Chp.7 Business Marketing

H&M I have learned over this time of blogging that they have a great marketing strategy and seem to understand the business marketing. From sustainability, using organic products, creating new ways to draw in the revenue. H&M has exceeded this by all means, and everything that is required to have a successful business H&M seems to tackle. Quality, service, and price are the three main components H&M always makes sure to maintain. The customer service and focusing on the work ethics of the company and the employees are all handled. I learned recently that H&M has buyers of course, that will go out and make sure that all three components are in that order upon purchasing those items. All the major things that are involved with business marketing I'm sure every company or business takes part in. Everything in marketing seems to always tie into what it really is, this is all repetition. " Collections come before Profit" 

Chp.7 Business Marketing

Something New

H&M now has the Hasbeens collection, they are pretty expensive. I didn't like at first but breezing past them enough I now want to try them on. The customers always seem to go crazy for these weird things. *shrugs* I guess!!

Chp.8 Segmenting and Targeting Markets

H&M started out as a hunting store and an all mens clothing store. Since then H&M has expanded and begin to open different target markets for the consumers. H&M has become mainly focused on women clothing because there is now a bigger variety and selection of the womens' clothing. There is always a new collection launching for the women. H&M collects information from the customers to get an idea of whose shopping, ethnicity and the ages. The salses advisor sometimes walks around with an ipad collecting emails and informaion from the customers,then giving a free discount card. As stated before H&M has a line that caters to all ages and genders. But for some reason they don't offer plus sizes, the biggest size they have in a select few items is a sixteen. I would believe from this, that the plus size isn't one of their biggest consumers. Alhough, if they launched a plus size line it'll be just as successful. Age segementation, gender segmentation, income segmentation n etc; all play a role in a companies marketing and targeting markets. H&M manages to meet the needs of many different segments.

Chp.8 Segmenting and Targeting Markets

Chp.11 Developing and Managing Products

New clothing products are introduced on a daily basis, breaking the traditional seasonal stock rotation found in the retail clothing industry. H&M is constantly developing and managing new products. H&M is big on sustainability and is always looking for ways to make their clothing more eco-friendly and less harmless to the world. But most of all to benefit their customers needs and wants at the same time. Recently H&M has made improvements and revisions towards their sustainability clothing. Two weeks ago was the launch of the "Conscious Collection". They are using greener materials in their goods and are consistently testing new ones all the time. The fabric of the clothing are much lighter and feels as good as it looks. A few years ago, H&M launched an all organic cotton line that didn't do too well. It was said that the clothing didn't look well so the customers weren't buying it. During these times sustainability and going green is exceptable and it is neccessary to be apart of because it is our future. H&M has improved and revised their eco-friendly products and it's been successful since the launch.

Chp.11 Developing and Managing Products

Chp.16 Integrated and Marketing Communications

Distribution is one of the most important concepts in business for H&M. By opening multiple stores across the country, it opens up many other potential consumers to potentially purchase their products. H&M has online shopping available for certain countries, but for the United States it hasn't become available yet. You can only view the clothing but no purchase. I believe H&M is in the process of making the online shopping available to all. H&M's distribution channel is most important because it increases their store popularity. Their products are appeasing to the consumers because of their fashion sense and quality. As mentioned before the prices are very reasonable so it will satisfy the customers needs and wants regardless. Promotion I believe is the best tactic H&M has by far because they are very big on it and it seems to work very well. H&M always gives out giveaways, discounts, and promote big sales within the store on top of the discounts. The promotion will help their popularity and show their loyalty to their customers.

Chp.16 Integrated and Marketing Communications

This is Great!

Those that shop at H&M and download the android application will receive 20% off any item in the store. All the customer has to do is sign up and present to any local H&M retailer. Well, how kool is that? I will be downloading soon on my Android phone. Offer ends soon on April 14, 2011. H&M application is also available to download on Iphone's.

Fashion Against Aids 2011

Singer and Songwriter's Keri Hilson and Akon have both teamed up for a good cause to support H&M's annual Fashion Against Aids Campaign. The campaign features a unisex clothing line which 25% of sales will go to the Designers Against Aids Charity. Each year H&M puts together a team of celebrities to support the cause. I like the collection that's out this year, both genders all ages and sizes can wear the clothing. I will be purchasing a couple pieces I like when it launches in stores on April 26th 2011. I will then post some pictures with some of the pieces on =) Here's a video of Keri Hilson speaking on why she decided to join the campaign.

