H&M Marketing Report

Marketing Report

BY ZAFRANBINZAKARIA

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EXECUTIVE SUMMARY

Hennes & Mauritz AB, a Swedish clothing retailer known as H&M, was founded in 1947 and has grown to become one of the most recognized brands in the fashion industry. Worldwide, he operates over 120,000 people at H&M, which operates over 5,000 stores. They are also a well-known fast-fashion company that is as attractive as its production speed It is logical that the company is the second largest retailer in the world, with stores in 62 countries and second only to Zara occupies second place Considering that currently about 3 billion pieces of clothing are sold each year, H&M is one of the top clothing brands H&M offers online shopping in 33 countries and is looking to increase this number. In many countries of the world, our customers are people committed to creating fashion trends that appeal to both men and women at reasonable prices without compromising quality.

H&M will likely never be considered as a sustainable brand due to their excessive production of clothing that is made in such a short amount of time in a year until they change their unsustainable business strategy H&M must evaluate their business strategy and its excessive rate of production if they want to be seen as a more sustainable brand, they also need to start using 100% eco friendly materials that are more sustainable and ethical on the environmental impact It is also said that H&M, with its fast fashion approach, relies heavily on current trends and other companies' designs. Because of this situation, critics call the brand's products not only unoriginal, but also uninteresting, and the items that appeal to fashionistas lack novelty. H&M already offers a wide range of products. If the brand were to spread out a bit more and put new products on the list, it would prove very helpful to its image and brand stability People's living standards and purchasing power are increasing all over the world. This increases people's demand for branded products as they become more brand conscious H&M can capitalize on this opportunity by taking advantage of higher demand.

INTRODUCTION

Hennes & Mauritz AB, a Swedish clothing retailer known as H&M, was founded in 1947 and has grown to become one of the most recognized brands in the fashion industry. Worldwide, he operates over 120,000 people at H&M, which operates over 5,000 stores. They are also a well-known fast-fashion company that is as attractive as its production speed It is logical that the company is the second largest retailer in the world, with stores in 62 countries and second only to Zara occupies second place Considering that currently about 3 billion pieces of clothing are sold each year, H&M is one of the top clothing brands H&M offers online shopping in 33 countries and is looking to increase this number. In many countries of the world, our customers are people committed to creating fashion trends that appeal to both men and women at reasonable prices without compromising quality.

H&M will likely never be considered as a sustainable brand due to their excessive production of clothing that is made in such a short amount of time in a year until they change their unsustainable business strategy. H&M must evaluate its business strategy and its excessive rate of production if they want to be seen as a more sustainable brand, they also need to start using 100% eco-friendly materials that are more sustainable and ethical on the environmental impact. It is also said that H&M, with its fast fashion approach, relies heavily on current trends and other companies' designs Because of this situation, critics call the brand's products not only unoriginal, but also uninteresting, and the items that appeal to fashionistas lack novelty. H&M already offers a wide range of products. If the brand were to spread out a bit more and put new products on the list, it would prove very helpful to its image and brand stability. People's living standards and purchasing power are increasing all over the world. This increases people's demand for branded products as they become more brand conscious H&M can capitalize on this opportunity by taking advantage of higher demand.

MACRO-ECONOMIC ANALYSIS

Macroeconomic factors are external to a brand and cannot be dealt by the company The analysis involves analysing economic trends, long term macroeconomic forecasts, alternative trend analysis, the effects of fiscal and monetary policies, and simulations of the economy under different situations. An important component of these macroeconomic analysis is the usage of economic indicators. A PESTEL analysis has been implemented to emphasize potential future economic exteriority that H&M could face or are currently experiencing within the current market position of the brand. H&M's performance in the current fashion market will be shown together with the SWOT analysis

Virtuous cycle diagram

PESTLE ANALYSIS

H&M's business strategies are analyzed using the PESTLE framework. Along with legal and environmental considerations, H&M's PESTLE Analysis looks at the numerous external elements such as political, economic, social, and technical (PEST) influences on its company. The various secondary possibilities that have an influence on the brand's business are highlighted by the PESTLE Analysis PESTLE analysis is a framework that is essential for businesses like H&M since it helps them grasp market dynamics and continuously improve their operations PESTEL analysis and PESTLE analysis are similar terms.

Political Economic Social Technological Legal Environmental

Political Social

Economic

As a result of accusations that it featured the controversial "nine dash line" map on its website, H&M is currently facing a second boycott, this time in Vietnam, following the previous boycott in China. As a result of H&M's criticism of China's persecution of Uyghur Muslims, the fashion giant modified its map and declared that it was "committed to recovering the confidence" of China after all online proof of its presence was removed and landlords closed its stores around the nation, angering all the Vietnamese nationals

The Covid 19 outbreak has negatively impacted H&M just like it does any other business Since the virus spread, consumer spending patterns have altered significantly as a result of the significant disruption to the supply chains The lockdown situation in several countries forced H&M to close almost 80% of its stores for a considerable period, which inevitably cost them 18% of their sales revenue in 2020. Although it couldn't reverse the loss, the company did play it smart by putting a lot of effort into e commerce during this challenging time, which kept them afloat.

