Assignment 2 Front Sheet [PDF]

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ASSIGNMENT 2 FRONT SHEET Qualification

BTEC Level 4 HND Diploma in Business

Unit number and title

Unit 2. Marketing Planning and Processes

Submission date

28th December

Date Received 1st submission Date Received 2nd submission

Re-submission Date Student names & codes

Final scores

Signatures

Assessor name

Nguyen Thi Kieu Trang

1. Hoang Minh Chau 2. Nguyen Vo Minh Anh Group number:

3. Lam Tam Phuong 4. Ho Ngoc Bao Tram 5. Nguyen Phan Hanh Nguyen 6. Nguyen Le Phuong Anh

Class

GBD1002

Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is a form of malpractice. P3

P4

P5

M3

M4

M5

D2

D3

D4

OBSERVATION RECORD Student 1

Hoang Minh Chau

Description of activity undertaken

1. 2. 3. 4. 5. 6. 7. 8.

Market Research Objectives of market research Questionaire, create google form Objectives of Marketing Strategy PESTLE analyis, SWOT analysis Positioning and Differentiation Strategy Marketing Mix 7Ps strategy Action Plan

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student signature: Assessor signature: Assessor name:

Date: Date: Nguyen Thi Kieu Trang

Student 2

Nguyen Vo Minh Anh

Description of activity undertaken

1. 2. 3. 4.

Competitor Research Comparison of 7Ps marketing mix Questionaire, create google form Review of competition that identifies major competitors and assesses their market positions. 5. PESTLE analyis, SWOT analysis 6. Positioning and Differentiation Strategy 7. Action Plan Assessment & grading criteria

How the activity meets the requirements of the criteria

Student signature: Assessor signature: Assessor name:

Date: Date:

Nguyen Thi Kieu Trang

Student 3

Lam Tam Phuong

Description of activity undertaken

1. Introduction about company 2. Action Program 3. Target Segment of Marketing Strategy

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student signature: Assessor signature: Assessor name:

Date: Date: Nguyen Thi Kieu Trang

Student 4

Ho Ngoc Bao Tram

Description of activity undertaken

1. Strengths and weaknesses of your organization in terms of marketing mix. 2. Collect, analyse report data 3. Conclusion

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student signature: Assessor signature: Assessor name:

Date: Date: Nguyen Thi Kieu Trang

Student 5

Nguyen Phan Hanh Nguyen

Description of activity undertaken

1. Introduction about the report 2. Multimedia plan regarding to “Promotion” 3. Controls and Monitoring

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student signature: Assessor signature: Assessor name:

Date: Date: Nguyen Thi Kieu Trang

Student 5

Nguyen Le Phuong Anh

Description of activity undertaken

1. Review of competition that identifies major competitors and assesses their market positions. 2. PESTLE analyis, SWOT analysis

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student signature: Assessor signature: Assessor name:

Date: Date: Nguyen Thi Kieu Trang

Summative Feedback:

Grade: Assessor Signature: Internal Verifier’s Comments:

Signature & Date:

Resubmission Feedback:

Date:

Table of Contents Introduction ...................................................................................................................................................... 10

I. 1.

Introduction about the report ................................................................................................................... 10

2.

Introduction about company ..................................................................................................................... 10 Marketing-mix Strategy: ................................................................................................................................ 11

II. 1.

Market research ........................................................................................................................................... 11

2.

Competitor research.................................................................................................................................... 12

3.

Marketing Mix comparison ........................................................................................................................ 13

4.

Strengths and weaknesses of H&M in terms of marketing mix: ......................................................... 20

III. Marketing Plan ................................................................................................................................................. 21 1.

Executive summary: .................................................................................................................................... 21

2. Situation Analysis ........................................................................................................................................... 21 3.

Competition .................................................................................................................................................. 25

4.

External environment analysis .................................................................................................................. 26

5.

SWOT analysis .............................................................................................................................................. 28

IV. Future plan: ........................................................................................................................................................ 31 1.

Objectives:..................................................................................................................................................... 31

2.

Target segment: ........................................................................................................................................... 32

3.

Positioning and differentiation strategy: ................................................................................................ 32

4.

Marketing mix strategy: ............................................................................................................................. 33

5.

Multimedia plan:.......................................................................................................................................... 37

6.

Action Program............................................................................................................................................. 40

7.

Controls and Monitoring: ........................................................................................................................... 43

V.Conclusion .............................................................................................................................................................. 44 VI. FORM AND DATA LINK ...................................................................................................................................... 44 VII. REFERENCES ....................................................................................................................................................... 45

I.

Introduction

1. Introduction about the report Businesses must constantly recognize and update the complexities of new markets in order to gain a competitive advantage in the global economy. We are marketing personnel for company X, and we have been assigned the task of researching competitors and developing a marketing strategy based on our findings in order to advance our company's marketing objectives. The report provides an overview of what we discovered.

