2. Problem Definition:
According to a study conducted by Global InSites Consulting, H&M is considered to be
“cool” brand by Gen Y (consumers aged 18 to 30). This meant that this problem needed
to be further narrowed down in order to find the right solution.
Findings from further research:
We have conducted some one on one interviews with consumers aged 18 to 24, to see
how their choices in fashion and fashion retailers are influenced. Our key findings are
listed below:
• Low differentiation: After speaking to the target market , we have uncovered that while
they shopped at H&M because it offered globally “trendy” clothes at affordable prices,
they shopped at competitor retailers (including Zara, Topshop and GAP) for the same
reason.
• Global VS Local: While majority of fashion trends do spread globally, not all trends can
be “pulled off” in local markets: “I bought some really cool bright outfits at H&M in
Europe, however I haven’t had a chance to wear them in Melbourne yet as I feel that
they can look slightly over the top here” – Female respondent, age 22.
• Peers, not celebrities make trends locally ‘acceptable” – while celebrity endorsements
are great, consumers aged 18 – 24 look at their peers to see whether a certain trend is
“accepted” in their local market – “I first thought that male scarves looked slightly
“gay”, but then I saw a bunch of guys in bars wearing them so I decided it was ok to get
one too” – Male respondent, age 24.
• They take pride in the uniqueness of their local fashion, and also celebrate the exotic
nature of overseas fashion: “I like how Sydney fashion is always bright and vibrant, but I
also loved how people in Tokyo dressed. Everyone there wore such quirky and colourful
clothing!” – Female respondent, age 23.

3. Target Audience
• Young adults (Males and Females), who like to look relaxed yet still stylish
during the day.
• These people are yet to be burdened by real responsibilities (aside from
work and expenses), and have a lot of spare time to do the things they
enjoy.
• They like being out and about and catching up with friends, and value
unique experiences – whether it’s going to music gigs or checking out the
latest trendy exhibitions.
• They love to travel (or to plan their travels), and value the experience of
exploring other countries and cultures.
• While they consider themselves to be individualistic, they are highly
socially influenced by their peers (whether they are seen as leaders or
followers of fashion by their group).
• They love sharing their experiences on social media, and social media also
helps them feel connected to their peers.

4. Objective and Strategy:
Based on our research, we came up with a refined version of the problem
definition:
Fast fashion retailers currently have low differentiation in the minds of consumers, as
they all offer generalised “cool” global fashion. Therefore, even if H&M’s brand is
considered to be “cool”, it is not necessarily any “cooler” than the other retailers who
also offer trendy clothing at affordable price. Therefore, we must find a differentiation
point that will give H&M a distinctive advantage over its competitors.
Following the objective above, we propose the following strategy:
Communicating a differentiation point that is relevant to the target market (consumers
aged 18-24, fashion followers as well as leaders), by demonstrating that H&M does not
only bring globally “cool” fashion to local markets, but also is in touch with the local
“cool” trends in each major market.
To put it simply, we must show that H&M does not only bring global “cool” to local, but
also local “cool” to global.

5. Basketball Shoe Launch Strategy
• The launch of the new basketball show range can be a great opportunity to
communicate to the consumers that H&M is not just about mass-producing the
global trends, but also understands the “cool” trends of the each major city it
operates in.
• We propose getting local influential designers / artists to create a locally designed
basketball shoe for each major city that H&M operates in.
• We feel that targeting the “influencers” of fashion may not be the right approach,
as there are only few leaders and many followers in fashion. Therefore, we
recommend selecting designers that are “local” enough to be seen as influential
peers (rather than celebrities), in order to make the “followers” of fashion make
them want to buy their shoes (because they are “approved” by their influential
local peers). We believe that this would be a better strategy to help your company
reach the business objective of selling 1 million pairs of sneakers by the end of the
year.

