Assignment Brief
Programme: BTEC Higher National Diploma (HND) in Business Marketing
Unit Title and Number: Advertising and Promotion in Business (Unit 18)
This unit introduces learners to the wide scope of marketing communications and how the communications process operates. It includes a study of current trends and the impact that ICT has had on marketing communications. Learners will explore the marketing communications industry and how it operates. The learners will also develop some knowledge of how the industry is regulated to protect consumers.
Scenario
H&M's Brand Identity
H&M is the largest fashion retailer in Europe at the present. Like ZARA, fashionable designs, high quality, affordable prices and its distribution system are keys to its success and rapid expansion worldwide. However, fast fashions, the most important factor of ZARA’s success, is not the one to make H&M more thriving in the market.
H&M’ physical stores are also located in the largest cities around the world. Its strategy is quite similar to ZARA’s; that is, H&M tries to let its customers have an image that it is a brand focusing on stylish designs with good quality at the affordable prices. In fact, H&M’s prices are lower than ZARA’s because it provides its products to all people who want to be fashionable without any scruple about the prices. H&M has a mission that it is possible for everyone to find his or her own dressing style in its collection.
Product – wide range of cloths and accessories with lower price and reasonable quality, inspired by the latest catwalk trends. Its product concept is ‘EDLP’ (everyday low price product). H&M also offers sportswear, lingerie, cosmetics and home department.
Price – cost-based. Cheap and affordable.
Place – H&M stores are always located in well-known department store or famous shopping street. H&M also has an online shopping website to service its customers to be more convenient. They can browse, interact and order the product everywhere and at any time directly from their home, the brand also provides shipping all over the world.
Promotion – H&M spend many effort on promotion, no matter the outdoor advertising, direct market – H&M magazine, and also the press even the famous blogger and world celebrities; word of mouth is a powerful tool. The company uses video advertisements, print advertisements and the concept of e-marketing to meet the consumers from everywhere. H&M invest a lot in advertising and marketing campaign
Source:http://brandaditofexchanges.blogspot.co.uk/2013/11/h-brand-identity.html
You are the newly appointed a Trainee Advertising and Promotion Manager and have been asked by the board to carry out two initial tasks
Task One - Write a report to explain the process of communication, regulations, trends, the impact of ICT, branding and the role of integrated strategy in Advertising and Promotion.
Task 1
Writing a Report
LO1 Understand the scope of marketing communications
LO2 Understand the role and importance of advertising
As the newly appointed Trainee Advertising and Promotions Manager, you have been asked by the board to write a report to explain the process of communication, regulations, trends, the impact of ICT, branding and the role of an integrated strategy in Advertising and Promotion.
The following must be included in your report;
1.1 In your report to the management of H&M, explain the communication process that applies to advertising and promotion.
1.2 Within the background section of your report, provide a brief explanation of the organisation in the advertising and promotions industry to the H&M management.
1.3 Assess how promotion is regulated in the UK.
1.4 Examine some current trends in advertising and promotions, including the impact of ICT. Relate this to the H&M.
2.1 Provide an explanation of the role that advertising could play in an integrated promotional strategy for the H&M.
2. 2 Include an explanation of how branding could be used to strengthen a business such as the H&M. Include a definition of branding in this section of your report.
2.3 Identify and review of the creative aspects of advertising in the context of H&M.
2.4 In your conclusion, examine and briefly explain the various ways of working with advertising agencies. Include at least three ways in your answer.
Grading Opportunities
M1
Provide a judgement on the value of using an in-house advertising and promotions team. Compare this to outsourcing advertising and promotional work to an external agency.
M3
You will need to use a professional report format, with clear headings, sub-headings and articulation.
D3
Create and design a one page flyer to be distributed outside H&M. Decide how you will design your flyer to attract customers into H&M. Select four retail outlets to be promoted in the flyer. A screen shot of the flyer should be pasted or included at the end of the report to give the management team in idea of how you intend to increase the company footfall.
