H M AND ITS OWN Market Admittance Strategy Marketing Essay

H&M originated in Sweden this can be a retail clothing company that has been renowned because of its selection of clothing collections which derive from the most recent fashion trends on the market. H&M was set up in the later forties in Sweden, and started business only with the sales of female clothes. (www. hm. com) They later prolonged their sales and production to men's clothes in the later area of the sixties. Today, most the clothes bought from H&M stores are produced in Asia, Europe, and North Africa; specifically, Egypt, Pakistan, Bangladesh, china, India and turkey. (www. hm. com) H&M today feature over 2200 stores in 38 countries ranging from the uk, Denmark, Germany, Switzerland, Russia, Austria, various Asian Countries and America of America. As of early on 2011, H&M uses around 87000 people around the world. (www. hm. com) Very just lately, H&M began offering online and towards the end of January 2011 commenced offering online sales services in the United States of America. (www. hm. com)

H&M has been successful to thrive in this current fashion focused world because they try to and with success stick to their commercial objective goal of providing fashion and quality at its best available price. (www. hm. com) Expanding and preserving financial balance are this companies two tactical objectives and by 2008, H&M possessed as goals to as much as is possible, increase and increase sales in existing stores, also to increase the volume of new stores by an average of ten to fifteen percent each year. (www. hm. com)

Considering that H&M has a desire to grow and maximize its financial capabilities, it is only but reasonable that as it company it will consider increasing its stores far away. A continuing saturation of stores within an existing country wouldn't normally do the business all the good as if they made a decision to explore and make productive use of all resources open to them in a new market. This proposal will be looking at the avenues through which H&M can enter into and take full control and benefit of the Indian fashion market. We will be looking effectively at the market entry strategy that may be used by the corporation to penetrate the market.

The market admittance strategy will give us an idea of how H&M's products can be sold, distributed and provided in the Indian market. It s important to notice that whenever goods and services get exported to another country, the market access strategy will have to define the many methods by which these goods and services will be provided and also how contracts can be had. Due to the fact India presently produces part of H&M clothing I am hoping that penetrating this market won't be a very difficult move to make. It is because being an employer in the united states already they need to an scope a program with their employees from which they could begin to build on.

If H&M will have to consider conquering international market on the whole and India in particular, then they have to consider the options of risk, cost and control that the company will suffer from in the new market. Therefore in planning for a market entry strategy for a country like India, management of the company must make a decision which products are better off for sale in this area.

So far, it could be said that H&M is a noticeably renowned brand, so between the options it includes for penetrating the forex market, it could get into things such as joint endeavors or setup within an export processing areas. ( Menon, et al. , 1999). An export processing zone, more often than not can be an area which is normally set up in expanding countries by their government authorities to encourage an hence increase professional and commercial exportation. (Menon, et al. , 1999). Exportation to a extent can be considered as the simplest form of a market export strategy, and it entails the use of immediate and indirect exportation methods. A few of these methods are the use of real estate agents as well as the utilization of counter trade. Counter-top trade is an activity whereby goods and services are exchanged for goods and services and their principles are written off against the other person when the company is balancing its accounts. (Menon, et al. , 1999). Due to developments in technology, companies are more likely to indulge in direct marketing. For example, The globe has gradually turn into a global technology town. In the case of H&M, they could simply modify the delivery options of their online website to add deliveries in India. They may possibly also simple just create an H&M website in local Indian languages which will effectively serve the Indian populace.

Relationship marketing has totally advanced the ways that traditional marketing is completed and in more recent times is among the most style of marketing practice. (Menon, et al. , 1999). It has not only done a great deal by changing customer advocacy from satisfaction to pleasure, but it has tried to go beyond expectation by increasing the quality of services offered. Corresponding to Berry and Parasuraman, ( 1991) Romantic relationship marketing can be involved with a variety of trying to build up, retain and draw in romantic relationships with customers and potential prospects. (Berry and Parasuraman, 1991) Taking romance marketing and management into point of view, H&M can develop a strategy which is likely to be able to focus on the various difficulties of the modern Indian market. Marriage marketing has the capacity to transform to multiple service utilization from single service use.

