h&m marketing plan
DESCRIPTION
Marketing Plan for H&MTRANSCRIPT
H&MAdrienne Torre
Mission Statement
“Fashion and quality at the best price”
Assignment 4
The new product line I will be creating for H&M will
actually be a service. H&M already has a store website but
consumers are unable to purchase items off of the website
making it extremely difficult, actually impossible, for
customers who enjoy online shopping to do. My objective is
to recreate their online website so that shoppers are able to
purchase twenty-four hours a day, seven days a week. The
marketing objective for this service is to reach out to each
and every one of the H&M customers plus all of the people
that have not had a chance to go into the store and shop. I’d
like everyone to see all of the product lines H&M has and be
able to make their purchases.
Marketing Objectives
The company I have chosen to do my project on
is H&M, and the new service and product line I am
creating is to be able to purchase online as well as
have to have access to purchase limited goods
online. Everything in H&M stores will be online and
after typing in your credit card number, the items
you have picked will be sent to your home just like
any other store that has an online website. Sonia
Rykeil is currently designing a diffusion line for H&M
and there will be extra pieces not sold in stores that
one can find online. This will be great for the
shoppers who do not want to rush out to H&M to pick
up the latest and see that their size is gone when
they can jump on the internet and find something
that no one else has for an affordable price.
Product Objectives-
1. Fashionable clothing the fit the most cutting
edge customer we have.
2. Four different garments and/or accessories
that a broad range of customers will find of
interest.
3. Simple garments to strengthen one’s
wardrobe and exclusive pieces to brighten
one’s wardrobe.
4. All fabrics used will be organic.
5. These pieces that will only be available to
online H&M customers will make them more
exclusive.
Sales Objectives-
1. Competition; there are many stores that have
designers create lines for their stores but H&M
will create this unique online empire for a
limited amount of garments to a limited
amount of people to set H&M apart from the
rest.
2. Attract; this line by individual designers will
attract the most trendy H&M customer that
does not want to be seen walking down the
street with the same outfit as the person
walking past them.
3. Price; each designer’s line will have a price
point that the H&M customer will be able to
afford but because it is so exclusive, it will set
itself aside from other companies such as
Forever21, Zara, Target, and Urban Outfitters.
Marketing Objectives-
1. These lines will be shown on the H&M website
only and will only be available for a limited
amount of time with a limited amount of sizes
and garments.
2. The target market will be the 18-24 customers
of H&M and they will love this because this
age generation loves to shop online and have
exclusive designer items at an affordable
price.
Customer Profile
Segmentation Types/Bases
Geographic Segmentation Region: North, South, East, and WestCity Size: 0-100,000+Population Density: Mostly UrbanClimate: Hot, Temperate, and Cold
Demographic SegmentationAge: 8months-35Gender: Male and FemaleHousehold size: 1+Income: $10,000+Occupation: Blue-collar+Education: High School+
Sociocultural SegmentationCulture: American, European, South American,
etc.Sub Culture:
Religion: Baptist, Catholic, Jewish, Mormon, And Protestant
National Origin: Italian, French, Canadian, etc.
Race: Hispanic, Oriental, African-American, And Caucasian
Social Class: Working-class to Upper class
Marital Status: Single, Married, Divorced, Widowed
Psychographics: Strivers, StrugglersAffective and Cognitive Segmentation
Degree of Knowledge: NoviceBenefits Sought: Convenience, EconomyAttitude: Positive, Neutral, And Negative
Behavioral SegmentationBrand Loyalty: Undivided LoyaltyStore Loyalty: Undivided LoyaltyUsage Rate: HeavyUser Status: Potential Payment Method: Cash, Credit CardMedia Usage: MagazinesUsage Situation: Work, Home, and Vacation
Stated Corporate Goals
H&M describes its mission as “Fashion and quality at
the best price”. H&M's goals for 2010 have been to
intensify the sales in the existing stores, as well as to
increase the number of new stores by 10% to 15%
per year. In the year 2009, 193 new stores opened
its doors and 16 closed. Expansion and maintaining
of financial stability are H&M's strategic goals. In the
last 5 years the revenues raised by 73%, including
value-added tax and the earnings per share
increased by 139%.
