Table of Contents
Table of Contents
TOC o “1-3” h z u 1.0Introduction PAGEREF _Toc25924167 h 12.0Methodology PAGEREF _Toc25924168 h 22.1Research Methodology PAGEREF _Toc25924169 h 22.2Research Method PAGEREF _Toc25924170 h 22.3Methods and Procedure of Collecting data PAGEREF _Toc25924171 h 32.4Procedure of Analyzing Data PAGEREF _Toc25924172 h 43.0Findings and Discussions PAGEREF _Toc25924173 h 5Table 1:Research Results PAGEREF _Toc25924174 h 53.1 Strategy 1 PAGEREF _Toc25924175 h 53.2 Strategy 2 PAGEREF _Toc25924176 h 73.3 Strategy 3 PAGEREF _Toc25924177 h 84.0Conclusion and recommendations PAGEREF _Toc25924178 h 84.1Recommendation and conclusion PAGEREF _Toc25924179 h 94.2Suggestions for Further Studies PAGEREF _Toc25924180 h 9
As multinational corporations explore more market niches to increase their market shares, the Swedish clothing retail called Hennes & Mauritz, popularly known as H&M, is not lagging behind. Since its establishment in 1947, H&M has grown immensely and is currently the globe’s second-largest apparel retailer relying on over 132,000 employees who run more than 4,500 stores in over 62 countries across the world. The company deals with fast-fashion apparel for virtually all people including kids, teenagers, women and men (Mo, 2015). As part of its expansion processes, H&M entered the New Zealand market in 2016 and is now operating with over five stores across the country.
H&M realized a significant decline in its profits for the year ending November 30, 2019, due to specific reasons which could entail its substantial investments in logistic operations and acquisition of digital technology (Abaño, 2019). The company made such massive investments to ensure speedy deliveries, upgraded mobile apps amongst other related processes with the aim of improving product selection and shopping experience for its clients. Although the decline in profits is based on company-wide operations and gains, H&M’s revenue from the New Zealand market could have contributed significantly due to the absence of online sales operations. Since the company is yet to establish a website for New Zealand, customers have to physically visit its stores to select and purchase their clothing (Nadkarni, 2019). Consequently, this study is based on the assumption that New Zealand clients endure lots of difficulties while shopping in H&M. Hence, as unsatisfied customers, the target market makes fewer purchases, a practice that attracts low sales and profits. Therefore, this report analyzes and evaluates various strategies that H&M could employ to encourage more convenient and exciting shopping experiences.
This document has three major sections. As one of the sections, the methodology is employed to present suitable approaches for finding an answer to the research question. The next section presents findings and discussions from the chosen literature. Finally, summarized details regarding conclusions and recommendations feature in the last section.
This section presents a comprehensive explanation and analyses of methodology that were employed in this study. Precisely, section 2.1 offers details regarding applied research methodology. Moreover, section 2.2 presents the research method. Still, statement of the methods and measures of data collection comprise section 2.3. Finally, methods and procedures of data analysis constitute section 2.4.
This study would rely primarily on qualitative methodology to collect a vast amount of data related to the subject under study. Qualitative research serves as a suitable approach for conducting this type of study since it encourages collection of enormous amounts of subjective data, hence facilitating development of better decisions (Silverman, 2016). The author would endeavor to establish the meaning of various aspects, including activities, images, and related issues, by employing their skills, knowledge, and competencies. Accordingly, this type of study is appropriate for understanding human behaviors.
Since this study strives to determine, analyze, and evaluate various strategies that H&M could employ to realize improved shopping experiences by its varied categories of customers, qualitative research is essential to ensure better decision making.
This study would rely on a qualitative content analysis (QCA) approach to analyze and evaluate strategies that H&M could employ to realize better customer experiences. Accordingly, the writer would analyze, assess available data and generate related information that would inform establishment of conclusions and necessary recommendations. The author would rely on their critical thinking skills to analyze and evaluate available information with regards to operations of H&M. Still, QCA acts as an appropriate tool since it enables the researcher to systematically analyze and retrieve critical content from the available resources and establish useful themes (Mayring, 2014). Since the researcher would be dealing primarily with non-numerical data, QCA acts as the most appropriate tool for summarizing the voluminous content and developing more meaningful understandings about the subject.
