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Expansion to Major Cities
July 2016 - December 2016
IMC Campaign Proposal By:
Alanna Gatto, Savannah Kuang, Mary Lee, & Mekynzi Sotello
Global Marketing Communications
BUMT 3680
Fashion Institute of Design & Merchandising
Mychelle Fitzgerald
June 17th, 2015
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Table of Contents
Agent Philosophy 2
Executive Summary 3-5
Industry Background 6-8
Company Snapshot 9-12
Brand Review 13-15
Competitive Review 16-20
Buyer Analysis 21-23
SWOT Analysis 24
Campaign Marketing Goals 25
Target Market 26-27
IMC Objectives and Strategies 28
Positioning and Campaign Theme 29
Creative Recommendations 30
Advertising Recommendations 31
Media Flowchart 32
Media Breakdown 33-34
Sales Promotions Recommendations 35
Direct Marketing Recommendations 36
Internet/Interactive Recommendations 37-39
Public Relations Recommendations 40-41
Campaign Flowchart 42
Measurement and Evaluation 43-45
Budget Summary 46
Conclusion 47
References 48-50
Appendices 51-53
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Agent Philosphy
At Mirage Agency, we strive to create campaigns for our clients that
not only guarantee profit success, but also invoke a cognitive reaction.
Understanding that our clients have visions for what their campaigns hope to
achieve, we are aim to make their visions into a reality. We strive to create
campaigns that offer a unique perspective, while staying true to our client’s
image and beliefs.
With partnering with H&M to generate the advertising and marketing
goals for its home expansion stores in the United States. We believe that
Mirage Agency will be able to successfully create a campaign that generates
awareness on a line that is not widely known by the target consumers. By
partnering with H&M, we are confident that we will not only provide creative
results for the company, but H&M will see profitable success, as well as a new
segmentation of loyal customers.
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Executive Summary
Major Target Audiences
Our target markets are women between the ages of 20 to 44 who love to
accessorize and decorate along with college students and young professionals with
urban apartments that are living on a budget. We are also focusing on couples who
have recently made the big step of buying their first home and are now looking to fill
the empty rooms at reasonable prices. Our secondary target market would be males
at the ages of 24 to 35. We are also targeting young men looking to add some
sophistication to their childhood furniture sets. The average consumer would be
looking for specific modern pieces at low prices.
Time Period of the Campaign
July 2016 to December 2016
Campaign Objectives
We strive to expand the H&M Home line towards all of the major cities: San Francisco,
Los Angeles, Dallas, Philadelphia, Chicago, and Seattle. We would like to launch this
campaign by building a stronger social media presence along with being socially
responsible to collaborate with Habitats for Humanity. We hope to aim to reach out to
at least 75% of our target audience and increase our consumer awareness by 12%.
We also hope to increase our sales revenue by 15% by the last quarter of 2016.
Campaign Theme/Slogan
“Every Accessory Needs A Home. #hmsweethome”
Budget Total
$33, 495, 000
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Summary of Media Used
Radio Advertisements
Objective: We will be using radio advertisements during peak traffic hours in major cities to
capture the cognitive response within 30 seconds to a minute. This will cause our audience to
get an idea of our campaign while in public transportation or the vehicle they are driving in.
Rationale: Creating buzz instantly, fast cognitive response, giving an idea for the audience
Budget: $1,674,750 // 5%
Print Advertisements
Objective: To increase exposure towards campaign by putting print advertisements in selected
magazines that the target audience reads. It will bring more attention not just from apparel
magazines, but in home decor magazines as well.
Rationale: Expanding customer loyalty, communicating on print, mass coverage
Budget: $11,723,250 // 35%
TV Advertisements
Objective: To capture target audience’s attention in between relevant shows or news forecast
no more than 30 seconds to a minute. This will ensure that the target audience will not skip
the TV commercials. This will also be done on online TV shows depending on relevancy.
Rationale: Selective targeting, broadcasting flexibility, and creating buzz from TV shows
Budget: $1,674,750 // 5%
Sales Promotions
Objective: To promote social cause, grand opening discounts, and benefits of joining the
loyalty program in order to create or maintain customer relationships.
Rationale: Provides benefits for the target customers, customer loyalty, social consciousness
Budget: $6,029,010 // 18%
Direct Marketing
Objective: To directly target customers in persuasion of involving them into the campaign.
Rationale: Giving them direct communication through mail in order to create a more rapid
response along with ensuring that they will come into brick and mortar stores with their mail
Budget: $5,024,250 // 15%
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Social Media/Internet Media
Objective: To build strong internet and social media presence amongst the target audience and
making live interactions with them.
Rationale: Creating a strong internet audience will not only bring more traffic to the website, but
will also ensure customer loyalty from receiving their feedback through social media.
Budget: $5,024,250 // 15%
Public Relations
Objective: To promote the brand image by collaborating with a charity that is relevant to the H&M
campaign. This will bring social awareness to the brand and the charity itself.
Rationale: Promoting a social cause and creating responsibility for the target audience.
Budget: $669,990 // 2%
Personal Seling
Objective: To give direct and personal interactions with target customers when walking into brick
and mortar stores in order to inspire their purchase behavior during the campaign.
Rationale: Creating positive customer service experiences, welcoming them into the grand openings
Budget: $1,674,750 // 5%
Evaluation Program
The evaluation program and standards will help launch the 6-month period of the
campaign. There will be tests and teasers through the development of the campaign
to measure effectiveness and its progress. This will also include trackers and clickers
through social media and the Internet along with measuring traffic onto the other
platforms. Broadcasting advertisements including TV, print, and radio will ensure
productivity of our target audience’s cognitive response from the promotions. The
social awareness of the campaign will benefit the customers and the company due
to its long history of collaborations with non-profit organizations.
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Industry Background (External)
Interior Design Industry
The interior design industry is relatively small but makes a big impact. There is a wide range of
competitors but no one company is dominant in this industry. Today the industry plays a crucial
role in our everyday lives, its impact is everywhere. Interior design includes homes, hotels,
restaurants, stores, doctors offices, schools, and any other interior you can think of. The interior
design industry influences and inspires the mood, feel and overall environment of every place you
walk into. Recently the industry has accelerated to keep up with the current and ever changing
market trends. Interior design has such a great impact, often not consciously, because we spend
most of our time surrounded by it. The interior design industry provides room for creativity and
functionality in residential, recreational and professional environments.