To promote safe working conditions, higher pay, and sanitary workplaces globally, H&M has been working with International Labor Organizations To prevent labor exploitation, the company is likewise attempting to revamp and automate its operations

Technological Environmental

The management of H&M has always been interested in enhancing their current supply chain by using cutting-edge technological developments to make it much more effective In 2020, they finally made large investments in this area, and they were quite profitable. A brand new, cutting edge logistics facility has just been established in the UK including 3D based design that reduces waste and digital avatars and virtual changing rooms This centre will serve as a guide for more centres to come

Legal

Following an investigation by the State Data Protection Commissioner in Hamburg into a number of data protection violations related to its hiring procedures at its Nuremberg service centre, H&M was charged the second largest penalty and was fined €35,258,707.95 which is approximately US $41.2 million under the GDPR to date. The public was informed about the disclosure of a large segment of their personnel data Careless handling of sensitive material, including their private and personal information, occurred. For the purpose of obtaining this data, the employees were frequently questioned about their locations and activities

Because of how extensively the environment is polluted during its manufacturing, the fashion industry is one of the most ecologically damaging sectors of the economy. Despite knowing it, H&M also contributes to this pollution. One of H&M's long term strategic objectives is to be entirely sustainable, or recyclable, by 2030. This indicates that they would reuse and recycle every item they made rather than storing fresh raw materials.

BRAND POSITIONING

H&M identifies its brand by offering affordable prices for trendy, high quality products. The company succeeds in the price dispute with competitors who propose a similar outfit or shirt that is almost twice as expensive This is a result of their focus on lowering production and shipping expenditures. The brand offers itself as an affordable retailer of fashionable clothing and accessories. Young adults, women, and teens can purchase cheap, stylish products from this business (Dover 2018) Men and women aged 16 to 24 who desire to wear what's fashionable but don't want to spend a lot of money on clothes make up the target market

SWOT ANALYSIS

Strength Weakness

Price are always the main factors when it comes to selling product H&M aims to become one of the most sustainable fashion brand due to their image of a fast fashion brand By harnessing the flexibility and affordability, they maintain to produce great returns

The strategies used by fast fashion brands consistently raise ethical questions by consumers. These concerns arise from the perception that it is unethical to start by stealing ideas from other brands. People have accused fast fashion brands of blatantly stealing designs from Indie designers without giving them proper credit, in addition to copying off highfashion brands

Mass producing these products with cheap labor violates fair regulations and is inhumane. The labor conditions in the factories from which H&M sources its products are uncertain and unequal, issues like this raise more concerns about the legitimacy of fast fashion and companies like H&M.

Opportunities Threat

H&M falls significantly behind other fashion brands like Zara in regards to utilizing e Commerce platforms and generating income from online sales. The business could earn as more customers engage their shopping online by optimizing e-Commerce as it appears that the e commerce platform will dominate the future of the retailing industry

Since H&M depends on trends, it is also necessary to adapt to how frequently they change. Fashion trends have a dynamic nature that causes them to change constantly, but the emergence of social media has sped up this transition Keeping up with all the current trends has practically become a marathon, and failing to do so might result in a brand losing revenue

COMPETITOR ANALYSIS

Three multinational clothing brands with more than 2,000 locations each are H&M, Zara, and Uniqlo The rival companies have equivalent target audiences, but they manage the distribution of their product lines using distinct business models and different techniques There are contrasts in how these three clothing retailers handle subsidiary brands, where they get their production, and who owns the materials. Here is an overview of each brand, including its area of specialization, target market, and how its brand has evolved.

ZARA:

Zara can produce a product and have it on shelves for sale a month later due to its ownership of the supply-chain phases This distinctive aspect of the business's approach has helped Zara appeal to a wider range of customers with diverse tastes as the brand's approach is to be known as a premium store with reasonable prices Zara produces much more than 10,000 garments annually, compared to the 2,000 to 4,000 various garments that typical fashion brands produce and sell to the mainstream market Its flagship stores are purposefully established in high-traffic areas such as Fifth Avenue in New York City

UNIQLO:

Uniqlo's distribution strategy has focused on the timeliness of the products' retail debuts, with new products being produced in response to demand rather than quantity The majority of Uniqlo's distribution methods are located in Japan, where there are more than 700 Uniqlo storesy Uniqlo adapts their designs to particularly imitate the minimalistic style that is favored in Japan in response to shifting trends in Japanese fashion This may have an impact on the company's appeal to Western distribution networks and may account for the lack of US store locations The clothing distributed by Uniqlo is produced in Japan Its business strategy is modeled on The Gap's

The statistics above shows that H&M's value in 2021 is at USD14,133 million while their brand competitor is at USD13,503 million.

