The Strategies Of Marketing Mix Marketing Essay

The Strategies Of Marketing Mix Marketing EssayThere cease be m whatsoever drives for wanting to be inter subjectized inter mixtureable intensity level in the home market, the desire of exportation your product and catch new type of customers in new markets, little opportunity to growth in the possess province HM wanted to get a strong leaf blade and arrive to the best cities and establish their shops. They are looking always for the best cities and places to clear their shops in aim to get to a greater extent and more customers e truly last(predicate) over the world. When they decided to internationalized, their wish was to become in a great famous brand, and in conclusion they got it, beca spend as I said, it is a well- spotn follow situate in 47 polar countries which is in any case planning to build new shops in more contrasting ones. (See appendix2)Target MarketHMs primary target market is based on consumer two men and women in the midst of 18-34 years oneti me(a). In order to adjoin the target customer, they produce good design habit with good quality and exclusively of that in real cheap prices, so that, the customers of HM are very satisfied with it because it liberty chits them everything they want. (See appendix 3)Market Selection Criteria(Keegan, W., J. and Schlegelmilch, B., B., 2001)When a company wants to be internationalised in a new state it must answered this question so as to know exactly where to establish their brand (See appendix 4)Which market is the best?PhilippinesPortugalAs it can be seen in this two graphics, without a shadow of doubtfulness it can be said that the most secure country to commemorate in is Portugal. commencement ceremony of all(prenominal), although this graphics non shows the complete reason, it is the main reason for choosing Portugal. As it can be seen, in Portugal the corruption is really high, the government is not as competent as in Portugal, the foundation is not as dress up as in Portugal to be able to build stores Finally, making the positive and negative points of each country, it is clear that Portugal is the best option not only because of these results, still too because the geographic location of the country. (Global Competitiveness Report, 2012-2013) (See appendix 5)PortugalOPPORTUNITIESTHREATSPOLITICALParliamentary representative democratic republicECONOMICHigh income mix economyThe pecuniary crisisECOLOGCAL both(prenominal) land hectaresEcology conservation LawsTECHNOLOGICALPioneer of technologyThe financial crisisFASHION INDUSTRYGrowth in the industriousnessThe financial crisis intelligent REGULATORYControl competitionNot allowed aggressive competition(Technology Portugal, 2009)(Economy of Portugal, Wikipedia, 2012)(Politics of Portugal, Wikipedia, 2012) (See appendix 6)Competitors (See appendix 7)Indirect CompetitorsHM does not involve more Indirect Competitors in the sector, however, on that point someone that are strong and that they are gaining armorial bearing in the online shopping (See appendix 8)HMASOSDirect CompetitorsAs everywhere like a shot, in Portugal in like manner there are many fashion retailers that are establishing their shops in many cities so as to get more benefits and became some(prenominal) more international brand. In the case of HM, it would gravel many competitors, and the main one it would be Inditex. (Retail Index, 2012) (See appendix 9,10,11,12)HM vs. InditexThe major competitor of HM is Inditex, this table shows what main differences are between themOutsourcing of Core ActivitiesGroup ModelCompetitive advantageSegmentationCommunication No own factories 80% is produced in Asia low-budgeter major margins 39,7% of salute upon sales destiny to create collection well in advanced Single chain Major margins in the short run Collaborations with Luxury brands, singers Own industries 40% is produced in Europe Major flexibility Major index for growth 44,3% of cost upon sales New collecti on every 2 weeks Different Chains Major dynamism and growth in the long run Collaborations with new designers, actors(Moda Rapida, 2012)Customers in PortugalIn all countries the customer do not have the aforesaid(prenominal) acquire habits, how are the shopping habits of Portuguese young consumers?Factors that influence in clothing purchasingAt the clock of purchasing garments, young consumer In Portugal prefers not to have anybody behind them asking all the time if they need any help, that is, they prefer to go to big stores and have a look for everything and then if they need any help ask to a staff although they think that are really impersonal places. They prefer to be free, they want to be comfort when they are shopping. obtain Behaviour and the influence of othersPortuguese young consumers prefer to go shopping all for many different reasonsMore freedom of movements They like to go alone as they dont need to be all the time calling to the other persona come here, go there and so on.More independence in choice Young consumers do not like to be influenced by anyone they like to buy things without any other opinion, if they like it they would buy it without having anybody prejudicing them.Individual last As it is individual decision, nobody would be saying anything bad about the clothes.Purchasing choice criteriaWhat are looking for the customers at the time of buying clothes? They based their purchase in some factors that finally are the ones that trade names one to take the decision of buying one thing or another.Low harmComfortGood DesignGood QualityBrand NameDoes not have any influence in purchasing criteria as nowadays almost all brands are equal.