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FUNDAMENTALS OF
MARKETING
ASSIGNMENT 1
BY
R i y a C h o u k s e y

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H & M HENNES & MAURITZ AB (H&M)
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AGENDA
Introduction to H&M
Showing the 7P’s of marketing of
H&M
Competitors of H&M
Its distribution Channel
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INTRODUCTION
H & M Hennes & Mauritz AB (H&M) is a Swedish multinational retail-clothing
company, known for its fast-fashion clothing for men, women, teenagers, and children.
H & M Hennes & Mauritz AB comprises six independent brands: H&M, COS, Monki,
Weekday, Cheap Monday and & Other Stories.
Founded in 1947, H&M’s design team creates sustainable fashion following a low-cost
principle. The collections include everything from dazzling party collections to
quintessential basics and functional sportswear – for women, men, teenagers and
children, and for every season or occasion. In addition to clothes, shoes, bags, jewelry,
makeup, and underwear there is also H&M Home – fashionable interiors for children
and adults.
10th November 2021
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”Bigchange requiresboldactions andthecouragetoaimhigh.Atthesame time,wehavetobehumble tothechallenges ourplanetisfacing. Soifwewant
tomake realchange wehavetobebrave,push theboundariesandnotbeafraidto fail”
Anna Gedda, Head of Sustainability, H&M Group
H&M vision andstrategy apply toall their brandswhile allowing each of them tomaintain their own brandidentity. While their business hasa long and
well- established history in sustainability, projected population growth figures andnaturalresource levels make it clear that a more focused approach to
sustainable fashion is needed. Their role,as leaders in the industry, is toinnovate, influence, collaborate andlead the waytowards atruly sustainable
fashion future. This vision is not only necessary froma social andenvironmental perspective, but it alsomakes goodbusiness sense. Long-term investments
in sustainability provideus with long-term business opportunities that will keep H&M Group relevant andsuccessful in the rapidlychanging world.

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CE0 OF H&M
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MARKETING
MIX
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PRODUCT
THE PRODUCT STRATEGY AND MIX IN H&M MARKETING STRATEGY CAN BE
EXPLAINED AS FOLLOWS:
H&M IS A CLOTHING RETAIL COMPANY. IT OFFERS FAST FASHION CLOTHIN G FOR
MEN, WOMEN AND CHILDREN. H&M OFFERS FOLLOWING CLOTHING BRANDS IN
VARIOUS COUNTRIES ACROSS THE GLOBE:
• H&M: THE RANGE INCLUDES EVERYTHING FROM DESIGNER COLLABORATION S
TO EVERYDAY BASICS AND YOGA WEAR.
• & OTHER STORIES: WOMEN WEAR: SHOES, BAGS, ACCESSORIES, BEAUTY,
READY TO WEAR
• CHEAP MONDAY: DENIM, FASHION COLLECTIONS AND ACCESSORIES FOR M EN
AND WOMEN. THE BRAND IS CONNECTED WITH MUSIC AND POP CULTURE.
• COS: CLASSICS AND WARDROBE ESSENTIALS FOR MEN, WOMEN AND
CHILDREN. THE BRAND HAD DESIGNS INSPIRED BY ART AND TECHNOLOGY
FROM ACROSS THE WORLD.
• MONKI: ON-TREND LIFESTYLE COLLECTIONS FOR YOUNG WOMEN.
• WEEKDAY: IT MAKES CLOTHING FOR YOUNG AND STYLE AWARE YOUNG
ADULTS.
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PRODUCT
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PRICE
H&M OFFERS HIGH QUALITY CLOTHES AT A PREMIUM PRICE.