BRAND POSITIONING MAP

The brand positioning map I created is shown below in the first example. The present position of the brand may be compared to that of its competitors due to the brand positioning map, which displays H&M's current position within the competitive market. The map shows the difference between high and low priced as well as high and low quality products. This demonstrates how consumers perceive a brand and lets businesses know that if they provide lower prices, the goods will be of top quality. H&M would describe itself as a premium casual brand within the market, yet they have slipped into the category of an "affordable brand."

CONSUMER PROFILE

In general, the brand provides fashionable clothes at affordable prices, primarily focusing on middle-class individuals and university students between the ages of 15 and 30 This age group accounts for more than 75% of the industry for fashionable clothing H&M also targets females and also younger males Women are more trendy and favor high-end products They, therefore, consider the company's products to be more attractive and satisfying Most of the products are engaging directly with the young female audience because of the brand's focus on quality and aesthetic value, which enables them to gain customer loyalty H&M also focuses on customer interests such as their personality, lifestyle, social status, and more

The above photo shows the price for a basic organic cotton t shirt in Malaysian Ringgit which is equivalent to $3.72

A research survey has been conducted and received a total of 52 responses showing the average consumer's opinion on the brand. The majority of consumers are ranged from the age of 18 24 years old. The feedback received found that 40.4% out of all the responses believe that the price range of H&M products is mid price, 32.7% responded affordable, 21.2% responded expensive and 5.8% responded inexpensive. (Refer appendix)

The average price range of H&M products cost between $599 to $2999 for the basic collections While their brand competitor ZARA (refer below image), the average price of a basic collection would cost $2599 H&M is still considered an affordable brand compared to its brand competitors

PRODUCT SELECTION

The goal of H&M's business model is to provide fashion and quality at competitive prices in a sustainable manner Anyone who is into fashion may easily express their style thanks to H&M's wide selection of products The company, which has stores in 69 markets worldwide, provides a wide range of items, from cutting edge trends to timeless classics that can be worn year after year The H&M product line also includes sportswear, underwear, cosmetics, accessories, and shoes in addition to collections for men, women, teens, kids, and newborns and additionally to the Divided and &denim lines, and designer collaborations

For women, men, teens, and children, the collections span every trend and occasion, from glitzy party attire to classic essentials and functional sportswear H&M Home has contemporary interiors for both kids and adults in addition to clothing, shoes, purses, jewelry, make-up, and undergarments H&M has a wide variety of product lines since their objective is to provide high-quality goods that are influenced by the latest fashion trends and they are constantly establishing new clothing product lines

Sizes XS through XXXL are offered for women's clothes at H&M The women's collection includes a range of outfits, from casual to professional and dressy Men's collections are comparable to women's collections and offer a similar size range A baby to the age of 14+ can choose from items in the children's collections, which come in sizes appropriate for that age group

MARKETING MIX

H&M's marketing strategy evaluates the brand using a methodology for the marketing mix that incorporates the 7Ps, which are; Product, Price, Place, Promotion, People, Process, and Physical Evidence. There are several key strategies, such as product innovation, price strategy, and promotion planning. These business plans, which are based on the marketing mix used by H&M, contribute to the brand's commercial success. The H&M marketing strategy enables the brand/company to take a position of strength in the market and accomplish its company's goals.

PRODUCT PRICE

Product

A broad selection of reasonably priced, decent quality apparel and other products The newest runway trends serve as the inspiration for all items

The tagline for H&M's product is "Everyday low price goods" The marketing for H&M highlights the fact that the majority of their product line is targeted at women. At H&M, menswear occupies a secondary position. Sportswear is widely available from H&M, which is also well known for its distinctive clothes and accessories for men, women, children, and teenagers.

H&M: The collection consists of everything from simple everyday clothes to designer collaborations

& Other Stories: Women's Fashion: Ready to Wear, Shoes, Bags, Accessories

Cheap Monday: Denim, men's and women's fashion lines, and accessories The brand has links to pop culture and music.