Task Two - Prepare a Plan and PowerPoint Presentation for the Senior Management Team and other internal stakeholders of H&M, explaining the primary techniques associated with below-the-line methods and prepare a promotional plan for the shopping complex. Include a power point presentation of planned activities (schedule of activities) and resources needed for the implementation of the promotional plan.
Task 2:
Prepare a Plan and PowerPoint Presentation for Senior Management Team
LO3 : Understand below-the- line techniques and how they are used
LO4 : Be able to plan integrated promotional strategies
Task 2: Prepare a Plan and PowerPoint Presentation for Senior Management Team LO3 : Understand below-the- line techniques and how they are used LO4 : Be able to plan integrated promotional strategies | |
As the newly appointed Trainee Advertising and Promotions Manager, you have been asked to create a presentation aimed at the board and other internal stakeholders. In this presentation, discuss and explain below the line techniques and state how these techniques can be used by H&M. Alongside this, you have also been asked to show how you hope to accommodate for an integrated promotional campaign for H&M. Create a promotional plan to do this. In a PowerPoint aimed at the board and other internal stakeholders, discuss and explain below the line techniques and how these techniques can be used by H&M.
3.2 Evaluate other techniques used in below-the- line promotion. In your PowerPoint, critically evaluate the use of “M” Marketing and its impact on below the line promotion in the future. Create a Promotional Plan Having explained below-the-line promotion, show management how it can be used alongside above-the-line techniques to increase footfall in H&M stores. Create a Promotional Plan to be distributed at a forthcoming Annual General Meeting. The following must be included in your Promotional Plan 4.2 In the promotional plan, discuss how you intend to carry out the development of the above promotional plan for the H&M, include a brief situational analysis, three objectives and include a review of the target audiences for the campaign. 4.3 In your document, plan the integration of promotional techniques into a promotional strategy for H&M. Outline your strategy using the SMART objectives outlined in 4.2 and align these objectives with promotional activity. 4.1 Include a budget to be used for the campaign. Follow an appropriate process for the formulation of a budget for an integrated promotional strategy 4.4 Use an appropriate technique that will indicate and measure the effectiveness of the campaign. |
Grading Opportunities
M2
Design a PowerPoint presentation aimed at the internal audience mentioned in scenario two above. Include an explanation and identification of the primary below-the-line techniques. Explain how they could be used in an integrated promotional strategy for H&M. Use the appropriate language and formatting for the audience and speaker notes
D2
Propose a time frame and demonstrate that your promotional plan could be achieved within the timeframe you propose. You are required to list the activities and draw the corresponding Gantt Chart, detailing these activities and deadlines.
The main role and function of the advertising and promotion of a business refers to the guiding and helping of these strategies in the organisational development and popularity through the exhibition of the products. These strategies illustrate the process to strengthen the communication level between the organisational managements and the target audiences. In the improved scenario of the fashion industry of the UK, the competition level among the business organisations is so high that the managements of the business organisations involve themselves in the attractive design of the advertising and promotions of their products in order to maintain their market share. In this assessment, the advertising and promotional strategies of H&M along with all the associated factors and their influence on different factors have been explained. A marketing plan has also been presented.
Task 1:
LO1: Understanding of the scope of marketing communications:
Advertising and promotion act as one of the most influential channels to communicate the organisational managements and the customers. The prime focus of advertising and promotion is the better marketing of the products and services that refer to fulfil of the organisational aim and purposes and the satisfaction of the customers through the exchange of goods and services. However, Parente and Strausbaugh-Hutchinson (2014) have stated that in order to maintain the marketing standard, there are three processes that are maintained by the management of H&M as follow:
Figure 1: Communication process applied by H&M
(Source: Kelley et al. 2015, p.109)
Encoding:
Encoding is the first step applied by H&M during their advertising and promotion of the products through which the management enables to deliver prepare certain messages for the consumers to be delivered. Kelley et al. (2015) have observed that in this process the sender is the organisation and the receiver is the customers. After the planning of the messages, those are certain channels are used and applied in order to decode.
