
In designing social marketing campaigns, these factors influence the 4 Ps of the marketing mix — product, price, place and promotion. With better consumer insight, marketers can define the 4 Ps to make customers more able and willing to act.
What are the 4 Ps of social marketing and describe how each P is relevant to the field of health promotion? ›
These elements are called the 4 P's: product (including services, behaviors, and policy changes), price (what the consumer must “give up” to change), place (environmental and societal context in which health decisions and behaviors occur), and promotion (the provision of information and the appeal to the consumer ...
What are the four 4 key marketing principles strategies? ›
The 4 basic marketing principles are product, price, place and promotion.
Why are the 4 principles of marketing important? ›
The purpose of the principles of marketing is that any business can—and should—apply them to their marketing strategy. Because of this, you'll find that each of the Ps is broad, so it can be applied universally and molded to fit the needs of any kind of business. This makes it easier to adapt to your own unique brand.
What is example of marketing? ›
It is, in short, an action taken to bring attention to a business' offerings; they can be physical goods for sale or services offered. Common examples of marketing at work include television commercials, billboards on the side of the road, and magazine advertisem*nts.