COS: For men, women, and kids, classics and wardrobe essentials The company's designs were influenced by global art and technology

Monki: Fashionable lifestyle items for young ladies

Weekday: It creates attire for youthful, fashion conscious adults

PLACE

Through its exclusive physical stores, H&M offers its products. H&M also has the most physical areas compared to the other three brands, with more than 4,702 stores worldwide with the most located in Asia, Oceania, and Africa

Due to legal requirements in some countries, H&M sells its items through partners via franchising It also makes its items available through online shops. Selected retailers across the world and standalone stores, including its flagship location in London, sell Cheap Monday products. To keep costs down, the goods are produced in countries with cheap labour

H&M and its other brands manufacture their clothing with their target market in mind Over time, H&M has established a top notch supply chain Instant delivery is offered, and transportation charges are kept as low as possible. The manufactured apparel is then sent to the warehouse, where it is distributed to various retailers

PRICE

H&M offers high quality clothes at a premium price and affordable price for the fast fashion line. Comparatively speaking, H&M's pricing is lower than those of other brands such as ZARA and GAP with comparable items On average, H&M products would cost 25$ while ZARA are 45$. However, the quality and price of H&M's products are what bring consumers in, it attracts the younger generations and hence contributes to the increased revenues of the brand. These are also attributed to H&M's focus on cost reduction, which has resulted in lower manufacturing and transportation costs.

promotion

H&M is promoting to its consumers by promoting the most recent collection through a variety of promotional strategies H&M makes use of traditional media, which includes radio and television commercials This is advantageous because of its broad appeal and capacity to draw a sizable audience.

TV Ads: Every company makes its own marketing choices. To raise awareness, the commercials are aired often on channels that are mostly viewed by young people H&M produces engaging advertisements that highlight its most cutting edge collections

Digital Marketing: H&M has a Youtube channel where they upload their distinctive ads to engage with their consumers They also use social media marketing where they promote their brands and products on Facebook, Twitter, and Instagram

Membership, Promo code, and discounts: Membership of the H&M Club, is an all digital loyalty program that consumers can authorize by visiting their website or in store and registering using their phone number Consumers will receive special offers, rewards, exclusive event invitations, and much more

Sponsorships: H&M has signed an exclusive deal with The Weeknd, Caitlyn Jenner, and the Musee des Arts Décoratifs It has also collaborated with high end designers and fashion icons such as KENZO and Karl Lagerfeld to help build deals.

CSR: Water, Planet, Education, Equality

Young children who may perform as role models were also encouraged by the brand as part of its social development awareness

people

At every level, H&M staff receive excellent training Employee professional and personal growth are strongly encouraged The workplace atmosphere is quite contemporary, and staff rotates through each area. This encourages innovation and the development of the finest attire Employees have a variety of backgrounds and talents

Employees who are recruited by the company ' s sales team are crucial to its success These individuals have received training on persuasive methods as well as how to respect the preferences of corporate customers

Customers can get their issues resolved by contacting the company ' s customer service department. These employees have been trained on how to serve clients with respect and do their utmost to address their issues

It is one of the key components for employees working to obtain raw materials for any brand. Getting the best quality materials for your products is important for several reasons as it ensures that your product looks good and functions correctly. You are also offering the highest quality product to your customers

process

Systems have been created so that retailers may alert the company when their inventory levels are low to guarantee that its products are always available in retail stores It also gives them additional goods while placing a manufacturing order to restock its inventories as this would guarantee that customers will always have access to the products when they need them

Other than that, it features an online delivery procedure where orders are taken electronically and the appropriate products from the inventories are sent to the delivery service provider based on these orders thus acquiring satisfied consumers. This would actively be engaged in market opportunity research to better understand the client's needs Through comments gathered in store, via its hotline, or on social media platforms, it can also improve awareness of client demands since employees are given training on how to keep highly profitable clients by providing them with better service and offers.

physical evidence

H&M uses recycled paper bags to pack their products as they are using the sustainable approach Although the business is currently working to replace plastic bags throughout its logistical supply chain, the move to paper packaging is a significant one The paper used to make the various size bags and boxes is obtained responsibly and is reusable, recyclable, and compostable since H&M wants 100% of their packaging to be manufactured from recycled or sustainably sourced materials by the year 2030.

SOCIAL MEDIA ANALYSIS

All brands that are looking to connect with their target audience now use social media as a key platform. H&M has had rapid growth in recent years, similar to other fast fashion brands as its huge focus on digitalization deserved a lot of the credit. By expanding its digital presence, it was able to use eCommerce to reach a total of 35 markets Further than that, the company has successfully marketed its products and brands using digital media. Under the umbrella of H&M, there are six brands, each of which targets particular market niches. The company has successfully engaged its target audience through social media and connected with them more deeply. In addition to Facebook, it has engaged its audience on Twitter and other social media platforms such as Instagram Social networking may assist you in both bringing in new clients and keeping hold of existing ones. The social media strategy of H&M is being analyzed in this post, along with an assessment of its social media marketing.

