Principles & Practices of Marketing means to understand how to interact or communicate with customers with the activities of serving product and services to customers. It is the most critical function of a business to find the profit and loss of the business. In this current assessment there will be discussion on H&M Group stating the brand equity models and current branding strategies of H&M and by applying Glocal theory to the international marketing strategies in the organisation.
Hennes & Mauritz (H&M) group is a Swedish multinational company. Is is one of the world's largest clothing company, it is mainly a retail company known for its latest trends, fast fashion for men, women, youngsters and kids. The headquarters are located in Stockholm & Sweden. It is famous for its brands- H&M, H&M Home, COS and other stories, ARKET, Weekday Cheap Monday , Monki, all these brands have their unique identity. All the brands of H&M group is famous for its fashion and quality. There are over 4500 stores and operation in about 62 countries. H&M is providing employment around 132000 people and it create about 1.6 millions jobs in textile industry. The position of H&M is second rank in the world and it has 36th rank in the Forbes Magazines. The online shopping is available in 33 countries, it has its significance in internet, having 44 online markets. H&M group sales including VAT is 232 billion in 2017.
Segmentation, Targeting and Positioning is the main keys of marketing strategies of H&M. Demographic, psycho-graphic & geographic divisions are the various accessories of industry. The age of customer, income, gender, attributes, religion, personality, and brand loyalty is the main variables of H&M.
H&M is operating with different sub brands and it concentration is on each brands by using targeting strategies made by the management of the group. The strategies are made to achieve the targeted goals of the organisation and H&M marketing coverage is adorable only because of technical strategies.
H&M has its best visionary outlook, it posses the ability to have a clear idea about what should happen in future and what to do in future. H&M has powerful imagination capability. It has creative ability to change in future according to the demands of customer in market. It has its positioned itself by its new fashion trends, style and quality at best price.
H&M has competitive analysis strategies also, company is facing highest competitions in the market. It has to work more on quality of the clothing as there are competitors sitting on the head of the company. The competition in clothing industry is much fastest compare to other industry. H&M is fighting competition with many brands and its ability of fastest visionary outlook is proving the company the best in the market.
H&M is customer oriented company, as the main analysis, strategies are only made to read the mind of customers and to know the needs of customers. H&M is leading in wide and varied range of customers as in men, women, youngsters and children's but still company is dressing their customer in sustainable way.
Brand is a name, deign, symbols or other features that distinguish the organization or organization from its product rivals in the eyes of the customer. The foundation of brand is the logo of the organization. Brand is a marketing practise of creating symbol that desigh determine a product from other product. Effectiveness in brand strategies gives a major edge in incresing cometetion in the market. Brand is not onlt the symbol or name it is exactly a promise to the customer. H&M is a Swedish Multinational Company in clothing. H&M company is taken in this assesment because it is a company which have highest brand positioning in fashion trends. It is highly reputed company which have large number of customer and adorable market place in the world. The assesment is about the introduction is about the H&M company is H&M is a customer oriented company, as the main analysis, strategies are only made to read the mind of customers and to know the needs of customers. H&M is leading in wide and varied range of customers as in men, women, youngsters and children's but still company is dressing their customer in sustainable way. H&M has competitive analysis strategies also, company is facing highest competitions in the market. It has to work more on quality of the clothing as there are competitors sitting on the head of the company. The competition in clothing industry is much fastest compare to other industry. H&M is fighting competition with many brands and its ability of fastest visionary outlook is proving the company the best in the market. The assesment is introducing the KELLER's Brand Equity Model which is based on Customer-based Euity Model. Is is the model in which customer is main focus. To sustain the market share, H&M is using Keller model to improve and manage the market share in optimistic form in the organisation. This model is in positive form by which company get helps in many ways. H&M is alos using this model for satisfing its customer about the barnd quality. The report makes understand the brand recognisation, brand identity, brand positioning, brand personality and brand affinity of H&M group. The report is critically analysisng the standardisation and adaptation of KELLER Model, and how to apply these mode and report is involving tha standardisation and adaptation to price, productys, promotion and place in the internationla marketplace.