Size
The fashion apparel industry is global. The American Society for Interior Designers (ASID) state of
the industry report in 2011 showed “Designer revenues were just under $7.3 billion in 2011, with an
estimated 12,100 interior design firms. With an additional $1 billion in earnings by the 17,100
self-employed designers and $1 billion from architecture firms’ interior design services, the total
revenue of interior design businesses was over $9 billion.” Also, in ASID's 2014 outlook for interior
designers a 13 percent employment growth was expected, a more recent report has not been
released yet.
Growth
The industry is seeing the most prominent growth in the E-commerce sector. Over the years we
have seen a dramatic shift in consumer spending from retail stores to online. Companies are
experiencing the benefits of adapting their retail strategies through instant accessibility. Through
social media websites such as Instagram, Facebook and Twitter, companies are able to capture
a larger share of sales than ever before. Let’s face it, most people do not like to shop in crowded
brick and mortar stores and wait in mile long lines to check out. According to ASID’s 2014 outlook
report, “2014 will be one of the strongest years in residential spending since 2009, with a significant
growth in the remodel market. This resurgence in the housing market, and in some commercial and
institutional sectors, holds promise for stronger growth in the interior design field in 2014, although
growth to date has been erratic and modest.” We expect to see continued growth in 2016.
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Current Trends/Promotions
● Fast Fashion influence on accessories
● International expansion
● Localization of individual stores
● E-commerce consumer spending
● Promotions offered on event themed apparel, ex: Coachella
● Using social media not only to showcase, but also sell
● Baby Boomers and Millennials heavily influence and are targeted
● Engaging and interactive marketing that results in consumer action
● Shift towards Corporate Social Responsibility
-Customers feel good knowing they are contributing to a worthwhile
cause.
● Loyalty programs that reward consumers for their engagement, as opposed to
just purchases
● Consumers want more personalized experiences and offers
● Data security has become top priority
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Macroenvironment Factors and Issues
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Company Snapshot (Internal)
Brief History Background
○ 1947- First retail location, originally called Hennes, was opened in Vasteras, Sweden.
○ 1957- Second location opened in Stockholm, Sweden.
○ 1964- Third location opens, but first one outside of Sweden, in Norway.
○ 1968- Hennes founder, Erling Persson purchases Mauritz Widforss, an outdoor company.
Store name is changed to Hennes & Maurit, H&M. Men and childrens clothing lines
come into formation.
○ 1974- H&M becomes public, makes first appearance on the Stockholm Stock Exchange.
○ 1980s- H&M stores open in Germany and the Netherlands.
○ 1998- Location opens in France. E-commerce shopping begins.
○ 2000- First location opens in the U.S. in New York City.
○ 2004- H&M starts collaborating with famous designers (Karl Lagerfield, Stella McCartney).
○ 2007- First locations in Asia open. Ecommerce shopping begins in Austria and Germany.
○ 2008- H&M expands to Tokyo. Company also purchases FaBric Scandinavien fashion firm.
○ 2009- Company expansion H&M Home is launched.
○ 2010- H&M expands to South Korea and Turkey. Ecommerce shopping starts in the United
Kingdom. First H&M Home store opens near Swede .(HM.com)
Place in the Industry (e.g., size, growth, image)
Size
■ 3,511 brick and mortar locations, globally
Growth
■ H&M aims to grow 10-15% per year, with brick and mortar locations (Expansion strategy).
The company is planning on opening 400 new brick and mortar locations primarily in China
and the United States. This exceeds the 371 locations the company opened in 2014 (Kell).
Image
■ H&M is a leading retail giant, offering fashionable pieces, at a low cost for its consumers.
It caters to wide demographic and various target markets (Kell).
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Mission or Business Philosophy
“Our vision is that all our operations are run in a way that is economically, socially and
environmentally sustainable. Which will mean our business is helping to meet the needs
of both present and future generations. We believe that quality, affordable fashion can be
made and sold in a way that’s also good for people and the environment. With this in mind,
our business concept is simply to offer quality fashion at the best price” (Our Vision, H&M).
Organizational Structure
○ Functional structure
■ A functional structure is one of the most common organizational structures. Under this
structure, the organization groups employees according to a specialized or similar set of
roles or tasks (Small Business).
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Product Line
Taking inspiration from the latest catwalk trends, H&M provides fashion-forward products that are
suitable for each room in the house. Products come in different collections, inspired by different
lifestyles. Products ranging from candle holders to bed linen, and sustainable throw pillows.
Sales History
Hennes & Mauritz AB reported a profit leap of 17% from the last year, with the majority from H&M,
followed by other brands under its ownership, including COS, Cheap Monday, Monki, Weekday,
and & Other Stories. The net sales from 2014 were more than six billion dollars.
Target Market
H&M Home caters to its existing target customer who shops the company’s apparel line, H&M. Its
target market serves both men and women age 15-40, as well as teenagers and children. Its target
market is budget level, consisting of consumers who are trend conscious, who cannot afford to buy
looks off the runway. Despite its financial background, H&M’s target market still cares for products
that are of good quality, design, and sustainable.
Market Share
Hennes & Mauritz AB increased its market share through its strong sales and profit growth. The
company reported that its three-month earnings in the start of 2015 increased 35 percent to 420
million dollars, which has been used to better new collections, as well as a new market in Taiwan.
Net profits from H&M increased in February 2015, surpassing the same period last year by more
than $380 million.
Positioning
A company’s positioning strategy is affected by customers’ motivations, requirements, and
competitors’ actions. Things to observe, in order to strategically carry this through, are to:
○ Identify what H&M Home customers are buying
○ Distinguish products and service from competitors
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Current Marketing Mix
Product
H&M Home is an interiors extension of its apparel brand. The company offers trendy home
goods at affordable prices, which shares the same motto as its fast fashion apparel brand.
Products are offered for every room in the house, from the comforts of your living room to
the privacy of your own bedroom. Categories include bed linen, decors, storage, porcelain
and vases, outdoor, and basic essentials. Items are characterized through different collection
inspirations, with newly adopted product launchings every two weeks.
Price
H&M Home offers interiors with prices ranging from $2.95 to $100.
Place
H&M Home is available online and through mail order in Sweden, Norway, Denmark, Finland,
Germany, Austria, Netherlands, and the United States. The brand extension has 25 brick and
mortar locations in Sweden, Germany, London, Austria, with four in the United States.
Promotion
H&M Home is still fairly new, first launching in Europe in 2009, and the U.S. in 2013. H&M has
not promoted the line extension extensively. In fact, most people are not aware of the product
line, unless shopping on its website. H&M Home is only available in four locations, and most of
them being on the east coast, therefore accessibility is an issue. Ads that are distributed feature
apparel at a low price, not home goods at a low price.
