Essay on Marketing Plan

Submitted By jillstiles
Words: 938
Pages: 4

Business concept & growth

Our business concept
Our business concept is to give the customer unbeatable value by offering fashion and quality at the best price.

H&M’s own designers interpret the latest fashion trends and create collections that are accessible to all. We ensure the best price by: •having few middlemen •having a broad, in-depth knowledge of design, fashion and textiles •buying the right products from the right markets •being cost-conscious at every stage

H&M is driven by seven important core values: •Keep it simple •Straight forward and open-minded •Constant improvement •Entrepreneurial spirit •Cost conscious •Team work •Belief in people

Quality is a central issue, from initial idea to final product. Our quality testing is extensive. We also work hard to make sure goods are produced with the least possible environmental impact and under good working conditions. H&M does not own any factories. Production is outsourced to independent suppliers, primarily in Asia and Europe, through H&M’s local production offices. Nor does H&M own any of its stores. Instead H&M rents store space from international and local landlords. Growth target H&M’s growth target is to increase the number of stores by 10–15 percent per year, and at the same time increase sales in comparable units. This growth, which is entirely self-financed, will proceed with an emphasis on quality, sustainability and continued high profitability.

Expansion strategy

Global expansion Each H&M store should strengthen the brand and offer local customers the best possible shopping experience – whether that means a brand new flagship on the Champs-Élysées, or an updated department interior in a small-town shopping centre.

H&M stores should always be located in the best business locations, whether in a big city or a small-town shopping centre. This has been a firm principle of H&M’s since the very first womenswear shop opened in 1947, and it is still true today. We always look for the best business location combined with the most favourable market terms. That applies to H&M as well as & Other Stories, Cheap Monday, COS, Monki and Weekday.

H&M does not own any store premises, which makes way for flexibility and adaptability. By renting space, we can move at the same pace as our markets.

Long-term quality lies at the heart of the expansion strategy. Before H&M moves into a new country or city an assessment is made of the market’s potential. Factors such as demographic structure, purchasing power, economic growth, infrastructure and political risk are analysed. Alongside expansion, existing stores are renovated, offering customers all over the world exciting new shopping experiences.

H&M remains positive towards future expansion and new business opportunities.

H&M is also working actively to make all stores sustainable in the long term, for example through energy-saving initiatives and environmentally adapted materials. H&M remains positive towards future expansion and new business opportunities. The growth target is to increase the number of stores by 10–15 percent per year with continued high profitability and at the same time increase sales in comparable units. The strong pace of expansion is continuing in 2013 with a planned 350 new stores net. This means that we will effectively be opening a new store every day. In 2013 the highest rate of expansion will again be in China and in the US.

Investments will also continue within…