2. Introduction about company H&M has been developing as a brand with impacts on people’s personal life, in a sense that it is a well-known brand all over the globe. This brand made its first appearance in Vietnam back in 2017 in a Ho Chi Minh City mall. The Swedish clothing chain has been launching more stores and opening up its business for cities all over Vietnam. Its basic collection is a well-known addition to everyone’s closet, for daily necessity and can be incorporated into outfits for more formal occasions.

Since the initial launch of H&M, this brand has been developing into a successful name brand in Vietnam and continues on growing. With the upcoming fall season, I want to use this opportunity to create a collection that emphasises the beauty of the harvest season with the main theme of Vietnamese folk art. By using the right marketing methods, this collection might not only be a success to the H&M clothing brand, but also accentuates the beauty of Vietnam through items of clothes.

II.

Marketing-mix Strategy:

1. Market research In recent years, the Vietnamese fashion industry has shown an amazing growth rate, signs that are also great opportunities for Vietnamese brands to develop. One of the big trends to replace the model of imported goods sold abroad is the appearance of many popular local brands, with highquality products ranging from youthful dust to elegant elegance. These domestic brands have really reformed domestic fashion by choosing products as the source of development, along with persistent creativity in each product. With those innovations, they have achieved certain results, with brands reaching billions of dollars in revenue every day. (TANOS, 2021)

2. Competitor research According to the general research of the current Vietnamese market, the biggest competitor of H&M which can be mentioned is GAP. GAP is a multinational fashion retailer headquartered in San Francisco and is a fast-fashion brand. (MISA AMIS, 2021) GAP organization or GAP inc., which owned some sub-brand like Gap, Banana Republic, Old Navy, Athleta, Piperlime, and Intermix. In which, the brand GAP includes basic product lines for male, female, child, and infant customer groups. In particular, the line GAP Kids is very popular with not only international consumers but also the preferred choice of most Vietnamese mothers. (Vân, 2021) In October 2011, after 2 months of announcing its entry into the Vietnamese market, the first store GAP was present in the center of Ho Chi Minh City. Currently, GAP is present in Vietnam with 7 stores in the form of franchises. (Vân, 2021)

3. Marketing Mix comparison

a. Product: H&M GAP In terms of products, H&M stands out for its fast fashion model and focus Our entire commitment to sustainability starts with our design teams on making the necessary changes in the products they offer. ... Vietnam's and the creation of goods that are attractive, have a minimal product lines are focused on design, style, and materials, and the environmental effect, and provide our consumers with confidence, designs, in particular, are always extremely adaptable and suited for Since the materials in our clothing contribute greatly to the everyone, regardless of gender or age. Customers may purchase items environmental

impact

of

each

garment,

our

design

and

for the entire family, including grandparents, parents, and even children. manufacturing decisions have considerable power to make our With a wide range of items,... H&M is suitable for all types of customers products more sustainable. Gap Inc. offers a wide range of items to and attracts a large number of customers to use its products. Main

products that will be made with recycled, organic, or another more appeal to clients in both the low- and high-end segments. (Gap Inc., sustainable cotton (MISA AMIS, 2021)

2021)

b. Place: H&M

GAP

H&M operates a total of 12 stores in Vietnam, including locations in Can GAP has a total of 6 stores in Vietnam, located in Ho Chi Minh, Ha Noi, Tho, Ho Chi Minh City, Ha Noi, and Da Nang. In comparison to GAP, the and Da Nang cities. Compared to H&M, GAP is quite focused on Vietnamese market has a larger number of stores and is more specialty stores, online, franchise stores, retailers. Moreover, GAP established. Customers will have easier access to items as a result of this. also pays attention to official pages on websites and social networking Furthermore, the goods are available for purchase on the brand's official like Facebook, Instagram. (Vietcombank. , 2021) pages on social media platforms such as Facebook and Instagram, as well as on the brand's official websites. (H&M VN., 2021)

c. Promotion: H&M

GAP

H&M created a multi-channel promotion plan that included advertising, Gap Inc promotes its brand and products through a blog or video in a sales promotion, and online promotion, all of which contributed to the wide range of media like social media or Youtube. Apart from brand's global exposure (Arangarajan, 2021). The brand has also promotional activities, the brand works with different types of collaborated with celebrities in several fields to increase customer collaborations and campaigns to promote its collections and raise preferences for collections. For example, they collaborated with the brand awareness (Pratap, 2021). Hole Inc. gives an assortment of hard celebrated Indian designer Sabyasachi in 2021. The collection was and electronic gift vouchers that might be utilized to make buys across named Sabyasachi x H&M. Additionally, H&M has many official page in their sites in general and shops. Indeed, even web-based gift

social media like Facebook or Instagram to showcase new items worn by vouchers, with the choice of a customized engraving, are conveyed in models in pre-matched sets. In important events, H&M also gives around three days... Print and media publicizing are two of the customers many gift, vouchers to thank them for buying products.