2.3Methods and Procedure for Collecting data
This research study would rely primarily on secondary sources of data because they (secondary sources) are relatively cheap and reliable sources of information (Hox & Boeije, 2005). Since secondary data serve as one of the most readily available types of data, the researcher would employ their competence and skills to critically read and analyze relevant resources. Moreover, the use of secondary sources of data acts as an essential practice since it promotes acknowledgment and appreciation of great work that other academicians and scholars have accomplished. Consequently, the study would rely on the most relevant and readily available resources to gain vital information that could provide foundation and support for its claims.
Secondary sources of data that would be employed for this study could entail company websites, academic books, annual reports, and research articles (Clark, 2013). Accordingly, information that would be collected from such resources includes the benefits that H&M would realize upon adoption and utilization of an online sales platform in Australia, impacts of employing and developing its employees, and the effects of establishing a customer-centric culture. Consequently, the author would critically read, analyze and evaluate data from the resources to gain insight regarding the alternatives that H&M could embrace to improve shopping experiences amongst its clients.
Besides, data for this study would be collected systematically. First, the author would identify and find relevant resources. Specifically, certain aspects that revolve around the theme of customer experience would be considered to streamline the search processes. A research study should rely on the most appropriate resources to adequately respond to the research question. Thus, sufficient judgment would be employed to ensure that quality resources are used in this study.
Secondly, the researcher would critically read, analyze, and evaluate information from the selected resources. The researcher would collect critical points, make summary and inferences that are essential for the next sections of the paper.
2.4Procedure for Analyzing Data
As stipulated in section 2.2 above, this study would rely on Qualitative Content Analysis. Accordingly, both descriptive and interpretive analyzes would be used (Zhang & Wildemuth, 2009). Even so, the process of analyzing data would comprise various steps. First, the researcher would code the collected data to understand applicable themes. Coding is an excellent tool for classifying qualitative data into useful categories to facilitate data analysis. Thus, the researcher would conduct intensive and extensive studies to gain sufficient understanding of the different kinds of data analysis for appropriate coding exercises. The main reason for coding the data is to acquire a summarized version of data for better extraction of required data (Zhang & Wildemuth, 2009). Thus, coding is essential for this study because the author would deal with large volumes of data.
After coding, the researcher would critically analyze and interpret the data to determine their meaning and importance. Accordingly, it would be relatively more comfortable for the researcher to adequately describe and explain the varied strategies under study. Thus, critical thinking skills would be employed to determine the most suitable strategy for encouraging better shopping experience in the H&M company.
3.0Findings and Discussions
This section of the report offers results that the researcher attained from the study. Moreover, the findings would be discussed regarding the operations of H&M.
Table 1:Research ResultsStrategy
Strategy 1 Use of retail online sales and marketing
Promotes a convenient shopping experience and more satisfaction among customers
Strategy 2 Train and develop sales staff Attracts more professionalism and quality service provision
Strategy 3 Offer discounted prices for most of the apparel Makes it more affordable for the clients to purchase the clothing
3.1 Strategy 1The first strategy that would be recommended for H&M company is the establishment and use of the internet for retail online sales and marketing as well as home deliveries. This approach focuses on determination of the most suitable technology that H&M could utilize to market and sell its products over the internet. Since the firm has spent massive amounts of money in purchasing and upgrading Mobile App that could facilitate online sales and marketing, it would be relatively more comfortable for the H&M to introduce the approach in New Zealand. Moreover, the company should invest other additional funds in establishing and running a suitable online platform that is tailored for the New Zealand market. Though the strategy could appear costly in the short-run, H&M would reap massively in the long-run when customers would realize great shopping experiences. Some clients could even make some purchases that could otherwise be unplanned for following the capacity of the online platform to promote and convince customers to acquire particular products (Dawson & Kim, 2010). Consequently, online sales and marketing would attract lots of benefits to the firm and its clients by encouraging more marketing and shopping convenience.
The company’s varied clients would enjoy lots of convenience by shopping through an online platform. Precisely, the customers would select and pay for their preferred clothing at the comfort of their households and other suitable places. Consequently, the customers would avoid the otherwise tedious and challenging physical visits and movements in H&M’s stores. Moreover, the clients would enjoy relative ease while determining and comparing the prices of their desired products (Lee & Lin, 2005). Thus, shopping online is relatively easier and more comfortable.
Besides, the customers would avoid the otherwise tiresome and time-consuming processes of traveling and ferrying their products when H&M offers delivery services. As part of the package, H&M would have to deliver its products to the customers, probably at some extra cost. It would not make sense for the firm to offer online services and expect the clients to collect their products at its physical stores. Hence, the company would provide home deliveries to attract more satisfaction amongst the customers though it could be a costly practice.
