H&m group project pr
- 1. VISUALS BY: JESS LOMBARDO PROJECT BY: NATALIE BLANCO, JESS LOMBARDO, NOELLE MCCULLOUGH AND JENNIFER VEYUIDEA CAMPAIGN VISUALS
- 3. Instagram Branded Content Campaign: The #HaveMore Campaign highlights a selected few each week who do something extra for the community. This is a branded entertainment campaign for H&M, focusing less on the brand and more on individuals in society doing good for the world.
- 4. Instagram Branded Content Campaign: The #HaveMore Campaign highlights a selected few each week who do something extra for the community. This is a branded entertainment campaign for H&M, focusing less on the brand and more on individuals in society doing good for the world.
- 5. Instagram Branded Content Campaign: The #HaveMore Campaign highlights a selected few each week who do something extra for the community. This is a branded entertainment campaign for H&M, focusing less on the brand and more on individuals in society doing good for the world.
- 6. Strength A leader in the Global market (2nd) A leader in the European market (1st) Affordable & high-quality clothing Fast-fashion Strong presence in multiple markets (Women, Men, Kids…) Celebrity endorsements Strong social media presence Company website and blog E-retailing
- 7. Weakness Easy to replicate design Customer service Massive increase in unsold inverntory Slow response to changing trends Backlash over insensitive promotion
- 8. Opportunity Promote current sustainability practices Increase word of mouth in both female & male audiences Online market including social media Mobile Marketing Better Pictures of closthes- different angles on website Increasing popularity online
- 9. Treats Changing glibal synamics Threats from competitors and local artisans Continuous need for innovation in line with latest trends
- 10. Porters 5 Forces The Threat of New Entrants: The threat of new entrants is high. Entering the apparel industry does not require huge capital investments and many individuals have the means to start a clothing line. In addition, there are many manufacturing contractors available and this contributes to making the market more open to new entrants. Bargaining Power of Suppliers: The bargaining power of suppliers is low because there are many suppliers with little differentiation available. Increased globalization and thus international trade provides more options for retailers to source from foreign manufacturers. Moreover, manufacturers from low wage countries, such as China and India, face more competition.
- 11. Porters 5 Forces Bargaining Power of Buyers: The bargaining power of buyers is high because there is an overabundance of retailers in the market. Buyers have low switching costs as it is free to switch one’s purchasing preference from one brand to another. The Threat of Substitutes: There are no direct substitutes for apparel, but there are substitutes to retail. Online stores provide another channel in which apparel can be marketed and sold. The Intensity of Competitive Rivalry: Rivalry is high because there are a large number of similar retailers including both large and small firms. Furthermore, slow growth resulting from the recession has decreased the level of demand in the apparel industry intensifying competition
- 12. Pestel Analysis Political: Foreign exchange fluctuation, Taxes, and quotas for non- European countries, Strict regulations where production is located. Economic: Global active company, Rising prices of raw materials, Weak economic conditions, Growing Asian markets, Highly competitive sector, Rising labor cost in the far east countries Social: Fast moving fashion trend, changing demographi cs, Increasing going green consciousne ss, Price sensitive customers Technologic al: Developme nt towards more sustainability , Developme nt of new recyclable fibbers Legal: Working conditions and wages at supplier factories, Legal regulations for chemicals in clothing, Environment al regulations. Environment al: Weather (short term), Climate change (long-term), Long-term availability of natural resources (cotton, water, etc), Chemical pollution (production and shipment), Use of recyclable fibers.
- 13. Monitoring, evaluation & follow up plans: H&M has a cost leadership strategy. H&M offers fashionable clothing for cheap prices selling to broad markets. This strategy is also very suitable for the current economic situation. H&M with this strategy also set high entry barriers for the competitors. Competitive Advantage Competitive Scope Board Target Cost Leadership Special Edition Clothing Differentiation Narrow Target Cost Focus Differentiation Focus
- 14. Monitoring, evaluation & follow up plans: H&M we will start off with Market Penetration. H&M should encourage its current customers to buy more. H&M should introduce new items frequently, which keeps customers coming back, again and again, to check out the latest styles. It should have a unique selling point for its products which should differentiate its products from some other competitive businesses such as Gap and Zara. Existing Product New Product Existing Market Market Penetration Product Development New Market Market Development Diversification