6. Design
• We have done some further research into the best shape / style design of the basketball
shoes that should be released, based on what people currently wear on in the streets. We
thought this was an important part of the basketball shoe range launch, as the target market
generally shops at H&M in order to get the items that are currently fashionable at an
affordable price, rather than for items that start a new trend.
• We must also keep in mind that the majority of the clothing range sold by H&M is very stylish
and not too athletic (apart from the sports wear range), therefore the design of the shoes
has to take style into account to ensure that they can be warn with everyday casual clothes,
and not just with the sports gear.
• The term “basketball shoes” can refer to a range of shoes – from Nike Air Jordans to Converse
Chuck Tailors, and given that majority of consumers currently sway towards the Chuck Tailors
or Nike High-Tops design, we recommend staying closer to that style without completely
replicating the look. A good example of this is the range of basketball shoes / sneakers by
Chanel – stylish yet casual.

7. Advertising Ideas
1) Firstly, we must communicate very prominently that H&M are launching a new
basketball shoe (otherwise referred to as “kicks” or “sneakers”) range – specifically
tailored to the local market. In order to reach the target market of young adults
who are into social and cultural experiences, we can organise a street/ laneway
gallery in each city, where the top 10 potential designers can showcase their
proposed design for the shoes on a canvas painting or a screen print. This gallery
will also be available online, and people will be able to vote on their favourite
designs while viewing the gallery. We believe that not only will this generate the
publicity we require, but this will also help shift H&M’s image of mass-produced
generic fashion retailer to a brand that is in-touch with the local fashion and
unique street culture.

8. Advertising Ideas
2) Fashion purchase decisions are based on social influences, therefore social media can play a
crucial part in using the power of peers to influence the target market to purchase the shoes.
To build on the idea of bringing “local” cool to global markets, we can install digital photo
booths into each main (flagship) store in the city, where the shoppers can take a photo of
themselves wearing the shoes, and post it up on their social media pages. Given how much
the target market likes sharing their opinion online, the photos will be accompanied by their
answer to a question around why they love their city / what is the coolest part of this city
etc., which will be “printed” on top of the photo when they post it online. Each photo will be
taken against a background of a prominent landmark of the city (portrayed in a hip,
fashionable way, rather than looking too “touristy”), and sharing can be incentivised by
offering a discount to those who post their photo up on their page. The idea of this is to
allow the local consumers to show their pride for the local fashion culture online, and
influence their peers to do the same by purchasing these shoes. All photos can then be
posted on a separately created H&M hub as well, where consumer can view photos of
different “local” H&M shoe designs from around the world, and also view the answers of why
other people of similar age love their cities.

9. Advertising Ideas
3) Finally, to really bring the idea of bringing the local “cool” to global markets to live, we can
allow consumer to vote online for the top 10 international designs that will be produced
globally. They can either vote for the design of their own city (to share the “coolness” of their
city with the world), or vote for the designs of other cities that they would like to purchase at
their local H&M. Given the target market’s fascination with travel and the appreciation of
uniqueness of fashion from different cultures, these shoes will have an appeal of being
designed by influential “locals” from around the world. The feeling of “local authenticity” of
each design from around the world can be further emphasised, by tying it in with a unique
Shopper Marketing idea: each global “locally designed” shoe can have a tag that gets
activated in the changing rooms (the moment the shoes are tried on), which will have
speakers and LED screens installed to play a montage of the streets of that city, and trendy
music from each city that the shoes were designed in.

10. Launch Timings
We realise that making tailor-made products for each local
market is not the most cost-effective strategy. Therefore, we
propose only creating these local designs for the first 3
months, followed by 9 months of selling the global top 10
designs in all stores. These designs can also be accompanied
by the generic designs produced by H&M, for people who are
after a more casual look. The key objective for this product
launch is to shift the perception of H&M, so the extra costs
spent on the first 3 months of production will pay off in terms
of helping to establish H&M as being in touch with the local
trends (without having to re-design the clothing collections).

12. 5 Questions for the Client:
1. Could you please explain why you believe that H&M is not
currently perceived as “cool” brand?
2. Why do you believe that launching a range of basketball
shoes is the right solution to the problem?
3. Are you aiming for this range of basketball shoes to be
targeted at the same target market as your current range of
clothing?
4. Are you open to creating designs that are market specific,
rather than just global?
5. What is your production budget?