Review of Existing/ Past Programs (Strengths, Weaknesses, Overall Assessment)
Kravaev-Söderberg, who led the initial launch of the home collection, stated the home extension
received “very positive reactions overall.” Though online and physical stores are limited, H&M
Home still offers the same benefits of its clothing line- trendy products at a value price.
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Brand Review
Description
H&M aims to expand for the current target market by releasing a series of home goods to its retailers.
The main idea behind bringing home goods to its customers is to ensure that they would not have to
go to other retailers to shop for their favorite home products. This provides not only more convenience
for the customers, but will also provide them the best alternative to home decor and goods. The home
goods collection will include several selections of bedding sets, small and big furniture, fixtures, wall
and table decor, tables, desks, and mini storage options. To capture consumer’s eyes, H&M will be
launching its products with a modern and sophisticated design that will not stray away from the
original brand identity.
Market Share, Sales, Growth
The main objective H&M aims for is to strengthen the brand identity even more by bringing
something different to the table. That is, by launching a home goods collection. Not only will
this increase its market share, but this can also create a lot of buzz from its current market
along with bringing new customers in. This will also create a bigger sales growth because
customers will no longer try to shop at home goods retailers.
Strengths
● Strong partnerships with famous designers
● Reasonable pricing
● Great quality clothing and accessories
● Sold worldwide
● Strong media platforms presence
Weaknesses
● Mass production
● Target market expanded too broadly
● Lack in variety of design
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Performance
The home goods collection will be the beginning of consistency in bringing a new product mix.
This will bring positive product performance to our market because although H&M is known to be
consistent with its quality in apparel, it should be too when it comes to bringing in new products
and aspects for the retailer.
Key Benefits
Some of the key benefits include:
● Creating another reason for customers to shop at H&M
● Making an unexpected promotion campaign for the consumer to be excited for
● Becoming a modern retailer not just for apparel, but for home goods as well
Brand Image
“H&M is one of the world’s largest and fastest growing clothing retailers. The company is also a
pioneer of ‘fast fashion’: a term used to describe clothing collections which are based on the
most recent fashion trends on the catwalk but which are designed and manufactured quickly,
are affordable, and are aimed at mainstream consumers. By maintaining efficiency and flexibility
throughout its supply chain, H&M is able to respond quickly to changes in fashion trends”
(researchandmarkets.com).
Positioning
“H&M has a keen understanding of its target market—which is the low price, high fashion end
of the clothing sector—and is closely attuned to what mainstream consumers want. It enjoys a
strong following among women, particularly those in younger age groups, who make up the
majority of its customers” (researchandmarkets.com).
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Perceptual Map
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Competitive Review
Direct Competitors
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Competitive Review
Direct Competitors (cont.)
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Competitive Review
Direct Competitors (cont.)
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Competitive Review
Indirect Competitors
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Competitive Review
Indirect Competitors (cont..)
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Buyer Analysis
User Profile
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Buying Decision Process
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Buying Decision Process (cont.)
Product Buyers
Consumers who buy H&M Home products seek trendy home goods that are cost-friendly.
These buyers are in their early to mid 20s, who are most likely women, renting an apartment
or house, or perhaps a couple who just purchased their first home. Regardless of small upgrade
or a total home redecoration, the buyer is on a budget.
Purchase Decision Influences
Price and quality is a major drive in the consumer’s purchase decision. As a result, price and
quality turns into customer brand loyalty, influencing purchasing decisions as well.
Decision-Maker
Women are most likely to be making the decision-making, especially when it comes to home
decor and furnishing.
Decision Criteria
The consumer bases his/or her decisions on cost of the product, the worth, and the value, in
which are then compared with the alternatives.
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SWOT Analysis
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Campaign Marketing Goals
At Mirage, our goal is to increase H&M Home’s revenue by increasing other metrics in the
process. Consumers know H&M as a fast-fashion, budget apparel company. Because the the
home extension is mainly known in Europe, and small parts of the east coast in the U.S., raising
brand awareness is key. Advertising mediums will be used to raise brand awareness for H&M
Home.The purpose is to educate the consumer about the extension, the product offerings, and
price point in order to convert sales and traffic, both in-store and online.The chart above shows
Mirage Agency’s campaign goals for H&M Home in Q3 of 2016.
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Target Market
Segmentation Analysis
H&M’s Home collection is full of new pieces, which celebrate the time of year and spice
up our lives with fresh seasonal trends. The Home collection targets H&M’s current apparel
customer as well as expands to a more home-conscious customer. The H&M Home customer
loves to decorate; whether it is the bedroom or the bathroom. Similar to the way the apparel
customer gets inspiration from high end fashion designers, the H&M Home customer wants
the high end feel but at a low price. However, even though the consumer demands low prices,
good product quality is also expected. As tech savvy individuals who are trend conscious, they
do their research before making a purchase. Our existing apparel customer associates the
brand with providing quality items at low prices and we aim to carry that same association
over to the Home collection. Our customer will love the H&M Home collection because it brings
together fashion and design in a wide assortment of pieces that can be mixed and matched to
express individual style in every room.
Geographic
Urban and Suburban
Demographic
Age: 18-45 years
Residence Tenure: Homeowner & Renter
Socioeconomic
Income: $35K-$75K
Education
College Educated
Psychographic
Trend Consciousness
Uses smartphones to compare prices before making a final purchase
Responds quickly to promotions and sales
Expects excellent customer service and convenience from retailers
Wants quality in a product while paying a reasonable price
Brand loyalists
Uses products from companies that are socially and environmentally responsible
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Target Market
Primary Target Market
Women between the ages of 20-44 who love to accessorize and decorate
College students and young professionals with urban apartments that are living on
a budget
Couples who have recently made the big step of buying their first home and are now
looking to fill the empty rooms at reasonable prices
Adults with lived in rooms and sentimental furniture that are looking to bring some
freshness or life back into their homes
Parents with young children who are still excited by themed rooms and fairytales
Individuals who are influenced by a company's ethical structure and sustainability
Individuals who enjoy feeling connected with brands through social media
Secondary Target Market
Males ages 24-35
Young men looking to add some sophistication to their childhood furniture sets
The average consumer looking for specific modern pieces at low prices
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IMC Objectives & Strategies
Using the Hierarchy of Effects model, H&M Home will see success in its IMC, and successful
generated consumer response. The below objectives and strategies are what will be used to
ensure the IMC is successful.