THE MAJOR COMPETITORS OF H&M ARE GAP AND ZARA. AS COMPARED TO
BOTH OF THESE BRANDS, H&M PRODUCTS ARE PRICES RELATIVELY LOWER A S
A PART OF IT MARKETING MIX PRICING STRATEGY. THESE IS DUE TO LOW ER
COST OF MANUFACTURING AND TRANSPORTATION COSTS BY H&M (MAIN FOCU S
IS GIVEN ON COST MINIMIZATION). AS COMPARED TO ZARA H&M OFFERS M ORE
VARIETY OF PRODUCTS. ON AN AVERAGE H&M PRODUCTS ARE PRICES AT $2 5
WHEREAS THAT OF ZARA ARE $45. HIGH QUALITY AND CONSIDERABLY LOWE R
PRICES ATTRACT THE YOUTH AND HENCE LEADS TO INCREASE IN SALES FO R
THE COMPANY.
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PLACE
FOLLOWING IS THE DISTRIBUTION STRATEGY IN THE H&M MARKETING MIX:
H&M SELLS ITS PRODUCTS THROUGH ITS EXCLUSIVE STORES LOCATED IN M AJOR
CITIES ACROSS THE GLOBE (4135 STORES). IN SOME COUNTRIES DUE TO REGULATORY
NORMS, H&M OFFERS ITS PRODUCTS THROUGH FRANCHISING PARTNERS. IT ALSO
OFFERS ITS PRODUCTS THROUGH ONLINE STORES FROM WHERE THE CUSTOME R CAN
CHOOSE FROM THE LIST OF AVAILABLE PRODUCTS AND PURCHASE THEM THR OUGH
ONLINE PAYMENT. THE PRODUCTS ARE DELIVERED AT YOUR STATED ADDRES S. CHEAP
MONDAY IS SOLD THROUGH SELECTED RETAILERS WORLDWIDE AND THROUGH
STANDALONE STORES INCLUDING ITS FLAGSHIP STORE IN LONDON. THE PR ODUCTS
ARE MANUFACTURED IN COUNTRIES WHERE CHEAP LABOUR IS AVAILABLE IN ORDER
TO REDUCE COSTS. THE CLOTHES ARE DESIGNED BY H&M AND ITS OTHER B RANDS
ACCORDING TO SEGMENT THEY ARE TARGETING. H&M HAS DEVELOPED AN
EXCELLENT SUPPLY CHAIN OVER THE YEARS. THE DELIVERY TIME IS INST ANT AND THE
TRANSPORTATION COSTS ARE KEPT AT A MINIMUM.
THE MANUFACTURED CLOTHES ARE TRANSPORTED TO THE WAREHOUSE FROM W HERE
THEY ARE DISTRIBUTED TO VARIOUS STORES.
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PROMOTION
T H E P R O M O T IO N A L A N D A D V E RT IS IN G S T R AT E G Y IN T H E H & M M A R K E T IN G S T R AT E G Y IS A S F O LLO W S :
S IN C E H & M G R O U P H A S A W ID E R A N G E O F P R O D U C T P O RT F O LIO C AT E R IN G T O D IF F E R E N T S E G M E N T S ,
IT U S E S M U LT I - C H A N N E L P R O M O T IO N A L S T R AT E G Y IN IT S M A R K E T IN G M IX .
• T V A D V E RT IS E M E N T S : H & M C O M E S W IT H C R E AT IV E A D S W H IC H F O C U S O N IT S LAT E S T IN N O VAT IV E
D E S IG N S . E A C H B R A N D H A N D LE S IT S O W N M A R K E T IN G D E C IS IO N S . T H E A D S A R E T E LE C A S T E D AT
R E G U LA R IN T E RVA LS A N D O N C H A N N E LS M A IN LY WAT C H E D B Y Y O U T H , TO IN C R E A S E IT S AWA R E N E S S .
• Y O U T U B E : H & M H A S IT S O W N Y O U T U B E C H A N N E L W H E R E IT C O M E S U P W IT H U N IQ U E A D C A M PA IG N S
TO E N G A G E W IT H T H E C U S TO M E R S .
• D IG ITA L M A R K E T IN G : IT IN D U LG E S IN E X C E S S IV E S E A R C H E N G IN E M A R K E T IN G A N D S O C IA L M E D IA
M A R K E T IN G TO C O N V E RT T H E P O T E N T IA L B U Y E R S IN TO C O N S U M E R S .