Decoding:
In the process of decoding, the communication channels such as TV, the internet, radio, newspaper, salesperson, blogs and others are applied in order to deliver the proposed messages to the customers of the UK. Kelley et al. (2015) have successfully identified that the majority of the communicative success of this type of organisations is embedded in the suitable application of the communication tools.
Feedback:
Through feedback, the customers of H&M get the opportunity to confess and express their opinions as well as suggestions to the company management regarding the quality of the products and service standard of the organisation. This is only the way for the customers to direct communicate to H&M management in the entire communication and interaction process.
However, Parente and Strausbaugh-Hutchinson (2014) has argued that the use of the sales promotion, public relation, direct marketing along with the personal selling of the products also helps the management of H&M to communicate to their consumers effectively.
The organisations that are involved in the advertising and communication industry having a great influence on the marketing of H&M are mainly the media, advertisers, agencies as well as the production and support companies.
Figure 2: Organisations in the advertising and promotion industry to the H&M management
(Source: Schneider, 2015, p.6)
Media:
Media are the common business channels such as television, newspaper, radio, internet, social media as well as blogs. The management of H&M is greatly benefitted through the association of these industries during incorporation and exhibition of their products and services in the market. Zolnowski et al. (2014) have opined that this industry provides a platform to this company to promote their products among the customers.
Advertisers:
According to Schneider (2015), the advertisers help this company to bring the products and brand in the open market for creating a direct connection with the target audiences. On the other hand, this is also effective in producing the brand and products in order to market that is beneficial in gaining competitive advantages through financial revenue. The contribution of the advertisers is embedded in the selection of the suitable agency; develop preferable promotional plan and evaluation of the plan control processes.
Agencies:
The role and responsibility of the advertising agencies associated to H&M have been identified in developing the business plan and their efficient controlling the execution of advertisements and promotions in front of the customers. This organisation acts as an completely independent centre for providing their helping hand in expected sale of the products of this company (Grant et al. 2016). In fact, they influence H&M in achieving their business objectives through highly efficient specialists.
Production and support companies:
Production and support companies are those that provide H&M a huge range of supportive activities through the use of different organisations such as media, agencies as well as advertisers. They are involved in the analysis and research of the market, selection of the packaging design and photography and many other supports.
Figure 3: Regulation of promotion in the UK
(Source: Manning, 2015, p.127)
Distance Selling Regulations:
According to the principles of the Distance Selling Regulations, the management of H&M is liable to give the clear information as well as provide the appropriate quality of the offered products during the delivery through digital media like the internet or online shopping facilities (Hm.com, 2017). In fact, this company has also maintained the strategy of canceling the orders of the products before they purchase for certain reasons.
Advertising Standards Authority (ASA):
The Advertising Standards Authority (ASA) as a self-regulatory body of the UK monitors and examines the subject matter and contents of the advertising of H&M. According to Schneider (2015), the reliability and legal approach of this organisation are checked by this governing body. They receive relevant complaints from the audiences and support the organisation to proceed through a clean promotional way.
Consumer protection from unfair trading regulations:
Implemented in 2008, this regulation aims to deactivate the unfair commercial activities by the business organisations with their customers during the advertising and promotion of their products. This helps the management of H&M to ensure their honest and fair approach towards their consumers that can increase their customer loyalty level.
Sale of Goods Act:
The commercial agreement and contract between the organisational management and the customers are considered as the Sale of Goods Act (Schneider, 2015). Through the application of this policy, the customers are needed to agree with the proposed quality and services of the products delivered by the company.
Data Protection Act 1998:
As per the concept of the Data Protection Act 1998, the managements of the business organisations are liable to keep the personal detail and other necessary information of the customers as confidential (Manning, 2015). In fact, this act has been prohibiting the management of H&M from performing any unlawful activity regarding the customer protection issues. Even, the customer security has also been maintaining through this process.
