H&M Company Analysis
COMPANY ANALYSIS & PROBLEM IDENTIFICATION MARKETING MANAGEMENT BMKT601
TABLE OF CONTENTS
Contents
1. EXECUTIVE SUMMARY 3 2. FAST FASHION 4 3. ENVIRONMENT ANALYSIS 4 3.1. Political Factors 4 3.2. Economical Factor 5 3.3. Social Factors 6 3.4. Technology Factors 6 4. INDUSTRY ANALYSIS 6 5. H&M 8 6. STRATEGY 10 7. SEGMENTATION 11 8. TARGETING 13 9. POSITIONING 14 10. CONSUMER BEHAVIOUR 15 11. MARKETING 17 12. SUPPLY CHAIN 22 13. CONCLUSION 24 14. BIBLIOGRAPHY 25
1. EXECUTIVE SUMMARY
The fashion industry is evolving to ever faster incorporate catwalk design to high street stores, with strong competition within an oligopoly market. The ever increasing speed of product supply within the industry allows competitors to frequently change strategies to suit observed trends in consumer behaviour.
Hennes & Mauritz stands as one of the forefront competitors within the fast fashion retailers, characterised by a wide geographical presence spanning 38 countries and a turnover of £127 billion in 2010. This being said, the company still experiences strong forces that hinder growth and even the maintenance of market share. Predominantly H&M is following a market penetration growth strategy; however, the company also focuses on product development, when introducing unique apparel such as the collaborations with iconic designers, and a diversification strategy when taking new products aimed at a new market, such as the H&M home ware line.
H&M’s target market is people aged between 15 and 40 years of age, who are interested in fashion, beauty and spending money on trendy clothes, however also provide for children, cosmetics and home ware assortments. The company recognises though, that the most profitable and popular segment within its market lies in females aged between 15 and 25. H&M provides for two types of shoppers: a necessity based shopper and a fashion enthusiast whose
TABLE OF CONTENTS
Contents
1. EXECUTIVE SUMMARY 3 2. FAST FASHION 4 3. ENVIRONMENT ANALYSIS 4 3.1. Political Factors 4 3.2. Economical Factor 5 3.3. Social Factors 6 3.4. Technology Factors 6 4. INDUSTRY ANALYSIS 6 5. H&M 8 6. STRATEGY 10 7. SEGMENTATION 11 8. TARGETING 13 9. POSITIONING 14 10. CONSUMER BEHAVIOUR 15 11. MARKETING 17 12. SUPPLY CHAIN 22 13. CONCLUSION 24 14. BIBLIOGRAPHY 25
1. EXECUTIVE SUMMARY
The fashion industry is evolving to ever faster incorporate catwalk design to high street stores, with strong competition within an oligopoly market. The ever increasing speed of product supply within the industry allows competitors to frequently change strategies to suit observed trends in consumer behaviour.
Hennes & Mauritz stands as one of the forefront competitors within the fast fashion retailers, characterised by a wide geographical presence spanning 38 countries and a turnover of £127 billion in 2010. This being said, the company still experiences strong forces that hinder growth and even the maintenance of market share. Predominantly H&M is following a market penetration growth strategy; however, the company also focuses on product development, when introducing unique apparel such as the collaborations with iconic designers, and a diversification strategy when taking new products aimed at a new market, such as the H&M home ware line.
H&M’s target market is people aged between 15 and 40 years of age, who are interested in fashion, beauty and spending money on trendy clothes, however also provide for children, cosmetics and home ware assortments. The company recognises though, that the most profitable and popular segment within its market lies in females aged between 15 and 25. H&M provides for two types of shoppers: a necessity based shopper and a fashion enthusiast whose
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