External Forces: Opportunities: Competition:
1. H&M has low prices.2. H&M has better quality than its competitors.3. H&M has a fun mood.
Economics:1. People buy lower priced items in bad
economy.2. People purchase from places with a fun
environment.3. Consumers look for the best quality at the
lowest price
Nature:1. Surplus of a cotton crop overseas
2. No inclement weather happening where crop is needed
Politics:1. More people have credit cards and are using
them frequently
Regulations:1. Pricing2. Strong financial position
Technology:1. Online growth2. Effective communication3. Market Share leadership
Society: 1. Loyal Customers2. Donating to breast cancer when making a
purchase
Threats:Competition:
1. Competitors have layaway2. Competitors are going green3. Competitors advertise giving to breast cancer
more
Economics: 1. People buy less because of the economic
climate2. People are becoming more aware of how price
and quality relate
Nature:1. Products are from overseas2. Company has not gone green3. May be inclement weather in future
Politics:1. Credit cards are affecting peoples spending
habits2. People are becoming more money savvy3. People are spending less on their credit cards
Regulations:1. High tariffs and quotas on items
Technology:1. No ordering off of the internet2. No application on iphone
Society: 1. Have not gone green2. Only have donated to breast cancer and no
other causes
Internal Forces:Opportunities:
Customer ProfileA.Demographics
a. Wide age range from 8months-35b. Located in many malls and outlet malls
nationwidec. Have clothing for children, teens, and
adults both male and female
B.Psychographicsa. Men and Women have high interest in
fashionb. Money buys material things at an
acceptable pricec. Consumer spends little money on quality
fashionable clothing
C.Geographica. Nationwideb. Outdoor Mallsc. Indoor Malls
D.Behavioral Buying Traitsa. Consumer shops smartb. Consumer looks for good deals on
fashionable piecesc. Consumer is able to shop trendy for their
children at good prices
Product Mix1. Children’s Wear2. Teen Wear3. Adult Wear
Pricing Strategies
1. Lowest Price Possible2. Sales frequently3. Promotions frequently
Promotion1. Breast Cancer Awareness2. Frequent sales3. Lots of promotions
Distribution1. Green Transportation2. More than 90% of transports are done via
road, rail, or ocean3. Airplanes are only used when faster delivery is
required
Management Structure1. Annual General Meeting2. Election Committee, Auditors, Board of
Directors3. Managing Director, Executive management
team, Country managers
Suppliers1. All suppliers live up to H&M Code of Conduct2. All suppliers are audited annually3. Require knowing all subcontractors that are
used to manufacture the clothing
Threats:Customer Profile
1. Demographicsa. Too wide of a customer age range
b. Catering to too many peoplec. Children’s clothing same price as adults
2. Psychographicsa. Some people do not like the high turnover
of the clothingb. Not everyone is ‘high fashion’c. Some of the designer for H&M wear is
very pricey
3. Geographica. Not located in every stateb. Lots in some areas while none in othersc. Some have a larger range of items that
cannot be found elsewhere or online
4. Behavioral Buying Traitsa. Not very good qualityb. Not always an option nearbyc. Some of the items are very expensive
Product Mix1. Could use a larger men’s section2. Lingerie for women but none for men3. Turnover is very frequent
Pricing Strategies1. Lower quality sometimes comes with lower
pricing2. Clothing falls apart so pricing coincides3. Pricing is accordingly
Promotion:1. Not going green
2. Do not currently have a holiday promotion3. Could be doing more for the community
promotion wise
Distribution1. Product coming from too many places2. Mix-ups occur3. Product arrives at random times
Management Structure1. Too many parts to management2. Lot’s of people all doing the same things
Marketing Mix
Product: All four Sonia Rykeil garments will be off the
runway, desirable looks that the H&M consumer will
be interested in. All garments will be of great quality
and only 1,000 of each style will be sold all online.
Price: Each dress will be $128.00
Promotion: Researched by what will attract
consumers and also what way will be best to inform
them about Sonia Rykeil’s new online product line.
Coupons: Coupons will be offered in stores for
customers to use online which will be ten dollars off
their purchase of fifty dollars or more. The coupons
will be passed out in the stores and will be accessible
on the website as well for a limited time only.
Word of Mouth: All H&M stores will have their sales
associates and managers informing customers about
the new bedding line and will be wearing uniform
clothing from Sonia Rykeil’s new online clothing line.
ADS: Advertisement in fashion magazines such as
Seventeen, Lucky, InStyle, Vogue, Teen Vogue, and
Harper’s Bazaar will inform and attract H&M
consumers into looking or buying the new line on the
Internet as well as start purchasing on the Internet.
Television ads will be a debatable option.
Press: Certain magazines such as Lucky, Teen Vogue,
and In Style will have stories about Sonia’s new line
to inform the H&M consumer that they are able to
purchase online as well as check out the line.
Place: The customer will only be able to purchase the
product online.
Budget
The Sonia Rykeil online collection will be expected to
make a net profit of ten million dollars in the first
year it is launched. The sales budget will be eighty
thousand dollars.
Coupons: $10,000
In-store Promotion: $40,000
Magazine Ads: $30,000
Management Organization w/ Officers
Names
Stephan Perrson, Board Chairman
Mia Brunell Livfors, Board Member
Lottie Knutson, Board Member
Sussi Kvart, Board Member
Bo Lundquist, Board Member
Stig Nordfelt, Board Member
Melker Schörling, Board Member
Marianne Norin-Broman, Board Member
Margareta Welinder, Board Member
Tina Jäderberg, Board Member
Agneta Ramberg, Board Member
Strategic/Secondary Business Units
None available.