Chp.10 Product Concepts

There may be many products that a consumer may be looking for from a certain company. But aren't willing to search elsewhere for the same item at a different price or brand. This is called specialty products and at H&M we offer alot of products that one may not want to buy anywhere else. H&M's LOGG line is a specialty and many consumers love the basic wear and the feel of it. I have observed that many will come to our store searching for the collection and wanting a big stock of different sizes and colors of the t-shirts. The customers would even have me locate where exactly they can get the collection, if we didn't have exactly what they wanted. The LOGG line isn't in every H&M location, so a customer would have to know exactly where it is offered. Most of the time they know where to go and which store would have the most LOGG items.

Chp.10 Product Concepts

Chp. 18 Sales Promotion and Personal Selling

H&M has a sales promotion that has been effective for the company and beneficial for the loyal and new customers. H&M gives each customer discount cards off their next purchase for five dollars. It usually shows the date It'll start and end. I know this technique works because I didn't know about the discount cards until a friend of mine showed me a bunch she had. At first it was given to those that spent fifty dollars or more but now because we are customer friendly and want to keep them coming back,  we give to all that make a purchase at H&M. There are other discount cards that customers can receive of 15% to 25%. If  a customer has enough discount cards, they will be saving a lot!

RED CARD WILL MAKE YOU FEEL GOOD!
Chp. 18 Sales Promotion and Personal Selling

Chp.17 Advertising and Public Relations

H&M has multiple ways of advertising. One short clip of their advertisment is through the short commercials. I never understood why they were so short. But as a viewer, I can automatically get the point of the commercial. It's new clothes, you see how to wear it, whose wearing it, and most importantly the price is on the side. Then the commercial is over, what else is to be explained? The commercial above, is one of the latest. The trousers were only 9.95 and the top I believe 12.95. Both sold out veryyy quickly. I went to get a pair and there was none left for me =(

On 51st and 5th Avenue, H&M displays huge ads of what's going to be in the store, and what's coming soon. A lot of times whatever the customer wants they always point to the huge ads on the walls. There is also a big large screen in the center of the store that constantly plays the commercials of the clothing for the spring/summer 2011 collection, as well as other seasons. There is advertisement everywhere! 51st and 5th ave is the flagship store so we present everything 100 percent.

H&M makes sure their advertisement is straight-forward and clear. They always want to present a healthy and positive image. They are careful with the models they choose, and make sure to feature a variety of ethnicities to show that H&M caters to all people. H&M launches huge campaigns every year throughout the world.

Chp.17 Advertising and Public Relations

VERIZON FIOS..WHY??

SO MY GRANDMOTHER JUST SWITCHED TO VERIZON FIOS. THE SERVICE AND INTERNET CONNECTION IS WAY BETTER. AND THE CLARITY ON THE PHONE IS MUCH BETTER AS WELL. THEY HAVE UNLIMITED CHANNELS PLUS MORE, IT DEFINITELY TOPS TIME WARNER. BUT MY COMPLAINT AND EVERYONE ELSE IN THE HOUSE IS..THAT ON THE CABLE BOX THERE IS NO TIME -_-. HOW DO YOU GIVE A CABLE BOX WITH NO TIME? WE WERE TOLD WE WOULD HAVE TO BUY THE DVR IN ORDER TO GET A BOX WITH TIME. HUH? WHERE DO THEY DO THAT AT? A LITTLE SIMPLE THING LIKE "TIME" CAN MAKE A CUSTOMER GO SOMEWHERE ELSE! I HAVE TO GO AND SEARCH FOR MY PHONE OR THE NEAREST CLOCK NOW TO GET THE TIME. INCONVENIENT.

ATT BUYS TMOBILE FOR 39BILLION

UMM WHEN WERE THEY GOING TO LET ALL T-MOBILE CUSTOMERS KNOW THIS?? I MUST SAY I'M A BIT UPSET BECAUSE I DON'T THINK ATT HAS AN UNLIMITED PLAN AND I LOVE MY UNLIMITED PLAN. BUT THIS MAY BE GREAT BECAUSE I ALWAYS WANTED AN APPLE PRODUCT. HA HA.

F.A.M.E IN STORES NOW!!

DROP IT LIKE IT'S HOT HA HA!!

I Love this commercial...And I'm sure everyone else agrees. LOL Great way to put out a new soda on the market.. TOO FUNNY!