There are basically two types of advertising and promotions those are considered as the current trends and applied by H&M as follow:
Figure 4: Current trends in advertising and promotion
(Source: Rezaei et al. 2017, p.166)
Web-based advertising and promotion:
Nowadays, web-based advertising and promotions are operated through the use and application of web cams, blogs, social media such as twitter, facebook, Instagram ad PDAs (Rezaei et al. 2017). As the young generation is greatly attached to the online services and social media, they have easily been attracted by H&M. Even, the demand for the fashionable products among the young generation is the highest and due to this, the application of this strategy helps H&M a lot. Through webcams, H&M has also been maintaining a visual connection to the audiences. The high accessibility of the internet services has enabled this company to perform this effectively.
Mobile phone advertising and promotion:
Through the use of the mobile phones, the messages are also delivered to the customers informing them about the quality and features of the products. H&M since its incorporation of the digital and modern trend of advertising and promotion strategies has been applying this in order to create a healthy as well as beneficial connection with the target audiences (Hm.com, 2017).
The impact of ICT:
According to Kotelnikov (2014), Information and Communications Technologies (ICT) refers to the adoption of the current digital media in the advertising and promotion of the business organisations. Among different technologies, there are the network, computer, radio, mobile as well as television. It has been observed in the promotional strategy of H&M that this company has been using these media as the tools for the execution of their products in the marketplace. In fact, the management of this organisation has successfully noticed that in order to exist and to compete with other predominating companies in the UK market such as Zara, it is extremely necessary to apply the modern communication technologies to keep a connection with the target audiences (Hm.com, 2017). Through these, this company has been delivering their messages to the audiences as well as collecting their feedback for the preparation of their further improvements.
For the UK-based global business organisation like H&M, the role of the advertising of the products is wide-ranged. The main role of the advertising in the integrated promotion of H&M has been identified in creating the communication process, maintaining the promotional mix and gaining competitive advantage.
Creation of communication process:
Advertising for the global organisation like H&M helps to create a connection with the customers all over the world. The management of H&M has been applying different advertising processes such as television, newspaper, social media and internet (Hm.com, 2017). On the other hand, people of different countries from different languages and cultural backgrounds are also provided the equal scopes to express their valuable feedback.
Maintenance of promotional mix:
Through the advertising, the control, value proposition and brand equity can be operated. Nour and Almahirah (2014) have noticed that within the advertising and promotional plan of H&M, the time, place and message design of this retail company have been maintaining. This control has also its wide influence on the value position of the products. This is, in fact, measures through the acceptability of the customers. Even, the quality of the brand image is also controlled by the aspects of the advertisements.
Gaining competitive advantage:
The presentation of the attractive advertisements helps H&M to increase the number of loyal customers as well as to beat the market share of other leading companies. The achievement of the competitive advantage in extremely helpful for this company to develop the consecutive business plans (Wagner III and Hollenbeck, 2014). Therefore, it is quite a common fact that in the achievement of competitive advantages through the responses of the customers, the role of advertising is huge.
Figure 5: Gender segmentation of H&M and Zara
(Source: Statista.com, 2017)
The statistics mentioned above clearly shows the fact that H&M enjoys a greater competitive advantage rather than its nearest competitor Zara due to their production of more womenswear with lots of variety. As H&M produces 57% womenswear of their entire production and that of Zara is 42%, this difference has also created market segmentation for these two leading companies (Statista.com, 2017).
Branding of the business organisations refers to the quality and service of those products that influence the customers through fulfilling their requirements. In fact, the brand image sometimes serves as the identity and popularity for the companies. Branding for H&M has been providing its support in order to strengthen the business in several processes as follow:
Figure 6: Process of strengthening a business by branding
(Source: Sirianni et al. 2013, p.111)
Identification of target audiences:
The brand quality of H&M has been developed as per the needs and preferences of the target customers, especially the young generation. Due to this, the number of loyal customers of this company has been improving gradually that influences the business area and service coverage of H&M.
Improve the brand positioning:
The identification of the appropriate position for the marketplace for execution of the brand takes an important role in making the business of H&M strong (Sirianni et al. 2013). The products of this company are generally placed in the city and urban areas in order to improve the brand awareness among the target customers.
