service marketing h&m
DESCRIPTION
TRANSCRIPT
Jose Domingo Taberner TarazonaC00130760Services Operations Management II
To give the customer unbeatable value by offering “fashion and quality at the best price.”
Business Concept :
More than1,490 stores
in 29 countries
international H&M is an
fashion house with around60,000 employees
Concepts…
Women Men Young Trend
Children Accessories- UnderwearFuture Mothers
Expansion development 1974 – 2006
Number of stores
Number of
markets3 4 5 6 7 8 9 10 11 12 14 18
*Expansion since the stock-exchange quotation 1974
72 83 96 105 108 122 124 128 135 147 158 168 175 188 207241 249 260
291324
357393
443490
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while maintainingGrow
profitabilitystores by10-15 per cent per year
Increase the amount of
in existingIncrease sales
stores
Major Competitors
VS
Employees
Target Groups
WomenH&M defines several concepts of women, offering them from the basic items to more exclusive
sets and keeping in mind to satisfy those who want to keep up with the international trends
MenTheir various lifestyles, needs and tastes are reflected in the collections, including as in the
women department, a whole selection of sportswear
Young TrendThe fun teenager department is oriented for girls and boys.
ChildrenFrom babies, children and young teenagers.
Future MothersThere is a special section for women who still want to be fashionable during their pregnancy
without refusing comfort
Winning Wheels of Service
Cu
sto
mer
s Em
plo
yees
Shareholders
The
Mom
ent
of
Tru
e
Value Chain
t
Firm Infrastructure
Human Resource Management
Technological development
E-Procurement
Inb
ou
nd
Lo
gis
tic
Op
erat
ion
s
Ou
tbo
un
d
Lo
gis
tic
Mar
keti
ng
&
Sal
es
Ser
vice
Margin
Margin
The Service Profit Chain
Internal service quality (the working
environment, workplace)
Employee satisfaction
External service value
Customer satisfaction
Customer loyalty
Revenue growth
Improved profitability
Employee productivity
Employee retention
Product
Product
Pricing
oFew middleman
oBuying in large volumes
oHaving a broad, in depth knowledge of design, fashion buying the right product from the right market and textiles.
oBeing cost-conscious at every stage
oHaving efficient distribution.
(Annual report 2007).
Promotion
Offers, used some important designers....
Always the best location....
Milan
Stockholm
Vienna London
New York
Place
Sales markets
New markets 2007/2008
Production offices
No factories of our own
Around 700 suppliers
Around 20 production offices
Place -Major Suppliers-
40%
60%
People
Internal Marketing of H&M:
•Moral Involvement•Motivation•Communication•Increase employee’ involvement
Recruiting, training and rewarding
Recruiting different types of employeesTraining employees.Career developmentRewarding with fixed salary and extra benefits.
Internal Marketing of H&M:
•Moral Involvement•Motivation•Communication•Increase employee’ involvement
Recruiting, training and rewarding
Recruiting different types of employeesTraining employees.Career developmentRewarding with fixed salary and extra benefits.
Physical evidence
Facility Exterior•Different exterior design.•Impressive shop window.
Facility Interior•Different shops in the same store•Music•Nice furniture•Interior decor
Other Tangibles•Free H&M magazine•Employees
Processes
Conclusions
Mains problems
Recommendations
Bibliography
•H&M 2007. Corporate Social Responsibility (CSR) Report, Stockholm, http://www.hm.comH&M2007.
•Annual Report, Stockholm, http://www.hm.com
•Unander-Scharin, Malin (2007).Reposicioning. A brand personality. Lulea University of Technology. Sweden
•Palmer, Adrian (2005). Principles of Services Marketing. 4th edition. UK.
Questions
THANKS FOR YOUR
ATTENTION