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Positioning and Campaign Theme
Campaign Theme
“Every Accessory Deserves a Home.”
Positioning Strategy/Statement
“H&M Home is a home retailer that offers quality and affordable home furnishings for trend
conscious consumers. Unlike traditional home good retailers, H&M Home provides fashion
for the home through convenience and accessibility of their products and services with the
use of technology and social media.”
End Results of Positioning
● Increase awareness and excitement about the launch of the home collection in the major
cities
● Improve personalized customer experiences
● Encourage customers to share their own H&M home creations with us via social media
platforms such as Pinterest and Instagram
● Continue to promote products through themes and overall moods to give inspiration
● Maintain transparency to ensure ethical business practices
● Continue to run operations in a way that is socially, economically and environmentally
sustainable
Product Difference
The H&M Home collection offers versatile pieces with a modern feel for every room in the
home. The repeated use of prints, patterns and color schemes will become recognizable.
Key Benefits
● It would be an ease of location. H&M Home stores will be opening next to H&M apparel to
create a stronger brand association and awareness.
● Fresh, trendy and modern pieces at affordable prices.
H&M Home Concept
An accessible, inspiring collection of fashionable accessories and textiles for every room in
the home, all at a great price.
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Creative Recommendations
Target Audience
We would like to target returning H&M customers that are looking for home goods for their homes.
They are fashionable customers that love to accessorize their lives with jewelry, creative spaces,
and mainly their homes. They also have brand loyalty and recognize the quality and price of the
brand itself.
Advertising Objectives
● Increase awareness of H&M Home all around the United States
● Introduce current and incoming modern themes that allow customers to seek different options
for their homes
Advertising Strategy
In order to spread awareness, one of our advertisements will include a hashtag “#hmsweethome”
in all social media platforms.
Advertising Appeals
● “Every accessory deserves a Home” will aim to deliver a positive message for our current
products that are in dire need for our home products.
● The campaign will seek to appeal as a form of comfort from our customers’ own homes by
purchasing our home goods.
Advertising Execution Format
Our advertising execution will deliver a positive message for our current products that are in
dire need for a home. We will be designing simple yet attention-grabbing colors into our print,
television, and billboard advertisements that will yell for the H&M brand.
Rationale for Creative Recommendations
Customers recognizing H&M Home will increase awareness of the expansion of the H&M brand.
This will also increase brand loyalty and also bring in new customers.
Executions
We will be launching television, print, and billboard ads along with social media with the hashtag
and that specific theme with a combination of the H&M colors and specific home themes. We will
also have fashion bloggers to deliver the message through social media.
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Advertising Media Recommendations
Target Market
The campaign will be targeting a wide range of consumers ranging in age from 25-50.
Both women working who are looking purchase high quality items for a low price.
They are either trying to decorate their apartment, or have just purchased their first
home, or are just trying to spruce things up with fun accessories.
Geographic Scope
The IMC campaign will be exposed to consumers on a national level. Magazine
advertisements will be placed in carefully segmented magazines where it will be
certain our targeted consumer will be able to see and retain the information that
they are exposed to. Billboards will be placed along high-populated highways,
granted more exposure and retention during traffic congestion. Further more, radio
ads will also be placed in popular local radio stations in big cities; Chicago, Los
Angeles, Dallas, Philadelphia, San Francisco, and Seattle.
Scheduling Pattern with Rationale
The campaign advertisements will be scheduled at both continuity and pulsing
patterns. Magazine ads and catalogs will be placed every month, and social
media ads will be placed in continuity patterns. This being that the magazine
ads will be placed be seen every month. Email blasts and social media ads will
be placed in a pulsing pattern, given how often and easy it is for consumers to
be exposed to the ads.
Gross Impressions
The campaign will aim to reach 25-30 million people. This will be measured in how
many people click on the email blast links, use the catalog in-store promotion coupons,
and the click rate for the social media ads.
Cost-per-Thousands
The ads will budget by how many people are exposed to the ads multiplied by a thousand.
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Media Flowchart
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Media Plan Breakdown
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Media Plan Breakdown (cont.)
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Sales Promotion Recommendations
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Direct Marketing Recommendations
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Internet/Interactive Recommendations
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Internet/Interactive Recommendations
(cont.)
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Internet/Interactive Recommendations
(cont.)
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Public Relations Recommendations
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Public Relations Recommendations
(cont.)
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Campaign Flowchart
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Measurement and Evaluation
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Measurement and Evaluation (cont.)
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Measurement and Evaluation (cont.)
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Budget Summary
Budgeting Method: Percentage of Sales
Total Sales (2014): 23,799.2 Billion (Global)
Total U.S. Sales (2014): 2,328.18 Billion
H&M Advertising Budget:
$3% of Total Sales
($22.33B x 3%= $666.9 Million)
H&M Home Advertising Budget:
5% of Advertising Budget
($666.9 Million x 5%= $33,495,000)
Budget From Percentage of Sales Method: 5%
Estimated Budget To Be Received: $666,990,000
Budget Request: $33,495,000
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Conclusion
The IMC program uses both traditional and contemporary mediums to reach core customers.
These strategies comprise of: television, radio, print & digital media, sales promotions, direct
mail, social media, and the Internet.
The intent of this campaign is to successfully launch H&M Home in the United States market,
while also introducing them as an relevant retailer in the home industry. In support of that, our
IMC program will focus on raising brand awareness by 40% in 12 months, through the mediums
listed above. The increase in brand awareness will contribute to growth in five key areas,
● Website Traffic (40%)
● In-store Traffic (30%)
● Return on Investment (12%)
● Profit (15%)
● Sales Revenue (30%)
With the different channels of marketing and the extent of the IMC program, the advertising
budget needed in order to execute is $33,495,000.
Because the H&M Home targets young adults ages 18-45, it is important to utilize all forms of
marketing strategies, especially when it involves technology and social media. Because
technology has evolved the world of consumerism with web applications, e-commerce, and
social media, it will have a continuous and growing influence over consumers.
With H&M predominantly known as a fast-fashion apparel brand in the U.S., we recommend
H&M Home brick-and-mortars to be opened next to their apparel stores. H&M is already an
established brand and has a recognizable brand logo. Opening Home brick-and-mortars next to
the fashion apparel store allows consumers to immediately associate the two together. This will
target and encourage core and existing customers to shop at H&M Home, allowing more foot
traffic and convenience of accessibility and location. With ease of accessibility of its products
through online platforms and in brick-and-mortars, H&M Home will have a dominant presence
in fashion and the home industry in the United States.