Chp15. Retailing

So when I walk in H&M I always find something I like, the customer service sucks but I like the fact that they are trendy and at the same time affordable. H&M always has up to date clothing and accessories that resemble celebrities. The workers in some H&M locations lack good work ethic displayed amongst their customers,  the one I visited besides my store wasn't such a pleasurable experience. Overall, the store is well organized and put together. I know that within each few weeks they change the theme of the store and change the clothing in each main area. I like when I walk in the store I can get a general idea of what the theme is for those few weeks. Every floor has an A- spot that should show the customers whats going to be in each section. It prepares them for what and where each item will be. This is the most important spot because this will make a statement for the area. The A-spot must always be on point and it's demanded of the employees to make sure it's obtained. 

Chp.15 Retailing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

Chp6. Consumer Desicion Making

H&M is aware that there may be changes within a consumers decision making. They know that this is a risk and can effect their results and business. H&M knows that changing in the global economy can effect a purchasing behaviour. H&M makes sure to have a flexible buying model that can be adjusted to different market conditions. As a worker and customer, I myself know what I need and what I simply want. Everything I buy I don't always need, it's just that I see something within my style and have to have it. Not only does the style compliment me, the prices H&M offers for their pieces you can't pass up. I have had customers come to my register deciding what to buy, if not all the items. Some say " I really don't need this, but Wow! look at the price in one" I will get it!.

H&M seems to have found a great niche of sucking the customers in with the phenomenal prices. Over the years H&M has learned to cater to what the consumers may need and what their looking for. Their style of the clothing changes each season and are wearable by all ages and sizes. There are a variety of sections such as TREND a more high end line of H&M, yet still great quality and reasonable pricing. There is Divided Black for teens to late 20's early 30s. Divided RED is a more sporty, comfortable line. Everyday is a line that people can wear everyday, turn your work outfits into night wear. And lastly denim and basics, where they have tshirts, tank tops, underwear, sweatpants, leggings and etc. H&M has a big selection of Lingerie and bathing suits, and a line that all consumers seem to love is the LOGG section. Very soft tshirts and tanks, more on the casual and dressy side of comfortable wear. Modern Classic is a work, dressy, classic look that women and men can both wear. So the decision making for consumers  is endless at H&M. You have many sections to choose from and always guaranteed a sale with additional low prices!

Chp6. Consumer Decision Making

Chp.5 Developing a Global Vision

H&M no doubt is globalizing themselves all around the world. H&M now has 250 stores worldwide and owns 1,522 stores in 28 countries. Five years ago H&M owned 945 stores in 18 countries. H&M is increasing its numbers of stores every year and are becoming more international by entering several new markets, such as Greece, Slovakia, Hong Kong, and Shanghai. H&M has a global marketing approach. The approach offers standardized products in the fashion and clothing market in different countries. H&M does this by using similar marketing mix and global advertising and communication. As mentioned in the chapter, global standardization is also used at H&M. The stores are standardized by keeping the same atmosphere throughout the store, although the size may vary. H&M makes sure to keep producing new markets each year to increase it's presence in the whole world. Every H&M stores launch all new products the same time, especially new campaigns in the company worldwide. A great example would be with the well known designer Lanvin. He launched his new affordable collection through H&M last year. The launch was a major turnout in New York, in fact worldwide!

Chp.5 Developing a Global Vision

Chp.4 The Marketing Enviornment

H&M has a big target group towards the younger people and students. It's important for H&M to continue to discover interesting and new products to continue to bring in the younger customers. While working at H&M I have noticed that mainly there is a variety of different consumers.When I shop at H&M, I'm always excited to see what they have that's new. I feel they have everything I need in that store, which means they get more money out of me. LOL . H&M has to make sure that as their target environment is changing, they are also changing as well. You have to adhere to what the consumers want and need. I love H&M because they know what they need to do and how to do it, to continue to bring in more revenue. H&Ms prices are wonderful and cater to those that may not have a lot of money to spend on clothing.I have learned that some stores are set up differently to cater to the environment in which they're located. The styling of the manicans, to the set up of the windows. H&M wants to make sure they appeal to a specific group of buyers all the time.

Chp4. The Marketing Environment

Chp.3 Ethics&Social Responsibility

In chapter 3 it discussed how many organizations have a "code of ethics". H&M has a Code of Conduct which is the core of their programme to improve working conditions. H&M regularly monitors their suppliers to make sure that they comply with the requirements that are set in their Code. H&M believes that checking their compliance isn't enough and they have to take other steps to monitor and keep control of other complex issues.