(Information sources and clothing,2012) (See appendix 13)Perceptual MapLow QualityHigh PriceHigh QualityLow PriceINDITEXCORTEFIELMODALFACAHMPRIMARKMANGOGAPIn order to create the perceptual, I use my perception about the fashion brands in the world, that is, I collocated each of the company in the ass ign that I perceive. As it cam be seen, in the homogeneous square we can find HM and Inditex, only when for my point of view, although the price of it is more expensive, the quality is much cleanse so that its positioning is greater than HMs one. Apart from this, it can be said that for young people, Cortefiel and Mango are so equal in the quality and in the prince and also GAP and CA although being so expensive, their quality is very high. Finally, as for the brands with the lowest quality, although their low price is so attractive for punctual occasions, customers prefer to buy in companies that offer them a major quality.RecommendationI really recommend HM to go to Portugal as it can offer many advantages to HM starting with its geographical location. Although the financial crisis is affecting many consumer, as HM has very low prices it can be a very good opportunity for the young people to get fashion clothes with their low income, so as nowadays the physical tone is gaining importance, HM would find a very good opportunity in Portugal(About HM, 2012)AppendicesAppendix HM1980/90Stores unfold in Germany and Netherlands. Stores open in France, and the use of celebrities to the advertisements1947197719761974196819641952Sales of cosmetic started.First store opened outside Scandinavia, In London.Listed on the Stockholms Stock ExchangeHennes buy the fish store Mauritz Widforss, and the reboot is changed to Hennes and Mauritz.First store opened in a foreign country, in Norway.Hennes open in StockholmFirst store open in Vsteras (Sweedem), with the name of Hennes2012Plan to open Bulgaria, Latvia, Malasya, Mexico and Thailand.2011HM open in Romania, Croacia and Singapore.2010First stores open in Soth korea and Turky. Monki goes to Asia, HM home open in Sweden.2009First store open in Russia and in Beijing. HM home is launched, Weekday and Monki open in Germany2008First store open in Tokyo. Adquisition of Weekday, Monki and Cheap Monday brands.2007First Asian st ore in Hong Kong and in Shanghai. Expansion of online sales. COS stores launched.2006Major expansion of online and catalogue sales2004Initiates designer collaborations with luxury brands2000Stores open in US, Spain and in many European countries.HMs front line all over the worldHM world map. 300+ stores 200+ stores 100+ stores 50+ stores 20+ stores 10+ stores 1+ stores Upcoming stores(HHYPERLINK http//en.wikipedia.org/wiki/ depositHM_world_map.svgHYPERLINK http//en.wikipedia.org/wiki/FileHM_world_map.svgM world map, Wikipedia, 2012)HM GroupHM as Inditex is completed by many different brands, that is, HM is convention that is composed by some different brandsHMIt produces a broad and diverse range of fashion for men, women, youth and children, furthermore, it also sales cosmetic, accessories and products for home.COSIt offers customers a combination of timelessness and distinctive trends, for both women and men.MonkiIt is a very creative brand that offers to the customer the opport unity to express it self.WeekdayIt offers urban fashion for men and women always at the best price.Cheap MondayCheap Monday combines influences from street fashion and sub finales with a catwalk vibe.HMs expansion systemHM is so conscious at the time of open up new stores in other countries, that is, it thinks that the stores should correct much stronger the brand and attract customer giving them the best shopping experience as possible.When HM is moving to a new country, so as to see if it would be bankable or not to enter in it analyses the political, economic, demographic, and infrastructural environment. It creates very modern stores in all the countries that it establishes its business so as to offer a great shopping time to the customer. Furthermore, it is working in making its stores much more ecological so as to save the world and do not damage it.HM is looking for a great expansion in the future it is planning to open many new stores in many different countries, so as t o create a very strong brand.HM SWOT analysesStrengthsBrand recognition Low Price and style It has heraldic bearing in al over the world and people know it because of the fashionable clothes that sales in a very cheap priceoperating(a) efficiency As it has a great control in the logistic area, it is able to have low cost and maintain really good margins.Opportunitiesuntapped potential in emerging markets As the lifestyle is changing everywhere, people is much more aware of its physical aspects, so that, the fashion is gaining presence.Internet retail The fashion industry is increasing every day, and nowadays with the help of internet they can growth in an incredible manner, it gave them a great opportunity to growth.Weaknesses reliance on outsourcing The reliance of Inditex products put HM in critical situation as Inditex appeals much more to customers.Modest presence in emerging markets It a well-known brand in the whole world, but the major presence is only in Europe and in North America.ThreatsNon-food expansion of grocery retailers Many supermarkets like Tesco, are thinking in competing in the clothe industry with HM.Fast fashion becoming more competitive Its major competitor is Inditex, that also does fast fashion, but new competitors also are appearing very strong(Ryerson, 2009)Vertical IntegrationHM has a vertical integration strategy in which was pioneer establishing it some years ago. Due to this strategy, the company is now able to collect info about the sales and customers and use it in order to make a better strategy always so as to get more profits for the future and catch much more customer.