...H&M specializes in apparels and dresses that are moderately priced but made from fabrics of good quality and, most importantly, exclusively designed to perfectly satisfy the sartorial desires of the population of various countries and continents. H&M would have had to invest huge amounts if it went about designing dresses for each country on its own, so it took the most prudent way out of this crisis by entering into joint ventures with renowned retailers like Gap (to keep distribution costs at a minimum) and established companies and persona in the field of apparel designing like Stella McCartney. The planned brand ambassador of this new clothing line of Stella McCartney which was to be introduced in 2005 was Kate Moss. H&M did not hesitate to drop Kate Moss late in 2005 when allegations regarding drug abuse began to surface about this renowned personality of the glamour world thus sending a clear signal about its corporate stand on dubious and avoidable matters as drug addiction. This action of the company immediately generated enormous amounts of goodwill in entire western world and positioned the brand at an enviably high perch. (H&M, 2004) H&M has become one of the largest retailers in Europe. It has reached this iconic status by targeting each member of the consumer group by primarily dividing them into convenient groupings as men, women, teenagers, children and future mothers and has exclusive offerings to satisfy each group. Moreover, the company slots its customers into...
Words: 1864 - Pages: 8
... |H&M Corporate Communication Strategy | |Instructor’s name: |Mr. Vasilios Zoumbos | |Student’s name: |Eleni Vasiliou | |Date: |21/03/2014 | |Comments: | | |Grade: |/100 | Title Page 2. Communication H&M Corporate Communication Strategy Table of Contents 1. Introduction.…………………………………...…….……………………………...4 2. Corporate Communication Strategy of H&M.......................................................5 3. External and Internal Communication............................................……………...6 4. Media Communication Plan…….………………………………………………...6 5. Corporate Identity, Image and Reputation………………………………………8 6. H&M Promotion strategy ……………………………….………………………...
Words: 3885 - Pages: 16
...been an especially successful market, becoming H&M’s most important market in 1995. Although H&M’s share of the German market is small, the low-priced, well-designed, value-for-money fashion lines are nevertheless popular and a store expansion programme is still underway. Sales outside Sweden generate 90% of turnover and that figure is likely to rise as more stores are added. In 2005, around 150 new stores were opened, mainly in Germany, France, Spain, Poland Italy and the USA, all following the same retail format. H&M normally opens its first store in a country in the largest population centre and then expands out to smaller centres. (http://www.hm.com) Some fashion retailers such as H&M and Zara attempt to achieve a competitive advantage by cutting the lead times involved in getting garments from the drawing board to the retail outlets. Some pioneers of this so called ‘fast fashion’ can get lead time down to as little as 14 days. This can be achieved through a high degree of vertical integration and the adoption of relationship marketing principles within the sourcing, design, production and distribution process. (One of Zara’s sister companies produces 40% of its fabric needs and between 50% and 60% of its manufacturing is done in house). Fabric can be held in stock and then cut and dyed at the last minute to suit a fresh design. For a company producing some 11,000 new products per year (competing companies such as H&M and Gap produce up...
Words: 4043 - Pages: 17
...Table of Content 1. Executive Summary 2. Introduction & History of Zara 3. Introduction & History of H&M 4. Products Offered By Zara & H&M 5. Marketing and Communication Strategy of Zara 6. Marketing and Communication Strategy of H& M 7. SWOT Analysis: Zara 8. SWOT Analysis: H&M 9. Conclusion Executive Summary This report will examine and make comparison of the communication strategy between two leading and established fashion brands, Zara & H&M. Through close study of each of their communication strategy we can understand the reasons behind their success in the current dynamic and competitive market. In the Hong Kong market where competition thrives and those that don’t adapt to the ever changing environment gets abandoned, we can understand how Zara & H&M has established as a ‘fast fashion’ boutique chain in this densely populated city. A communication strategy helps to develop brand awareness and product information dissemination [1]. The communication strategy can also help to retain the brand’s current customer base and more effectively reach out to a broader target audience. Introduction & History of Zara Zara is a spanish brand of clothing and accessories retailer based in Arteixo, Galicia, and founded in 1975 by Amancio Ortefa and Rosalia Mera. It is the flagship chain store of the Inditex group. Inditex group is the world's largest apparel retailer, the fashion group also owns...