Competition nowadays, and demand for customers in the style industry will keep on growing at an ever increasing rate, therefore, as such, a positive attitude to customer care, getting customer and the capability to sustain them should be a priority if penetrating the new market is likely to be feasible. (Berry and Parasuraman, 1991) If H&M bear this in mind when seeking to permeate the Indian market, there is every chance that they are going to succeed. As this will strengthen their position to offer an effective and an efficient customer support in the Indian market. This evidently provides India the chance to introduce services in to the Indian economy consequently providing market entry technique for the company. The the different parts of Relationship marketing, include things such as sustained orientation, finding reliable buyers, making a difference between the several levels of human relationships between a buyer and a vendor, Long term orientation, high levels of consumer satisfaction and service quality should be the responsibility and responsibility of every employee.

It should be mentioned that the huge benefits an effective marketing romantic relationship plan is that indifferent customers are changed into devoted customers and there is a real potential for retention of customers and H&M can greatly reap the benefits of this as customer retention is a good platform for long term profitability. (Menon, et al. , 1999).

Customer retention can be achieved through a person marriage program, which focuses on retaining customers. Over time, customer retention has become more important to a business than customer acquisition. It has been said that if the rate of customer retention is high, you will see a corresponding high net present value of a person. ( Dawkins and Reichfield, 1990) So, if HM have the ability to not only acquire customers, but they do everything with in their capability to try and keep these customers, they'll notice a tangible benefit from a sustained income stream. Saren and Tzokas ( 2000) brought up the effectiveness of romantic relationship marketing by coming up with a difficult to copy and unique knowledge although programs of interacting and dialoging with customers. The long-term goal of this to H&M unquestionably is sustained permanent profits.

The factors that determine the clients store choice, Commitment of a customer, Customer retention and romance marketing have been extensively studied about the world. Hence, it is almost accurate to state that they is the presence of a rich literature review regarding the fashion industry. ( Dawkins and Reichfield, 1990) It must however be said that they is still considerable opportunity for improvement in existing literature. Very little has been done on the introduction of new store forms in India and exactly how they effect on consumer behavior. They are thing, which H&M have to research on heavily to be able to me in a position to penetrate the Indian market.

This marketing proposal therefore will look into how H&M can make use of the marketing mixes available to it, go through the market segmentation, targeted goals and it'll make a SWOT analysis of the proposal taking a look at the possible, strengths, weaknesses, opportunities and threat involved in entering the Indian market. ( Dawkins and Reichfield, 1990)


A procedure for aggregation, will be the words where you can illustrate market segmentation. The capability to put people with specific needs into a particular cluster. ( Perreault & McCarthy, 2002). Customer segmentation is vital for a highly effective market access strategy. If market segmentation is completed properly, then H&M can identify this market for its particular products. Market segmentation is an essential part of a successful market entrance strategy. For market segmentation to achieve success, segmentation should be in line with the different degrees of products that the company is will to place out in the market. As such H&M have to utilize the forex market segmentation reference to have the ability to make use of market segmentation properly to have the ability to identify the portion of the marketplace that they intend to focus on. H&M can portion its market either by using demographics, geographic, psychographics and behavioral segmentation methods. . ( Perreault & McCarthy, 2002)

Life style, variability in personality, communal class and life style form the bases of psychographic market segmentation. How important customers immediate conditions are to them is very important Social school also brings with it different or modified needs and needs If these variables are used, a psychographic account if the market can be built and with this in mind, H&M can know or have a much better idea of what products will be better suited for that kind of market. . ( Perreault & McCarthy, 2002)

Variables which can be taken into account when doing a demographic segmentation include things such as years, gender, How big is young families, family life cycles, income, education, population, ethnicity, religious beliefs and social course. . If H&M needs these things into consideration if it can a demographic market segmentation, they will really know what ruler of product to raised serve the marketplace and it'll give them a better chance of better market entry.

Geographic market segmentation, may also be used, in cases like this the market can be segmented predicated on the climatic conditions, regions in the united states, size of a metropolitan area etc. If a particular region in the united states may be either too cool or too moist, this type of information helps H&M to permeate the marketplace as it is aware exactly the kind of fashion or clothing items that this sector of the overall economy can be thinking about.