INFLUENCERS & BRAND AMBASSADORS

A brand ambassador is a person who speaks and acts in a way that embodies the corporate identity of a company, promotes the company's products and services, and represents the company in public When it comes to promoting the brand both online and off, brand ambassadors are professional experts. Their responsibility is to establish and keep the connection between the consumer and the company's offer. Brand ambassadors may be discovered online through a variety of venues, including blogs, personal websites, and social media sites like Facebook, Twitter, Instagram, and LinkedIn. In recent years, the field of social media has gained effectiveness. Brand ambassadors fully utilize these platforms to advertise the business of their choosing

H&M INFLUENCERS

Employee

H&M is hiring internally for its newest initiative. With the debut of its H&M Insiders program, the fast-fashion retailer has given 15 American employees the title of employee ambassador for a year. The initiative expands on the H&M League, which was launched in April and provides 22 outside influencers a year to serve as brand ambassadors The store had previously worked with 25 to 50 influencers each month, so this was a change. A diverse group of 15 employees from among the nearly 16,000 working in H&M shops or offices in the US have been selected based on their brand values, location, style, and social media presence.

@gigihadid x H&M

The well known American model uploaded a video to her official Instagram account while wearing several H&M ensembles The video has around 3 million likes, 713 million followers and an incredible hashtag of #HMxME. Gigi has a fantastic following ratio of 56K followers per one following and a fantastic engagement rate of 5.02%. Because H&M and Gigi are both well-known names and influencers on a global scale, their campaign will garner a lot of attention and mix Gigi's fame with the brand's image.

H&M BRAND AMBASSADORS

Maisie Williams

Maisie Williams collaborates with the global brand H&M as its new Global Sustainability Ambassador on several projects aimed at fostering a sustainable fashion future Maisie Williams worked to develop a digital avatar for her first project, which made its premiere in the partnership's opening video and feature at other VR events all year long. The cooperation, which lasted until 2021, works to encourage as many people as possible to recycle and reuse their garments rather than throw them in the garbage.

BGYO

H&M wants to "go behind the music" and reveal the story of passion and dedication that goes into what they do. With the launch of the platform MUSIC x ME, the company hopes to engage customers and help them discover new artists and sounds. This is made possible by BGYO's distinctive identity and catchy songs H&M is recognized for using music as a marketing driver. To inspire other aspiring artists to explore and do the same, this ad also delves into the artists' personal motivation stories

NiziU

Since their debut with "H&M," NiziU will be undertaking their first ever ambassador role for a fashion company, promoting the brand not only in Japan but also in 8 other Asian countries, including China, Malaysia, and others with a total of about 500 stores. The group unveiled its "H&M♡NiziU" spring/summer 2021 campaign on February 18 "Let's enjoy every day through fashion" is the message of the H&M♡NiziU project campaign. The idea is to make people as joyful as possible by dressing up because there are fewer possibilities to go out with family and friends now that spring has finally arrived Based on this season's trend of nostalgic ambiance and pastel hues, the collection, which is exclusive to Asia and was inspired by Asian ladies, included blouses and dresses with see through designs, flower motifs, wide collars, and ribbons

INSTAGRAM ANALYSIS

H&M has over 385 million followers on instagram and their instagram page contains more than 7,386 media uploads. Their engagement rate is at 0.04% and they have gained about 9616k followers for the last 30 days H&M uses Instagram to promote their products and their campaign images beautifully, other than that they are also actively replying to consumers' Q&A in the comments section where people can like and comment on the post as well It is ideal for brand marketing for brands that mostly rely on visuals

TWITTER ANALYSIS

H&M also uses twitter to engage with their consumers by posting their ads campaign and products selection but they don't often tweet. H&M has a 2nd account which is a customer service account to liaise with consumers on their Q&A. For instance, there are also individual Twitter accounts for H&M USA, H&M Canada, H&M Belgium, and H&M UK There are certain features related between Facebook and Twitter. Large photos and videos may be displayed using it

FACEBOOK ANALYSIS

Like many other brands, H&M uses Facebook as its main social media marketing channel. On Facebook, the brand has more than 40.6 million followers. It regularly publishes updates on the latest designs, products, events, and promotional strategies With Facebook Carousel Ads showing products from their campaigns & collection, they engaged their target market The consumer was to be directed to the H&M website via the call to action in the Carousel Ads. In addition to showcasing the latest fashions available, it employs videos and pictures to provide a look inside the store. However, the Facebook page also acts as a platform for interaction with customers and site visitors

YOUTUBE ANALYSIS

Engaging fans and followers is convenient with YouTube. On its YouTube channel, H&M has posted more than 650 videos The goal is to develop long-lasting relationships with consumers through deeper interaction rather than merely selling certain products or brands. H&M advertises more than just its products; it also features how to videos. More than 422K subscribers on its YouTube channel and a total of 227 million viewers on all of its video uploads. More than 91,000 people have seen its most recent Fall Collection video in only two weeks

CONCLUSION SUMMARY

H&M is a fashion company noted for its wide range of clothes, as they make apparel for men and children that follows the newest fashion trends. H&M has committed to being more fashion-conscious by implementing more sustainable materials in their products so that the average consumer can access and purchase them since sustainability has become the discussion of the century.