regularly utilized types of promoting. (Team, 2017)

d. Process: •

H&M: do not own any factories. All things considered, we get our garments from around 800 distinct sellers, generally from Europe and Asia. Our Manufacturing Office sets orders with providers and ensures that things are delivered at a sensible expense, of brilliant quality, and on time. (H&M., 2020) We manage all functional parts of assembling and keep in close association with our providers at our Manufacturing Offices across the world. (H&M., 2020) We guarantee that our products adjust with quality and security laws and are made in protected, reasonable, lawful, and working conditions through broad controls and tests. philanthropic. (H&M., 2020) In recent years, H&M has also manufactured eco-friendly packaging products such as paper packaging.

•

GAP: Client care tasks and transformation stages. (Gap Inc., 2021) Show how cycles move in a retail business by displaying administration activities and distinguishing potential regions for executing innovation-based lean administrations. (Gap Inc., 2021) Upstream inventory network creation and supplies. (Gap Inc., 2021)

e. Physical evidence: H&M

GAP

H&M shops are sufficiently bright and give a charming climate. The In Times Square, Gap Inc. has set up a next to each other brand product is intended to have a satisfying appearance that will engage insight. This supersized Gap and Old Navy retail presentation is purchasers. H&M is widening its item and venturing into new business focused on enticing visitors inside and treating them with sectors all through the world. The merchandise is of top-notch and exceptional customer service. (Rebholz, 2018) modern. (Team, 2017)

f. Price H&M

GAP

H&M offers a wide range of high-quality clothing at a discounted price.

Gap Inc.'s pricing strategy integrates a combination of product line

This is due to H&M's low production and shipping costs. High quality

and sentiment pricing techniques. The strategy will allow Gap to

and significantly lower prices attract young people and thus lead to

optimize pricing in a number of ways, such as locating distribution

increased revenue for the company (Team, 2017)

centers closest to stores to minimize costs. (Research., 2016)

g. People H&M

GAP

H&M staff is very much prepared at each level. Staff influence strategies, H&M staff is very much prepared at each level. Staff being urged to yet additionally in how to approach business customers insight. Staff has create and think of the best attire to wear. H&M connects with been trained these representatives walk customers through the most various worldwide clothing creators to make the current style. common way of settling the issues about item or size, etc. (Team, 2017) (Addison, 2019)

h. The way 7Ps applied to objectives of H&M and GAP  H&M: Leading the Change: • •

Promote and scale innovation. Drive transparency. (H&M group., 2021) 7Ps has met business goals, ensuring that products designed and manufactured respond to requirements and quickly catch up with the trends of the market you are aiming for. So, in the product development phase, marketers have to do a series of deep research into the product lifecycle that H&M is creating. In addition, 7Ps also ensure transparency to create trust between the company and its investors, customers, partners, and employees, establish trust and goodwill by building and maintaining maintain the company's reputation for openness and honesty in its business dealings.

Circular & Climate Positive: •

Take a circular approach to how products are made and used.

•

Use only recycled or other sustainably sourced materials.

•

Create a climate-positive value chain. (H&M group., 2021)

H&M group will improve and develop processes and marketing strategies. We have met our goal by reducing our use of electricity and water, as well as by manufacturing eco-friendly packaging products such as paper packaging and main products that will be made with sustainable cotton. Fair & Equal: •

Provide fair jobs for all.

•

Champion inclusion and diversity. (H&M group., 2021)

H&M has met its goal of providing fairness at work through its people marketing strategy. According to each area of expertise of each department, H&M will reasonably divide the work for each employee. At the same time, through the product and process to meet the brand's leadership and diversity goals, creating a stable relationship for stakeholders.

 GAP: Objectives: Our aim is to reimagine the way business can change the world. (Gap Inc., 2021) •

Ensure that the people who make our products operate in safe and fair conditions.

•

Minimize the impact on the environment.

H&M does this by collaborating throughout our value chain and between government, business, and civil society to address process challenges. We also seek to engage employees and customers across all of our brands in an effort to build a more sustainable world. H&M promotes people and communities, improving working conditions, water management, climate resilience, circularity, and product sustainability.

4. Strengths and weaknesses of H&M in terms of marketing mix: Strength •

•

The product lines of H&M Vietnam are focused on design, style and •

H&M's products do not have as much environmental impact as

materials, especially the designs are always highly applicable and

other competitors. Environmental factors are also quite a big

suitable for everyone regardless of gender and age.

concern for customers at the moment.