Development of the messaging policy:
Delivering the necessary message and information to the target audiences about the brands attract their sincere attention. The messages based on the brand of H&M have generally been delivering to the audiences through using different communication tools such as newspaper advertisements, television, and radio announcements as well as social media and email (Hm.com, 2017).
Improvement of the website:
Through the website of H&M, the customers enable to understand the brand and other necessary information. Therefore, the management of H&M needs to improve their website quality by providing sufficient brand information in order to strengthen the business.
The creative aspects of the advertising are based on the five specific steps as follow:
The advertising agencies associated to H&M generally work through three different ways, such as planning, creativity, and media functioning.
Figure 7: Ways of working with advertising agencies
(Source: Du Plessis, 2016, p.85)
Planning:
The planning majorly refers to the setting of the organisational practices regarding all the associated activities such as production, accounting as well as marketing of the products (Du Plessis, 2016). Unless there is any specific plan to work with the advertising agencies, the expected purposes cannot be met successfully. The account handling mainly signifies the maintenance of the customer-agency relationship. In the planning of the accounting process, the interest and requirements of both the clients and the agencies are focused.
Creativity:
The contents of the advertisement along with the development of creative ideas regarding this are developed by the creative department. According to Ariztia (2015), the creative directors engage them in measuring the quality of the result achieved from the creative ideas. On the other hand, the entire creative team also helps in the performance in creative accounts of H&M.
Media functioning:
Media within advertising agencies have their specific functioning regarding the identification of the target audiences whom they can influence the most. Even, the media functioning also includes the establishment of a connection between the target audiences and the management of H&M.
There are mainly two types of promotional techniques, such as the above-the-line techniques and the below-the-line technique. As stated by McNeill et al. (2014), the application of the preferable media is completely depended on the promotional strategies and purposes of the organisations. As noticed the promotional activities of H&M, the application of the below-the-line technique has been identified.
The main purposes of below-the-line techniques are improving the organisational sales, identification of the target audiences as well as to connect with them. The below-the-line programmes of H&M are multidimensional.
According to Young (2014), this company has been applying for loyalty programs with their customers and selected loyal customers are also given special gifts and offers. On the other hand, one of the most attractive techniques performed by H&M is the offer of ‘buy one, get one free'. Even, best-offered coupons are also provided to the regular customers by this company and it has been announced that special coupon would be available for special customers from March 2017 (Hm.com, 2017). The opportunity to achieve gifts through games and competitions is also offered by H&M during their advertising and promotion of the products. Finally, through effective public relation and reduction of the price of the certain products, the management of H&M has been operating their strategic integrated promotion.
Along with the previously mentioned strategies, there is also some additional below-the-line techniques that H&M needs to apply in their advertising and promotional processes. There are demonstrations, door to door selling along with free products as samples needed to be performed by H&M. Through demonstration, this company can appoint a good and efficient employee who can better demonstrate the features and functioning of the products of this company during their promotional campaigns. Through this, the customers are attracted and inspired to purchase and use the products of this company.
On the other hand, Baker (2014) has mentioned that the company representatives also perform a door to door selling during which they can motivate and convince the audiences to use their products. Even, this is also helpful in creating a direct connection with the audiences to the organisational management. However, free sampling during the promotions of the products helps the customers of H&M to experience the quality and satisfactory level of the products.
‘M' marketing, also known as the mobile marketing has its clear impact on the below-the-line promotion through developing a connection between the organisational management and customers. Through this, the management of the organisations enables to send their messages to a wide range of audiences consisting necessary information about the new product (Chandler, 2015). Even, the audience can also confess their responses in the back. As the acceptability of technology has been increasing gradually, the future opportunities of this technique are also high for the business organisations to promote their latest products in the marketplace.
On order to create an effective marketing plan for the business organisations, it is extremely necessary to develop an appropriate budget and apply that within the advertising and promotional planning of the organisations. As stated by Asher (2016), at first, the organisational planning department set the initial plan of the budget. However, it is then reviewed and justified in order to ensure the expected impact of the budget on the future activities of the company. Even, the members of the instruction team also engage them in instructing the entire associates of the budget development team to perform their roles and responsibilities sincerely. They also focus that the developed budget plan is matched with the market analysis and customer potency. In the final stage, the budget is exhibited among the audiences in the market.