To summarize the present issue, H&M was then caught "green washing" as they falsely claim and deceptively misled consumers as their marketing strategy is to market and sell products that tap into the expanding market of consumers that care about the environment.

Consequently, a proposed idea is to rebrand the brand that pledges to use 100% sustainable and recyclable materials in its products H&M will be adopting a new brand logo that uses less ink and more sustainable friendly. The brand will also be going for a minimalist approach for its product designs to align with the new brand identity. Their social media platforms will be used to showcase the behind-the-scenes of the productmaking to convince the consumers that they are implementing it to be more ethical towards the environment.

PROPOSED BRANDING

proposed brand narrative proposed brand narrative

PROPOSED BRANDING

Rebranding the company so that it promises to utilize only recyclable and sustainable materials in all of its goods is one suggestion H&M needs to make a 100% sustainability promise for its business. In H&M's Group and Annual Sustainability Report 2021, H&M uses 179 percent recyclable materials in its products, which increased from 58 percent to triple the number of recycled materials utilized in our clothing They also need to update their brand image and marketing to be more naturalistic and aligned with their principles. A new logo for H&M will be used that uses less ink and is more environmentally friendly

To be consistent with the new brand identity, the company will also adopt a minimalist design aesthetic for its products A new marketing strategy would be established by developing a capsule collection that uses 100% sustainable and recyclable materials. Their social media channels will be utilized to show customers how the products are made behind the scenes to be more transparent and persuade them that they are using them in a way that is more ethical towards the environment.

In comparison to its brand competitors, H&M would be more inclined toward a sustainable and fashionable image, and it would have new brand competitors, so its new brand image would be on par.

PROPOSED MARKETING MIX (4PS)

H&M is a fashion company noted for its wide range of clothes, as they make apparel for men and children that follows the newest fashion trends. H&M has committed to being more fashion conscious by implementing more sustainable materials in their products so that the average consumer can access and purchase them since sustainability has become the discussion of the century The purpose of this proposed marketing mix is to further improve a comprehensive marketing plan for the brand.

Product

As part of its commitment to being environmentally friendly, H&M's new product line will feature a capsule collection and use only materials that are 100% recyclable and sustainable, such as organic cotton and recycled polyester Due to the faster fashion trends, fast fashion products will constantly end up in landfills; nevertheless, this new product line would be long lasting

place

price

Synthetic fibres provide less expensive alternatives to natural products because most natural fibres may be quite expensive, especially when they are pure As the market price for the manufactured clothing will be slightly more expensive than the existing pricing and the demand for the products would also be higher, using only sustainable and recyclable materials in its product line would allow the brand to pay better wages to the workers Fast fashion raises several ethical questions associated with environmental concerns They are generally manufactured in factories, where low wage employees are forced to work long hours in hazardous circumstances while being exposed to dangerous chemicals used in textile manufacturing.

promotion

As part of the brand's sustainability approach, H&M will not be providing any paper bags for free at every purchase of its product Due to higher greenhouse gas emissions from energy intensive operations and high water usage, paper bags, based on research, might have a significant negative environmental impact H&M would also be providing a discount voucher of 10% for the next purchase to consumers who brings their bag and this marketing technique would encourage consumers further to bring their bag when purchasing. Consumers who insist on paper bags will be charged a small fee for them For example, RM 050 will be charged per paper bag, and 80% of the fee will go to planting new trees that had to be cut down to make the paper bags

PROPOSED CONSUMER PROFILE

H&M's new brand image focuses on being eco-conscious that is using 100% sustainable materials in their product. This new branding can touch many females and other gender groups of different age groups and lifestyles. The aimed age group is between 24 38 years old, a person who cares about the environment, lives in urban areas, and have a medium to a high level of education. These consumers prioritize a brand's sustainability when choosing where to purchase products and services They are committed to sustainable and environmentally friendly lifestyles.

Proposed Consumer Profile 1

Proposed Consumer Profile 2

PROPOSED COMPETITORS

As H&M is going for the new brand approach, they will develop new brand competitors that align with the new brand image. The new brand competitors are Patagonia, Boden, and Brøgger. H&M and the new brand competitors have the same vision and goals which is 100% sustainable fashion products. What makes it different than its brand competitors is that they are fully pledged to be ethical towards the environment and the new marketing mix of the brand will appeal to the proposed consumer demographics which is mostly the younger ones as the brand will produce products that are entirely environmental friendly and also fashionable.

