Chapter 16: Advertisement, Public Reltions and Sales Promotion

The following video below is an H&M advertisement of their upcoming versace products: 

H&M has many that it promotes its brand and continues to get customers to come into the store.  One way H&M gets customers to come back into the store is Merchandize cards.  If the customer makes a purchase the cashier will hand them a merchandize card tha is 5 dollars off their next purchase.  Also, if you give H&M ur e-mail you will have 20% off one select item online and you will recive that same merchandize card.  With just ur e-mail you can get all these sales and privlages and H&M will tell you when the sales and promotion will happen.

Chapter 14: Marketing Channels and Retaling

Marketing Channel: A Marketing Channel is a set of activities neccesary to transfer the ownership.  It is also useful tool for the management of the company.  H&M follows these roles of a marketing channel in marketing strategies:

• Link Products to the buyers 
• Performance sales
• Influence the company's pricing strategy
• Affecting product strategy  through branding
• Customize profits, istall, maintain, offer credit, etc...  

Retailing: Retail is the sales of product or service from an individual to another.  H&M buys products and also manufactures goods in diffrent countries sucha as Bangledesh and sells it to its customers.

H&M's continued success and prosperity depends on its efficient distribution channel. H&M has effetively incorporated its supply chain to its retail distribution channel to its business strategy.  As the comapny expands more heavenly into the U.S market, its unique streamlined distribution will be a critical component of its success.

Chapter 6: Consumer Decision Making

In H&M's case the typical customers, they are making the decisions of the "routine response behavior".  Which means, the consumer is frequently buying low cost items or service with little seach or decision time.  This process can be compared to the impulse buying of the customer because of the ongoing sales frequently happenin in H&M.  Determining a customers taste in products and service, its all bout the lifestyle that person lives.  Lifestyle are indvidual factors that play a role in wether a customer is purchasing a product or service.  Also involved are phsycological factors such as motivation and values.  This makes an H&M customer and his/her wallet able to feel great when walking out of the store with watever they bought.

Chapter 5: Developing a Global Vision

H&M has succesfully expanded their global vision throghout the years.  With roughly 3,000 store in 43 diffrent markets all over the world including North America, Europe and Asia.  in a weak economy, H&M seems to be going strong and they are stil trying to show growth about 15% per year.  H&M has grown alot since they first opened their first store on 5th avenue 12 years ago.  They have gone from 1 store to 233 stores just in the United States of America.  To show even more growth H&M has finally openeded the online shopping abillity on their website, (avaiable in America).  The online shopping starting in America is a smart idea since america is one of the most profitable markets in the world. What makes H&M great is the abillity to adapt culturaly and to do it succesfully.  For example their 3.6 million dollar, 30 second Super Bowl commmercial:

Chapter 4: The Marketing Enviorment

• 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.
• 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.

Chapter 3: Ethics and Social Responsibility

• 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.

Chapter 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. 
• 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.