Presentation

1. Brand Audit Presentation
Jennifer Dang, Hannah Hale, Mitchell Kagel, Shanna Van Breukelen

2. H&M Brand Audit Team
Hannah Mitchell Jennifer Shanna

3. Central Brand Challenge
Sourcing
○ Claims of unethical manufacturing/supply chain
○ Sustainability campaigns exist but aren’t well known to
consumers
Public Relations
○ Backlash against racist advertisements
Shopping experience
○ Inconsistent, confusing, and exclusive sizing
○ Company perception of H&M as a high fashion brand
doesn’t resonate with target consumers
Broken
trust with
consumers

4. Brand Positioning In The Mind of H&M
H&M is an affordable lifestyle brand that you can build a wardrobe around and feel
comfortable supporting
Among all fast fashion retailers
For fashion-forward women ages 18-24
Because of their
1. Lower end pricing model complemented by routine discounts
2. Wide selection of apparel, ranging from casual “going out” wear to business attire
3. Commitment to pushing sustainability as an industry standard

5. Positioning Questions from Survey Most Frequent Answer
To what extent do the makers of this
brand understand your needs?
A moderate amount
How well did H&M handle
its controversies?
Mean for each controversy
was between 3-4
Brand Positioning in the Minds of Consumers

6. History
1947 1994 2000 2008 2012 2015
2018

7. Brand Architecture
*to be launched this year
CORPORATE BRAND
MASTER BRAND
SUB BRANDS & PRODUCT LINES
*
*
4293 stores
118 stores
231 stores
3 stores
60 stores
5 stores
33 stores

8. Brand Touchpoints
VS.
Survey Insight
15% of respondents listed
store condition as their least
favorite thing about H&M,
using words such as messy,
chaotic, & overwhelming
Store Environment:
● Very messy and overwhelming for
consumers, apathetic salespeople
● Hip music & good lighting in dressing
rooms
Name and logo:
● Shortening the initials allows for wider
global appeal, but lacks strong tie to
European heritage

9. Social Media Purpose and Campaigns
Survey Insight
H&M had the 2nd highest
amount of followers among
fast fashion brands (29%)
Instagram
Brand/Product Announcements
Customer Relationship Management
Twitter
High Fashion/Outfit Inspiration Ideas
Specialized Accounts

10. Market Analysis
Market
● 1653.73 Billion projected in 2020
● Growth rate slowing but still higher
than non- fast fashion apparel brands
● Fast Fashion known to be degrading
to environment and workers
● Fewer customers going to malls

11. Competitive Fast Fashion Brands in US Market
BRAND PRICE* POSITIONING MARKET SHARE
$24.99
*Prices based on women’s plain white blouse listed on website
$45.90
$15.90
$59.95
$19.90
Suitable for
everyone,
Affordable
Runway-inspired,
Confident
Low prices,
Trend-inspired
Casual, Classic
Simplicity, Quality,
Longevity
11.05% and 536
US store locations
in 2017
5.53% and 85 US
store locations in
2017
19.11% and 506
US store
locations in 2017
6.42% and 2,406
US store locations
in 2016
4.3% and 50 US
store locations as
of 2018

12. Marketing Mix: The 4 P’s
Product
Promotion
Place
Price
Survey Insight
27% of respondents thought
that H&M was 1st out of
listed fast fashion brands in
value (quality for price) and
54% thought that it was at
least 2nd
Survey Insight
Least favorite thing about H&M:
19% of respondents said quality
“Poor quality all around”
“The clothes are cheap quality”