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48
SWEET HOME
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49
SWEET HOME
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50
SWEET HOME
Appendices
51
SWEET HOME
Appendices (cont.)
52
SWEET HOME
Appendices (cont.)

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H&M IMC Campaign

  • 1. Expansion to Major Cities July 2016 - December 2016 IMC Campaign Proposal By: Alanna Gatto, Savannah Kuang, Mary Lee, & Mekynzi Sotello Global Marketing Communications BUMT 3680 Fashion Institute of Design & Merchandising Mychelle Fitzgerald June 17th, 2015 SWEET HOME
  • 2. SWEET HOME Table of Contents Agent Philosophy 2 Executive Summary 3-5 Industry Background 6-8 Company Snapshot 9-12 Brand Review 13-15 Competitive Review 16-20 Buyer Analysis 21-23 SWOT Analysis 24 Campaign Marketing Goals 25 Target Market 26-27 IMC Objectives and Strategies 28 Positioning and Campaign Theme 29 Creative Recommendations 30 Advertising Recommendations 31 Media Flowchart 32 Media Breakdown 33-34 Sales Promotions Recommendations 35 Direct Marketing Recommendations 36 Internet/Interactive Recommendations 37-39 Public Relations Recommendations 40-41 Campaign Flowchart 42 Measurement and Evaluation 43-45 Budget Summary 46 Conclusion 47 References 48-50 Appendices 51-53
  • 3. SWEET HOME Agent Philosphy At Mirage Agency, we strive to create campaigns for our clients that not only guarantee profit success, but also invoke a cognitive reaction. Understanding that our clients have visions for what their campaigns hope to achieve, we are aim to make their visions into a reality. We strive to create campaigns that offer a unique perspective, while staying true to our client’s image and beliefs. With partnering with H&M to generate the advertising and marketing goals for its home expansion stores in the United States. We believe that Mirage Agency will be able to successfully create a campaign that generates awareness on a line that is not widely known by the target consumers. By partnering with H&M, we are confident that we will not only provide creative results for the company, but H&M will see profitable success, as well as a new segmentation of loyal customers. 2
  • 4. SWEET HOME Executive Summary Major Target Audiences Our target markets are women between the ages of 20 to 44 who love to accessorize and decorate along with college students and young professionals with urban apartments that are living on a budget. We are also focusing on couples who have recently made the big step of buying their first home and are now looking to fill the empty rooms at reasonable prices. Our secondary target market would be males at the ages of 24 to 35. We are also targeting young men looking to add some sophistication to their childhood furniture sets. The average consumer would be looking for specific modern pieces at low prices. Time Period of the Campaign July 2016 to December 2016 Campaign Objectives We strive to expand the H&M Home line towards all of the major cities: San Francisco, Los Angeles, Dallas, Philadelphia, Chicago, and Seattle. We would like to launch this campaign by building a stronger social media presence along with being socially responsible to collaborate with Habitats for Humanity. We hope to aim to reach out to at least 75% of our target audience and increase our consumer awareness by 12%. We also hope to increase our sales revenue by 15% by the last quarter of 2016. Campaign Theme/Slogan “Every Accessory Needs A Home. #hmsweethome” Budget Total $33, 495, 000 3
  • 5. SWEET HOME Summary of Media Used Radio Advertisements Objective: We will be using radio advertisements during peak traffic hours in major cities to capture the cognitive response within 30 seconds to a minute. This will cause our audience to get an idea of our campaign while in public transportation or the vehicle they are driving in. Rationale: Creating buzz instantly, fast cognitive response, giving an idea for the audience Budget: $1,674,750 // 5% Print Advertisements Objective: To increase exposure towards campaign by putting print advertisements in selected magazines that the target audience reads. It will bring more attention not just from apparel magazines, but in home decor magazines as well. Rationale: Expanding customer loyalty, communicating on print, mass coverage Budget: $11,723,250 // 35% TV Advertisements Objective: To capture target audience’s attention in between relevant shows or news forecast no more than 30 seconds to a minute. This will ensure that the target audience will not skip the TV commercials. This will also be done on online TV shows depending on relevancy. Rationale: Selective targeting, broadcasting flexibility, and creating buzz from TV shows Budget: $1,674,750 // 5% Sales Promotions Objective: To promote social cause, grand opening discounts, and benefits of joining the loyalty program in order to create or maintain customer relationships. Rationale: Provides benefits for the target customers, customer loyalty, social consciousness Budget: $6,029,010 // 18% Direct Marketing Objective: To directly target customers in persuasion of involving them into the campaign. Rationale: Giving them direct communication through mail in order to create a more rapid response along with ensuring that they will come into brick and mortar stores with their mail Budget: $5,024,250 // 15% 4
  • 6. SWEET HOME Social Media/Internet Media Objective: To build strong internet and social media presence amongst the target audience and making live interactions with them. Rationale: Creating a strong internet audience will not only bring more traffic to the website, but will also ensure customer loyalty from receiving their feedback through social media. Budget: $5,024,250 // 15% Public Relations Objective: To promote the brand image by collaborating with a charity that is relevant to the H&M campaign. This will bring social awareness to the brand and the charity itself. Rationale: Promoting a social cause and creating responsibility for the target audience. Budget: $669,990 // 2% Personal Seling Objective: To give direct and personal interactions with target customers when walking into brick and mortar stores in order to inspire their purchase behavior during the campaign. Rationale: Creating positive customer service experiences, welcoming them into the grand openings Budget: $1,674,750 // 5% Evaluation Program The evaluation program and standards will help launch the 6-month period of the campaign. There will be tests and teasers through the development of the campaign to measure effectiveness and its progress. This will also include trackers and clickers through social media and the Internet along with measuring traffic onto the other platforms. Broadcasting advertisements including TV, print, and radio will ensure productivity of our target audience’s cognitive response from the promotions. The social awareness of the campaign will benefit the customers and the company due to its long history of collaborations with non-profit organizations. 5