H&M has an investment in a global chain of stores, creating a large •

H&M: didn’t own any factory.

scale to help customers easily access products. . •

High quality and significantly lower prices attract young people and thus lead to increased revenue for the company.

•

•

Dress is arranged to have a decent look and attract customers. The goods are of excellent quality and the latest trends.

•

Weakness

Employees come from different backgrounds and have special skills.

There are not many special strategies to meet the needs of luxury customers

•

The brand's goals don't focus too much on humanity or ethnicity.

III.

Marketing Plan

1. Executive summary: H&M intends to launch the fall collection on August 20. H&M conducted a survey to collect customer reviews and needs and decided on a marketing strategy and project implementation plan. with the purpose of spreading Vietnamese national culture

2. Situation Analysis a. People:

Customers in the survey about H&M: With 143 surveys, most of them are customers aged 15-22 (80.4%). Most of them are women and teenagers with high shopping needs, income close to stable. People who have shopping needs not only for themselves but also for their children. The variety of H&M collections gives customers the freedom to choose and discover their own personal style.

b. Product:

Favorite product line: As a Swedish streetwear brand, With H&M, consumers will find everything from trendy fashion items to clothing accessories, at affordable prices. Fashion for all seasons, all fashion styles to be found at H&M. The survey shows that the majority of customers choose T-shirts as their favorite products when shopping at H&M (61.7%). Besides, shirts, pants, accessories and skirts are also very popular (18%-42.9%).

c. Process: • The points of H&M make customers satisfied: Materials, colors, designs and sizes are the advantages that H&M achieves when offering products to its clientele.

• Most popular materials: Cotton is the most chosen material by customers with 46.2%. 4-way elastic and khaki elastic are 2 materials that are also very popular with votes accounting for 17.4-18.9%. Other less popular materials include: bucket, linen, tarta, papa and kate elastic.

d. Physical evidence: The process of buying and receiving products: The survey showed that the purchase and receipt of the product went quite smoothly. Only a small percentage have problems with the purchase (6%). This is a allowable number within the framework. e. Price:

Product cost of H&M: With the goal of bringing street brands into the lives of customers, H&M chooses to offer reasonable prices and quality for its product lines. This is also an advantage that helps H&M achieve success in the fashion industry around the world.

f. Promotion: Customers through the survey show that they are satisfied with the company's programs, especially the discount program and gift vouchers. H&M is a very popular international fashion brand, this is also the reason why H&M needs to have policies to help maintain and promote its advantages as well as overcome shortcomings from customer feedback. Through the above survey, customers are relatively satisfied with the product quality as well as the price and service at H&M. Besides, there are also a few factors that need to be improved such as inconveniences from the store's consultants as well as problems in choosing the right product through the website. To develop further, H&M needs to adjust and absorb the opinions of customers to make the brand more popular on a global scale.

3. Competition a.

Competition of H&M

GAP and Zara are H&M's primary competitors. H&M items are less expensive than these two brands. H&M has done this by keeping production and delivery expenses to a minimum. The goal is to save expenditures as much as possible. H&M also offers a larger selection of brands and goods than its two competitors. H&M's competitive approach of great quality and low pricing to attract young people leads to increased sales. (Maneki marketing, 2021) Nowaday, the appearance of foreign "fast fashion" brands such as Zara, Mango, H&M, Topshop, Uniqlo... are being loved and chosen by consumers. Currently, the Vietnamese fashion market has a few prominent brands following this trend with a large number of stores such as: Eva de Eva, Hnoss, Ivy Moda, Canifa... The rest are mainly retail brands fragmented, not large enough to mark in brand recognition for consumers (Phuong, 2019) b.

Assesses their market positions:

The appearance of the "big guys" in the foreign fashion industry not only meets the increasing shopping needs of consumers, but also creates fierce competition in the domestic fashion market. H&M's main competitors are GAP and Zara. Compared to these two brands, H&M products are cheaper. Following in the footsteps of Zara and H&M opening stores in Vietnam, Japanese fashion brand Uniqlo is also aggressively recruiting people to prepare to enter this potential market. Uniqlo's products are always aimed at the lowest prices and are affordable for all classes of consumers. In recent years , " the list of Vietnamese fashion brands has the potential to explode . " Breaking the notion that fashion design is " expensive , popular fashion brands in Vietnam are enjoying the benefits . Affordable price while ensuring outstanding quality. Fashion brands in Vietnam such as NEM Fashion, Elise, COCOSIN, Hnoss, Owen, etc have long become the favorite choice of young Vietnamese people, surpassing famous brands in the world. (Sơn, 2021)

4. External environment analysis a. Political: Political instability: Currently, on social networks, people believe that H&M has changed the map of China from no cow's tongue line to showing illegal cow's tongue line. This action of H&M quickly angered the online community and Vietnamese consumers.(Mai, 2021) De-globalization surge across the globe: The entire manufacturing cost has grown as a result of trends such as better working conditions, high minimum salaries, raw material costs, and labour regulations. Such developments would erode the company's cost-cutting edge. (Shaw, 2021) b.

