HM Pricing and Retail Strategy - 1217 Words

Pricing and Retail Strategy of HM Hennes Mauritz (HM) is a Swedish clothing retail company. The company was founded by Erling Pesson in 1947. The first HM store was opened in Vaesteras, Sweden in 1947. The mission of HM is to offer fashion and quality at the best price where â€Å"quality includes ensuring that products are manufactured in a way that is environmentally and socially sustainable† (HM, vision policy, n.d., para. 1). This essay is to highlight the current market analysis, pricing strategy, retail strategy, and competitive advantage analysis of the company. Current Market Analysis HM is the world’s second largest retailer, only behind its main rival Zara of Inditex (Petro, 2012). The company currently has 3006 stores in 53†¦show more content†¦Promotion HM utilizes multiple communication channels to promote its brand awareness. The most implemented method is featuring well-known celebrities, singers, and designers in its billboard, internet/mobile ads, and television ads. In addition, HM also promote its brand identity with social awareness ad campaigns like â€Å"Fashion Against Aids† or â€Å"Fashion for Conscious†. In addition, HM raises its brand awareness as well as brand loyalty through coupons offers, special promotions, mobile commerce, social networking sites, reward program, and its online sites. For instance, just on its Facebook page alone, there are more than 16 million fans, who constantly comment and respond to HM newsfeeds. This high social hype not only helps the company to create more brand familiarity but also helps the company to know what its customers want and demand Place Since the main target segments are the generation X, Y, and Z, most of HM stores are located in hip, visible, crowded part of shopping pavilions or inside the malls. Spaces within high-traffic volume outlet shopping centers are also ideal locations for the company. In addition, HM’s target market places also include mobile commerce and e-commerce. Competitive Advantage Analysis The HM focuses its sustainability on three areas: innovative technology, low-price strategy, and expansion. Innovative Technology HM prides itself for utilizing theShow MoreRelatedProduct, Pricing, and Channels Paper1364 Words   |  6 PagesProduct, Pricing, and Channels Paper HM online Since 2009 there has been a large decrease in offline retail sales, by 2015 Gap Inc. will be closing 189 store, Abercrombie and Fitch is planning to close 180 store and Aeropostale 175 stores (Business Insider). JCPenny’s store sales alone dropped 31.7% in store purchases (Business Insider). Where are consumers going? Online. 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