As per the current UK market analysis, competitor analysis such as Zara and customer preferences, a budget plan for H&M is presented below:
| Factors | 2017 |
| Cost for production | £520000 |
| Cost for promotion | £30000 |
| Cost for organisational management | £150000 |
| Total | £700000 |
Table 1: Budget plan for H&M
(Source: Self-created)
Situational analysis of H&M:
Political analysis
| Technological analysis
|
Economic analysis
| Environmental analysis
|
Social analysis
| Legal analysis
|
Table 2: Situational analysis of H&M
(Source: Metzger, 2014, p.161)
Three objectives:
The basic objectives of H&M during their advertising and promotion are as follow:
Target audiences:
As H&M mainly produces a high-quality brand, the upper middle-class young people are at the centre of their target (Hm.com, 2017). The reason behind this is that these people have the capacity to purchase and carry the products of this company comfortably.
In order to plan the integration of the promotional techniques, it is necessary to identify the specific, measurable, attainable, and relevant and time-based strategies in it:
| Specific | The management of H&M aims to improve their market share and customer loyalty level through expanding their business in several parts of the world by controlling the usual price of their products. |
| Measurable | The management of H&M has its measurable objective to increase their market share by at least 5% than the previous year. Through this, they may able to meet their business target. |
| Attainable | The management of H&M needs to focus on their current level of marketing promotional strategies and the changes in the customer expectations along with its impact on the companies. Necessary changes are also needed to be included in the proposed plan as per that. |
| Realistic | H&M has sufficient financial potency and workforce to carry out these objectives. On the other hand, the resources are also affluent in Asian countries like India, Bangladesh, and China that is the strength of this company. |
| Time based | The entire marketing plan through using all the necessary strategies may take 2 years. |
Table 3: SMART objectives for H&M
(Source: Self-created)
The effectiveness of a marketing campaign consisting of the entire marketing plan can be measured through some specific steps as follow:
Figure 8: Techniques for measuring the effectiveness of marketing
(Source: Wrigley and Lowe, 2014, p.726)
Customer responses:
According to Celuch et al. (2015), the result of the positive impact of the marketing campaign for promotion is the achievement of a better customer response that enables to increase the market share of an organisation. Even through the improvement of purchasing level of the customers, the financial status is also enriched.
Partner responses:
Partners of a business company are influenced by the promotional success of that company that helps them to increase their market share. Therefore, it is quite common that the positive partner response is the indicator of a successful marketing and promotional campaign.
Competitor responses:
If there is an urge among the strong business competitors to imitate and copy the functional activities of an organisation, it is quite certain that the marketing campaign of that company has influenced the customers significantly. The competitor interest is, therefore, the immediate reaction against that.
Return on investment:
Wrigley and Lowe (2014) have stated that if the return of the money in the marketing and promotional campaigns exceeds the investment, it indicates the successful exhibition of the campaign with its effective impact on the customers. This helps in the financial development of that company.
Expansion of business:
Success achieved from the marketing campaign, increase in the number of the customers and financial profit forces a company to expand their business in additional parts of the country as well as the world. Therefore, the impact of the marketing campaign is directly proportional to the expansion of the entire business.
Conclusion:
Therefore, it can be stated that the advertising and promotions help the organisations to execute their products and services in the greater marketplace in order to create certain recognition and identity of those products and services. The impact of different media and communication channels is quite prominent in the advertising and promotional activities of the UK retail organisations such as H&M that they majorly determine the direction of the success of this company through attracting the positive attention of the customers. However, it has also been observed in this regard that there are some legal domains of the UK regulations that control and lead the advertising and promotional functions of this company significantly. The management is also aware of measuring the success of their promotional strategies through the identification of their financial revenue and improvement of market share from the investment. In fact, strategic maintenance of the budget is extremely helpful in the entire process.
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