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DISRUPTIVE MARKETING PLAN
Liberty University
BUSI745
Disruptive Marketing Plan
Karli Bryant
June 30th, 2023
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DISRUPTIVE MARKETING PLAN
Abstract
H&M is a well-known clothing brand that provides consumers the opportunity to purchase
affordable clothing that is fashion-forward and easily accessible. As society has shifted towards
prioritizing sustainability and environmentally friendly organizations, it is important for
companies to make the necessary changes to maintain competitive advantage. By developing a
line of sustainable clothing H&M would have the opportunity to reach a new target market,
reduce waste, and improve as an organization. By reviewing various aspects of marketing and
branding, key aspects will be highlighted to determine how such changes could be beneficial and
what risks the organization may face moving forward. With many consumers desiring to make
environmentally friendly purchasing decisions while also seeking affordable product lines, H&M
has the opportunity to capitalize on a unique target market. Risk is an important aspect that every
organization must take into consideration as a means to innovate new and improve strategies as
well as accomplish organizational goals.
Keywords: sustainability, environmentally friendly, fast fashion,
affordability
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Disruptive Brand Plan
H&M is a clothing brand that currently focuses on offering fashionable attire at an
affordable price. Although the organization has been successful in its endeavors to improve the
supply chain by implementing digital supply chain management strategies to enhance speed and
flexibility, there is still much to be desired in terms of environmentally friendly initiatives
(López, Riedler, Köhnen & Fütterer, 2022). One recommendation would be for H&M to develop
a green-focused clothing line based on sustainability and reducing waste. Since the company has
a bad reputation for overproduction and tendencies related to fast fashion practices, this could be
marketed as the organization's first step in transitioning to a more sustainable and eco-friendly
company. Although most consumers understand developing ‘green’ practices is not a transition
that can be made overnight, many would appreciate the organization taking more responsibility
for the impact it has on the environment.
Marketing Mix
Since having the organization fully transition to only eco-friendly practices is not. a
feasible first step, H&M should consider developing a single line of products that emphasizes
sustainability and implements zero waste policies throughout production. Zero waste would refer
to ensuring materials flow throughout production in a circular system to guarantee everything is
being utilized to the fullest extent, in turn, reducing the need for new materials and driving waste
production to zero (Sierra-Romero, Novakovic & Geoghegan, 2022). Although zero waste may
not be achievable throughout the entire organization, it should be the focus of this specific
product line as a means to demonstrate the direction the organization is moving towards.
Product
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Developing a clothing line that implements a zero-waste policy would not be a simple
task, to say the least. However, with H&M being considered one of the largest fast-fashion
retailers a lot of product waste is already being produced and many consumers are looking for
increased transparency throughout the organization (Fraser & Van Der Ven, 2022). Since the
organization is already creating waste by overproducing products as a means to keep up with the
latest fashion trends, the materials from products that were overproduced would be used to create
the new products featured in this clothing line. With constant shifts in consumer preference, the
base materials being utilized would allow the organization for more flexibility in design choice
each year ensuring the product line would be a continual source of reduced waste for the
organization.
Price
H&M attempts to attract price-conscious consumers with high-quality and fashionable
items. Most of H&M’s products range from $10 to $25 making them very affordable in
comparison to many other brands. The goal of implementing a clothing line created from other
recycled products to increase sustainability and reduce waste should allow the organization to
remain within this price range if not minorly lower the cost for consumers. Since funds would
not need to go towards new materials, some costs would be cut. However, the cost to repurpose
old items into new products may balance out this cost reduction causing prices to remain in the
same range as other clothing lines the company currently distributes.
Distribution (Place)
As a means to simplify the initial introduction of the line of sustainable products, H&M
should consider implementing it online only. Since many brands including H&M have
selectively closed brick-and-mortar stores and reduced their physical presence, this would also
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allow for the organization to test the market before making the products available in multiple
locations (Sheth, 2021). The current traffic on H&M’s website in addition to strategic
advertisements should allow for enough consumers to be informed of the new product offering.
In addition, in some cases making a product exclusive to a singular platform can increase value
and desirability in the eye of consumers.
Promotion / Communications
Currently, H&M uses multichannel marketing to ensure consumers are being reached
through various promotional strategies and online advertisements. The way the organization has
marketed in the past has allowed for it to be viewed as friendly and sincere connecting with the
desires of many consumers (Chu, Chang & Lee, 2021). Although this current strategy has proven
to be successful and the implementation of the new product line would not drastically change
how the organization currently communicates with consumers, a new focus would be placed on
what advertisements were highlighting. Instead of highlighting the fashion-forward nature and
affordable price of the organization's standard products, greater emphasis would be placed on
how H&M is shifting towards ‘green’ and sustainable practices.