Words: 2235 - Pages: 9
...1. To what extent is H&M marketing orientated? What evidence is there in the case to support your view? [40%] As defined by (Narver.J.C. & Slater, 1990) market orientation is an organisational culture that most effective and efficient in creating necessary behaviours for superior value offering it has for buyers and, thus, resulting in continuous superior performance for business. Market orientation is when a company organizes its activities, products and services around the wants and needs of its customers. From the case study, there are evidence that H&M follows marketing orientation strategies and embodies the market oriented characteristics of a company. In the case of H&M it can be seen that the organization follows the market orientation philosophy as it focuses on the needs and wants of the customers before making its products. A market oriented company such as H&M prides itself with high fashion at cheaper prices. This as seen in H&M to changing its strategies from being “all about price” in 1972 to “adding quality fashion to the equation…” Stefan Persson, Chairman of Hennes & Maurite (Jobber, 2010). To support this strategy, H&M has also channelled 4% of its revenues to marketing and branding to suit the changing tastes and maintain interest of its young consumers and maintain market share. Recognising lowered levels of disposable income on its consumers in the backdrop of the economic slump leaving consumers look for cheaper alternatives...
Words: 4444 - Pages: 18
...75 H&M ( ， ， 。 ， ， , 100029) ， 。 。 H&M H&M ， H&M ; ; ; ; Abstract:Crossover marketing is one of the most popular marketing strategies. With the continuous practice, it has been gradually becoming a global trend. As the leader of fast-fashion industry, H&M gains huge success around the world. Its fabulous fashion style and crossover marketing , these made the brand closer to consumers. This thesis has analyzed about the crossover marketing strategy of H&M and concluded some inspiration to China clothing business based on the research result. Key words:H&M ；crossover marketing ；Crossover of design ；Crossover of region ；Crossover of promotion ；Crossover of channel F274 1947 100 H&M 2009 132.65 29 。 、 CROSSOVER 。 。 / 。 。 H&M 。 1、 H&M 。 。 H&M 。 。 。 Lagerfeld 2005 Stella McCartney 11 CHLOE 、 。2004 Chanel 。 Karl Lagerfeld 500 H&M 。 。 GUCCI —— —Stella McCartney for 400 。 Karl “Karl Lagerfeld For H&M” Fendi —— —Karl Lagerfeld 。 、 。 、 H&M H&M 。 。 2004 2 73000 28 2008 。 2007 。 4 12 34 104041 H&M Millward Brown 2009 H&M 120 。 。 · 100 。 — 4 2000 2003 120 mini cooper —— —mini motion 2 part shoe。 、 1700 。 H&M 。 。 。 。 A 1671-8089 （2010 ）02-0075-03 76 H&M。 、 H&M 。 H&M 。2006 VICTOR&ROLF 2007 Roberto Cavalli 2008 H&M 。 2009 。 2、 H&M 。2007 。 。 。 H&M H&M 。 Kylie Minogue Kylie 。 H&M 2007 。 H&M 1947 。 。 H&M 。 H&M 2006 H&M Alshaya 。 H&M H&M 、 。 、 H&M H&M 。 H&M 2 。 H&M 、 、 。 2009 2 28 。 。H&M 1964 34 H&M H&M 1700 H&M H&M 《 6 。H&M 2》 H&M H&M loves Kylie 。 、 M by Madonna...
Words: 432 - Pages: 2
...American University of Science and Technology Marketing Management Project ZARA Group Members : -Fadi Nehme -Lilian Shazbeck -Ibrahim Sawma -Lama Snih -Rim El Sandid 2015-2016 Table of Content Executive summary 3 I. History and Back ground 4 II. Mission and Vision 5 III. External and Internal Assessment 7 IV. Market and Marketing Strategy 11 V. Competitors 17 VI. Finances and Prices 23 VII. Distribution and Warehousing 29 VIII. Promotion Mix 30 IX. Sales Forecasting 33 X. Action Plan 36 XI. Production 38 Reference 39 Zara Executive Summary Zara, a prominent name in the world of clothing has been successful ever since its founding in the year 1975. As the market demands began to shift towards a quick response rate and increased competition, Zara had to continuously restructure its strategy to best suit the needs of its industry. Through the careful analysis and external research; internet and multiple databases, the history of Zara revealed that Zara’s marketing strategies and market approach are outdated especially compared to the digital world we are living in. Moreover, the competition present within the industry i.e. Zara’s main competitors, were scrutinized in order to determine the plausibility of their current strategies compared to that of their competitors. Multiple internal and external investigations were undertaken...
