H&M marketing Essay

Q1. To what extent is H&M commercialiseing orientated? What enjoin is at that place in the human face to support your view? Market druthers is when a troupe organizes its activities, harvest-festivals and services around the wants and needs of its customers. In the case of H&M it can be seen that the organization follows the market taste philosophy as it focuses on the needs and wants of the customers before making its products. The company recognizes the ongoing slump in the world economy and sees the fact that it is concentrated for consumers to buy expensive fashion clothing so it comes up with the bringing close together of flairy and spruce raiment but within the reach of the commons man.From the case study there is evidence of the company following and accept in market orientation school of thought. For example, H&M has its impregnable footholds in both Europe and the US but the way they market and sell their products in these two regions is really different. In Europe H&M is seen as more of a department store nonetheless in the US the company targets the young and more fashion certain females. In other case H&M keeps the customers and there wants in mind when imageing or launching a new product line, as seen from the case study, Ann-Sofie Johansson a designer for H&M admits that determination the needs of the customers is very important, she says and admits that she used to follow people withdraw the vacuum tube and questioned them about their fashion needs.Q2. Into which cell of the efficiency-effectiveness matrix does H&M transcend? Justify your answer. Efficiency operator doing the thing right and Effectiveness means doing the right thing. In regards to the matrix H&M is both good and effective. Efficiency is achieved when a company produces its goods economically, by keeping overheads and be to the minimum, H&M does the same, it outsources its production to low cost countries like China, Bangladesh etc thus obstetrical deli very up on tatty labor. A company is effective in markets when its strategy is no-hit within the consumers.H&M successfully achieves this as not unless H&M customers buy their products but they alike wrick loyal customers to the brand as it is of an affordable price as closely as in line with fashion, H&M recognizes that there products do not last long but it does not bear upon them or their customer as both of them know that the customer willing buy a particular coat or jacket for only a season. For example in the case study it shows the relation of prices amidst Dolce and Gabbana trench coat worth 600 pounds and that of H&Ms 35 pounds trench coat.Q3.What is the basis of the customer value H&M provides for its customers? Customer value is the consumers assessment of the products overall capacity to satisfy his or her needs. In the case of H&M the company does its best to satisfy its customers needs and does well in it. The introductory formula of the company is the chea p-chic formula in which the customers atomic number 18 provided with cheap to that degree fashionable products. This formula of the company has been there since the beginning of the company and has been successful since, the foremost reason for this is the cheap price of the product as well as the freshness of the product. The company does not believe in stacking mettlesome inventory as it also raises costs as and makes the product obsolete as well.Q4. What are the marketing benefits to H&M of commissioning Karl Lagerfeld and Stella McCartney to design limited edition clothing ranges? Karl Lagerfeld and Stella McCartney are both famous designers works for high priced and luxury clothing brands like Chanel. Employing both these designers was a very effective strategy implemented by H&M which turn out to be quite an efficient as well because even off after employing such high priced designers H&M could sell off their new range with nominal prices like 55-70 pounds. The marketing benefits which H&M achieved were that their customers felt that not only H&M provided their customers with cheap fashionable clothes but also cheap designer clothes which is quite rare in the fashion industry. This was proven by the range of Karl Lagerfeld universe sold within hours of its launch at the H&M stores.Q5. What challenges are likely to face H&M in the in store(predicate)? Since the organization of the company it has been experiencing growth in its markets and achieving higher profits in comparison with its competitors, for example in 2005 H&M had a pre-tax profit of 1 Billion pound on sales of 4.5 Billion whereas GAP a competitor of H&M had profits of 978million pounds on sales of 8.7 Billion. provided H&M will have to cautious in regards of the future as the economy is still showing a downward trend which is directly proportional to the consumers net disposable income, because fashionable and stylish clothes are wants of the consumers not needs. Secondly many othe r little brands recognize the strategy of H&M and may provide goal to the company in its sector of cheap fashion clothing. So H&M should have a plan to counter these threats which can become a challenge for the company.Q6. Do you ask the marketing of disposable clothes contrary to societal welfare? Justify your answer? H&M treats fashion as a perishable product the company keeps its costs low and passes on the low cost to the consumer in the form of cheap yet fashionable clothes. In regards to the question, no, I do not consider marketing of disposable fashion opposite to societal welfare. Cheap and trendy clothes keep the customers satisfied within their disposable income which in itself is for the onward motion of society.