H M Ansoff free essay sample

To analyse the marketing strategies of Hamp;M we are using the Ansoff Matrix. It is a tool that helps businesses decides their product and market growth strategy (Jobber and Fahy, 2003). Ansoff matrix consists of product development (Selling new products to existing customers), market penetration (Selling more of the same to the same types of people), market development (Selling the existing products to new types of consumer) and diversification (Selling new products to new consumer) . Harvard Business Review Strategies,1998) To relate Anoff with Hamp;M we will start off with Market Penetration. As we have studied Hamp;M’s Product Portfolio consists of Clothing, Household and Cosmetics(Fashion united, 2006). Hamp;M should encourage its current customers to buy more. Hamp;M should introduce new items frequently, which keeps customers coming back again and again to check out the latest styles. It should have a unique selling point for its products which should differentiate it p roducts from some other competitive businesses such as Gap and Zara (Hamp;M facts, 2006). We will write a custom essay sample on H M Ansoff or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page A drawback of Hamp;M compared to Zara is that quarter of its stock is made up of fast-fashion items that are designed in-house and farmed out to independent factories while its competitor move quickly through the stores and stock is replaced often by fresh designs. One the other hand Hamp;M keeps large stock which increases cost and can result in wastage if fashion changes. Hamp;M should bring in new and unique things frequently and respond to changes in fashion. Advertising is another component to penetrating in the market as it convinces customers and reminds them about the products (Business Week Online, November 11, 2002) Product Development for Hamp;M would be to launch a new product in the existing market. Hamp;M should consider new production possibilities. Products with new features should be developed. For example, Cosmetic products with different shades and unique from other brands or latest styles currently in fashion. Customised Products should be made in small quantities to gain a unique selling product and to attract new customers. New styles should be introduced rather than repeating old ones. Market Development is a very important strategy. Same products are taken into new markets. Hamp;M has grown as mentioned previously. It has started operations in South Korea, Turkey, Romania and Israel(The Financial, 2006). Its opening new stores in the countries they already operate in such as China, US and many parts of Europe(Hamp;M Press release, 2009). Hamp;M can launch its products in South America. This will give them access to a new market . The last strategy would be diversification. Hamp;M can launch a completely different product in a different market. This will extend the Product Portfolio and can help business archive economies of scale in long run. Hamp;M can seek new technology or marketing synergies with existing product line. It can start computer aided manufacturing. Production would be more advance, quick and efficient. Hamp;M can also introduce completely different products, such as it can open grocery stores or sell electronic appliances . They already have a brand name and customers are loyal towards it. This can extend their market and this can help boost company’s overall performance.