STP Marketing
Segmentation
The segmentation approach in marketing refers to dividing a market into distinct groups or segments based on similar characteristics, needs, or behaviors of the target audience. As a proposed segmentation approach for the H&M company, it will be essential to consider the division by style. Nowadays, there are various tastes among young people and teenagers (Dansiger, 2018). This means that the company cannot satisfy customers’ requests only by following the mainstream trends of the worldwide clothing market.
The differentiation assumes creating particular segments where people with different tastes can find appropriate clothes. For example, many young people still prefer the classic style. The segmentation approach for H&M will propose creating a segment with only classic clothes so that these people can choose freely.
On the other hand, another H&M segment will be based on clothes that follow the newest trends in fashion. This can be, for example, high-heeled shoes for men or wide pants for women. The rationale for this approach is that it is vital to stress the comfort of customers’ shopping and the opportunity to create a more targeted marketing strategy to target particular customer groups.
Targeting
The target audiences of the segmented approach could be people of all ages. The main point is that they are interested in modern and classic fashionable clothes. They care about their appearance and seek a qualitative and fashionable solution to express their personalities (H&M, n.d).
However, the primary target audience will be people between 15 and 40. This choice is caused by the understanding that young and middle-aged people are more capable and interested in caring for their appearance. Moreover, these people’s category can easily acquire H&M’s products using internet websites, particularly from their laptops, smartphones, and other devices.
Positioning
As a position statement for the H&M company, one should construct a claim highlighting the company’s innovative approaches. Notably, these approaches should be described as differentiating the company from its competitors in the market. Second, the position statement must align with modern trends and standards (Kulpa, 2017). Among them, it is necessary to stress the use of methods that will allow one to reduce the negative influence on the environment and follow such documents as the Paris Agreement. Third, the statement should highlight the company’s orientation toward teenagers and young people.
Consequently, the position statement may sound like this:
The company’s approach is to provide customers with the latest trends and the immortal classics. While creating unique clothing, H&M cares equally for its clients and the green agenda, allowing the company to be eco-friendly and reduce its negative environmental impact. Therefore, people of all ages, especially youngsters, can be sure they are buying qualitative and stylish clothes and contribute to the planet’s sustainable development and safety.
Product, Extended Product, and the Product Concept
The main product of the proposed strategy will be business shirts for men and women. As stated earlier, significant attention will be paid to the aeration of the classic clothing segment, where people can choose garments according to classic standards of wear. Business shirts will form the base of this segment and be of various colors, patterns, and styles.
As an extended proposed product, one should highlight the vast collection of cufflinks that customers can pair with business shirts. It will create qualitative classic men’s and women’s wear and allow clients to choose by pairing different garments to create a unique classic style (H&M, n.d.). As part of the product concept, the classic shirts and cufflinks will be positioned as clothes that can suit everyone because of their versatility and quality. In addition, the concept will highlight that, besides the stylishness of this choice, the customers will have an opportunity to add their taste to classics using cufflinks.
Competitive Differentiation
Branding, support, packaging, and quality are essential for competitive differentiation. Branding will assume choosing the product’s color pattern, logotype, and label design. In particular, it will be designed classically for classic business shirts. Considering packaging, the primary attention will be paid to cufflinks, which will be in small boxes of a minimalistic design with the logo of H&M. The idea of packaging is to show the peculiarity of this company’s segments.
In addition, support and quality areas will be important in improving the entire production of H&M. These areas will be achieved through close research of the customers’ needs and preferences (Bettencourt et al., 2014). Based on the obtained data, a strategic plan will be created, allowing the rational and efficient use of all four areas. In addition, the company should hire professional designers to develop qualitative branding and packaging.
Price, Place, and Integrated Marketing Communications
The new company’s sector will be considered a premium with the appropriate prices. In the store, a specific place with different designs will be created. It will not have modern design attributes such as neon lamps, ceramic, etc. In addition, the place will have noble and not contrasting colors to highlight the classic style of clothes placed here (H&M, n.d.).
The two primary instruments, the customer-centric approach and message incorporation, will be applied to integrated marketing communications (Osborne, 2022). The customer-centric approach assumes a comfortable setting to view clothes and cufflinks. Notably, this method will highlight the quality of new products and implement new design approaches.
Global and Ethical Considerations
Local traditions, sustainable development laws, and shipping were three business and sociocultural considerations for translating a marketing plan for use in a foreign market. Traditions will play a significant role because, in some cultures, classic wear could be met in an unpopular way. Consequently, the demand for business shirts and cufflinks will be low. The laws regarding sustainable development and green agents should be explored profoundly to understand that the foreign country has specific regulations to manage the ecological factor (Thompson, 2022).
In addition, the shipping questions are vital because of the safety and time aspects. H&M’s CSR actions are an essential part of the company’s strategy. Green marketing practices assume a significant reduction of the impact on the environment, using low-energy lamps and specific decorations in stores (H&M, n.d). On the other hand, DEI efforts are seen through the clothing sectors of H&M. The variety of choices is appropriate regarding gender equality, racial justice, and other aspects.
Conclusion
In conclusion, the proposed segregation will be necessary for H&M to attract new customers and apply new interaction methods between customers and the company’s production. In addition, the strategy statement highlights the importance of following rules regarding the green agenda and sustainable development. This plan should be funded for two reasons. First, it will create a new segment with classic clothes. Second, it will attract more customers through the option of diversified production.
References
Bettencourt, L. A., Lusch, R. F., & Vargo, S. L. (2014). A service lens on value creation: Marketing’s role in achieving strategic advantage. California Management Review, 57(1), 44–66. Web.
Dansiger, P. N. (2018). Why Zara succeeds: It focuses on pulling people in, not pushing products out. Forbes. Web.
H&M. (n.d.). Web.
Kulpa, J. (2017). Why is customer relationship management so important?. Forbes. Web.
Osborne, K. (2022). Strengthen your customer relationship by asking, ‘What are we doing for others?’. Forbes. Web.
Thompson, S. (2022). Embrace these 5 inclusive marketing principles to win more customers. Forbes. Web.