H&M Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of H&M through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
H&M Product Strategy:
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
This concludes the product strategy in H&M marketing mix & strategy.
H&M Price/Pricing Strategy:
Below is the pricing strategy in H&M marketing mix 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.
Read more about H&M
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.
H&M Promotion & Advertising Strategy:
The promotional and advertising strategy in the H&M marketing mix 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 advertisements: 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.
Browse marketing strategy and 4Ps analysis of more brands similar to H&M. The Marketing Mix & Strategy section covers 4Ps and 7Ps of more than 800 brands in 2 categories.
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