Chen Yuxin
Lim Yun Yi
Nur Hafizah Binte Mohammad Zin
Sean Sing Jun Zhi
Tan Shi Ning
PRODUCT
H&M aka Hennes
& Mauritz is
founded by Erling
Persson in
Sweden, 1947
Business
concept is to
offer "fashion
and quality at
the best price."
Wide product range
that is divided into
numerous concepts
for women, men,
teenagers and
children
There are a total of
seven H&M stores in
Singapore
1. Orchard Building
2. JEM
3. ION Orchard
4. Suntec City
5. Vivocity
6. Raffles Place
7. Stadium Place
H&M today,in a glance
Target Market
15 to 40 years old Male and Female
Product- Growth Stage
2004- H&M initiates designer collaborations starting with Karl Lagerfeld. More collaborations follow with
Stella McCartney, Viktor & Rolf, Madonna, Roberto Cavalli, Comme des Garçons, Matthew Williamson,
Jimmy Choo, Sonia Rykiel, Lanvin, Versace, Marni, David Beckham, Anna Dello Russo, Maison Martin
Margiela and Isabel Marant.
MATURITY
STAGEStage
Product
- Maturity
H&M is currently at the maturity stage as
1. Sales increase at a decreasing rate in the maturity stage as fewer new buyers
enter the market
2. Most consumers who would buy the product are either repeat purchasers of the
item or have tried and abandoned it.
3. Marketing attention is directed towards holding market share through further
product differentiation and finding new buyers
Product- Dimension of Product Life Cycle
1. Length of the Product Life Cycle
a. As H&M’s main revenue was from retail clothing, there are fashion trends that might fade
quickly and then seems to return back on the shelf
b. The length of cycle may be years or decades
2. Shape of the Product Life Cycle
a. Fashion product- Is introduced,declines and then seems to return,such as clothing styles
3. The Product Level: Class and Form
a. Product Class: Office wear,Casual,Sleepwear, Sportswear, living room
b. Product Form: Office wear- Tops, Blouse, Blazers, Trousers,Skirts
4. The Life Cycle and Consumers
a. Opinion leader like David Beckham wearing menswear
b. Early adopters : Line up to buy at stores
MANAGING THE PLC
1. Modifying the Product
a. As fashion trends come and go, H&M often changes their product therefore they will be
able to seek product of better quality and seek feedback from customers whether or not to
bring in product according to demands
2. Modifying the Market
a. By acquires fashion firm FaBric Scandinavien AB, which comprises the brands Weekday,
Monki and Cheap Monday, launching new concept store COS.and H&M store, it is able to
find new customers in different market
b. Promote product by collaborations
3. Repositioning the Product
a. Expanding H&M geographically has allow H&M to tap new market
b. Catching rising trends of a certain product
c. Changing the value offered by trading up or down the packaging size
d. Warranty of 30 days exchange or refund provided they are in a resalable condition and a
valid receipt is presented.
Branding and Brand Management
1.
2.
3.
Multi product Branding - (H&M, Divided, H&M Home,H&M
Beautybox,H&M Sports)
Multi branding Strategy ( LOGG,BiB, &Denim, Trend, MAMA,
Monki, Cheap Monday, & Other Stories,COS, Weekday)
CO branding different celebrities and fashion designers ( Alexander
Wang)
1. Packaging
2. Labelling
a. Three different size labels on apparels (EUR/UK/US size/ inches for jeans)
b. Clevercare labels (Extend Clothing Life While Saving Energy, Water)
Customer
Service
CUSTOMER SERVICE
Payments and Returns:
● Mastercard, VISA, CUP and NETS. You may also use H&M gift cards at any H&M store.
● Exchange or refund any unsuitable garments within 30 days provided they are in a
resalable condition and a valid receipt is presented
● No refund or exchange pierced earrings and cosmetic products for hygiene purposes
Gift Cards
● Gift card are available in stores and can be loaded with the desired amount, anything
between S$10.00. and S$950.00
● Gift card remains active for 24 months from the date of last transaction
SIZE
GUIDE
SIZE
GUIDE
PRICE
ODD EVEN PRICING
PRICE LINING
F21
Competitor Pricing
H&M
COTTON ON
BELOW MARKET
PRICING
LOSS LEADER PRICING
PLACE
H&M has 7 stores in Singapore.
- JEM
- Orchard Building
- Ion Orchard
- Suntec City Mall
- Raffles Place
- Vivocity
- Stadium Place
Target Market Coverage
Selective distribution
● H&M retail stores are selected in a specific
geographical area
→ located at the popular shopping and fashion
districts of Singapore
● Targeted at people who keep up to trends
Place
Marketing Channel
Indirect Channel
Buy: direct from the suppliers.
Sell: in their own retail stores.
Few middleman
→ low costs
→ fast time to market
Producer
Retailor
Consumers
Suppliers
H&M stores
Consumers
PROMOTION
Promotion
Message
-H&M runs cause-related marketing campaigns e.g. All for Children, to raise awareness on children’s
rights in poorer areas of the world, or Conscious Collection
- Each campaign carries a specific message e.g.
“At H&M, we have set ourselves the challenge of ultimately making
fashion sustainable and sustainability fashionable.”
- Conscious Collection campaign
PROMOTION
Advertising Channels
- H&M has its own magazine
- H&M makes use of social media to reach out to its customers, such as via
Facebook, Twitter & Instagram, where they post photos of new collections
and even hold competitions for customers to win prizes.