  • 7. SWEET HOME Industry Background (External) Interior Design Industry The interior design industry is relatively small but makes a big impact. There is a wide range of competitors but no one company is dominant in this industry. Today the industry plays a crucial role in our everyday lives, its impact is everywhere. Interior design includes homes, hotels, restaurants, stores, doctors offices, schools, and any other interior you can think of. The interior design industry influences and inspires the mood, feel and overall environment of every place you walk into. Recently the industry has accelerated to keep up with the current and ever changing market trends. Interior design has such a great impact, often not consciously, because we spend most of our time surrounded by it. The interior design industry provides room for creativity and functionality in residential, recreational and professional environments. Size The fashion apparel industry is global. The American Society for Interior Designers (ASID) state of the industry report in 2011 showed “Designer revenues were just under $7.3 billion in 2011, with an estimated 12,100 interior design firms. With an additional $1 billion in earnings by the 17,100 self-employed designers and $1 billion from architecture firms’ interior design services, the total revenue of interior design businesses was over $9 billion.” Also, in ASID's 2014 outlook for interior designers a 13 percent employment growth was expected, a more recent report has not been released yet. Growth The industry is seeing the most prominent growth in the E-commerce sector. Over the years we have seen a dramatic shift in consumer spending from retail stores to online. Companies are experiencing the benefits of adapting their retail strategies through instant accessibility. Through social media websites such as Instagram, Facebook and Twitter, companies are able to capture a larger share of sales than ever before. Let’s face it, most people do not like to shop in crowded brick and mortar stores and wait in mile long lines to check out. According to ASID’s 2014 outlook report, “2014 will be one of the strongest years in residential spending since 2009, with a significant growth in the remodel market. This resurgence in the housing market, and in some commercial and institutional sectors, holds promise for stronger growth in the interior design field in 2014, although growth to date has been erratic and modest.” We expect to see continued growth in 2016. 6
  • 8. SWEET HOME Current Trends/Promotions ● Fast Fashion influence on accessories ● International expansion ● Localization of individual stores ● E-commerce consumer spending ● Promotions offered on event themed apparel, ex: Coachella ● Using social media not only to showcase, but also sell ● Baby Boomers and Millennials heavily influence and are targeted ● Engaging and interactive marketing that results in consumer action ● Shift towards Corporate Social Responsibility -Customers feel good knowing they are contributing to a worthwhile cause. ● Loyalty programs that reward consumers for their engagement, as opposed to just purchases ● Consumers want more personalized experiences and offers ● Data security has become top priority 7
  • 10. SWEET HOME Company Snapshot (Internal) Brief History Background ○ 1947- First retail location, originally called Hennes, was opened in Vasteras, Sweden. ○ 1957- Second location opened in Stockholm, Sweden. ○ 1964- Third location opens, but first one outside of Sweden, in Norway. ○ 1968- Hennes founder, Erling Persson purchases Mauritz Widforss, an outdoor company. Store name is changed to Hennes & Maurit, H&M. Men and childrens clothing lines come into formation. ○ 1974- H&M becomes public, makes first appearance on the Stockholm Stock Exchange. ○ 1980s- H&M stores open in Germany and the Netherlands. ○ 1998- Location opens in France. E-commerce shopping begins. ○ 2000- First location opens in the U.S. in New York City. ○ 2004- H&M starts collaborating with famous designers (Karl Lagerfield, Stella McCartney). ○ 2007- First locations in Asia open. Ecommerce shopping begins in Austria and Germany. ○ 2008- H&M expands to Tokyo. Company also purchases FaBric Scandinavien fashion firm. ○ 2009- Company expansion H&M Home is launched. ○ 2010- H&M expands to South Korea and Turkey. Ecommerce shopping starts in the United Kingdom. First H&M Home store opens near Swede .(HM.com) Place in the Industry (e.g., size, growth, image) Size ■ 3,511 brick and mortar locations, globally Growth ■ H&M aims to grow 10-15% per year, with brick and mortar locations (Expansion strategy). The company is planning on opening 400 new brick and mortar locations primarily in China and the United States. This exceeds the 371 locations the company opened in 2014 (Kell). Image ■ H&M is a leading retail giant, offering fashionable pieces, at a low cost for its consumers. It caters to wide demographic and various target markets (Kell). 9
  • 11. SWEET HOME Mission or Business Philosophy “Our vision is that all our operations are run in a way that is economically, socially and environmentally sustainable. Which will mean our business is helping to meet the needs of both present and future generations. We believe that quality, affordable fashion can be made and sold in a way that’s also good for people and the environment. With this in mind, our business concept is simply to offer quality fashion at the best price” (Our Vision, H&M). Organizational Structure ○ Functional structure ■ A functional structure is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks (Small Business). 10
  • 12. SWEET HOME Product Line Taking inspiration from the latest catwalk trends, H&M provides fashion-forward products that are suitable for each room in the house. Products come in different collections, inspired by different lifestyles. Products ranging from candle holders to bed linen, and sustainable throw pillows. Sales History Hennes & Mauritz AB reported a profit leap of 17% from the last year, with the majority from H&M, followed by other brands under its ownership, including COS, Cheap Monday, Monki, Weekday, and & Other Stories. The net sales from 2014 were more than six billion dollars. Target Market H&M Home caters to its existing target customer who shops the company’s apparel line, H&M. Its target market serves both men and women age 15-40, as well as teenagers and children. Its target market is budget level, consisting of consumers who are trend conscious, who cannot afford to buy looks off the runway. Despite its financial background, H&M’s target market still cares for products that are of good quality, design, and sustainable. Market Share Hennes & Mauritz AB increased its market share through its strong sales and profit growth. The company reported that its three-month earnings in the start of 2015 increased 35 percent to 420 million dollars, which has been used to better new collections, as well as a new market in Taiwan. Net profits from H&M increased in February 2015, surpassing the same period last year by more than $380 million. Positioning A company’s positioning strategy is affected by customers’ motivations, requirements, and competitors’ actions. Things to observe, in order to strategically carry this through, are to: ○ Identify what H&M Home customers are buying ○ Distinguish products and service from competitors 11
  • 13. SWEET HOME Current Marketing Mix Product H&M Home is an interiors extension of its apparel brand. The company offers trendy home goods at affordable prices, which shares the same motto as its fast fashion apparel brand. Products are offered for every room in the house, from the comforts of your living room to the privacy of your own bedroom. Categories include bed linen, decors, storage, porcelain and vases, outdoor, and basic essentials. Items are characterized through different collection inspirations, with newly adopted product launchings every two weeks. Price H&M Home offers interiors with prices ranging from $2.95 to $100. Place H&M Home is available online and through mail order in Sweden, Norway, Denmark, Finland, Germany, Austria, Netherlands, and the United States. The brand extension has 25 brick and mortar locations in Sweden, Germany, London, Austria, with four in the United States. Promotion H&M Home is still fairly new, first launching in Europe in 2009, and the U.S. in 2013. H&M has not promoted the line extension extensively. In fact, most people are not aware of the product line, unless shopping on its website. H&M Home is only available in four locations, and most of them being on the east coast, therefore accessibility is an issue. Ads that are distributed feature apparel at a low price, not home goods at a low price. Review of Existing/ Past Programs (Strengths, Weaknesses, Overall Assessment) Kravaev-Söderberg, who led the initial launch of the home collection, stated the home extension received “very positive reactions overall.” Though online and physical stores are limited, H&M Home still offers the same benefits of its clothing line- trendy products at a value price. 12