PROPOSED SOCIAL MEDIA PRESENCE

As H&M continues to become more and more aware of the impact our consumption has on the environment, we are committed to making sure that our products are sustainable H&M is committed to sustainability and the environment, and they are using their social media platforms to show this. H&M wants to be transparent about what they do and how they do it, which is why they are going to be posting behind the scenes photos of its sustainable collection campaign on Instagram and Facebook This will help them tell their story, and also show the consumers that they're serious about their commitment to ethical practices This will also allow them to engage with potential customers who have questions or want to share their thoughts about what they see in the images

To demonstrate this commitment, H&M will also be using TikTok and YouTube as part of its social media presence. These platforms allow them to show their consumers behind the scenes, how they develop their collections so that the consumers know that they can trust them when they buy one because it was made with care and consideration for the environment Meanwhile, H&M wants to make sure the consumer's experience with the brand is as seamless as possible So they are going to keep using Twitter and Facebook to engage with their customers and answer questions regarding the brand, collection, and anything related

With these updates, it is with the hope that it would help their consumers feel confident in their purchase decisions and make it easier for them to support the brand

PROPOSED BRANDING: INSTAGRAM MOCK-UP

This is the mock up for H&M's Instagram profile. The current Instagram profile shows H&M's current brand collection images which are prints, bright colors, and shiny accessories. Compared to the proposed idea, the new H&M Instagram profile is more leaning toward the sustainability image with more natural colors and minimalistic designs. H&M would also have a new profile image which is their brand logo with less ink.

PROPOSED BRANDING: FACEBOOK MOCK-UP

CURRENT

The brand will be using Facebook to promote the new brand sustainability collection. Facebook will still be used for communicating with customers and answering questions about the brand, collection, and other connected topics It is intended that these changes would give customers more confidence in their buying choices and make it easier for them to support the brand.

PROPOSED BRANDING: TWITTER MOCK-UP

Making the consumer's interaction with the brand as effortless as possible is important to H&M The brand will be using Twitter to promote the new brand sustainability collection The ability to engage with their consumers and respond to inquiries about the brand, collection, and anything else related will also remain to use Twitter, similar like Facebook. With these modifications, it is hoped that customers would feel more secure in their purchase decisions and find it simpler to support the brand.

PROPOSED BRANDING: TIKTOK MOCK-UP

The mock-up for H&M's TikTok profile looks like this H&M promotes the campaign shoot for its most recent brand collection on its TikTok profile at the moment. The new H&M TikTok profile is displaying more of its behind the scenes aspect while showcasing how its products are produced as compared to the supposed concept

CURRENT

PROPOSED BRANDING: YOUTUBE MOCKUP

CURRENT

For H&M's current YouTube profile, it is more interactive for the consumers as the videos are more towards educating and lessons that are related to fashion so that they are able to gain new knowledge The proposed idea is more likely the same as it showcases their new sustainability collection and also retain the same education lessons.

PROPOSED BRANDING: INFLUENCERS & AMBASSADORS

H&M is going fully eco conscious which focuses on 100% sustainable and recyclable materials in their product. The proposed brand ambassador is actress & celebrity, Natalie Portman. The EMA Ongoing Commitment Award, which is normally awarded to different individuals who have consistently aided various environmental causes, was granted to Natalie Portman for her environmental activities. Natalie Portman has been a strong advocate of veganism and animal rights, she lives and breathes an eco friendly lifestyle due to her commitment to sustainability

Next, Selena Gomez would also be a good fit as the brand ambassador alongside Natalie Portman. Selena Gomez, a musician, actor, and fashion designer was named a UNICEF Ambassador in September 2009. Selena has collaborated in numerous campaigns, events, and activities on behalf of UNICEF USA as a UNICEF Ambassador, actively promoting the rights of the world's most vulnerable children. Selena is also one of many famous people who launched their makeup line and has long led a sustainable lifestyle

Furthermore, for influencers, I am going forward with Aja Barber. Her work focuses on sustainability, ethics, intersectional feminism, racism, and all the ways systems of power affect our buying habits.

PROPOSED BRANDING: PRODUCT IDEAS

These would be my proposed product ideas for the new H&M image branding which would be more leaning towards sustainability The new product ideas would consists of minimalist outfits such as spaghetti strap top, wide leg pants, wide short pants, pario skirt and etc. The colors would be natural pink and earthy tones such as cream, beige and brown. Although many of the products contain much more than that, the goal is for all of them to be created from recycled or other sustainably sourced materials, including organic cotton or recycled polyester We're always trying to make the range even more sustainable with new technology advancements and innovations.

The following are product ideas for the new marketing, this visual illustration demonstrated the range of designs for the sustainability image and minimalistic design.

PROPOSED BRANDING: CONCLUSION SUMMARY

In conclusion, this study discovered that H&M is a fast fashion brand that follows current trends and offers its products at affordable prices Being one of the top fashion companies in the world, the brand is also distinctive for its innovative marketing and quick manufacturing. Although H&M also promotes its brand as one that cares about the environment, a recent probe on the company claims that the company's sustainability performance is undermined by greenwashing. The brand's long term success that appeals to younger consumers is severely impacted by this issue

In order to regain the trust of their consumers, H&M needs to move forward by pledging to use 100% sustainability and recyclable materials only in their products H&M would also produce only minimalistic and modern designs that align with their sustainability image, this would help the brand to reach their target market.