Illustration 1: Keller Model
Examine and effectiveness of the organisation with current branding strategy
Customer relationship management defines as the technology for managing relationship and interaction with customers and potential candidates as well. With this consideration, there are several practices, strategies and technologies which manage and analysis customer interaction(Vomberg, Homburg and Bornemann, 2015). customer relationship management is linked with the marketing functions. Therefore, it is important for every business to make systematic work performances. Additional functions are also implemented by H&M to implement systematic activities. In the marketing communication, it is important to focus on the changes that are made enormously which has been taken on the basis of technology and internet. Within the H&M, marketing priority exist to implement little consequences with modern interactive marketplace. Traditional approach of branding put maximum emphasis on the mass media technique in the marketplace (Gürhan-Canli, Hayran and Sarial-Abi, 2016). Role of branding develop in the wide range activities which determines in the following manner:
- Improve perception of product performances
- Greater customer loyalty
- Great trade and cooperation
However, recently marketing communication environment change that attempt to inform, persuade and remind customers towards the products and services of H&M. Brand build relationship with the different consumers so that it helps to perform different functions and operations. According to the model of Keller, it can determine that marketing communication build brand equity. Marketers are employed with different activities that assists to understand role of different communication in branding. Comprehensive and cohesive model of branding assists to understand thought, feelings, perception, etc. As per the opinion of Professor K L, Keller and Professor D, Aaker customer based brand equity model is extended to develop effectiveness and consider consumer knowledge structure. With considering CBBE model, views of brand building so that customers steps taken on the basis of different steps that are as follows:
- Ensure identifications of the brand with customers for specific product class and customer needs
- Firmly, it establishes brand meaning in customer mind to link intangible and tangible brand association.
- Eliciting responses of customers with brand judgement and feelings (Vomberg, Homburg and Bornemann, 2015).
- Converting responses to create intense, active loyalty and relationship as well with brand.
As per this model, enacting four steps carried pyramid of 6 building blocks which are related with the brand. Furthermore, it consists rationale route which exist in right hand side. Creation of significant brand equity determines to reach with top resonance. Following are 6 elements consider in the figure:
- Brand salience is considered that how easily customers think towards the brand in different purchase and consumption situation.
- Further, brand performances is well towards product, services to meet with customers functional requirements.
- In H&M brand imagery describes extrinsic properties towards the products and services which includes ways to meet with customers demand and complete their psychological needs.
- Brand judgement focus on the customers with opinion and evaluation (Gürhan-Canli, Hayran and Sarial-Abi, 2016).
- Feelings of them consist with the emotional responses and reactions with respect to the brand.
- Last is brand resonance which defines nature of relationship which possess by customers with effective brand.
Resonance reflects on the intensity which consider depth of psychological bonding among the customers with brand. Furthermore, it also develops level of activity that engendered by the loyalty of customers.
Illustration 2: Sub dimensions of brand building blocks
Source: (Building strong brands in a modern marketing communications
Certain products and services of H&M categories potentially which allow implement high level of interest and activities. There are several brands which have high resonance apart from H&M. Brand resonance of chosen business has around 4 dimensions which defines as follows:
- Behavioural Loyalty: In respect to determines behavioural loyalty repeat purchase and amount categories with volume attributed in the brand. Hence, H&M need to identify that which brand prefer by customers. Furthermore, they are requires concentrate on the quantity that purchase by customers.
- Attitudinal Attachment: When customer consider views towards the brand in special context, the chosen business need to consider love towards it. In this regard, customer need to describe brand with favourite possession. Little pressure need to implement to look forward towards the brand (Hollebeek, Glynn and Brodie, 2014).
- Sense Of Community: When customers feel affiliation and kinship, other people are associated with the brand. In addition to this, it is essential to identify that customers interact with brand users in the H&M. With this regard, customer interaction needed with representatives of the enterprise. It is the best way to attain and fellow brand users representatives in the company (Gürhan-Canli, Hayran and Sarial-Abi, 2016).
- Active Engagement: In this regard, it is important to identify that personal resources are properly used or not in the selected business such as time, energy, money, etc. These are beyond with those resources that expanding with effective consumption of the particular brand. When customers are receive updates, exchange, correspondence, formal and informal representatives define in the business. With visiting customer brand, it can be stated that different activities helps to make creative results (Su and Tong, 2015). Marketing act, it is important to focus on the changes that are made enormously which has been taken on the basis of practical application and computer network. Within the H&M, marketing priority exist to instrumentation little consequences with contemporary interactive mercantile establishment.
Marketing Communication Effects On Brand Equity
In respect to look upon the customer based brand equity perspective, marketing communication activities contributes in equity and drive with sales in different aspects. In order to create awareness of the brand, right association link could be develops to create brand image among consumer memory. Therefore, it assists to look on the eliciting positive brand judgement and feelings which create strong connection. Different types of brand association formed with equally strong and favourable outcomes that attract young generation of people. For example, social media, printing media, etc. (Vomberg, Homburg and Bornemann, 2015). These kinds of marketing communication activities helps to integrated and deliver consistent message to accomplish strategic positioning. Starting point of the planning develop marketing communication with potential interaction that helps to target customers. In H&M, experience and impression highly influence at the stage of buying process. This could be understand that it helps to allocate communication dollars in more efficient and effective ways. Design also implement with right communication program that assists marketers to implement build brand equity. In order to maintain and strengthening, position of the chosen business encourages consumers towards the products (Liu and Chou, 2016).