As a result, H&M’s clients would be dealing primarily with interactive online platforms rather than human beings. Consequently, the company could offer high-quality services since technology tends to encourage consistency in service provision. Thus, the company could rely on a fewer number of salespersons while making massive marketing campaigns and sales processes (Patterson, 2007). Still, the firm would drastically limit the number of physical movements for purposes of sales and marketing. Therefore, online sales and marketing would significantly improve the firm’s traditional sales model.
3.2 Strategy 2H&M could employ the second strategy which focuses on training and development of sales and marketing employees to encourage more professionalism and provision of high-quality services (Tahir et al., 2014). Courteous salespersons with exemplary professional conduct would offer quality services to the company’s clients. Accordingly, the firm could opt to conduct certain training and development sessions to impart more information and skills in its workforce, particularly the sales and marketing team. Consequently, the employees would appropriately handle their clients, thus attracting more satisfaction regarding their shopping experiences.
Moreover, well-trained and competent employees tend to be more efficient while handling their roles (Tahir et al., 2014). Consequently, customers would realize satisfaction through time-saving owing to the speedy and highly-efficient sales team. Still, the well-trained sales force would exhibit more persuading and convincing capabilities by leveraging their skills to the sales and marketing processes. Besides, the employees would be more helpful to the customers with regards to provision of essential information such as qualities, prices, and benefits of using specific clothing. Subsequently, clients would be making more informed purchase decisions with fewer strains.
Nonetheless, the customers would encounter huge costs while traveling, selecting and purchasing their clothing. The clients could be forced to travel long distances, walk within the firm’s stores, and endure long queues to acquire their products. Besides, the customers would physically select and compare different types of clothing and their prices, a practice that is tiresome. Fortunately, the clients would enjoy the personal services and courteous interactions with the company’s employees. However, the clients might not realize maximum satisfaction following the above-mentioned challenges.
3.3 Strategy 3The other alternative that H&M could employ is to sell some of its clothing is clothing at reduced prices. Lowering prices of certain products could encourage customers to make more purchases due to higher affordability (Möller & Watanabe, 2010). Moreover, proper pricing could serve as one of the most effective ways of attracting more market share and increasing sales when there is tight competition. As part of sales and marketing strategies, H&M could endeavor to attract more satisfaction and convenience amongst its clients by offering its apparel and related services such as deliveries at discounted rates.
However, the practice of lowing prices could attract negative impacts on the company’s reputation. Some of the firm’s clients could perceive that H&M has compromised quality of its products (Amaldoss & Jain, 2005). Thus, it would not be advisable for the company to lower prices of its products since it is dealing with fashion clothing, products that are usually meant for the high-class people with lots of money to spend. Such category of people could be willing and ready to pay well to acquire their clothing in convenient ways. Still, H&M could continually realize low prices or even losses by offering its products and services at reduced prices. Since the firm is striving to increase its profit margins, a suitable strategy should encourage more sales at relatively reasonable prices. Hence, the company should not lower its prices beyond particular limits to attain its target profits.
4.0Conclusion and recommendations
This section offers advice and conclusions regarding the most suitable strategy that H&M should adopt to attract better shopping experience by its clients. Moreover, some suggestions for future research studies are provided.
4.1Recommendation and conclusionFindings from the discussions above reveal that the use of retail online sales serves as the most suitable approach for encouraging better shopping experience at high convenience. The overall benefits of using online platforms for marketing and selling the products outweigh the costs of acquiring and running applicable technologies. Consequently, it is recommended that H&M introduces the use of online marketing and sales in New Zealand to facilitate more convenient shopping experiences by its clients. The firm should rely on an online platform that is tailored to the New Zealand market.
Fortunately, this approach would favor H&M since it (H&M) has already invested heavily in the acquisition of appropriate technologies and logistics (Abaño, 2019). Consequently, the company would incur some extra amounts of money to introduce such services to the New Zealand market. Luckily, this strategy would benefit the company and its clients by facilitating more convenient sales and marketing practices and shopping experiences for the sales team and clients respectively.
4.2Suggestions for Further StudiesAlthough the discussions suggest that the target clients, comprising the high-class persons, have lots of money to spend, certain assumptions prevail. Such a group of people could be willing and ready to spend lots of money to acquire specific products and services. Therefore, further research should be conducted to determine if clothing constitutes such products and services. Besides, it is recommended that the approximate amount of funds that this group of persons have at their discretion and are willing to spend on luxurious apparel be determined to facilitate informed pricing.
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