Tosm Assignment

THEORIES OF SOCIAL MEDIA – ASSIGNMENT
SOCIAL MEDIA
STRATEGY
VAISHAALI / VAISHNAVI / PRANEETHA / HARITHA
ACKNOWLEDGMENT
We are really grateful because we managed to complete our

THEORIES OF SOCIAL MEDIA Assignment within given time by our
prof. A. Srinivasa Rao Sir. We also sincerely thank our professor
for the guidance and encouragement in finishing this assignment
and also for teaching us in this course. This assignment cannot be
completed without the effort and co-operation from our group
members, group members’ Garikipati Sai Praneetha, Haritha
Vahini, Vaishaali Saxena, Vaishnavi Loya.
TABLE OF CONTENTS
1 INTRODUCTION...................................................................3
1.1 ABOUT............................................................................3
1.2 PRODUCT PORTFOLIO....................................................4
1.3 VALUE AND DISTRIBUTION.............................................4
1.4 MARKETS AND EXPANSION............................................4
2 CUSTOMERS........................................................................4
2.1 SEGMENTATION STRATEGY............................................5
2.2 TARGETING STRATEGY...................................................5
2.3 POSITIONING STRATEGY................................................6
3 SOCIAL MEDIA MARKETING BY H&M..................................6
3.1 FACEBOOK......................................................................6
3.2 TWITTER.........................................................................6
3.3 GOOGLE+........................................................................6
4 BRAND ANALYSIS.................................................................6
4.1 BRAND SALIENCE............................................................7
4.2 BRAND PERFORMANCE AND IMAGE..............................7
5 SWOT ANALYSIS OF H&M...................................................7
5.1 STRENGTHS.....................................................................7
5.2 WEAKNESSES..................................................................8
5.3 OPPORTUNITIES.............................................................8
5.4 THREAT...........................................................................8
6 CONCLUSION.......................................................................8
7 REFERENCES AND BIBILIOGRAPHY......................................9
1 INTRODUCTION
1.1 ABOUT
H & M Hennes & Mauritz AB, also known as H&M Group (abbreviated H&M), is
a Swedish multinational clothing corporation. It is primarily concerned with
fast-fashion clothing for men, women, teenagers, and children.
H&M Group operates in 75 geographical markets with 4,702 stores under the
various company brands as of 2021, with full-time equivalent positions in each.
H&M is the second-largest international clothing retailer, trailing only Inditex
of Spain (parent company of Zara).
Erling Persson founded H&M, and Helena Helmersson is the company's current
CEO.
1.2 PRODUCT PORTFOLIO

The company’s products portfolio includes shorts, cardigans, sweaters, blazers
suits, t-shirts, sweatshirts, shirts, sports and swimwear, lingerie. It also offers
cosmetics and accessories such as jewellery, hats and gloves, belts and
suspenders, home textiles, homeware, sunglasses, and watches. The company
offers these products under H&M, Afound, COS, Monki, Weekday, Sellpy, Arket
and & Other Stories brand names. H & M also sells its products through various
e-commerce channels. The company’s operations are spread across Europe,
Africa, the Americas, Asia, and Oceania. H&M is headquartered in Stockholm
City, Stockholm, Sweden.
1.3 VALUE AND DISTRIBUTION

In comparison to 2015, the company's value has decreased by 10%, as annual
net income has decreased by 10%. Nonetheless, in addition to the 15%
increase in assets, the stock market value increased by 28%. (H&M: annual
report 2016). Nonetheless, its net profit dropped by 32% in 2018, owing to stiff
competition from Zara (Sweden: H&M lays out a turnaround plan to combat
falling profit 2018). The brand is distributed through 4,553 stores in 62
countries and online websites in 47 countries (Sales development in the third
quarter 2017; H&M group n.d.a).
1.4 MARKETS AND EXPANSION