The market an also be segmented on the bases of behavioristic segmentation. That is based on real consumer tendencies toward the merchandise and services. Various parameters such as readiness to buy, brand commitment, use rate, and events available in the particular region will impact the way in which the marketplace can be segmented. If there is a particular sector of the united states that is continually in festive mood, then H&M must take this into consideration when segmenting the marketplace as it'll give them a better idea of what products to provide that area of the country and It further provides company an opportunity to penetrate the market. Market segmentation is vital for a corporation and to ensure that a business like H&M can have the ability to permeate the Indian market, these various market segmentation techniques need to be taken into account.

Situation analysis.

The SWOT examination can be made to start to see the advantages, weakness, opportunities and hazards that H&M can be exposed to in its bet to penetrate the Indian market. I feel that the first potential risk that this company is going to have to handle in the new region is the social differences which exist between the lifestyle in what I can call the standard H&M markets and the approach to life in this part of the world, devoid of trying to sound spherical, India is a culturally traditional country, therefore it'll be difficult to an degree to penetrate the marketplace with what I'll term "western trendy fashion" the culture requires that lot for the woman cover up their physiques, but present day fashion design shown a lot of the body and leaves hardly any to creativeness.

A potential power of entering the forex market is that H&M already use suppliers out of this area of the world, therefore with a little more research and changes in design, they will be able to produce goods which meet up with the requirement of the Indian market.

As opportunities go, penetrating the Indian market provides a a great opportunity for H&M, the united states has a very high GDP and an extremely large population. Folks are the bases of your business and with a huge number of folks available in India it is only to say that there is market for the goods and services that H&M must provide, so, the forex market really only needs to be tapped right

The major weakness that H&M will face in this market is that it will be entering this market as a newbie as such it will face a whole lot of competition from other existing retail businesses in the area.

Goals Targeted.

Generally, the key goals of H&M will be to penetrate the market successfully. This penetration is going to supply the company an opportunity to build long-term and long standing relationships using its clients which will lead to a suffered income source and profits generation in the Indian market.

The marketing mix

The marketing blend is an essential part of any marketing proposal, it is vital to note that the marketing mixes give and notion of how the goals and goals of the business may be accomplished. Placing this into point of view, Having an idea of the merchandise, the promotion approach which is used, the market place, keeping the people at the center of the business, being conscious of physical evidence, the procedure which is used and ultimately the price of which goods are going to be sold. All in all, for the business to achieve penetrating this market, the combination of these seven P has to be got right.


H&M started in Sweden it is a retail clothing company that has become renowned because of its range of clothing choices which are based on the newest fashion trends on the market. (www. hm. com) H&M was established in the past due forties in Sweden, and started business only with the sales of female clothes. They later prolonged their sales and production to men's clothes in the later area of the sixties. Today, majority of the clothes bought from H&M stores are produced in Asia, Europe, and Northern Africa; specifically, Egypt, Pakistan, Bangladesh, china, India and turkey. (www. hm. com) H&M today boast of over 2200 stores in 38 countries which range from the United Kingdom, Denmark, Germany, Switzerland, Russia, Austria, various PARTS OF ASIA and America of America. (www. hm. com) As of early on 2011, H&M utilizes around 87000 people across the world. Very lately, H&M began providing online and towards the finish of January 2011 started offering online sales services in america of America. (www. hm. com)

H&M operate with a business concept of providing customers the cost effective in fashion in todays market at the most affordable price. It is important to note that H&M do not produce their own goods; they buy their goods from various sellers and marketers in the Europe and Asia. (www. hm. com) Considering that H&M is trying to permeate the Indian market. It can be an important indicate make here that liaising a lot more with suppliers in the Indian market will be very helpful, as they have got a better notion of the varieties of products, which are in popular in this market. (www. hm. com) It s also important to note that India has different social values, For example, the females in this area generally put on clothes which cover far more of the body. so it it's still important to liaise with the suppliers so that they supply the type of items that are essential in this kind of contemporary society. (www. hm. com) If H&M requires this these exact things in to awareness, there is a greater chance that they can have the ability to penetrate the Indian market more effectively and more efficiently. As Such, Know what exactly is required by the Indian market and enough research to discover what is best for this area of the country will therefore be very important in building a proper product customer relationship and boost market penetration.