For example, H&M held a competition where entrants were required to post
photos of their best ‘bike style image’ on Instagram using the hashtag
#HMBikeStyle for the chance to win clothes from the H&M Brick Lane
Bikes collection
- Advertisements in their mobile app or on their website
PROMOTION
N
Advertising strategies
Advertising strategies
H&M realizes that any promotion that does not take into account specialties of the region where the
advertising campaign is being carried out is bound to have little effect on the population that is
being targeted by the advertising campaign. So, H&M conjures up unique campaigns that
seamlessly merge with the local flavor without losing out on the essence and personality of the
corporate image of H&M that strongly sends out a message of customer satisfaction at minimum
expense. (Roberts, 2004)
By focusing on individual influencers and local culture, H&M has positioned themselves as more than
just an international fast-fashion brand. Creative content marketing offers their customers a
multitude of chic perspectives, and sets the brand ahead of the ever-changing sartorial curve.
Advertising campaigns are mostly identical in all of H&M’s markets, but the media strategy is tailored to
local requirements and conditions
- Each season H&M features models with different looks, styles and cultural backgrounds to advertise
their concepts for women, men, teenagers and children.
ANDROID
IPHONE
Direct Marketing/Email
Survey Respondents
36 Females
14 Males
Age range 18 - 50
Stratified random
SURVEY ANALYSIS-PRODUCT
● Majority of the respondents opted for quality (46%) as the most
important value when shopping at H&M
● This is followed by the option - design (32%)
QUALITY
● Clothes that do not meet H&M’s quality requirements are not
passed on to the stores. Instead, such garments are donated to
organizations like UNHCR, the Red Cross and Caritas.
● H&M has a section the online website whereby it guides customer
regarding garment care & quality
● All H&M sunglasses have a special UV filter which locks out all UV
radiations (UVA and UVB),
● H&M jewellery applies the limit for nickel that is developed /set
with concern for users
QUALITY
● H&M accept leather products from animals that have been
bred for meat production.
● Use leather from the following animals: cows, buffalo,
sheep, goats and pigs.
● H&M ban the use of hazardous and environmentally
damaging substances throughout all production processes
. Regular controls and inspections are also conducted to
ensure your safety.
DESIGN
● Singapore’s weather is as humid and warm all year
around
● Lightweight material
● Collection and designs are closely followed to
according trends
● Variety range of apparels such as basic wear, dresses,
office wear and etc
SURVEY ANALYSIS-PRODUCT
● Majority of the respondents are interested in tops and bottoms, a percentage of
39% and 22% respectively.
● Close to 22%, respondents are interested in one-piece apparel too.
●
Crop tops and skinny jeans are in trend at the moment
●
Generally in Singapore, teenagers are smaller in size
●
H&M has adopted sizes like XS-L in its tops collection and 24/30 - 36/34 in its bottoms
collection to meet the demands of the market
SURVEY ANALYSIS-PLACE
● Most popular:
o ION Orchard (35%)
o Orchard Building (32%)
● Least popular:
o Stadium Place (1%)
Reasons
● Orchard
Shopping and fashion district of Singapore
o Shoppers: Young ladies around 20-30
o
● Stadium
Not a famous shopping centre
o People who visit that area mainly goes to Indoor
Stadium for events and not to shop
o
90% of responders think the location is
convenient
● Reasons (convenient)
Stores are located in buildings near MRT stations
o Guidelines in the shopping malls
o
● Reasons (not convenient)
Stores are mainly located in town areas
o Far from north/east and heartland areas of
singapore
o
●
●
●
Online stores
Provide delivery services
More convenient to the consumers
Survey analysisPrice
34% of respondents felt that H& M products are
affordable, while 48% felt that it was neutral.
64% of customers felt that the price is the most
attractive aspect of H&M.
H&M should maintain its current
pricing strategy as it is one aspect that
attract more customers.
H&M should also hold more sales or
give more discounts to pricier items as
customers might get turned off by the
expensive prices of some items.
EFFECTIVENESS OF PROMOTION
Survey results show that advertisements and social media have the
greatest outreach, followed by direct marketing and others
-Mobile app and website are not as effective, with 76% of respondents claiming that
they have never browsed the H&M website, and even 92% whom do not have the
H&M app on their devices.
- Shows the effectiveness of current advertising strategies and social media, and the
need to review the effectiveness of other channels, especially with regards to their
website and mobile application.
Promotions held at less popular stores
● Stadium
● Raffles Place
○ Attracts more customers
• H&M should try to improvise their current standard of
providing good customer service
• More features added to mobile app
Thank you
References
http://www.monoxious.com/hm-singapore-preview-sale/
• https://www.inkling.com/read/marketing-dhruv-grewal-michael-levy-3rd/chapter14/chapter-14-review
• http://gatorjake.wordpress.com/2014/02/19/my-time-with-the-hm-app/
• http://www.brandrepublic.com/news/1064649/H-M-continues-investment-mobile-Androidapp/?HAYILC=RELATED
• http://www.smashingmagazine.com/2010/02/15/email-newsletters-guidelines-andexamples/
• http://www.studio5555.de/fashion/5-e-rabatt-beim-hm-newsletter/
• http://wageloch.com.au/2014-customer-feedback-survey-coming-soon-3/
http://www.fluxuryb.com/2010/07/ad-hm-x-daria-werbowy/
http://www.designscene.net/2014/04/gisele-bundchen-hm-summer-2014.html
http://comm-n-sense.blogspot.sg/2014/01/foot-switch-recommendations.html
http://www.popsugar.de/mode/Miranda-Kerr-modelt-Fr%C3%BChlingsmode-f%C3%BCr-HM2014-34436305
•
•
•
http://www.studymode.com/essays/h-m-Company-Analysis-1197850.html
http://hillyting.com/page/3/
https://www.hm.com/sg/customer-service/faq/about-hm-com