H&MAdrienne Torre

Mission Statement

“Fashion and quality at the best price”

Assignment 4

The new product line I will be creating for H&M will

actually be a service. H&M already has a store website but

consumers are unable to purchase items off of the website

making it extremely difficult, actually impossible, for

customers who enjoy online shopping to do. My objective is

to recreate their online website so that shoppers are able to

purchase twenty-four hours a day, seven days a week. The

marketing objective for this service is to reach out to each

and every one of the H&M customers plus all of the people

that have not had a chance to go into the store and shop. I’d

like everyone to see all of the product lines H&M has and be

able to make their purchases.

Marketing Objectives

The company I have chosen to do my project on

is H&M, and the new service and product line I am

creating is to be able to purchase online as well as

have to have access to purchase limited goods

online. Everything in H&M stores will be online and

after typing in your credit card number, the items

you have picked will be sent to your home just like

any other store that has an online website. Sonia

Rykeil is currently designing a diffusion line for H&M

and there will be extra pieces not sold in stores that

one can find online. This will be great for the

shoppers who do not want to rush out to H&M to pick

up the latest and see that their size is gone when

they can jump on the internet and find something

that no one else has for an affordable price.

Product Objectives-

1. Fashionable clothing the fit the most cutting

edge customer we have.

2. Four different garments and/or accessories

that a broad range of customers will find of

interest.

3. Simple garments to strengthen one’s

wardrobe and exclusive pieces to brighten

one’s wardrobe.

4. All fabrics used will be organic.

5. These pieces that will only be available to

online H&M customers will make them more

exclusive.

Sales Objectives-

1. Competition; there are many stores that have

designers create lines for their stores but H&M

will create this unique online empire for a

limited amount of garments to a limited

amount of people to set H&M apart from the

rest.

2. Attract; this line by individual designers will

attract the most trendy H&M customer that

does not want to be seen walking down the

street with the same outfit as the person

walking past them.

3. Price; each designer’s line will have a price

point that the H&M customer will be able to

afford but because it is so exclusive, it will set

itself aside from other companies such as

Forever21, Zara, Target, and Urban Outfitters.

Marketing Objectives-

1. These lines will be shown on the H&M website

only and will only be available for a limited

amount of time with a limited amount of sizes

and garments.

2. The target market will be the 18-24 customers

of H&M and they will love this because this

age generation loves to shop online and have

exclusive designer items at an affordable

price.

Customer Profile

Segmentation Types/Bases

Geographic Segmentation Region: North, South, East, and WestCity Size: 0-100,000+Population Density: Mostly UrbanClimate: Hot, Temperate, and Cold

Demographic SegmentationAge: 8months-35Gender: Male and FemaleHousehold size: 1+Income: $10,000+Occupation: Blue-collar+Education: High School+

Sociocultural SegmentationCulture: American, European, South American,

etc.Sub Culture:

Religion: Baptist, Catholic, Jewish, Mormon, And Protestant

National Origin: Italian, French, Canadian, etc.

Race: Hispanic, Oriental, African-American, And Caucasian

Social Class: Working-class to Upper class

Marital Status: Single, Married, Divorced, Widowed

Psychographics: Strivers, StrugglersAffective and Cognitive Segmentation

Degree of Knowledge: NoviceBenefits Sought: Convenience, EconomyAttitude: Positive, Neutral, And Negative

Behavioral SegmentationBrand Loyalty: Undivided LoyaltyStore Loyalty: Undivided LoyaltyUsage Rate: HeavyUser Status: Potential Payment Method: Cash, Credit CardMedia Usage: MagazinesUsage Situation: Work, Home, and Vacation

Stated Corporate Goals

H&M describes its mission as “Fashion and quality at

the best price”. H&M's goals for 2010 have been to

intensify the sales in the existing stores, as well as to

increase the number of new stores by 10% to 15%

per year. In the year 2009, 193 new stores opened

its doors and 16 closed. Expansion and maintaining

of financial stability are H&M's strategic goals. In the

last 5 years the revenues raised by 73%, including

value-added tax and the earnings per share

increased by 139%.

External Forces: Opportunities: Competition:

1. H&M has low prices.2. H&M has better quality than its competitors.3. H&M has a fun mood.

Economics:1. People buy lower priced items in bad

economy.2. People purchase from places with a fun

environment.3. Consumers look for the best quality at the

lowest price

Nature:1. Surplus of a cotton crop overseas

2. No inclement weather happening where crop is needed

Politics:1. More people have credit cards and are using

them frequently

Regulations:1. Pricing2. Strong financial position

Technology:1. Online growth2. Effective communication3. Market Share leadership

Society: 1. Loyal Customers2. Donating to breast cancer when making a

purchase

Threats:Competition:

1. Competitors have layaway2. Competitors are going green3. Competitors advertise giving to breast cancer

more

Economics: 1. People buy less because of the economic

climate2. People are becoming more aware of how price

and quality relate

Nature:1. Products are from overseas2. Company has not gone green3. May be inclement weather in future

Politics:1. Credit cards are affecting peoples spending

habits2. People are becoming more money savvy3. People are spending less on their credit cards

Regulations:1. High tariffs and quotas on items

Technology:1. No ordering off of the internet2. No application on iphone

Society: 1. Have not gone green2. Only have donated to breast cancer and no

other causes

Internal Forces:Opportunities:

Customer ProfileA.Demographics

a. Wide age range from 8months-35b. Located in many malls and outlet malls

nationwidec. Have clothing for children, teens, and

adults both male and female

B.Psychographicsa. Men and Women have high interest in

fashionb. Money buys material things at an

acceptable pricec. Consumer spends little money on quality

fashionable clothing

C.Geographica. Nationwideb. Outdoor Mallsc. Indoor Malls

D.Behavioral Buying Traitsa. Consumer shops smartb. Consumer looks for good deals on

fashionable piecesc. Consumer is able to shop trendy for their

children at good prices

Product Mix1. Children’s Wear2. Teen Wear3. Adult Wear

Pricing Strategies

1. Lowest Price Possible2. Sales frequently3. Promotions frequently

Promotion1. Breast Cancer Awareness2. Frequent sales3. Lots of promotions

Distribution1. Green Transportation2. More than 90% of transports are done via

road, rail, or ocean3. Airplanes are only used when faster delivery is

required

Management Structure1. Annual General Meeting2. Election Committee, Auditors, Board of

Directors3. Managing Director, Executive management

team, Country managers

Suppliers1. All suppliers live up to H&M Code of Conduct2. All suppliers are audited annually3. Require knowing all subcontractors that are

used to manufacture the clothing

Threats:Customer Profile

1. Demographicsa. Too wide of a customer age range

b. Catering to too many peoplec. Children’s clothing same price as adults

2. Psychographicsa. Some people do not like the high turnover

of the clothingb. Not everyone is ‘high fashion’c. Some of the designer for H&M wear is

very pricey

3. Geographica. Not located in every stateb. Lots in some areas while none in othersc. Some have a larger range of items that

cannot be found elsewhere or online

4. Behavioral Buying Traitsa. Not very good qualityb. Not always an option nearbyc. Some of the items are very expensive

Product Mix1. Could use a larger men’s section2. Lingerie for women but none for men3. Turnover is very frequent

Pricing Strategies1. Lower quality sometimes comes with lower

pricing2. Clothing falls apart so pricing coincides3. Pricing is accordingly

Promotion:1. Not going green

2. Do not currently have a holiday promotion3. Could be doing more for the community

promotion wise

Distribution1. Product coming from too many places2. Mix-ups occur3. Product arrives at random times

Management Structure1. Too many parts to management2. Lot’s of people all doing the same things

Marketing Mix

Product: All four Sonia Rykeil garments will be off the

runway, desirable looks that the H&M consumer will

be interested in. All garments will be of great quality

and only 1,000 of each style will be sold all online.

Price: Each dress will be $128.00

Promotion: Researched by what will attract

consumers and also what way will be best to inform

them about Sonia Rykeil’s new online product line.

Coupons: Coupons will be offered in stores for

customers to use online which will be ten dollars off

their purchase of fifty dollars or more. The coupons

will be passed out in the stores and will be accessible

on the website as well for a limited time only.

Word of Mouth: All H&M stores will have their sales

associates and managers informing customers about

the new bedding line and will be wearing uniform

clothing from Sonia Rykeil’s new online clothing line.

ADS: Advertisement in fashion magazines such as

Seventeen, Lucky, InStyle, Vogue, Teen Vogue, and

Harper’s Bazaar will inform and attract H&M

consumers into looking or buying the new line on the

Internet as well as start purchasing on the Internet.

Television ads will be a debatable option.

Press: Certain magazines such as Lucky, Teen Vogue,

and In Style will have stories about Sonia’s new line

to inform the H&M consumer that they are able to

purchase online as well as check out the line.

Place: The customer will only be able to purchase the

product online.

Budget

The Sonia Rykeil online collection will be expected to

make a net profit of ten million dollars in the first

year it is launched. The sales budget will be eighty

thousand dollars.

Coupons: $10,000

In-store Promotion: $40,000

Magazine Ads: $30,000

Management Organization w/ Officers

Names

Stephan Perrson, Board Chairman

Mia Brunell Livfors, Board Member

Lottie Knutson, Board Member

Sussi Kvart, Board Member

Bo Lundquist, Board Member

Stig Nordfelt, Board Member

Melker Schörling, Board Member

Marianne Norin-Broman, Board Member

Margareta Welinder, Board Member

Tina Jäderberg, Board Member

Agneta Ramberg, Board Member

Strategic/Secondary Business Units

None available.