Internal environment – SWOT analysis
Strengths: H&M (Hennes & Mauritz) is a well-known global retailer of clothing, recognized for
its fashionable yet fairly priced products. H&M has built a strong brand that is well-known and
recognized worldwide. H&M has gained popularity among budget-conscious and fashionable
customers due to its reasonably priced apparel lines. The brand has a loyal customer base
because of its reputation for offering stylish yet reasonably-priced clothing. Strong brand
recognition allows H&M to attract new customers and maintain a competitive edge in the fashion
retail industry (PEREIRA, 2023).
Weakness: H&M has come under criticism for its effect on the environment and labor standards
throughout its supply chain. Concerns have been voiced by a few stakeholders and consumers
about things like waste production, chemical contamination, and excessive water use related to
H&M's manufacturing methods (PEREIRA, 2023).
Opportunities: H&M has the chance to proactively increase its market share in emerging
economies, especially in those where the middle class is expanding and disposable income is
rising. H&M can customize its range of products and promotional tactics to efficiently serve
these developing regions (Edrawsoft, n.d.).
Threats: H&M faces pressure from the competitive environment to consistently innovate, set
itself apart from the competition, and offer a strong value proposition to draw in and keep
consumers. Rapid shifts in fashion trends and consumer choices make it difficult for H&M to
effectively predict and satisfy customer needs (Edrawsoft, n.d.).
External environment – PESTLE analysis
Political Factors: The bulk of H&M's production is based in Turkey, Egypt, and Lebanon.
Political unrest plagued Lebanon both before and after its independence. Over time, there is a
shift in the balance of power that primarily leads to war and other related situations. The US vs.
China trade wars are another big worry for the whole industry, not just H&M. Textile product
prices rise as a result of its effects. From then on, the need for labor has only increased
(www.mbaskool.com, n.d.).
Economic Factors: Sales increased by 7% despite Brexit. This is viewed as positive news for
the company because its pace of profit-making remained unaffected by such a significant
political turnaround. Labor regulations differ greatly across nations. Establishing manufacturing
facilities in developing nations is advantageous due to their much lower labor costs. People's
disposable income is rising as economies around the world are getting better
(www.mbaskool.com, n.d.).
Social Factors: People are directly impacted by celebrities and social media in the clothing
industry. People identify better with the brand that their favorite celebrity promotes. Therefore,
spreading the word about the channels and marketing the items on social media is crucial
(www.mbaskool.com, n.d.).
Technological Factors: Nowadays, with the availability of mobile applications, people are less
inclined to visit physical stores to purchase clothing products. Customers may place orders
conveniently from anywhere, even in their workplace. H&M needs to be up-to-date with the
latest developments in technology and the corresponding shift in consumer behavior
(www.mbaskool.com, n.d.).
Legal Factors: Every nation has unique laws and regulations. For their businesses to be properly
run, firms that operate inside those businesses must follow the guidelines. H&M must work with
franchise partners in the UAE, Kuwait, Oman, and other countries, even though franchising is
not a component of H&M's expansion plan (www.mbaskool.com, n.d.).
Environmental Factors: The oil and petroleum industries pollute more than twice as much as
the textile sector as a whole. Water bodies become contaminated due to the large volume of
water waste produced. Individuals who reside near those bodies of water are afflicted with
several deadly ailments. H&M wants to make all of its clothes entirely from recycled materials
(www.mbaskool.com, n.d.).
An outline of H&M’s current marketing mix
Product: The core of H&M’s product strategy is the wide range of stylish apparel for men,
women, teenagers, and children. The company offers a broad selection of designs, ranging from
business casual to formal dress. H&M always updates its items with the newest styles and
patterns to suit its fashion-forward customers. H&M expands its product line to accommodate
customers’ diverse lifestyle demands by providing a variety of accessories, footwear, and home
furnishings in addition to apparel. H&M strikes a balance between providing stylish designs and
guaranteeing reasonable prices without sacrificing the caliber of their products (TBH, 2024).
Price: H&M uses a competitive pricing approach to reach a wide range of consumers who are
looking for fashionable yet reasonably priced apparel. Price-conscious consumers are drawn to
H&M because of its reasonable pricing, which may give the impression that the clothing is worth
the money. The brand may change pricing based on variables such as demand, inventory levels,
and seasonality. H&M often runs promotions and deals, which help to attract customers and
increase sales for the company (TBH, 2024).
Place: H&M has a worldwide presence through various channels, and its distribution strategy
ensures that its items are widely accessible. Around the world, H&M has numerous physical
stores that are well-situated in shopping centers, urban areas, and high-traffic areas. The
company also provides online shopping for its customers. The trendy and eye-catching designs
of H&M’s outlets provide consumers with a fun and creative shopping experience (TBH, 2024).