Economical:

Global economic recession: The Covid-19 epidemic has been awful for H&M, just like it has been bad for any other firm. Since the virus spread, consumer purchasing behavior has altered dramatically as a result of the disruption to supply networks. As a result of this sickness, the globe experienced an economic downturn. (Momin, 2021)

c.

Social:

Social Media emerging as a storefront for fashion retailers: Customers who want to own H&M products have no choice but to go directly to the above establishments to shop. Because H&M does not have a separate shopping website for the Vietnamese market. H&M does not cooperate with domestic e-commerce floors. H&M Vietnam Fanpage is also only for promoting and introducing product information. (Anh, 2020) Changing choices of customer: Nowadays consumers are more about the designable fashion and want to be more fashionable among them. Moreover, they want more fashionable goods as well. (Ullah, 2021) d.

Technological:

Increasing importance of online channels: H&M continues to improve its mobile app, which recently announced the usage of the H&M club feature, which allows customers to earn reward points for purchases made both online and in-store. They may shop using their mobile device's app. (UKessays, 2020) Innovative technologies such as data analytics and AI to improve efficiency: Aside from that, they are continually experimenting with technologies to increase consumer pleasure and experience. They want their procedures to go smoothly, quickly, and without complications. (Momin, 2021) e.

Environmental:

Demand for eco-friendly products: H&M wants to be 100% circular and renewable, which means that all of the company's goods will be made from old ones, and only recycled and long-lasting materials would be utilised. (Ullah, 2021)

The terrible effects of the fast fashion industry: It is the pressure to produce quickly that has created a series of consequences for the environment, sellers, users and even manufacturers. The use of toxic chemicals in the cotton industry causes many farmers to get cancer, causing serious birth defects in babies. More dangerously, chemicals still have the ability to penetrate the skin, accumulate in the body, imbalance hormones and potentially cause cancer. (Minh, 2019) f.

Legal:

In June 2020, the National Assembly of Vietnam also passed the revised Law on Investment and the Law on Enterprises, both of which will take effect from January 1, 2021. The revised Law on Investment adds updated content on conditional business investment lines, investment incentives, and support mechanisms, and at the same time removes administrative approval for some types of investment projects. (Kiểm Toán Crowe Vietnam., 2021)

5. SWOT analysis a.

Strength

Priority focuses on fashion, quality, price and sustainability. Sustainability has many facets but we want our customers to dress well and feel comfortable in what they are wearing. (Dat, 2019) Low price: Compared to other fashion retailers like Zara, H&M's products are cheap, suitable for the current Vietnamese market. (Pestle Analysis., 2021) With extensive controls and tests, H&M ensures its products comply with quality and safety regulations, and are produced under safe, fair, legal, and working conditions humanitarian. H&M has an investment in a global chain of stores, creating a large scale to help customers easily access products.

b.

Weakness

Reliance on third-party suppliers: H&M relies on outsourcing to independent suppliers, so they have low production control. Moreover, if there is any problem with the contract, it will bring a bad image to the brand (Anh, 2020) Affordable pricing affects quality: H&M is known for its low-cost apparel, however this has a negative impact on the quality of the clothing and other H&M items. (Bhasin, 2019) H&M is very slow to open online fashion stores, or e-commerce. For many years, H&M's recipe for success was based on entering new markets and opening more retail stores. However, in the digital age, this is the "fatal" weakness of H&M when it wants to develop on the ecommerce platform. (Vietnamfinance., 2018) c.

Opportunity

Product range: The group’s product range is extensive. Customers are attracted to competitive prices and quality goods but do not necessarily focus on the uniqueness of a product. (N.A, 2021) More demand: Standards of living and purchasing power of people are both increasing across the globe. This increases the demand that people have for branded products as they become more brand conscious. H&M can cash in on this opportunity by capitalising on the higher demand. (Pestle Analysis., 2021) In Vietnam, the demand for technological development and online channels is increasing. That is why H&M has had the opportunity to develop more online channels and mobile apps on technology systems.(UKessays., 2020)

Technological developments, specifically data analysis and AI techniques are increasingly valued. As a result, H&M has had more opportunities to develop software to help customers secure information or reduce complex procedures to satisfy customers' needs in the simplest way. We believe that the demand for innovation in environmentally friendly products in the Vietnamese market is an opportunity for H&M. H&M is an environmentally conscious brand. It has researched and produced packaging made of paper or materials that do not have an adverse effect on the environment. Therefore, environmental demand in Vietnam has promoted and encouraged the strategy to be more widely disseminated. Laws in Vietnam present huge opportunities for international companies, including H&M. The state will have the convenience of investment, removing some operators for approval to create conditions for international fashion brands to develop in the Vietnamese market. d.