H&M makes sure that their employers can live off of the wages their suppliers pay, by making sure the suppliers at least pay the minimum wage as defined by law or relevant agreements.

H&M cares about their employees and to show this, they have a framework agreement with UNI and collaborate with EWC. This is all to safeguard their employees right to workplace representation. H&M's Code of Conduct includes freedom of association, and they encourage worker management dialogue in supplier factories.

Lastly, H&M is big on sustainability and believes that it's the true definition of what it means to be a successful business. When H&M thinks of sustainability they like to focus on three important areas: PEOPLE, PLANET, AND PROFIT.  H&M wants to make sure that sustainability is natural and it's apart of everything they do. H&M has a sustainability vision and sustainability policy which can only be maintained by having long-term goals as apart of their sustainability strategy.

Chp. 3 Ethics&Social Responsibility

Chp. 2 Strategic Planning for Competitive Advantage

Three main strategic goals for H&M for the next five years would be linked with profitability, competition and technological leadership. H&M has reported a rise in sales and profits and sales for the three months to 31st of August. Net profit for the third quarter of 2009 rose 4.1% to 3.46bn Swedish crowns from 3.33bn crowns last year. Sales, excluding sales tax, increased by 13% to 23.6bn crowns. So first LTO is to maintain financial stability H&M has achieved. H&M plans to increase sales revenues by 20% and earnings per share by 30% till 2015.
Secondly as main strategy of H&M is expansion, LTO in competition is to increase number of stores by 10% to 15% every year. Today H&M has as 1840 stores up from 1618 at the same time last year. New stores will be open in the cities H&M already has stores and also in completely new markets.

H&M is following all the latest innovations in the clothing manufacturing. It is important to increase efficiency, cut costs and keep prices low while raising quality. Third LTO in the technological leadership for H&M is to lower maintenance costs by 15% and decrease waste by 10% till the year 2015.
Porter’s four generic strategies are cost leadership, differentiation, low cost to narrow market strategy and niche strategy. H&M has cost leadership strategy. H&M offers fashionable clothing for cheap prices selling to broad markets. This strategy is also very suitable for the current economical situation. H&M with this strategy also set high entry barriers for the competitors.
H&M has achieved ability to be efficient. As there is low profit margin being cost leader, H&M is very focused on expansion and increase of market share. It is important for H&M to sell more volumes of the product to earn profits. Fixed costs are high and by every product made variable costs are lowering. It has secured suppliers because H&M doesn’t own factories itself but have long term production contracts with factories in Bangladesh, Morocco and Turkey. It is very important buyer to textile sellers as H&M buys large quantities several times per year. H&M has good long term contracts with its producers and suppliers.

Chp.2 Strategic Planning

Chp. 1 Mission Statement

H&M's purpose is to offer their customers fashion and quality at the best price. H&M states numerous of times that quality is more than making sure that products meet or exceed their customers expectations. H&M is constantly working to better their products by manufacturing under good working conditions, and with limited impact on the environment. H&M takes responsibility for how their operations affect people and the environment which is key for their profit and growth.

H&M is committed to integrating social and enviornmental concerns into all their business operations and investing in the communities. This company has a lot of great things going on such as charitable organizations both globally and locally. Some of the global organizations include: UNICEF, WaterAid, Hand in Hand and Fashion Against Aids. In the US, they work with Making Strides for the American Cancer Society in multiple cities to help raise funds for breast cancer research and with the Boys and Girls Club of America.

CHP.1 Mission Statement

Chp. 1 Hennes&Mauritz(Brief History)

HM signifies "Hennes"- the swedish word for "hers". And Mauritz signifies a hunting store in Stockholm. H&M was founded by Erling Persson who started out as a salesman in Vasteras, Sweden. In 1947 he visited the US and it was here that he took interest in a new kind of clothing store. HM had a high turnover of garments and kept its prices low. The first store to open was in Vasteras on September 13, 1947. During the 1950s and 1960s Hennes then expanded steadily. When the company decided to expand to Stockholm in 1968, Erling Persson bought Mauritz Widforss. Mauritz Widforss wasn't only a hunting store it also featured a stock of mens clothing. Persson later brung the two names together and created H&M. H&M has been known to deliver fashion and quality at the best price for over sixty years. This company sets itself apart from others because of the low prices they continue to offer it's consumers. This is a major reason why the company has lasted and is successful today!

CHP.1 History