H&M Group is expanding with a focus on omnichannel sales. They enable
their customers to shop and be inspired when and how they want - in
their stores, on our brands' websites, on digital marketplaces, and on social
media.
2 CUSTOMERS
The STP process demonstrates the links between an overall market and how a
company chooses to compete in that market.
2.1 SEGMENTATION STRATEGY

These are methods for segmenting a market or population into segments with
similar characteristics. H&M uses demographic and psychographic
segmentation to reach all of their customers. H&M has stores all over the
world. This means that the company caters to a wide range of religions,
cultures, and lifestyles. As a result, they must market differently in different
areas.
1. Class segments: H&M's strategy is to offer high fashion at low prices,

primarily to the working class, lower middle class, and students.
2. Class/home segmentation: The most popular segment is women aged 15 to

30 who are still living at home, in student dorms, or in their first house in urban
areas.
3. Age groups: The most popular age group is women aged 15 to 30, also
known as generation Y, who are ambitious and have a lot of money.
4. Family life segments: A typical college to graduate female's life at home

single, on their own in dorms, or in their first home, either single or as a young
couple without children.
Cultural, social, personal, and psychological influences all have an impact on a

person's lifestyle and personality. This demographic seeks low-cost fashion and
frequently shops at multiple stores.
Making a decision: A consumer follows the "consumer decision-making
process." "
2.2 TARGETING STRATEGY

The selection of potential consumers to whom a business wishes to sell goods
or services. H&M's target customers are fashionable and trendy consumers
who see shopping as a social activity that provides pleasure in their daily lives
and who want to follow trends without spending a lot of money.
H&M's target demographic is young people. Despite the fact that H&M sells
clothing and accessories for people of all ages, their primary market is women.
Women typically shop more for themselves, but they also buy all of their
children's clothing and, in some cases, their husbands' clothing. Customer
appeal is high, but customer loyalty is low. According to dancehall dilemma
theory, these are conversion targets that are appealing enough to warrant
pursuing.
2.3 POSITIONING STRATEGY

The brand positions itself as a retailer of trendy clothing and accessories at a
reasonable price. It sells inexpensive but fashionable fashion items to young
men, women, and teenagers (Dover 2018). The target market consists of men
and women aged 16 to 24 who prefer to follow trends but do not want to
spend a lot of money on clothing.
3 SOCIAL MEDIA MARKETING BY H&M
3.1 FACEBOOK
H&M has over 14 million Facebook fans and posts several updates per day,
except on weekends. The majority of the updates are solely focused on
promoting its products, but there are some really cool promotional ideas
hidden among the blog's standard "buy these trousers" posts.
3.2 TWITTER
H&M has created separate Twitter feeds for each of its local markets, but they
all use the same background and header image, indicating that branding is
tightly controlled. The feeds appear to be equally bad at responding to other
users, with each churning out marketing messages rather than responding to
queries or @mentions.
3.3 GOOGLE+
H&M has over 2.5 million fans on its G+ page, which it updates daily, but
engagement remains low, as it is with most brands. Despite the fact that the
imagery is always eye-catching, the posts only receive a few hundred +1s and
tens of comments.
4 BRAND ANALYSIS
4.1 BRAND SALIENCE

H&M is easily recognised because popular news websites produce content
related to the company, which helps to translate the company's values. In a
purchasing situation, slogans such as "sustainable fashion," "do it anyway," or
"fashion and quality at the best price" are accepted by the customer's
memory, as are cues such as "trendy," "independent lifestyle," and
"affordable." n.d.c. H&M group.
4.2 BRAND PERFORMANCE AND IMAGE