(Europa.eu,2012)LCCP, GCCP or FCCP?In the case of HM, it can be said that this company is GCCP( Global Culture Cultural Positioning), as they are a multinational that they sale their self saying that the customer is part of the global family. Although they need to adapt maybe their strategy in each of different country, they sale their brand as a global comp any actually all their products are the same in all countries, they offer the same products for the customers of different places, macrocosm the part of the global family is the message that they are selling to the customers mind.Appendix Internationalization MotivesThere are 2 kinds of motives that prompt the companies to internationalised, Proactive and Reactive motives. In the case of HM there some points inside those factors that do not have any sense, so only the main points are going to be explained.Proactive MotivesProfit and growth goalsall(a) companies want to growth, and so as to get that the best option is to go abroad and establish their brand in new countries. This is one of the main reason why the companies want to internationalized, in order to become i and bigger and be well known in the whole work.Managerial urgeIt is a motivation that the managers of the business have their motivation is to be part of a company that works all over the world.Foreign market opportu nities/market informationHM could see many opportunities to growth in foreign markets as is a company that have great presence all over the world. However, it is not established in all countries, so if it wants to become a bigger brand, it should get wind what opportunities offered each country and see if it is profitable or not.Economies of scale-learning curveBeing internationalized, offers HM the advantage of the economies of scale as it could produce high amount of clothes at the same time.(Hollensen, S., 2007)Reactive MotivesCompetitive pressureHM could be scared for example of the competitive pressure of Inditex as it has a great strategy that helps it to continue in the top level. If the company see that other brands are growing all over the world and that are gaining customers and getting profits, the no internationalised company also would want to get all that. So for that reason, HM would like to enter in more and more countries so as to be a great company.Domestic market small and saturatedHM was created in Sweden many years ago, but as the market was becoming so small to compete there, it decided to enter in new countries so as to growth its presence.Extend sales of seasonal productsAs maybe the demand in the home country is not very big and it does not possess the opportunity for the company to get the desire profits, they would find new opportunities to get what they want in foreign countries.(Hollensen, S., 2007)Appendix How to choose the target market?Targeting is the execution of evaluating and comparing the different groups of consumers and chooses which is the most suitable for the company. Companies have to base their research in 3 pointsCurrent segment and the growth It will be rich profitable to the company to centre only in that segment?Competitive intensity and potential competition If that segment has a great competition, it is suitable to enter in?Compatibility and feasibility If that segment pass water problems to the companies, could another company catch them?(Keegan, W.J. and Schlegelmilch, B.B., 2001)When HM creates its brand he had surely been thinking about these points at the time of creating its designs. When the companies are creating their collections they must be thinking on the target market as they are the wanted customers and they should create those clothes that appeals to them.Appendix Market pickaxe CriteriaMarket PotentialHere the company should analyse if the market satisfied completely the customer and also if the customers has the necessary ability to purchase the product that the old retailers offer them. (International market selection, 2004)Market SizeThe companies need to observe how much of the market it can expect to could afford.Market growthThey have to observe how much have grown this sector in that country during all the years so as to know if they would find and increase or a slack in the industry.Competitive IntensityThe Company have to make a great research relating with the competitors of the industry in that country so as to know in what position they are and how strong are the competitors.Entry BarrierIn all countries are entry barriers to foreign companies so as to cheer the future of the home country industries. They should make many deals so as to finally get into a new market.Political EnvironmentThe government of a country affects a lot the business life because of the changing policies, regulations and laws. Furthermore, the government of each of the country is who choose which businesses will receive protection and which is going to instance an open competition. Furthermore, the political stability of a country will affect the action that government will take, and finally that actions will have many influences in an enterprise. (Sirkeci, I. and Cawley, R., 2012)Economic EnvironmentNowadays the economy has change radically, due to that factor all countries are now potential targets for every company. When a company has to make research i n global marketing, the economy dimension of the world is crucial as it has great influence in this point. (Keegan, W.J., Schelegelmilch, B.B., 2001)Demographic StructureThe company should observe how has change the demographic in the objective country so as to control the evolution of the Target customer.Purchasing PowerIt has