Words: 8166 - Pages: 33
...……………………………………………………………………………………………………………………. 3 1. E-marketing as new competition field …………………………………………………………………………….. 3 2. H&M facts ………………………………………………………………………………………………………………………. 3 II. HM.com as an example of great e-marketing ……………………………………………………………….... 4 1. H&M website’s development of existing business practice and channels of communication 4 2. Reasons to “buy-into” H&M online experience ……………………………………………………………….. 5 3. Organization’s user-friendliness and security concerns …………………………………………………… 6 III. Conclusion ……………………………………………………………………………………………………………………….. 7 I. Introduction. 1. E-marketing as new competition field. Nowadays different brands, companies and organisations compete with each other on different fields. It starts with the research, technologies, data management to the final strategy that is going to put them ahead of the others. “Organisations that understand their true strengths are better able to compete successfully in a rapid expanding and competitive world economy. (...) John Kay attributes corporate success to four distinctive capabilities: innovation, architecture, reputation and strategic assets, and suggests that effective blending of these four can contribute to the unique capability of an organisation” (Ambrosini, V. 1998). In current times there is one more, very important field – internet. Internet marketing brought media to a global audience. For few years now...
Words: 1868 - Pages: 8
...Case study on H&M Introduction In recent years, H&M has marked the retail clothing industry by the phenomenal pace at which it has expanded the number of its stores across a diverse range of countries and markets spanning Europe, the United States and recently Asia. H&M distinguishes itself from its competitors notably by offering clothes that are trendy, fashionable yet accessible in terms of price. So how does H&M manage to combine these seemingly divergent characteristics, especially in such a fast-moving and fiercely competitive industry as the retail clothing business? In the following report, I attempt to cast some light on some of the approaches that account for the success and reputation of the company and that have enabled it to remain competitive over the years and across markets in which it operates. I also seek to raise some of the drawbacks related to those approaches in terms of risk for the business. Practice of Market Orientation The practice of market driven marketing rests upon the core idea of generating and offering value to a particular target market better than competitors, which in turn will enable the company to grow and be successful.[1] Generally a market oriented strategy involves focusing on the buyer’s needs and determining the best means by which the consumer will be satisfied. As we will see in the next section, a market oriented strategy begins with identifying a particular target group within a segment and then focusing efforts in understanding...
Words: 3484 - Pages: 14
...C. M E R L E C R A W F O R D STRATEGIES FOR NEW PRODUCT DEVELOPMENT Guidelines for a critical company problem C. Merle Crawford is a faculty m e m b e r at the University o f Michigan. In spite o f much evidence o f its success, many managers hesitate to establish a policy for new product development. Their indecision often arises f r o m two reasons: they fear that a defined strategy may discourage innovation and they are uncertain how to formulate a new product strategy. The author o f this article discredits the f o r m e r notion and, in reply to the latter, proposes the guidelines f o r developing such a statement. As new products are essential to the continued success o f most firms, the strategy must exist and must be operant i f the firm is to avoid wasted time, effort, and money as well as employee confusion and discouragement. For longer than most of us care to remember, Dan Gerber has been proclaiming that babies are his business, his only business. With some nostalgic regret I read recently that he has altered his strategy: he now permits limited diversification b e y o n d products for babies. A leading toiletries manufacturer has an equally tenacious, though unpublicized, commitment to only those new, nonfood, packaged goods that do not compete itemto-item with Procter and Gamble. Richard Rifenburgh, president of Mohawk Data Sciences, manufacturers of peripheral computer equipment, was cited recently in Fortune as a man who, at the present time, would...
Words: 7059 - Pages: 29
...H&M Case Study Since 2000 Swedish retailer’s H&M growth rate is high. Its motto is to offer fashion and quality at the best price. Nowadays H&M’s growth target is to increase the number of stores by 10 – 15 percent per year, while increasing sales in comparable units. The growth will proceed with an emphasis on and continued high profitability. While entering the U.S. market in 2000, they face several problems. The primary problem of H&M is that it tries to expand around the world too fast without spending enough time to research and analyze the market it enters. In the United States they have chosen incorrect marketing mix strategy; consequently the company has low sales and low profits. Their lack of marketing mix strategy results in the following secondary problems: H&M has not taken into account the competition of inexpensive chains such as Express, Old Navy and Wet Seal. The U.S. customers are not aware of the higher quality of H&M products. So Swedish retailer is not able to compete with U.S. rivals effectively. Another problem H&M encounters in the U.S. market is its inefficient distribution network. Company has chosen too big outlets at poor locations in the suburbs, where they have a lot of direct competitors and few customers, who look for fashion and quality products. The company has suppliers in Europe and Asia, but not in America. It probably increases the turnaround period because of the long distance between suppliers and retailers...