In terms of pricing, H&M differs from its main competitor, Zara, in that their
items are less expensive. Frequent discounts are also part of the company's
policy, but this is not unique to retail clothing stores. According to a study
conducted by Textiles Intelligence Ltd, customer service is adequate (2007)
Through its websites and visual style of interior design in stores, the brand
offers a variety of intangible associations. It translates values such as constant
flow of ideas, variety in style, affordable clothing for fashionable men and
women, and so on (Interbrand 2014). It differs from its main competitor, Zara,
which promotes more strict, classic, and formal looks, and this distinguishes
H&M's imagery in its segment.
H&M promotes self-expression and individuality while encouraging acceptance
of individuals as members of society. The breadth of values and client identity
at H&M promote behavioural loyalty. Its customers could be defined as any
young person who likes fashionable clothes.
5 SWOT ANALYSIS OF H&M
5.1 STRENGTHS
 Leader in Global market (2nd)
 Leader in European market (1st)
 Affordable & high-quality clothing
 Fast-fashion
 Throw-away fashion
 Strong presence in multiple markets (Women, Men, Kids)
 Celebrity endorsements
 Strong social media presence
 Price does not affect quality
 Company website and blog
 E-retailing
5.2 WEAKNESSES
 Brand awareness of individual apparel brands sold in stores
 Brand Loyalty
 Customer retainment
 Fit is not consistent due to variety of manufacturers and supplies
 Customer service
5.3 OPPORTUNITIES
 Promote current sustainability practices
 Increase word of mouth in both female & male audiences
 Online market including social media
 Mobile Marketing
5.4 THREAT
 Primary competitors: The Gap, Zara
 Core product: the basic offering
 Actual/ Expected: Additional benefits normally provided with the core
offer
 Augmented: core product to which additional products and services may
be added to generate multiple revenue streams.
 Potential/ Intangible: Brand, image and perception
6 CONCLUSION
H&M has grown from a small Swedish clothing company to one of the world's
largest in terms of shabby and popular clothing since its inception in 1947. H&M
has been able to construct a solid and practical brand where the item is all around
adjusted to the necessities and needs of the clients.
They have demonstrated to the market that style does not have to be expensive,
and that you do not need to make a lot of money to be able to dress elegantly.
This idea is mostly appealing to more youthful people who don't have such a high
pay because they are just starting out in their career or are still considering it.
H&M has effectively communicated their vision to their customers and built a
strong brand name, allowing them to establish a place in their customers' minds,
which is critical in a focused point of view. The competition among organisations
that offer shabby and popular garments has grown in the most recent decade,
which will drive H&M to never stop creating and improving their business. To
attract and retain customers, their marketing strategies must be focused and
moral.
7 REFERENCES AND BIBILIOGRAPHY
ARTICLES
80 Quartier 2017, H&M sales drop, introducing two new brand concepts. Web.
Dover, S 2018, H&M teaches shoppers to take care of their clothes, Mintel.
Lauren, L (2017) Positioning [Online] Hearst: LLC: Available
at http://smallbusiness.chron.com/positioning-marketing-plan-22983.html
Delirium, P (2017) Marketing Strategy H&M [Online] Academia: Available
at http://www.academia.edu/12881172/Marketing_Strategy_H_and_M
WEB REFERENCES
https://www.hm.com/in/
H&M clocks over Rs 1.75 crore sales on day 1 of India launch - The Economic Times
(indiatimes.com)

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THEORIES OF SOCIAL MEDIA – ASSIGNMENT

We are really grateful because we managed to complete our

1.2 PRODUCT PORTFOLIO

1.3 VALUE AND DISTRIBUTION

1.4 MARKETS AND EXPANSION

2.1 SEGMENTATION STRATEGY

1. Class segments: H&M's strategy is to offer high fashion at low prices,

2. Class/home segmentation: The most popular segment is women aged 15 to

4. Family life segments: A typical college to graduate female's life at home

Cultural, social, personal, and psychological influences all have an impact on a

2.2 TARGETING STRATEGY

2.3 POSITIONING STRATEGY

3 SOCIAL MEDIA MARKETING BY H&M

4.1 BRAND SALIENCE

4.2 BRAND PERFORMANCE AND IMAGE

7 REFERENCES AND BIBILIOGRAPHY

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