Threat

Intense competition: Local as well as international firms compete fiercely in the garment market. In order to keep up with current trends and fashion, each organisation must be aware of the competition. (Bhasin, 2019) Covid 19: The lockdown that had to be imposed because of the pandemic has affected the flow of products and raw materials from one place to another, which can heavily impact H&M’s sales. The pandemic has also posed an imminent threat of an economic recession which is another factor that can cause the sales of the brand to take a hit. (Pestle Analysis., 2021) Lifestyle changing in Pandemic: Changing lifestyles and habits of customers has negatively affected the development of H&M. The revenue as well as the consumption of H&M's goods decreased significantly because the demand of the people was no longer high.

IV. Future plan: 1. Objectives:

S: H&M wants to spread Vietnamese folklore to the youth generation in Southeast Asia. M: H&M will run this campaign within 1 month to reach young people's attention to Vietnamese culture. A: H&M completes its target collection by printing/embroidering folk paintings on the products. This goal is realistic and achievable because H&M has sufficient resources in terms of capital, facilities, and human resources.

R: H&M implements this strategy in line with the current brand's business goals of increasing sales and promoting the brand widely. This is the right time to achieve goals in today's social environment.

T: H&M will train and assign human resources to be skilled and knowledgeable about the brand's marketing strategy and social goals. H&M will create a realistic time frame for completing the smaller goals needed to reach your end goal.

2. Target segment: According to our market research survey of needs and evaluation of H&M products and services, up to 80,4% of customers are in the age group of 15-22. This new collection will focus on this customer segment, including men and women who have stable income. Moreover, this customer group is more specifically targeted than having an interest in folk art, or blending of Asian culture color. Our mission is to make customers buying this collection feel that this collection has cultural value, or is valuable as a souvenir with national identity.

3. Positioning and differentiation strategy: Positioning strategy: This marketing campaign of H&M will occupy an important place in the hearts of potential customers. When launching the collection, H&M aims to make a deep impression on customers and wants customers to approach the product because of the meaning and message that the collection brings. H&M wants people to evaluate the brand as a brand that focuses on the development of products and services, targeting the benefits of people and society. Differentiation strategy: H&M's collection has its own national culture, which is new and not yet popular in the Vietnamese fashion market. H&M always wants to improve the product value as an item that spreads the pride of Vietnam's customs and traditions. H&M wants to create unique artistic products targeting young people who are passionate about folk art. Moreover, H&M wants to help many young people know about the ancient culture to spread and preserve the material and spiritual values of the previous generation.

4. Marketing mix strategy:

7Ps

Strategy of H&M Image: Products of this collection will be launched with the image of Vietnamese folk art. Quality: Our integrated commitment to sustainability starts with our design teams and develops products that look good, have a less social impact, and instill confidence in our customers. Since the materials in our clothing contribute greatly to the environmental impact of each garment, our design and manufacturing decisions have considerable power to make our products more sustainable. Product attributes:

Product

•

Quality: stable quality, similar to previous H&M product lines.

•

Style: As a daily fashion, the target audience is Vietnamese youth aged from 15 to 25 who have a passion for painting, folk art, or the colors of Vietnamese culture.

•

Design: Fast fashion, autumn-winter fashion should favor long-sleeved clothes with the collection's logo printed.

•

Brand: design logos printed on products, namely jackets, long-sleeve t-shirts, t-shirts, hats, backpacks, bags.

•

Packaging: design a paper bag with the brand's signature white H&M logo printed on it.

•

Labels: autumn-winter collection

H&M offers high-quality clothes at a low price. H&M will continue to launch new fashion collections at prices similar to old products and still lower than competitors in the market. H&M will keep production and shipping costs to a minimum. The focus is on minimizing costs. Pricing

High quality and lower prices to attract young people is H&M's competitive strategy, which leads to higher sales. H&M will sell the new collection's products in a penetration manner: selling multiple products at low prices to make a profit. At the same time, H&M will research and launch bundles of clothes to create price incentives and attract more customers.

H&M will sell its products through exclusive and franchised stores located in major cities in Southeast Asia. The brand also offers its products through an online store, where customers can choose from a list of available products, purchase and pay online. H&M will link up with e-commerce sites like Lazada, Shopee, etc to expand the market size in Vietnam.