Compare standardisation and adaptation models to the international marketing mix of your brand
There are some new marketing strategies must be used to improve internal and external working environment. In addition, promotion techniques is help to increase number of customer or improve profit rate. With the help of some new promotional material mix techniques are improved current market (Sneath, 2015.). There are some new models has work for future improvement in overall market sector. On the other hand, promotion mix are as follows :-
- Advertisement - In this context, more and more advertisement is assistance to alteration level of customer in market place. On the other side, advertisement is used to indefinite quantity client level (Goldman, 2016). It is a way of aggregate communication. It is the least popular and widely foreseen tool of market publicity. Major part of message budget is used up for ad alone. Assorted advertising media – telecasting, radio, paper, magazines, out-of-door means and so forth – are used for advertisement the production.
- Personal selling - In personal selling is to be give the right way or right time or right person. It is to be called as the door to door selling. The purpose of selling will be or to be involve the person le selling.
- Sales promotion - In sale promotion covers those commerce activities other than advertisement, content material, and personal selling that stimulate consumer buying and trader effective. Sales promotional material mainly regard short-term and non-routine incentives, offered to dealers as well go through (Kitchen, 2016). There are some work are is based on the marketing activity to improve overall conditions. It is to be consist the short term period and non involve short term selling efforts.
- Publicity - In this stage, publicity is more important part also way of mass communication. It is traditional form the public copulation conducting seminar, charitable donation and mass media (Kitchen, 2016). This is help to improve market research is help to find out the new things to change capacity building or increase profit rate.
- Public relation - In Public relation is maintained the relationship with not only one customer, middleman but large number of customer is help to improve productivity and profit will be managed. It is part of publicity.
There is all the techniques is to be used in promotion mix strategies or improve the level of customer in market place. In H&M, experience and belief highly causing at the stage of buying activity. This could be realize that it assistance to allocate communicating dollars in much efficient and effective ways (Goldman, 2016). Design also implement with right human action system of rules that assists marketplace to instrumentality build brand assets. In order to hold and strengthening, position of the selected concern encourages devour towards the merchandise.
In addition, public relation is cover the number of people and increase overall working work outside the organisation. There are five stellar elements or content mix. Each tool/part has its point, limitations, and inapplicability. Bet upon company’s internal and extraneous ascertain, one or more creature are used. Mostly, companionship encouragement course of study pertain more weather, each component lissom another. The work is to be depend on the over the period and increase productivity and profit will be managed. On the other hand, there are model of mix marketing is to be used in international level and manage work inside as well outside the organisation (Sneath, 2015.). Some changes will be made with the help of communication, promotion techniques will be managed external work or handle number of different type of customer.
Hence, H&M need to denote that which name prefer by bespoke. Moreover, they are definite quantity food product on the quantity that leverage by made-to-order. In addition, profit and growth will be depend upon only promotional and cost will be changes at the establishes trade name meaning in customer head to link intangible and touchable brand organization.
Form the above report is based on H&M Group stating the brand equity models and current branding strategies of H&M and by applying Glocal theory to the international marketing strategies in the organisation. As per the above report is focus on strategies are made to achieve the targeted goals of the organisation and H&M marketing coverage is adorable only because of technical strategies. In this report is supported on resources that expanding with effective consumption of the particular brand. When customers are receive updates, exchange, correspondence, formal and informal representatives define in the business. Form the above report is based on H&M brand imagery describes extrinsic properties towards the products and services which includes ways to meet with customers demand and complete their psychological needs. In this report use more and more marketing activity to cover cost and increase number of customer. In this report is focus on marketing communication, it is important to focus on the changes that are made enormously which has been taken on the basis of technology and internet. Within the H&M, marketing priority exist to implement little consequences with modern interactive marketplace.
- Liu, C.H.S. and Chou, S.F., 2016. Tourism strategy development and facilitation of integrative processes among brand equity, marketing and motivation. Tourism Management, 54, pp.298-308.
- Vomberg, A., Homburg, C. and Bornemann, T., 2015. Talented people and strong brands: The contribution of human capital and brand equity to firm value. Strategic Management Journal, 36(13), pp.2122-2131.
- Su, J. and Tong, X., 2015. Brand personality and brand equity: evidence from the sportswear industry. Journal of Product & Brand Management, 24(2), pp.124-133.
- Gürhan-Canli, Z., Hayran, C. and Sarial-Abi, G., 2016. Customer-based brand equity in a technologically fast-paced, connected, and constrained environment. AMS review, 6(1-2), pp.23-32.