Essay, Pages 4 (868 words)
In this term paper we will compare two companies, Splash of Landmark Group and H&M, two leading fashion retailers in UAE. We will individually analyse the marketing strategies of the two companies and compare them to see which one is more successful in the UAE market. We will also suggest some recommendations for developing their strategies.
Both of these companies have equally done very well with their marketing strategies in the past and even better in the year of 2008 while being under the influence of the economies downfall.
Sustainability has been the main marketing strategy that has made H&M a highly successful business and continues to do so to this day . In the case of Splash, its marketing strategy consists of aggressive selling with various offers and promotions for its customers. The topic we have chosen to write about is important because Splash and H&M are well-known companies that are popular amongst young consumers.
Learning about each marketing strategy will help educate us better on where they stand in the apparel industry in reference to others we know about. Comparing Splash and H&M hopefully will give us a better understanding about the two companies and how we can make their marketing strategies better. In organising our paper we will start out giving the brief overview about the two companies and further proceed to analyse each of their brand positioning, pricing , promotion, e-marketing etc. After the explanation and analysis of each strategy we will proceed to suggest recommendations for improving their strategies.
H&M Evolution The history of H&M started with a man named Erling Persson, who was a Swedish former salesman that became fascinated with America’s high-volume efficient outfits that Barneys and Macy’s carried. Persson first discovered the outfits when coming to the United States after World War II. Persson brought the retail concept – that high turnover produced lower prices – and brought it back with him to Sweden. It was then that Erling chose to open his own store which he called Hennes, standing for “hers” in Swedish.
During this time the store only sold women’s clothing. The company Hennes was established in 1947 in Vasteras, Sweden and by 1968 Persson had purchased the men’s sportswear inventory and property of a Stockholm hunting equipment store which was named Mauritz Widforss. Erling Persson then changed the name of his store Hennes to Hennes & Mauritz to express the expansion, and later downgraded to just the abbreviations H&M. By 1970 Hennes & Mauritz developed a children’s clothing line and by 1978 the store offered much of all family clothing.
With Hennes & Mauritz offering a wide range of family clothing, it helped the company expand with the new generation of youth wanting to be able to express their individualities. Besides its Scandinavian base, Hennes & Mauritz expanded into the British market by by the later years of the 1990’s H&M realized that their company had better results in their European market than their Scandinavian market. In 2000 H&M finally came to the United States after historically being a European brand and set its dominance. H&M’s is known for being of good quality and of good price.
The dresses from the house of H&M are conspicuous for the uniqueness of their designs and an appeal that is slightly off the beaten track. This company has dedicated online stores through which it serves fashion conscious and aesthetically inclined numerous men and women in US, UK and Europe with all the exquisitely designed apparel. SPLASH Evolution Headquartered in Dubai, Splash is the Middle East’s largest fashion retailer and part of the Landmark Group, one of the biggest retail conglomerates in the Middle East and India.
Founded in 1993 as a single brand store in Sharjah, Splash has grown to over 125 Splash stores and 50 branded boutiques across ten countries. An ‘Eye’ for the latest global trends in fashion design offered at fabulous value is the soul of Splash which has carved a niche for itself as one of the most successful local players in the region’s high-street fashion category. Splash showcases popular collections for men, women and teens with a wide offering of fashion apparel and accessories to suit the customer’s every lifestyle need.
Initially it was mainly a trading company, which used to buy and sell merchandise without any customization of the consumer offering. This trading focus continued till 1998 when the company started to evolve along the buying cycle. This buying focused approach saw Splash differentiate itself by selling products which were carefully selected to suit the needs and style preferences of customers. In the year 2000 the company progressed from a trading setup to a retail based organizational framework.
In 2004 Splash started shifting its focus from being buying based, to a more product centric, design oriented approach which corresponded with the change in logo, to reflect the brand’s ambition to compete with the international brands present in the market. Design teams were created and frequent buying trips and trade show visits to every significant show around the world were arranged for the design teams. Splash progressively became a design oriented fashion retailer with a central focus on developing its own style for each collection.