• P R O M O C O D E S A N D D IS C O U N T S : P R O M O C O D E S A N D D IS C O U N T S A R E O F F E R E D D U R IN G T H E E N D O F
S E A S O N S A LE . T H E D IS C O U N T S A R E O F F E R E D O N B O T H O N LIN E A N D R E TA IL S TO R E S .
• P R : PA R IN E E T I C H O P R A O P E N E D T H E F IR S T H & M O U T LE T IN IN D IA . S U C H S T U N T S G E N E R AT E Q U IC K
P U B LIC IT Y F O R T H E C O M PA N Y.
• S P O N S O R S H IP S : H & M S IG N E D D E A L W IT H T H E W E E K N D , S P O N S O R S C A IT LY N J E N N E R , S P O N S O R S
M U S E E D E S A RT S D E C O R AT IF S , C R E AT IV E C O LLA B O R AT IO N S W IT H H IG H E N D D E S IG N E R S A N D S T Y LE
IC O N S , C O LLA B O R AT IO N S W IT H P O P S TA R S A N D S P O RT S TA R S
• C S R : WAT E R , P LA N E T, E D U C AT IO N , E Q U A LIT Y
A S A PA RT O F IT S AWA R E N E S S TO WA R D S S O C IA L D E V E LO P M E N T, T H E B R A N D A LS O P R O M O T E D Y O U N G
K ID S W H O C A N B E C O M E R O LE M O D E LS .
S IN C E T H IS IS A S E RV IC E M A R K E T IN G B R A N D , H E R E A R E T H E O T H E R T H R E E P S TO M A K E IT T H E 7 P S
M A R K E T IN G M IX O F H & M .
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PEOPLE
THE EMPLOYEES AT H&M ARE TRAINED WELL AT EVERY LEVEL. THE
WORK CULTURE IS VERY MODERN AND EMPLOYEES ARE ON A
ROTATION BASIS AT EVERY DEPARTMENT AND ARE MOTIVATED TO
INNOVATE AND COME UP WITH THE BEST CLOTHING WEAR. H&M
ALSO TIE UP WITH MANY CLOTHING DESIGNERS THROUGHOUT THE
WORLD TO MAKE LATEST TRENDS IN FASHION. EMPLOYEES COME
FROM DIVERSE BACKGROUNDS HAVING SPECIAL SKILLS. PERSONAL
AND PROFESSIONAL DEVELOPMENT OF EMPLOYEES IS HIGHLY
PROMOTED.
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PROCESS
HIGH IMPORTANCE IS GIVEN TO CUSTOMER RELATIONSHIP
MANAGEMENT. EMPLOYEES ARE TRAINED TO RETAIN HIGHLY
PROFITABLE CUSTOMERS BY GIVING THEM BETTER SERVICE AND
OFFERS. IN CASE OF ANY COMPLAINTS THE STAFF AT H&M PUTS IN
EVERY EFFORT TO RESOLVE THEM AT THE EARLIEST. THERE IS A
CUSTOMER CARE NUMBER THROUGH WHICH THE CUSTOMER QUERIES
ARE RESOLVED. STAFF AT H&M OUTLETS HELP THE CUSTOMERS IN
SELECTING THE BEST MERCHANDISE FOR THEM. THUS THE SERVICE
AND DELIVERY TIME IS VERY QUICK THUS GAINING SATISFIED
CUSTOMERS. AS A PART OF ENHANCING ITS BUSINESS, THE COMPANY
IS USING ARTIFICIAL INTELLIGENCE TO UNDERSTAND ITS CUSTOMER
NEEDS, AND SHOWCASE THE BEST PRODUCTS ONLINE.