REFERENCES & BIBLIOGRAPHY

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Parker, B (2022, March 9) H&M SWOT analysis Business Strategy Hub Retrieved from https://bstrategyhubcom/hm swot analysis/

Momin, A (2022, September 28) H&M Swot Analysis: 7 threats hennes & mauritz is facing PESTLE Analysis Retrieved from https://pestleanalysiscom/hm swot analysis/#A Wide Variety of Products

H&M face second boycott in Vietnam after seeking to appease China latest retail technology news from across the Globe Charged (2021, April 8) Retrieved from https://wwwchargedretailcouk/2021/04/07/hm face second boycott in vietnam after seeking to appease china/

McKinsey & Company (2020, December 14) For H&M, the future of fashion is both 'circular' and Digital McKinsey & Company Retrieved from https://wwwmckinseycom/industries/retail/our insights/for h and m the future of fashion is both circular and digital

Ahsan Ali ShawAhsan Ali Shaw is an accomplished Business Writer (2021, March 10) Pestle analysis of H&M. Business Management & Marketing. Retrieved from https://swotandpestleanalysis.com/pestleanalysis of hm/#Better Wages Safety Standards

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H&M joins forces with Maisie Williams as Global Sustainability ambassador: H&M GB H&M (nd) Retrieved from https://www2.hm.com/en gb/life/culture/inside-h-m/looop-it-like-maisiewilliams.html

L'Officiel Philippines (2022, February 17) BGYO is H&M's newest ambassador L'Officiel Philippines Retrieved from https://www.lofficielph.com/fashion/p pop group bgyo become h and m s newest ambassadors

Prasek, C (2021, February 5) Niziu announced as H&M Asia Brand Ambassadors with H&M ♡ niziu OTAQUEST. Retrieved from https://www.otaquest.com/hm loves niziu fashion brand/

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Smith, P (2022, February 9) Brand value comparison of H&M and zara worldwide 2010 2021 Statista Retrieved from https://wwwstatistacom/statistics/1071147/brand value comparison of handm and zara-worldwide/

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APPENDICES

APPENDIX OF STAFF INTERVIEW

ZAFRAN: What is the range of period working? What is the longest and what is the shortest?

NANA (STAFF): For part time, we have 5 hours shift up to 10 hours shift

ZAFRAN: How long do you plan to stay in H&M?

NANA (STAFF): For a very long time

ZAFRAN: What is the age range that shops in H&M?

NANA (STAFF): There are adults, parents, and also senior citizens

ZAFRAN: What kind of campaigns are suitable for the age range? Like the marketing campaign, something like advertisements

NANA (STAFF): Usually sales

ZAFRAN: Do you think the product price range is affordable?

NANA (STAFF):: I think it's very affordable, for medium range, M40

ZAFRAN: What are the challenges that you face in H&M?

NANA (STAFF): For me, it's the customer

ZAFRAN: Do you know like, how H&M overcomes the bad image as a fast fashion brand? Do you guys do any marketing or campaigns like to attract back the consumers?

NANA (STAFF): I think like, how we treat the customer made their comeback At H&M, we always greet our customers, so I think that attracts people And also the fashion, even though it's fast fashion, but then it's trendy to be worn at times

ZAFRAN: How do you think H&M can improve better, in terms of employees' welfare?

NANA (STAFF): I think most of the retail companies have the same issues, which is the salary

ZAFRAN: How does H&M give back to society, Is Corporate Social Responsibility implemented?

NANA (STAFF): Not sure

ZAFRAN: Any sustainability efforts done so far? Such as recycling old clothes and getting a discount for the next purchase?

NANA (STAFF): Yeah, we do have that in Monki as well Like, if you give us your old clothes then you can get a 50% discount

ZAFRAN: What type of marketing efforts does H&M do? Other than giving out discounts and vouchers? Do you guys do any promotional or clearance season sales?

NANA (STAFF): There are season sales, usually the sales if the season is out of stock or low in stock, we will put at a lower price for the clothing

ZAFRAN: How do you think H&M is different from other brand competitors? In terms of style or quality?

NANA (STAFF): We are different, personally to me we have the range from basic to fashionable But some of the other retail they don't have the range

ZAFRAN: Imagine yourself as the creative director of H&M, what kind of product line would you like to establish and why do you think so? Like maybe you would come up with a sustainable line that uses 100% recyclable materials or maybe a line that targets only the senior citizen?

NANA (STAFF): For me, I'm not sure. But in H&M, we have a collection called "H&M Plus" range for plus size.

APPENDIX OF SURVEY