H&M marketing Essay

Q1. To what extent is H&M market oriented? What evidence is on that point in the national to obtain your view? Market druthers is when a community organizes its activities, products and services around the wants and postulate of its customers. In the crusade of H&M it can be seen that the system of rules follows the market orientation philosophy as it focuses on the needs and wants of the customers before making its products. The telephoner recognizes the ongoing slump in the world economy and sees the occurrence that it is hard for consumers to subvert expensive personal manner wearing so it comes up with the idea of trendy and latest clothing besides inwardly the reach of the putting surface man.From the outcome study there is evidence of the community following and believing in market orientation school of thought. For cause, H&M has its strong footholds in some(prenominal) Europe and the US but the dash they market and sell their products in these two reg ions is really different. In Europe H&M is seen as more of a department store moreover in the US the corporation targets the young and more fashion conscious females. In other case H&M keeps the customers and there wants in head when ruleing or launching a newfangled product line, as seen from the case study, Ann-Sofie Johansson a couturier for H&M admits that finding the needs of the customers is very important, she says and admits that she used to follow people glum the vacuum tube and questioned them about their fashion needs.Q2. Into which cell of the efficiency- utileness matrix does H&M fall? excuse your answer. Efficiency sum doing the thing flop and Effectiveness means doing the right thing. In regards to the matrix H&M is twain cost-efficient and effective. Efficiency is achieved when a company produces its goods economically, by keeping overheads and cost to the minimum, H&M does the same, it outsources its output to low cost countries like China, Banglade sh etc thus delivery up on meretricious labor. A company is effective in markets when its schema is successful at heart the consumers.H&M successfully achieves this as non exclusively H&M customers buy their products but they also become loyal customers to the brand as it is of an affordable price as well as in line with fashion, H&M recognizes that there products do not last long but it does not affect them or their customer as both of them know that the customer will buy a particular coat or chapiter for only a season. For example in the case study it shows the comparison of prices between Dolce and Gabbana infringe coat worth 600 pounds and that of H&Ms 35 pounds trench coat.Q3.What is the basis of the customer order H&M provides for its customers? Customer value is the consumers assessment of the products overall potentiality 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 basic formula o f the company is the cheap-chic formula in which the customers argon provided with cheap up to now spiffy 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 high inventory as it also raises be as and makes the product obsolete as well.Q4. What be the selling benefits to H&M of commissioning Karl Lagerfeld and Stella McCartney to design limited edition fit out ranges? Karl Lagerfeld and Stella McCartney are both famous designers working for high priced and luxury clothing brands like Chanel. Employing both these designers was a very effective strategy implemented by H&M which turned out to be quite efficient as well because even after employing much(prenominal) high priced designers H&M could sell off their new range with nominal prices like 55-70 pounds. The market ing benefits which H&M achieved were that their customers felt that not only H&M provided their customers with cheap fashionable clothe but also cheap designer clothes which is quite rare in the fashion industry. This was be by the range of Karl Lagerfeld being sold deep down hours of its launch at the H&M stores.Q5. What challenges are likely to face H&M in the future? Since the formation of the company it has been experiencing growth in its markets and achieving higher pays in comparison with its competitors, for example in 2005 H&M had a pre-tax profit of 1 Billion pound on gross revenue of 4.5 Billion whereas GAP a competitor of H&M had profits of 978million pounds on sales of 8.7 Billion. notwithstanding H&M will have to fabian in regards of the future as the economy is still showing a downward trend which is today proportional to the consumers net spendable income, because fashionable and trendy clothes are wants of the consumers not needs. second many other small bran ds recognize the strategy of H&M and may provide shutdown 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 consider 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. cheapjack and trendy clothes keep the customers satisfied within their disposable income which in itself is for the betterment of society.