to know how is the purchasing former of the objective customer so as to know if they are going to get benefits or loses in that country. al-QaidaThe retailer need to observe if the infrastructure of the country is good or not so as to build and factories in that country. The country must have strong infrastructure so as to build powerful companies, strong social, economic, aerialinfrastructure.Appendix Philippines and PortugalSo as to choose the most appropriate country to enter in, many things must be analysed as it can be seen in the paper. However, not only those shown points are important, there many other things like the GDP, unemployment rate, populati on, innovation that should be take into accounting system when an enterprise want to be opened in that country.PhilippinesPopulation 93,6millionsGDB per capita 2,007$Infraestructure 3,1Macroeconomic environment 5Goods market efficiency 4,1Labor market efficiency 3,9Having a look to these different score between 1-7, it is clear that Portugal it is clear that Portugal is much more secure country to establish their company. Although the most relevant dates had been explained before in the pages, this also are very important at the time of choosing the country to enter in. so finally, Portugal is the country that will be analysed for the report.Financial market emergence 4Technological readiness 4,6PortugalPopulation 10,7 millionsGDP per capita 21,559$Infraestructure 5,5Macroeconomic environment 4,2Goods market efficiency 4,3Labor market efficiency 3,8Financial market increase 4Technological readiness 5,3(The Global Competitiveness report, 2012-2013)Appendix PortugalPolitical Enviro nmentPortugal has a constitutional republic and a parliamentary system in which a semi presidential regime is establish. The prime minister is take every four years and is the person who led the government, furthermore, the president of the government is elected every five years.(Doing business in Portugal, 2012)Economic EnvironmentThere can find many industries that has established their main company in Portugal, for example, in the case of Inditex, it has one factory there as the production is cheaper than in Spain. But although been a developed and high income country, it has the lowest GDP in occidental Europe, and besides, the population has the lowest purchasing power of the European Union.(Economic of Portugal, Wikipedia, 2012)Regulatory EnvironmentThe Law 18/2003 In Portugal is create to maintain a competitive economy, not to have an unfair competitive and so heavy one. The law prohibited the company to make agreements that would affect the competition between economic age nts in national territory. In addition to this, the companies are not allowed to make a very aggressive competition so as not to affect the sector in that country.(Doing business in Portugal, 2012)Fashion industryNowadays the textile industry in Portugal represents just under the 10% of outputs. The situation in Portugal is not the best, but the companies that are surviving are having great profits, so people is seen as an optimist market. Many different brands produce their clothes in Portugal like Fred Perry, Inditex, Paul smith because of the process is not as expensive as in other European countries, , however, although the industry is surviving, all the companies has suffered losses during the financial crisis. Every type of industry are suffering now due to the 2008 financial crisis, in many countries many companies closed their factories, nevertheless, the textile industry in Portugal is growing up once more so slowly but is growing, every brand are getting now profits, so f or HM it could be a great opportunity as the industry is having good results nowadays. Besides, it must be said that HMs strategy is very similar to Inditex ones, its clothes are so cheap and finally a country that is suffering a lot because of the crisis , population wants to have the opportunity to buy cheap fashionable clothes. Inditex is having great results in the country, so as HM prices are cheaper, why it would not get many profits? Portugal as I said, can offer HM many great advantages.(UK reuters, 2012)Barriers to enter in countryThere many barriers in all countries for different companies that wants to establish their brand there are (Hollensen, S., 2007)General Market RisksThe main barriers are the great battle that HM could find in Portugal, the different culture and language, because the Swedish and Portuguese people are so different at the time of working and also the language is totally different. In addition to this, it is no easy to find a new distributor in a fore ign country, they should make alliances an all of that work so as to get a great position, and finally, it must be said that it is a very difficult work to adapt all the company for that new culture and make a great company overseas.Commercial RisksAlthough Portugal is in Europe too, there are always delays in the delivering of the export products or some damages in them. Beside this, there are always changes in rates and that could have a great influence in the cost of a company.Political RisksThis subject is a little bit special companies have to take caution as politics have great influences in all countries. HM have to take into account how is the law of the exports in Portugal, what type of restrictions have impose the government, the thoughts of the citizensOpportunities of entering in the PortugalInvesting in Portugal it would give companies many advantages for many different reasons (Doing business in Portugal, 2012)Strategic access to marketDue to the Portugal economic open ness and also because of its strategic geographical position it can offer great opportunities to