Place

This collection of H&M has a wide range of products catering to different segments, so the group uses a multi-channel promotion strategy in its marketing mix. • TV advertisements: H&M comes with creative ads which focus on its latest innovative designs. Each brand handles its own marketing decisions. • YouTube: H&M has its own YouTube channel where it comes up with unique ad campaigns to engage with customers. • Digital Marketing: It indulges in excessive search engine marketing and social media marketing to convert potential buyers into consumers. Promotion

• Promo codes and discounts: Promo codes and discounts are offered at the end of the season. The discounts are offered on both online and retail stores. • Offering free products bearing the collection's logo: with the aim of connecting two items closely, arousing desires and expectations, and enhancing customer satisfaction.

The staff at H&M selected for the launch of this collection are highly trained at knowledge of national traditions. People

The work culture is very modern and employees are rotated in every department and are always motivated to innovate and bring out the best clothes. H&M also collaborates with many clothing designers around the world to create the latest fashion trends.

Employees are trained to retain highly profitable customers by providing them with better service and offers. In the case of any complaint, staff at H&M will make every effort to resolve it as soon as possible. Employees at H&M stores help customers choose the best merchandise for them. Therefore, the service and delivery time is very fast, so Process

it is very popular with customers. The company is using artificial intelligence to understand customer needs and recommend the best products online. To transport goods from the factory to the store, H&M uses rail or sea, to increase the efficiency of internal logistics. Improve the payment process: instead of paying in cash, H&M will let customers pay with e-wallets, and create many promotions when paying online. H&M supports customers to return products when they are not satisfied. H&M stores are appropriately lit with a great atmosphere and unpretentious staff. Staff wear traditional Vietnamese costumes as a uniform. H&M will design billboards to display in stores or show promotional videos in retail stores with the image of the representative face to

Physical Evidence

attract customers. User stories and suggestions are always welcomed by the brand, which also helps to engage customers with the brand. Stores: Spacious, decorated according to traditional folk concept. The goods that are of excellent quality and the latest trends wil be displayed in a place that is easy to see and attract customers' eyes. Dresses are arranged to have a decent look and attract customers. Website: Sort products by category, with search, Q&A and customer consultation.

5. Multimedia plan: Many cultural features and identities of Vietnam have been gradually ignored and this is the point in time when we need to do more than talk. Since each of our actions can lose or save a national cultural identity on the verge of loss, this is why H&M conveyed the message of the new collection with a message: ‘‘Preserving Vietnamese national cultural identity with H&M” To keep up with the trend of young people and the significant development of 4.0 technology, H&M reaches out to young people through social networking sites such as Facebook and Instagram, as well as the newly emerging entertainment channel TikTok. Therefore, the H&M department has launched a communication strategy that combines well-known celebrities such as Binz and Justatee, etc; Fashionista and KOL, to easily deliver the message. a. Advertising Type

PRINT (newspaper/ magazine)

Specific information

Content

Time

Estimated budget

Elle, Harper’s Bazaar VietNam, L’Officiel

The mission of the new series After its debut in August

About

Vietnam.

is to introduce a version

2022, the newspaper

1,500,000,000

series that reflects

will quickly respond to

VND

Vietnamese cultural values

the new features and

and conveys the message of

concepts of the

preserving the country's

collection.

beautiful traditional culture.

H&M Homepage

Display and promote the

https://www.facebook.com/hmvietnam/

brand's collection on the homepage. The message "Preserving Vietnam's national cultural identity" will

Facebook

be expressed through each model of clothing and accessories.

Instagram

H&M's official Facebook page will post from July, when the collection is the end of 20 days, when the collection is made available to the market.

Instagram is a popular social

From July, when the

https://www.instagram.com/hm/

media platform. H&M will

collection is not yet

broadcast adverts on the

available, until the end

social media platform

of 20 days, when the

between the hours of

collection is made

9:00pm and 11:00am, when

available to the market,

users are most active.

H&M's official Instagram

Customers will be able to

page will post.

products because of this.

8,000,000 VND

not yet available, until

Instagram of H&M

readily access the collection's

About

About 15,000,000 VND

b. PR KOLs

Name

Content H&M will provide her with a new

Preserve and protect

product from the collection for use,

national cultural identity

and then present and share her

with H&M.

Estimated budget About 22,000,000 VND

experience with the new product in 1 daily vlog. Through vlogger Co Em Youtuber

Cô em Trendy

Trendy's experience vlog, H&M will offer a 10% discount promo code when entering her name or when purchasing a large value order will receive a valuable gift from the H&M brand itself.

Rapper

Binz, Justatee

Be a sponsor of their music product or

Preserve and protect

The budget for costumes

official mv.H&M will fund the

national cultural identity

and filming is around 50

costumes for two artists' music videos

with H&M

million VND.

or music products. As a result, it will draw the attention of adolescents' clients as well as followers of musicians.

