H&M entering INDIAN MARKET

Agenda
Background & Overview Macro Analysis Marketing Strategy Implementation marketing mix
Group Members: Ge Tina Guek Suzana Perviz Lejla Rus Nina Skok Alja

Background

Analysis

Marketing Strategy

Implementation

Executive Summary
H&M is not present in India and there is a demand for H&M.

We are going to enter the Indian market and so make H&M accesible to Indian customers

Joint venture and representing the brand as on other markets.

Background

Analysis

Marketing Strategy

Implementation

Indian Apparel Market

Market value $28,102.6 million with 7,6% CAGR 2009-14 Ready-to-wear 77% market share with 9% CAGR 2009-15 39% of total apparel consumption in urban areas but In 2025 urban consumption > rural consumption
Background Analysis Marketing Strategy Implementation

MARKET SEGMENTATION
0 -17 yrs
37 %

18 35 yrs
31 %

36 49 yrs
18 %

36 49 yrs
14 %

Low income group Lower middle income group Middle income group Upper middle income group High income group Total

Number of households (million) 80.7 50.4 19.7 8.2 5.8 164.8

Income (USD) below 581 581-1,162 1,162-1,790 1.790-2,465 above 2,465

TARGET: 17 % OF HOUSEHOLDS - 9% of disposable income goes for clothing

Background Analysis Marketing Strategy Implementation

Market Segmentation

Background

Analysis

Marketing Strategy

Implementation

Market Segmentation
0 -17 yrs
37 %

18 35 yrs
31 %

36 49 yrs
18 %

36 49 yrs
14 %

urban areas rural areas

income

education occupation

social class lifestyle

Target Market
Big urban areas: Mumbai, Delhi, Bangalore 18-35 years college, university degree and high school students young employees with western habits, young families middle upper social class, higher income lifestyle: global sekers, but still faithful to culture, religion
Analysis Marketing Strategy Implementation

Background

Market Potential Analysis

Retail in India is weakly organized
2002 2008 2011 (projected) total retail organized total retail organized total retail organized (1,8%) (4,6%) (11%) USD Bn 194 3,5 300 14 527 58

Background

Analysis

Marketing Strategy

Implementation

Market Potential Analysis

clothing, textile and fashion accessory represent 36% of the whole retail industry and is a leader in organized retailing Joint venture with Lifestyle

Background

Analysis

Marketing Strategy

Implementation

Primary Data Gathering

Questionare with 13 questions two sections
Low number of participants Positive response

Contacted H&M and got no response Participated on forums

Background

Analysis

Marketing Strategy

Implementation

H&M quick facts

35 markets (2009) 1988 stores (2009) 76.000 employees (2009) Sales including VAT SEK 118,7 billion (2009) Profit after tax SEK 16,4 billion (2009) Growth target: increase the number of stores by 10-15 % per year

Background

Analysis

Marketing Strategy

Implementation

H&M quick facts

H&M is seen as a fast-fashion retailer with very high ratio in collections changes and lower prices for trendy products as their competition. Collections are very adventurous and fashionable. Brand atributes: constant arriving of new products, stores are expanding, new campaigns are lunched, inviting, exciting and constant surprise for the customers FASHION AND QUALITY AT THE BEST PRICE
Background Analysis Marketing Strategy Implementation

Positioning Map

Background

Analysis

Marketing Strategy

Implementation

Client SWOT
Strengths: 1. Trendy items at low price 2. Quick delivery time ( 2 weeks) 3. Flexible approach to product sourcing Weaknesses: 1. Old stock 2. Too many shops 3. Absent in Latin America, India

Opportunities: 1. Explore the collections 2. Online sales 3. Expanding in other segments

Threats: 1. Competition delivery time 2. Exchange rate flactuations

Background

Analysis

Marketing Strategy

Implementation

Implementation Deliver product through

Place

convenient channels
People

1. Best business locations 2. H&M concept stores 1. Constant growth 2. Recruit locally 1. Global identity 2. English language 1. Global media stretegies 2. Indian stars designers 1. No big adaptation - sizes 2. Country origin effect 1. Monitoring the demand 2. Control and listening skills Implementation

Reflect company values onto employees

Persona

Bring meaning to the brand To build brand and product awareness To deliver an experience beyond expectations

Positioning
Promotion

Product Process

Catered to be more efficient and accessible Analysis

Background

Marketing Strategy

Implementation - Price

Competitors prices (ex. Zara)

Background Analysis Marketing Strategy Implementation

Questions?
Background Analysis Marketing Strategy Implementation