Promotion: H&M has a detailed promotional plan to interact with its target market and keep its
brand visible in the market. To reach a wide audience, H&M employs a variety of advertising
mediums, including print, web, and TV advertisements. The business collaborates with fashion
bloggers and influencers to increase its popularity and attract more customers. They can also
actively connect with their consumers on social media channels. To increase sales and attract
more customers, H&M creates imaginative and themed advertising that corresponds with
holidays, events, and seasonal changes. H&M hosts in-store activities and promotions to attract
more customers, which boosts their energy when shopping. The loyalty program at H&M, called
membership, aims to increase customer retention and build brand loyalty by offering members
special privileges and prizes (TBH, 2024).
The brand perceptual map of H&M and its competitors displays the positioning of
various fashion labels based on their style and affordability. Luxury brands like
Yves Saint Laurent and Ralph Lauren are placed at the top due to their fashionable
yet pricey image. Mid-range fashion labels such as Zara, H&M, and Nanushka are
located in the center as they are perceived to have a casual style and an affordable
price. Budget fashion businesses like Primark, Shein, and Forever 21 are the least
visible on the map (Harry, 2023).
The product positioning of the H&M brand includes affordability, fashion
development, and sustainability, which sets it apart from its competitors and
attracts many customers who align with its values. H&M maintains its market
share and expands its customer base through its unique positioning (Justin, 2024).
market segmentation
Psychographic segmentation of H&M: H&M uses psychographic segmentation as a strategy to
appeal to fashion-conscious consumers who value trendy yet affordable apparel. Their usual
consumer base consists of young, energetic people who want to express themselves through
style. Individuals who enjoy regular style changes with inexpensive, easily dressed clothes and
the freedom to refresh their wardrobes to suit new trends are drawn to H&M. H&M’s apparel
lines place a great emphasis on sustainability, which attracts clients who are socially and
environmentally conscious. H&M attracts clients who are enthusiastic about fashion, desire
variety, and are conscious of the implications of their actions on the environment and society,
with an emphasis on diversity and targeted marketing (thesocialgrabber.com, 2024).
Geographic segmentation of H&M: H&M deliberately utilizes geographic segmentation to
ensure availability for a wide range of customer demographics in various cultural circumstances
by selectively locating its stores in major urban centers across the world. The company considers
the choices and preferences of the market while developing its products to fit in with regional
fashion trends. By using this tactic, H&M can create a consistent global brand image and
encourage a personalized shopping experience. By developing a subtle and lively presence in
densely populated urban and suburban locations. H&M shows its dedication to catering to the
many demands and tastes of its worldwide consumer base. This is accomplished by adapting
marketing strategies to appeal to certain preferences and ways of life that are common in various
geographic areas (thesocialgrabber.com, 2024).
skills required to operate within a marketing department
Creativity: Marketing involves improving concepts to reach both potential and current clients.
Although certain jobs, such as social media coordinator or copywriter, may require more
imagination than others, having a strong creative sense will help you succeed in the marketing
industry. Therefore, creativity is a necessary skill for all marketing positions (Coursera, n.d.).
Communication: Effective communication skills are essential for marketers as they interact
with audiences, team members, key stakeholders, and business executives. When communication
is clear and efficient with numerous groups, it can prevent any issues that may result from
ineffective communication (Coursera, n.d.).
Technical marketing skills: Technical proficiency is equally essential for marketing. Technical
expertise enables marketers to assess client data, traverse digital platforms efficiently, and make
decisions based on facts. Marketers can better target their audience, optimize marketing
campaigns, and drive business growth by understanding and utilizing marketing technologies
(www.brandcredential.com, n.d.).
Social media: A company’s digital marketing plan must include social media. Gaining
knowledge about the main platforms and the various types of content that appeal to different
audiences can help you become more adept at marketing. Customers utilize social media
platforms to research brands and browse their offerings. Implementing social media strategies
can help reach a large number of audiences in various locations where the target customers are
found (Indeed Editorial Team, 2022).
Collaboration: Marketers can also collaborate with other members of the company. When
creating new products for audiences or finding answers to problems that consumers are having,
marketers frequently collaborate with data scientists, software developers, and salespeople,
among others (Coursera, n.d.).
Outline the customer persona for one identified target segment that outlines their
characteristics and buying behavior
A buyer persona, often referred to as a customer persona, is a depiction of the clients who
purchase your goods or services. This aids marketers in learning more about their target market’s
characteristics, motivations, and decision-making process (Anon, 2021).
Name: Ms. Anna
Age: 20
Gender: Female
Location: New Delhi
Occupation: Audit associate
Income level: 30k
Bio:
Anna is a 20-year-old girl from a middle-class family. She loves purchasing new and trendy
clothes both online and offline. She is also very active on her social media platform and mostly
concentrates on fashion brands on Instagram. She is very intelligent and has a great personality.
She likes to visit shopping malls to explore new designs and trendy clothes, especially with her
friends and family on weekends.
Identifiers:
High social media profile, active on Instagram and TikTok
Creative and intelligent
Strong personal style
Challenges:
Lack of discounts
Unable to find reasonably priced and trendy clothes of good quality
Goals:
To be able to purchase clothes from high-end brands
To purchase highly fashionable and on-trend clothes
Motivation:
Coupons offered
Sale