6. Action Program

Market

What

Strategy

When

Who

Cost

Creating a new

The collection will be launched

Youtube ads attach direct

Poster design: 4.600.000

collection poster,

during the Fall season of 2022,

links to the new collection on

VND

based on

on August 20. To widely spread the official H&M website.

Youtube ads price per

Social

Vietnamese folk art

the news, audio and visual ads

impression: ¢15,

networks

themes. Pay social

will be played at least 1 month

Spotify ads attach direct links

estimated for 2 months:

and viral

media for playing

prior to the drop and after.

via the poster banner.

46.000.000 VND

ads on them.

Ads are expected to last for 2

Spotify audio ads price per

months in total.

impression: ¢0.02,

marketing

estimated for 2 months: 23.000.000 VND

Promotion

Email marketing

Creating an

The collection will be launched

H&M Marketing and

The cost will remain

automated process

during the Fall season of 2022,

Customer Service teams will

minimal with the works

that targets

on August 20. To widely spread handle the process of

coming from inside the co-

prospects and

the news, Promotions will be

attaining club members and

operation.

customers with an

sent via emails prior to, the

prospects.

H&M membership.

day of, and after the drop.

Estimated budget: 11.500.000 VND

Social media Creating work and PR

associations with

The collection will be launched

KOL and H&M ambassadors

KOL and ambassadors

during the Fall season of 2022,

will post on social media with

price per post: $25,

People

scouting and hiring

on August 20. To widely spread direct links to the new

PR agents, and KOLs

the news, PR posts will start

collection on the official H&M months: 138.000.000 VND

to post on social

appearing at least 1 month

websites connected to the

media to promote

prior to the drop and after.

posts.

the publicity of the

Posts are expected to last for 2

incoming collection.

months in total.

H&M will design a

A month before the campaign

HR Manager will implement

Inviting experts cost:

course for staff to

is launched: (on July 20)

and plan and invite experts

About

train in skills and

on Vietnamese Tradition to

knowledge about

train employees.

estimated budget for two

traditional culture.

Process

Contact suppliers to

At the begining of January:

Production department and

Depends on the

prepare and

after completing the complete

marketing department will

manufacturer and the

manufacture new

plan and officially entering the

come up with ideas and

market price at the time of

materials.

project implementation

implement plans, contact

project implementation at

Manage the

process.

investors and production

each stage of production

production and

At the beginning of June:

facilities.

and distribution.

distribution of

products are delivered to

Logistic Depart will supervise

products to retail

stores

and directly distribute

stores.

products from factories to all stores nationwide.

Shop decoration Official store

At the begining of August

The marketing department

About 1 billion for 12

according to

will assign the design and

retail stores’ decoration.

traditional folk

decoration team to the direct

concept.

stores to decorate according to the requirements of the

Physical

plan

Evidence Associate with Online store

At the begining of July

Marketing department and E-

Shopee to expand

commerce department will

the product sales

work together to create a

market.

sales platform with categories and promotions.

7. Controls and Monitoring: We predicted the types of risks we could face during project implementation based on H&M's action plan. 1. During the Covid-19 pandemic, it was a stressful time, new strains of the virus can emerge at any time, and we do not know when they will emerge. Customers will not be able to purchase things in person at H&M locations at that time. In the worst-case situation, we will use our buying website to promote online. We will contribute to the development of H&M's online shopping channel by spending around 50 million VND to create a sales page with a user-friendly interface for customers to purchase and select products. 2. The concept of "preserving Vietnamese national cultural identity" is novel. During the implementation of this strategy, we will face numerous challenges. Because it is a new breakthrough in the brand's message, it may or may not be well received.

If it does not receive much attention from young people, the primary target audience, we have proposed a solution to apply a 10% discount on bills exceeding 799 thousand VND and donate an exclusive photo-printed anti-covid mask from H&M worth over 499 thousand VND. Method of monitoring: •

Production is moving forward.

•

Completeness of the product

•

Allocation of resources

•

Costs of production are under control.

V.Conclusion Through the report of the marketing department, H&M found ideas for new products for the Vietnamese domestic market and provided solutions to overcome the company's current gap in the manufacturing market. Based on the information provided by the report, the marketing department will assume the position of formulating strategies and completing a new product model to increase market share and position in the Vietnamese market.

VI. FORM AND DATA LINK 1. Form to survey customers' needs and evaluations for THEIR products and services: https://docs.google.com/forms/d/1Pc40kS6cteC457WktRd8jNUTtq62Av7thVATqOhhWB0/edit#responses 2. Aggregated data from form: https://docs.google.com/spreadsheets/d/1ev04d5-k3CYVk5ZmONlkOga4r3eNPF3PrwXVdqeGJ00/edit?resourcekey#gid=499573449

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