H M Ansoff
ANSOFF MATRIX
To analyse the marketing strategies of H&M we are using the Ansoff Matrix. It is a tool that helps businesses decides their product and market growth strategy (Jobber and Fahy, 2003). Ansoff matrix consists of product development (Selling new products to existing customers), market penetration (Selling more of the same to the same types of people), market development (Selling the existing products to new types of consumer) and diversification (Selling new products to new consumer) . (Harvard Business Review Strategies,1998)
To relate Anoff with H&M we will start off with Market Penetration. As we have studied H&M’s Product Portfolio consists of Clothing, Household and Cosmetics(Fashion united, 2006). H&M should encourage its current customers to buy more. H&M should introduce new items frequently, which keeps customers coming back again and again to check out the latest styles. It should have a unique selling point for its products which should differentiate it products from some other competitive businesses such as Gap and Zara (H&M facts, 2006). A drawback of H&M compared to Zara is that quarter of its stock is made up of fast-fashion items that are designed in-house and farmed out to independent factories while its competitor move quickly through the stores and stock is replaced often by fresh designs. One the other hand H&M keeps large stock which increases cost and can result in wastage if fashion changes. H&M should bring in new and unique things frequently and respond to changes in fashion. Advertising is another component to penetrating in the market as it convinces customers and reminds them about the products (Business Week Online, November 11, 2002)
Product Development for H&M would be to launch a new product in the existing market. H&M should consider new production possibilities. Products with new features should be developed. For example, Cosmetic products with different shades and unique
To analyse the marketing strategies of H&M we are using the Ansoff Matrix. It is a tool that helps businesses decides their product and market growth strategy (Jobber and Fahy, 2003). Ansoff matrix consists of product development (Selling new products to existing customers), market penetration (Selling more of the same to the same types of people), market development (Selling the existing products to new types of consumer) and diversification (Selling new products to new consumer) . (Harvard Business Review Strategies,1998)
To relate Anoff with H&M we will start off with Market Penetration. As we have studied H&M’s Product Portfolio consists of Clothing, Household and Cosmetics(Fashion united, 2006). H&M should encourage its current customers to buy more. H&M should introduce new items frequently, which keeps customers coming back again and again to check out the latest styles. It should have a unique selling point for its products which should differentiate it products from some other competitive businesses such as Gap and Zara (H&M facts, 2006). A drawback of H&M compared to Zara is that quarter of its stock is made up of fast-fashion items that are designed in-house and farmed out to independent factories while its competitor move quickly through the stores and stock is replaced often by fresh designs. One the other hand H&M keeps large stock which increases cost and can result in wastage if fashion changes. H&M should bring in new and unique things frequently and respond to changes in fashion. Advertising is another component to penetrating in the market as it convinces customers and reminds them about the products (Business Week Online, November 11, 2002)
Product Development for H&M would be to launch a new product in the existing market. H&M should consider new production possibilities. Products with new features should be developed. For example, Cosmetic products with different shades and unique