13. SALIENCE
PERFORMANCE IMAGERY
RESONANCE
Frequent purchases but not intended (+/-)
Like, but not love (-)
Plagued with notion of tone deaf ads (-)
Overall weak social media engagement (-)
Fast Fashion: innovative but
wasteful (+/-)
Positive Self Image/Self-esteem
within target market, others feel
excluded (+/-)
Somewhat positive memories (+)
Young hip adults (+)
Everyday wear & professional attire (+)
Accessories and home goods (+)
Sophisticated (+)
Swedish heritage (+/-)
Top of mind (+)
Wide variety of clothing usage
situations (+)
Competes with other fast
fashion chains (+/-)
Good prices, not the best quality (+/-)
Value for your money (+)
Not trustworthy: racist, unethical (-)
Consideration & superiority is poor (-)
Affordable prices (+)
Simple, Clean, Basic (+/-)
Poor to Average Quality (-)
“Stylish young model, looks
casual & cool, street style”
- Interviewee
“The brand is only
representative for
[skinny] people of
that size”
- Interviewee
“Good quality
affordable clothes
[but] usually fit kinda
funny because
european [sizing]”
- Survey Response
“Favorite thing about
H&M is the variety”
- Survey Response

14. SALIENCE
PERFORMANCE IMAGERY
JUDGEMENT FEELINGS
RESONANCE
Fast Fashion: innovative but
wasteful (+/-)
Positive Self Image/Self-esteem
within target market, others feel
excluded (+/-)
Somewhat positive memories (+)
Good prices, not the best quality (+/-)
Value for your money (+)
Not trustworthy: racist, unethical (-)
Consideration & superiority is poor (-)
Affordable prices (+)
Simple, Clean, Basic (+/-)
Poor to Average Quality (-)

15. Brand Performance
RELIABILITY (-)
Poor to Average
Quality (-)
Clothing apparel tears
quickly (-)
STYLE & DESIGN (+/-)
Simple, Clean, Basic
(+/-)
Classic (+)
Skinny (-)
Clothing for women,
men, children (+)
Affordable prices (+)
Messy stores (-)
PRIMARY
CHARACTERISTICS (+/-)
“The clothing is priced
so that everyone can
afford it.” - Interviewee
“The prices are good
but the store is always
a mess.“
- Survey Respondent

16. Consumer Feelings
Brand tied to growing
consumer distaste for fast
fashion industry
Concern for ethical labor
practices
FAST FASHION:
INNOVATIVE BUT
WASTEFUL (-)
POSITIVE SELF-
ESTEEM ONLY
WITHIN TARGET
MARKET (-)
Notion that “H&M isn’t
made for people like me”
Confusing and prohibitive
sizing
CONNECTION WITH
THE BRAND (+/-)
H&M only understands
consumers “a moderate
amount” according to the
survey
Top of mind
@oftenimitated21: “H&M
only makes clothes for
skinny people so I’m not
missing out by boycotting
them”
@realstylist_ : Fast Fkn
Fashion. The real killer
of this society. If you
shop at @hm you need a
lobotomy
In the box-
conforming
to others
tastes- ZMET
Interview

17. Consumer Judgement
Perceived quality (+/-):
good prices, but not the
best quality of clothing
Value (+) : H&M rated
most as top value in
survey
BRAND QUALITY (+/-)
BRAND
CONSIDERATION AND
SUPERIORITY (+/-)
BRAND CREDIBILITY (-)
Relevance: Voted as one
of the top clothing stores
survey respondents shop
at
Differentiation: Not as
fashionable as Zara
Not trustworthy (-)
-Racist Ad
-“Somewhat socially
aware” from survey
“One of the first
things... when I
think of H&M is
that racist ad.”

18. Recommendation 1
Problem
Sourcing
Solution
Transparency: Increase awareness about sustainable supply chain to amend broken
trust with consumers regarding flaws of fast fashion

19. Action Plan

20. Recommendation 2
Problem
Shopping Experience
Solution
Transparency: Increase awareness about sustainable supply chain to amend broken
trust with consumers regarding flaws of fast fashion

21. H&M J Crew Factory
Action Plan

22. Recommendation 3
Problem
Public Relations
Solution
Visibility: Advertising other sustainability efforts through in-store designs and
responding to all negative comments on social media to make it seem like they’re
listening and more receptive to feedback

23. Action Plan

24. Q U E S T I O N S ?