different companies between EU and also different markets. As it has relations with Brazil and is near Africa, it offers great advantages so as to make exports and imports.Cost competitive, qualified and flexible workforceThe Portuguese employers are known for having great attitudes at the time of adapting their self to new technologies, strategies and so on. handsome environment to live and workIt is a country that offers the companies very secure areas and ensure the security for their production, and so on as it is very pacific place.InfrastructureAs during the last year Portugal has made great investment so as to modernizing its communication infrastructures, it is great country to establish a company as it can be adapted very easily to the new technologies that the company will bring with it.Appendix CompetitorsMarket 5 forcesThreats of New entrance rivalry among existing competitor sThreat of Substitute products or servicesBargaining power of buyersBargaining power of suppliers(Keegan, W.J. and Schlegelmilch, B.B., 2011)Referring to HM, although it is a great company, its major competitor is doing everything much better than HM does. HM it would be the new entrance in that country and of course all those competitors like Inditex, Cortefiel and so on would be threat of it as they would need to fight with one more company. However, knowing that new entrance, those companies may start making much more deals with the suppliers so as to have the ability to offer much better products and service to their customers and not to lose them. Finally, HM has a great positive factor to the consumers that could be a great advantage to its competitors. It makes many alliances with famous designers like Versace, Moschino so as to create new collection that are attractive to young consumers as they feel with higher status. Inditex should be worry about that as luxury brands are so attractive to consumers, but if it continuous doing a hard work it will be as everywhere the winner of the sector also in Portugal.Appendix ASOSASOS is an online beauty store that provides the customer many products of different brands in very cheap prices. That is, the consumer can buy in the same website clothes from many different brands like Adidas, Armani, Topshop it sales hundreds of brands, thats why it became so attractive to the customer, because it can find in the same place clothes from everywhere.ASOS was created firstly in United Kingdom in 2000, but them while it was gaining presence in whole Britain it started going abroad and gaining presence in many countries of Europe. After that, the market of US was prepared to ASOS arrival as everyone wants to have the opportunity to buy many brands product in the same place.(ASOS, 2012)Appendix MOFALDAModalfa is a Portuguese fashion brand that offer the customer very fashionable clothes in a cheap prices. In Portugal, as I explained before, it is a great competitor for HM as it offers the customer similar opportunities as HM do.(Modalfa, 2012)Appendix CORTEFIELCortefiel is the first brand created by Cortefiel group in 1946, which offer the customer an elegant and comfortable style with very high quality. With this personal style, Spanish brand has open its road to many countries and it is very strong competitor for many other companies. Its target customer is based on men and women between 35-45 years, and although HM is addressed to young people, finally all consumers are important for every company. (Cortefiel, 2012)Appendix CACA is a fashion company that has presence in 20 different countries of Europe. People have a very good perception about CA, it offers 10000 different products in all the countries, and although its high prices, the products have very high quality, the clothes lasts for years so people do not mind to pay more for those clothes. (CA, 2012)Appendix InditexThe Inditex group is the most powerfull competitor of HM and as it, has many different brands inside that are very famous and makes the more and more strong everydayZARA Zara has presence in 85 countries and it has opened 1671 stores in the best places of the cities. For Zara there is no any limit, they want to be in all the countries of the world in the future, and due to its great strategy it can get it as it is opening new stores every day.Pull Bear It was create in 1991 especially for young people as it has very juvenile style. Is it one of the most profitable brand in terms of Urban clothes as every young people go there to get urban style clothes.Massimo Dutti It has 567 stores give out in 53 different countries. It offers Urban and casual styles both for men and women, its target market is based on men and women adults, thats why the growth of the prices and the change in the style comparing with other brands.Bershka It was launched in 1998 and nowadays it has 839 stores in 63 different countries, and as it is known, it appeals basically to the young target market.Stradivarius It produces clothes, accessories, shoes and its clothes are combination of elegant and hippie clothes that appeal a lot for young people.Oysho Oysho sells the latest fashion trends in womens lingerie and intimate arrangeZara Home It is specialised in home decoration and linen things that attract so much to women because of it reasonable prices.Uterqe It is the newest brand of Inditex and it is the most expensive brand of the group.(Inditex group, 2012)Zara is the most powerful brand of the group, is the main competitor of HM alone as I said. In the above image appear where Zara has its stores. (Zara targetmap, 2012)Appendix CustomersThe culture in which the consumers have been grew up have many influences in the priorities that the customers give to different activities an