Pricing is another very instrumental tool, which can all but determine if the company will be able to penetrate the market. It is important here to notice that unlike a lot of markets that H&M currently operate in, India is a third world current economic climate, better put, India is a expanding country. ( www. economywatch. com)They have a gross domestic product of 1 1. 43 trillion, making them the fourth biggest economy on the planet. They have had an average overall economy growth rate around 7. 5% in the last couple of years. This implies that there is real market penetration potential in this current economic climate for H&M. ( www. economywatch. com)It really is however very important to note that even though they may have one of the worlds most significant and a very impressive gross local products figures, these are placed in the 140, s for per capita income. When compared to other countries, this means that folks in the Indian market generally have less level of disposal income to themselves. (www. economywatch. com) Putting of this this into point of view, in the case of H&M penetrating the Indian market, the pricing of the goods and services have to be done right. Pricing will be very essential in that the less expensive the products are that H&M bring to the marketplace, the much more likely people in the forex market will buy these goods and services.

There are various charges strategies that H&M can execute. For instance, they employ the penetrating rates strategy, where in they place the prices of the good at a significantly low level, with the main aim of capturing the market, giving buyers a chance to have a feel of these product, so when they are convinced that they have captivated and maintained their customers, and are sure that the customers fully appreciate the value of these goods, they can start increasing the prices. Other rates strategies that may be used by the business include the market pricing strategy, premium charges, price skimming, price discrimination, costing predicated on geographic, psychological charges and products pricing. What ever the pricing strategy that H&M decide to implement, it's important that they get t right as this can totally make or me the complete market penetration strategy throughout the market.


Personally, I am of the view that because H&M already employ companies and suppliers in this market, they are at an advantage because they are almost already aware about how exactly the sector of the current economic climate functions. First of all, because these goods are going to be sold in the Indian market, H&M must source more cost efficient suppliers with their items. They therefore have to discover a channel of distributions of the goods which is going to enable these good get to the hands of the customers at most cost efficient price. In order to minimize cost, rather than maybe establishing or buying building stores of their own, H&M can rent space in large well renowned departmental stores. This with an extent reduces the over head cost of penetrating the marketplace and this reduction is past to the consumers in the form of lower prices and it offers H&M a genuine potential for penetrating the marketplace through the penetrating prices strategy. H&M can also try joint endeavors with already founded organizations in the area. This will give them a real chance of putting their products in the Indian market. H&M can also reap the benefits of research about the marketplace, which has recently been completed by its partner in the joint venture. All of these will translate to a reduction in the prices of which goods will be wanted to the Indian market. Generally, we can say that there are numerous programs that H&M can consider when doing this. They can choose a direct channel of syndication by selling right to the consumers or and indirect stations by selling by having a wholesaler.


If H&M is going to succeed in the forex market, advertisement is going to be very important. And it might actually e the offer breaker. Adding billboards and participating in radio and tv set advert will be key. Additionally it is important to learn that the wearing culture in India stores heavily on cricket. As such it'll be very important to H&M to try to indulge in some form of cricket sponsorship. This can be stunning their consumers at their softest location and will go a very good way to catch the attention of customers and sustain customers. E -marketing is another technique, which can be utilized. Nevertheless the amount to which this is used is bound as India is a developing country and the magnitude to which every person can have examine to the Internet is limited. This might be effective but not as effectively as H&M might have wanted. On a complete, advertise is very important to and an extremely necessary element to penetrating the Indian market.


In order to achieve success, H&M must put people at the forefront of its business. People in this case refers to the customers that this intends to serve. Customer satisfaction must be its priority and to be able to do this, H&M will have to take part in effective training of personnel who offer with customers. They will have to train these to respond and work in ways which can be appropriate in the world within that they operate. The client service teams have to me fully alert to the specialized knowledge and really should baa be to provide adequate technical support as and when required. This will go a long way to help H&M penetrate the marketplace.

Finally, we've the physical data and the procedure where these mixes have to be achieved. Presentation of items, that happen to be for sale, is very essential; dealing with customer services is quite difficult as the material part is almost impossible to assess. As such people will starting their judgments on things like how the shop is assemble, decorations, demonstration of personnel, how nicely the website looks as well as how well the brochure has be resented.

The process by which these mixes will be achieved is also of utmost importance

Finally, the success of the proposal in penetrating the marketplace will eventually be assessed in financial conditions. After the first 12 months of functioning in the forex market, we will have using a income and loss accounts whether continuation is an excellent option for the business. The main aim of any enterprise is to create profits so we must continuously evaluate our position to ensure that we are trying to constantly achieve our goals.

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