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PHYSICAL EVIDENCE
H&M STORES ARE APPROPRIATELY LIT WITH GREAT AMBIENCE AND
HUMBLE STAFF. THE APPAREL IS ARRANGED TO HAVE A DECENT LOOK
WHICH APPEALS TO THE CUSTOMERS. THE MERCHANDISE IS OF
EXCELLENT QUALITY AND LATEST TRENDS. H&M IS DIVERSIFYING ITS
PORTFOLIO AND ENTERING INTO MORE INTERNATIONAL MARKETS. TO
CREATE A BUZZ IN THE MARKET, IT ENGAGES IN PR ACTIVITIES. FOR
EXAMPLE, CELEBRITIES WERE INVITED DURING ITS LAUNCH WHICH
CREATED A BUZZ IN THE MARKET. USER STORIES AND
RECOMMENDATIONS ARE ALWAYS WELCOMED BY THE BRAND WHICH
ALSO HELPS IN CUSTOMER ENGAGEMENT WITH THE BRAND. HENCE,
THIS COMPLETES THE H&M MARKETING MIX.
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COMPETITORS
OF H&M
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COMPETITORS OF H&M
ZARA UNIQLO FOREVER 21
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LOUIS VUITTON MANGO TOP SHOP
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DISTRIBUTION CHANNEL OF H&M
• Distribution Channels at Clothing Retailer Hennes & Mauritz
A key ingredient in retailing success is the strength of a company 's distribution channels. Kerry
Capell 's (2002) Business Week article looks at Sweden-based Hennes & Mauritz 's (H&M)
sourcing and inventory management strategies and their reliance on distribution channel partners.
H&M has developed a unique distribution channel strategy to compete with better entrenched
retailers including Gap, Old Navy, Zara and FCUK.
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20 Distribution is concerned with getting a product or service to the right people, at the right
time, taking into consideration the need for profit and efficiency. Otherwise described
as “the action of sharing something out among a number of recipients.”
When a customer purchases a product or service, they may have brought it directly from
the business or through a retailer or wholesaler. These ways of purchasing are known as
distribution channels.
•Retailers
•Wholesalers
•Agents

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21 Channels of distribution are broadly divided into four main types (the fourth is less
common):
1.Producer-Customer: Shortest and simplest of the 4 main channels (making it
economical), no middlemen involved, producers directly sell their products to consumers.
The producer or entrepreneur performs all the marketing activities himself and has full control
over distribution.A producer may sell directly to consumers through door-to-door salesmen,
direct mail or through his own retail stores. E-tailers like ASOS adopt this channel to cut
distribution costs and to sell industrial products of high value. Bigger firms tend to have more
middlemen involved. Small producers and producers of perishable goods also sell directly to
local consumers.
2.Producer-Retailer-Customer: Still reasonably straight forward, however there is one
middleman involved – the retailer. The producer sells their products to big retailers/those who
bulk buy, they then sell the products onto the consumers. This channel relieves the
manufacturer from burden of selling the goods himself and at the same time gives him
control over the process of distribution. This is often suited for distribution of consumer
durables (products which do not need to be bought frequently as they last for a long period of
time) and products of high value. An example of this is Walkers who’s products are sold at
retailers like Tesco and BP garages.

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22 3- Producer-Wholesaler-Retailer-Customer: The third and most
common channel of distribution. This tradition method involves two
middlemen – wholesalers and retailers. The producer sells their products
to wholesalers, who in turn sell it to retailers. The retailers then sell the
product to the consumers. Producers who have limited sources of finance
and narrow product lines tend to use this channel of distribution. This
channel is also useful in that it offers promotional support of wholesalers.
An example of this is Costco, they sell a variety of TV’s including brands
like Sharp.
4- Producer-Agent-Wholesaler-Retailer-Customer: Finally, the
fourth channel of distribution. This is the longest channel due to
middlemen who are involved. This is used when the producer
relieved of the problem of distribution and thus hands over his
the selling agents. The agents distribute the product among a few
Each wholesaler distributes the product among a number of
sell it to the consumers. This channel is suitable for wider
industrial products. This method is popularly used in textiles and

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H&M ADVERTISEMENT
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H&M CAMPAIGN 2021
• https://www.campaignlive.co.uk/article/h-m-one-second-suit-uncommon-
creative-studio/1713144
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BIBLIOGRAPHY
• https//.www.marketing91.com
• https//.www.unmetric.com
• https//.www.Wikipedia.org/wiki/h&m
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