H & M : Marketing Strategy

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Sweden 's Hennes & Mauritz, more commonly known as H&M, is a retail-clothing company, famous for its reasonably priced “fast fashion.” With 6 different brands sold in 3,300 stores spread out over 54 countries, the company is second only in size to its direct competitor Zara. H&M uses psychographic segmentation, targeting at customers who belong to the group of fashionable and trendy consumers, who see shopping as a social activity providing pleasure in their daily life. In the case of Zara, ‘’its marketing strategy consists of high turnover in which the company usually has ten thousand single items per year running through their stores’’ (Tiplady, 2006). Zara is considering setting up loyalty programs to create a link with its customers…show more content…
As part of its marketing and branding efforts, H&M developed a social media strategy; a key component of which states that ‘’through the effective use of social media, millions of H&M fans and followers share ideas and opinions and get quick answers to their queries.” (H&M, 2014) This allows the company to get closer to its customers, allowing for better communication and feedback, and more useful marketing data. H&M collects massive amounts of raw information through the use of such data analysis tools as Google Analytics and Core Metrics, this is known as “cookies.” These are text files that are created every time you visit a particular website, and they can contain useful and valuable information about your interests and shopping habits. ‘’Previous purchases are often the single best guide to what a customer will buy next’’ (Davenport et al, 2011) This gives H&M the information to strategically target individuals through social media advertising creating what seems like a personal approach. The benefit of social media is that H&M can get out its message and promote its brand by content marketing, while at the same time it can gather, store and interpret huge amounts of data. ‘’Content marketing’s purpose is to attract and retain customers by consistently creating and curating relevant and valuable content with the intention of changing or enhancing consumer behavior.’’ (Content Marketing Institute,
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