Online Fashion Brand
Brand name: H&N fashion: An online fashion brand
Microenvironment Analysis:
Power of supplier:
H&N disregards the possibility of a single, large supplier in situations where the suppliers have
less combined negotiating power. If the company buys from one provider extensively,
switching to the most advantageous alternatives will be simpler. Because there are supposedly
so few suppliers, any extra support from them strengthen their position and allows them to
charge more, cutting into the company's bottom line (Halim, 2006).
Power of buyer:
H&N has intense competition in the market since consumers have many alternatives when it
comes to the finest available substitutes. Some of the Company's consumers may have greater
sway than others. The Company attracts a larger base of patrons, hence boosting the collective
purchasing power of its end users. Strong competition has increased the bargaining power of
H&N Company's customers.
Competitive Rivalry:
The group is analyzing the depth and breadth of the current market's competition. Competition
is so fierce that even companies that haven't lowered their prices noticeably see an uptick in
sales as a result of it. Given the availability of discount stores selling the same goods, H&N
faces modest levels of competition (Østergaard, Hermansen, & Fitchett, 2015).
Macro Analysis of H&N:
The macro environment is analyzed by PESTEL analysis. Below discussed all the macro
factors that impact environment.
Political:
The H&N business constantly feels the effects of the political climate. Currency devaluation is
a real possibility, and inflation is another issue that might arise. As inflation rates remain
unknown, so does the safety of existing insurance policies. Moreover, there are substantial
dangers of physical injury to firm personnel, kidnapping, and extortion.
Economical:
It should be emphasized that how the western nations regard UK is rather sad since it is based
on data that is essentially stage-managed. While there is evidence presented by the central
government, there is more evidence gathered locally that is not made public. For instance, in
the year 2019, one of the top UK officials at a Monetary Research Institute said the following.
Economic issues also have a big influence on the functioning of the business.
Social:
In spite of the current political and economic uncertainty, the United Kingdom continues to
provide some of the world's most promising commercial possibilities. For instance, one of the
primary causes of the aforementioned is the enormous size of the nation and the high population
density in the UK, both of which have the effect of providing a ready market. The ever-shifting
makeup of the UK's population is a key factor in the country's ability to sustain a strong,
growing economy (Siddiqui, 2022). Social elements, such as the age distribution, are always
shifting, which opens up new avenues for shaping consumer preferences.
Technological:
When it comes to reaching more customers, H&N is just one of many popular brands exploring
digital marketing. The company has the resources (money) and the customer base (people
interested in shopping at their stores) to make effective use of data. Therefore, H&N is
exploring big data, the field concerned with the analysis of massive data sets, to discover more
effective methods of contacting and engaging customers. This is not an easy task because there
are both digital and physical points of contact with customers (Wardani & Gustia, 2017).
Marketing mix:
Product:
H&N's product strategy and mix is as follows:
H&N is a multi-brand retail leader. H&N provides men's, women's, and kids clothes,
accessories, shoes, undergarments, homeware, and knitwear. As most of its consumers are
women, the firm concentrates on women's apparel. This concentration is on advertising, floor
space, and goods. Its marketing mix includes Men's clothes, Women's wear, Children's wear,
Homewares, beauty items, tech products, etc.
Price:
So, the company's main strength is its products that are in style and cost less. The company
makes simple styles in the most popular sizes, so it can use economies of scale to lower the
prices for the people who buy its products.
Promotion:
H&N is one of the few brands that doesn't use any kind of marketing. It depends on people
telling each other about it. This could be because there aren't enough skilled people, online
marketers, advertisers, or money. Another cause could be that the top management isn't flexible
enough to make any changes to its marketing plan.
Place:
It has a strong online presence on all the social media websites also they have physical stores
across UK.
STP:
Segmentation:
Foreign markets are complex, and reaching clients there may be tough for many businesses.
Because of this, salespeople and distributors aren't sure to whom they should be pitching the
product. Customer segmentation into these subsets will help the business more precisely
focus its marketing efforts. H&N is an e-commerce company that caters to men, women, and
children.
Target Audience:
H&N promotes itself as a brand for preteens and teenagers that specializes in making
affordable, on-trend items. So, those between the ages of 18 and 35 are the prime demographic
for the brand. H&N has an effective distribution strategy because to its extensive network of
shops located in lots of nations.
Positioning:
H&N must reposition the market's impression of its brands based on the variety and quality
of their clothing to be more fashionable and stylish. H&N has placed a greater emphasis on
in-store customer service and convenience, and as a budget fashion shop, they may like to
keep its existing stance as low-priced, cheap, and offering excellent value for money.
References
Halim, R. E. (2006). The Effect of the Relationship of Brand Trust and Brand Affect on Brand
Performance: An Analysis from Brand Loyalty Perspective (A Case of Instant Coffee Product
in Indonesia). SSRN Electronic Journal. https://doi.org/10.2139/ssrn.925169
Østergaard, P., Hermansen, J., & Fitchett, J. (2015). Structures of brand and anti-brand meaning: A
semiotic square analysis of reflexive consumption. Journal of Brand Management, 22(1), 60–
77. https://doi.org/10.1057/bm.2015.4
Siddiqui, K. (2022). Brand equity trend analysis for fashion brands (2001-2021). Journal of Global
Fashion Marketing, 1–18. https://doi.org/10.1080/20932685.2022.2032792
Wardani, D., & Gustia, R. R. (2017). Analysis of Brand Experience, Brand Satisfaction and Brand
Trust Relationship to Brand Attachment. Jurnal Ilmu Manajemen & Ekonomika, 9(1), 59.
https://doi.org/10.35384/jime.v9i1.20