  • 14. SWEET HOME Brand Review Description H&M aims to expand for the current target market by releasing a series of home goods to its retailers. The main idea behind bringing home goods to its customers is to ensure that they would not have to go to other retailers to shop for their favorite home products. This provides not only more convenience for the customers, but will also provide them the best alternative to home decor and goods. The home goods collection will include several selections of bedding sets, small and big furniture, fixtures, wall and table decor, tables, desks, and mini storage options. To capture consumer’s eyes, H&M will be launching its products with a modern and sophisticated design that will not stray away from the original brand identity. Market Share, Sales, Growth The main objective H&M aims for is to strengthen the brand identity even more by bringing something different to the table. That is, by launching a home goods collection. Not only will this increase its market share, but this can also create a lot of buzz from its current market along with bringing new customers in. This will also create a bigger sales growth because customers will no longer try to shop at home goods retailers. Strengths ● Strong partnerships with famous designers ● Reasonable pricing ● Great quality clothing and accessories ● Sold worldwide ● Strong media platforms presence Weaknesses ● Mass production ● Target market expanded too broadly ● Lack in variety of design 13
  • 15. SWEET HOME Performance The home goods collection will be the beginning of consistency in bringing a new product mix. This will bring positive product performance to our market because although H&M is known to be consistent with its quality in apparel, it should be too when it comes to bringing in new products and aspects for the retailer. Key Benefits Some of the key benefits include: ● Creating another reason for customers to shop at H&M ● Making an unexpected promotion campaign for the consumer to be excited for ● Becoming a modern retailer not just for apparel, but for home goods as well Brand Image “H&M is one of the world’s largest and fastest growing clothing retailers. The company is also a pioneer of ‘fast fashion’: a term used to describe clothing collections which are based on the most recent fashion trends on the catwalk but which are designed and manufactured quickly, are affordable, and are aimed at mainstream consumers. By maintaining efficiency and flexibility throughout its supply chain, H&M is able to respond quickly to changes in fashion trends” (researchandmarkets.com). Positioning “H&M has a keen understanding of its target market—which is the low price, high fashion end of the clothing sector—and is closely attuned to what mainstream consumers want. It enjoys a strong following among women, particularly those in younger age groups, who make up the majority of its customers” (researchandmarkets.com). 14
  • 18. SWEET HOME Competitive Review Direct Competitors (cont.) 17
  • 19. SWEET HOME Competitive Review Direct Competitors (cont.) 18
  • 21. SWEET HOME Competitive Review Indirect Competitors (cont..) 20
  • 24. SWEET HOME Buying Decision Process (cont.) Product Buyers Consumers who buy H&M Home products seek trendy home goods that are cost-friendly. These buyers are in their early to mid 20s, who are most likely women, renting an apartment or house, or perhaps a couple who just purchased their first home. Regardless of small upgrade or a total home redecoration, the buyer is on a budget. Purchase Decision Influences Price and quality is a major drive in the consumer’s purchase decision. As a result, price and quality turns into customer brand loyalty, influencing purchasing decisions as well. Decision-Maker Women are most likely to be making the decision-making, especially when it comes to home decor and furnishing. Decision Criteria The consumer bases his/or her decisions on cost of the product, the worth, and the value, in which are then compared with the alternatives. 23
  • 26. SWEET HOME Campaign Marketing Goals At Mirage, our goal is to increase H&M Home’s revenue by increasing other metrics in the process. Consumers know H&M as a fast-fashion, budget apparel company. Because the the home extension is mainly known in Europe, and small parts of the east coast in the U.S., raising brand awareness is key. Advertising mediums will be used to raise brand awareness for H&M Home.The purpose is to educate the consumer about the extension, the product offerings, and price point in order to convert sales and traffic, both in-store and online.The chart above shows Mirage Agency’s campaign goals for H&M Home in Q3 of 2016. 25
  • 27. SWEET HOME Target Market Segmentation Analysis H&M’s Home collection is full of new pieces, which celebrate the time of year and spice up our lives with fresh seasonal trends. The Home collection targets H&M’s current apparel customer as well as expands to a more home-conscious customer. The H&M Home customer loves to decorate; whether it is the bedroom or the bathroom. Similar to the way the apparel customer gets inspiration from high end fashion designers, the H&M Home customer wants the high end feel but at a low price. However, even though the consumer demands low prices, good product quality is also expected. As tech savvy individuals who are trend conscious, they do their research before making a purchase. Our existing apparel customer associates the brand with providing quality items at low prices and we aim to carry that same association over to the Home collection. Our customer will love the H&M Home collection because it brings together fashion and design in a wide assortment of pieces that can be mixed and matched to express individual style in every room. Geographic Urban and Suburban Demographic Age: 18-45 years Residence Tenure: Homeowner & Renter Socioeconomic Income: $35K-$75K Education College Educated Psychographic Trend Consciousness Uses smartphones to compare prices before making a final purchase Responds quickly to promotions and sales Expects excellent customer service and convenience from retailers Wants quality in a product while paying a reasonable price Brand loyalists Uses products from companies that are socially and environmentally responsible 26
  • 28. SWEET HOME Target Market Primary Target Market Women between the ages of 20-44 who love to accessorize and decorate College students and young professionals with urban apartments that are living on a budget Couples who have recently made the big step of buying their first home and are now looking to fill the empty rooms at reasonable prices Adults with lived in rooms and sentimental furniture that are looking to bring some freshness or life back into their homes Parents with young children who are still excited by themed rooms and fairytales Individuals who are influenced by a company's ethical structure and sustainability Individuals who enjoy feeling connected with brands through social media Secondary Target Market Males ages 24-35 Young men looking to add some sophistication to their childhood furniture sets The average consumer looking for specific modern pieces at low prices 27
  • 29. SWEET HOME IMC Objectives & Strategies Using the Hierarchy of Effects model, H&M Home will see success in its IMC, and successful generated consumer response. The below objectives and strategies are what will be used to ensure the IMC is successful. 28