Words: 619 - Pages: 3
...Product, Pricing, and Channels Paper H&M online Since 2009 there has been a large decrease in offline retail sales, by 2015 Gap Inc. will be closing 189 store, Abercrombie and Fitch is planning to close 180 store and Aeropostale 175 stores (Business Insider). JCPenny’s store sales alone dropped 31.7% in store purchases (Business Insider). Where are consumers going? Online. In 2013, the top online purchases for U.S. consumers were consumer electronics, books, clothing and apparel, 63% customers prefer to purchase clothing and apparel online. Ecommerce is one of the fastest growing markets in the world. Currently the United States is the largest online retail market. Based on the statistical data, retail e-commerce back in 2012 reached 225.5 billion U.s dollars in sales and projected to grow to 434.2 billion U.S. dollars by 2017 (Known, Statistics). “Goldman Sachs predicts that in North America alone, a quarter of clothing sales will take place on the internet by 2030, up 7 percent from 2011” (NY Daily). With anticipation H&M is proposing to launch its online retail market to the United States. An online market will have a great impact, but there are several challenges facing retailers in launching an online market. Online markets have a great impact on profit margins, because of high shipping cost and the cost of returning items. “You don’t want to lose out on being the port of call for younger shoppers. So H&M should really get in there, “Isabel Cavill, Planet Retail...
Words: 1377 - Pages: 6
...examples of service consumption at the individual level. T h e institution at which you are studying is itself a c o m p l e x service organization. In addition to educational services, today's college facilities usually include libraries and cafeterias, counseling, a bookstore, placement offices, copy services, telecommunications, and even a bank. If you are enrolled at a residential university, campus services are also likely to include dormitories, health care, indoor and o u t d o o r athletic facilities, a theater, and perhaps a post office. Customers are not always happy with the quality and value of the services they receive. People complain a b o u t late deliveries, r u d e or i n c o m p e t e n t personnel, i n c o n v e n i e n t service h o u r s , p o o r p e r f o r m a n c e , and needlessly complicated p r o cedures. T h e y grumble about the difficulty of finding sales clerks to help t h e m in retail stores, express frustration about mistakes on their credit card bills or bank statements, shake their heads over the complexity of new self-service equipment, m u t ter about p o o r value, and sigh as they are forced to wait in line almost everywhere they go. Suppliers of services often seem to have a very different set of concerns than the consumer. Many suppliers complain about h o w difficult it is to make a profit, how hard it is to find skilled and motivated employees, or h o w difficult it has b e c o m e to please customers. Some firms seem to believe that the...
Words: 190128 - Pages: 761
...THE COMMUNICATION OF WINDOW DISPLAY - H&M - UNIQLO YAN14434663 CHIH LING, YANG ABSTRACT This research presents a comparison of the window displays in two different high-street fashion retail brands. H&M is one of the best-known western fashion retailers, while UNIQLO is a fashion retail brand from Asia which has successfully accessed the western market. This research will focus on these two brands’ different visual merchandise strategies and their window layouts during different periods. The results show how these two fashion brands from different cultural backgrounds convey their message to customers. INTRODUCTION The designer creates the product, while visual merchandising gives the product new life. In the sales terminal, window displays not only deliver the brand culture to the customer, but they are also responsible for increasing sales for the company and attracting potential customers. In an aesthetic point of view on display throughout the product content, value and performance, but also presents the brand itself. The purpose of visual merchandising is to promote the store image—to let people know what the store is, where it stands on fashion trends, what one can expect from it, to whom it appeals, its price range, and the caliber of its merchandise and merchandising (Martin M. Pegler 2012, p.3). Nowadays, the high-street fashion market has become more competitive, and every fashion brand has its own brand identity, so it is important to...
Words: 3973 - Pages: 16
...success lies in their business model; making the trends available to everyone. The rapid global changes have restructured the way fashion retailers do business. In today’s competitive market, using celebrity endorser to promote brands on television is a fairly common practice (Erdogan et al. 2001). Celebrity endorsements is believed to help consumers remember the message of the advertisement and the brand name the celebrity is endorsing. This creates the personality of a brand because when a celebrity is paired with a brand, this image helps shape the image of that brand in the minds of consumers (Argrawal & Kamakura, 1995). Celebrity endorsement is a new strategy in brand selling that affect the lifestyle of consumers. Hence, the selected company for undertaking this research study is H&M. H&M was first founded by Erling Perddonin Swedin in 1947, and has developed rapidly in the global fashion industry and apparel market due to its unique concept, business model and ability to provide fashionable designs at affordable prices. 2.2 Research Aim...
Words: 1811 - Pages: 8