  • 30. SWEET HOME Positioning and Campaign Theme Campaign Theme “Every Accessory Deserves a Home.” Positioning Strategy/Statement “H&M Home is a home retailer that offers quality and affordable home furnishings for trend conscious consumers. Unlike traditional home good retailers, H&M Home provides fashion for the home through convenience and accessibility of their products and services with the use of technology and social media.” End Results of Positioning ● Increase awareness and excitement about the launch of the home collection in the major cities ● Improve personalized customer experiences ● Encourage customers to share their own H&M home creations with us via social media platforms such as Pinterest and Instagram ● Continue to promote products through themes and overall moods to give inspiration ● Maintain transparency to ensure ethical business practices ● Continue to run operations in a way that is socially, economically and environmentally sustainable Product Difference The H&M Home collection offers versatile pieces with a modern feel for every room in the home. The repeated use of prints, patterns and color schemes will become recognizable. Key Benefits ● It would be an ease of location. H&M Home stores will be opening next to H&M apparel to create a stronger brand association and awareness. ● Fresh, trendy and modern pieces at affordable prices. H&M Home Concept An accessible, inspiring collection of fashionable accessories and textiles for every room in the home, all at a great price. 29
  • 31. SWEET HOME Creative Recommendations Target Audience We would like to target returning H&M customers that are looking for home goods for their homes. They are fashionable customers that love to accessorize their lives with jewelry, creative spaces, and mainly their homes. They also have brand loyalty and recognize the quality and price of the brand itself. Advertising Objectives ● Increase awareness of H&M Home all around the United States ● Introduce current and incoming modern themes that allow customers to seek different options for their homes Advertising Strategy In order to spread awareness, one of our advertisements will include a hashtag “#hmsweethome” in all social media platforms. Advertising Appeals ● “Every accessory deserves a Home” will aim to deliver a positive message for our current products that are in dire need for our home products. ● The campaign will seek to appeal as a form of comfort from our customers’ own homes by purchasing our home goods. Advertising Execution Format Our advertising execution will deliver a positive message for our current products that are in dire need for a home. We will be designing simple yet attention-grabbing colors into our print, television, and billboard advertisements that will yell for the H&M brand. Rationale for Creative Recommendations Customers recognizing H&M Home will increase awareness of the expansion of the H&M brand. This will also increase brand loyalty and also bring in new customers. Executions We will be launching television, print, and billboard ads along with social media with the hashtag and that specific theme with a combination of the H&M colors and specific home themes. We will also have fashion bloggers to deliver the message through social media. 30
  • 32. SWEET HOME Advertising Media Recommendations Target Market The campaign will be targeting a wide range of consumers ranging in age from 25-50. Both women working who are looking purchase high quality items for a low price. They are either trying to decorate their apartment, or have just purchased their first home, or are just trying to spruce things up with fun accessories. Geographic Scope The IMC campaign will be exposed to consumers on a national level. Magazine advertisements will be placed in carefully segmented magazines where it will be certain our targeted consumer will be able to see and retain the information that they are exposed to. Billboards will be placed along high-populated highways, granted more exposure and retention during traffic congestion. Further more, radio ads will also be placed in popular local radio stations in big cities; Chicago, Los Angeles, Dallas, Philadelphia, San Francisco, and Seattle. Scheduling Pattern with Rationale The campaign advertisements will be scheduled at both continuity and pulsing patterns. Magazine ads and catalogs will be placed every month, and social media ads will be placed in continuity patterns. This being that the magazine ads will be placed be seen every month. Email blasts and social media ads will be placed in a pulsing pattern, given how often and easy it is for consumers to be exposed to the ads. Gross Impressions The campaign will aim to reach 25-30 million people. This will be measured in how many people click on the email blast links, use the catalog in-store promotion coupons, and the click rate for the social media ads. Cost-per-Thousands The ads will budget by how many people are exposed to the ads multiplied by a thousand. 31
  • 34. SWEET HOME Media Plan Breakdown 33
  • 35. SWEET HOME Media Plan Breakdown (cont.) 34
  • 36. SWEET HOME Sales Promotion Recommendations 35
  • 37. SWEET HOME Direct Marketing Recommendations 36
  • 41. SWEET HOME Public Relations Recommendations 40
  • 42. SWEET HOME Public Relations Recommendations (cont.) 41
  • 44. SWEET HOME Measurement and Evaluation 43
  • 45. SWEET HOME Measurement and Evaluation (cont.) 44
  • 46. SWEET HOME Measurement and Evaluation (cont.) 45
  • 47. SWEET HOME Budget Summary Budgeting Method: Percentage of Sales Total Sales (2014): 23,799.2 Billion (Global) Total U.S. Sales (2014): 2,328.18 Billion H&M Advertising Budget: $3% of Total Sales ($22.33B x 3%= $666.9 Million) H&M Home Advertising Budget: 5% of Advertising Budget ($666.9 Million x 5%= $33,495,000) Budget From Percentage of Sales Method: 5% Estimated Budget To Be Received: $666,990,000 Budget Request: $33,495,000 46
  • 48. SWEET HOME Conclusion The IMC program uses both traditional and contemporary mediums to reach core customers. These strategies comprise of: television, radio, print & digital media, sales promotions, direct mail, social media, and the Internet. The intent of this campaign is to successfully launch H&M Home in the United States market, while also introducing them as an relevant retailer in the home industry. In support of that, our IMC program will focus on raising brand awareness by 40% in 12 months, through the mediums listed above. The increase in brand awareness will contribute to growth in five key areas, ● Website Traffic (40%) ● In-store Traffic (30%) ● Return on Investment (12%) ● Profit (15%) ● Sales Revenue (30%) With the different channels of marketing and the extent of the IMC program, the advertising budget needed in order to execute is $33,495,000. Because the H&M Home targets young adults ages 18-45, it is important to utilize all forms of marketing strategies, especially when it involves technology and social media. Because technology has evolved the world of consumerism with web applications, e-commerce, and social media, it will have a continuous and growing influence over consumers. With H&M predominantly known as a fast-fashion apparel brand in the U.S., we recommend H&M Home brick-and-mortars to be opened next to their apparel stores. H&M is already an established brand and has a recognizable brand logo. Opening Home brick-and-mortars next to the fashion apparel store allows consumers to immediately associate the two together. This will target and encourage core and existing customers to shop at H&M Home, allowing more foot traffic and convenience of accessibility and location. With ease of accessibility of its products through online platforms and in brick-and-mortars, H&M Home will have a dominant presence in fashion and the home industry in the United States. 47
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