Market Segments - Current Target Market
H&M has had a consistent target market focused on consumers that are in search of
fashion-forward items at affordable prices. In the past, the organization has collaborated on
clothing lines with high-end brands such as Balmain and Chanel with extreme success in some
cases selling out in minutes (Murtas, Pedeliento, Mangiò & Andreini, 2022). When reviewing
these past collaborations, it is clear to see the same goal of fashion-forward items being provided
at an affordable rate was the foundation of the campaign. With this target market in mind, H&M
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is able to grasp the attention of a large demographic ranging in age, gender, and many other
psychological preferences as well.
New Primary and New Secondary Target Market
With the implementation of a new product line, H&M should consider re-focus a portion
of its marketing to gear toward segments of the population that, in addition to already matching
the current target market, are environmentally friendly and prioritize sustainability. By
implementing sustainable marketing practices, H&M would be communicating the message that
satisfying the needs of consumers is important it should not be at the cost of environmental
safety (Mataracı & Kurtuluş, 2020). The new primary market focusing on environmentally
friendly consumers appeals to the younger generation in many demographics. In many industries,
the idea of environmentally friendly and sustainable products is attached to the idea of higher
prices. Although there are some instances where organizations need to use more expensive
products to create less waste and decrease any negative effects on the environment, H&M would
need to maintain low prices in order to continually appeal to the current market while also
expanding. The second market focusing on sustainability relates directly to how the new product
line is being created through the reuse of previous materials. By creating the opportunity to use
outdated goods, new life is given to once wasteful actions benefiting, consumers, the
organization, and the environment. Establishing these new target markets while still appealing to
original consumers allows past relationships to be maintained while new relationships are
developed.
New Primary Target Market
The new target market that this product should focus on is similar in age to the current
demographic as H&M primarily focuses on a younger age group ranging from sixteen to twenty-
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four. Although there are some options for men, the clothing line is primarily focused on female
consumers during the introductory phase in order to ensure the largest and most applicable
demographic is being highlighted. Similarly, consumers with low to moderate incomes are most
likely to find the product appealing due to the more affordable price range. Since
environmentally friendly products are typically more expensive, capitalizing on the
psychological effect environmentally friendly packaging holds on the consumer would greatly
benefit the organization (Ischen, Meijers, Vandeberg & Smit, 2022). When consumers are not
only encouraged by the price but also by the production process, they can feel confident in their
purchase and are more likely to be repeat customers in the future. Offering quality, affordability,
and environmentally friendly products appeal to a large demographic as there are not many
consumers that stand against these qualities. This new target market is typically very involved in
communicating with the organization as well, so it is important that H&M remain transparent
and open with consumers to build trust and long-lasting relationships. The overall size of this
new opportunity is an expansion of the current target market by low to mid-range margins.
New Secondary Target Market
The second new target market that this product should focus on is the consumer that
focuses on sustainability and recycling. This new target market is typically very involved in
communicating with the organization as well, so it is important that H&M remain transparent
and open with consumers to build trust and long-lasting relationships. Many consumers will
utilize word-of-mouth marketing to determine if an organization is trustworthy therefore,
maintaining a positive reputation is crucial. Although H&M has gotten into some trouble in the
past from lack of clarity and misjudgment, many individuals hold the fresh start mindset which is
the consumer belief that people and organizations can receive a new beginning (Strizhakova,
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Coulter & Price, 2021). Because of this, the overall size of this new opportunity is largely based
on the organization's ability to regain the trust that has been damaged by previous operations.
Trust can often be easy to establish but once it has been broken it is incredibly difficult to mend.
It can be difficult to approach consumers that were once wrong by the actions of an organization
or to believe an organization that has created so much waste is looking to correct its mistakes.
However, if organizations were not granted the opportunity to correct their mistakes problems
would only continue to increase.
Demographic & Economic Trends
In recent years, many consumers have become more environmentally conscious due to
the effects some organizations have had on the environment and other various reasons.
Consumers that prioritize green consumption have often been found to be more agreeable,
conscientious, and open to experiences which is beneficial for any organization attempting to
increase consumer relations and expand into a larger market (Duong, 2022). Economic trends in
many sectors have also shifted towards increasing environmentally friendly options not only for
the purchase of benefiting the environment but also due to increased restrictions on pollutants
and other items that have a negative effect on the environment. Although there is a large
demographic that is not concerned with the environment or sustainability practices, the appeal of
affordable pricing for fashionable products is still enough to draw attention. Establishing a cross-
section between primary demographics would allow H&M to create both generalized and
targeted advertisements as a means to relate to the largest market while maximizing the
efficiency of the advertisement. The easier it is for the consumer to relate to the product being
provided and the message behind the product line the more likely a positive relationship will be
developed.
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Analyzing the Consumer Market
Social Factors
There have been many studies done on the reaction consumers have when additional
information is provided on the background of a product. For example, one study found that
consumers who prefer products made from animal fur are more likely to become sensitive when
provided with information on animal treatment conditions (Achabou, Dekhili & Codini, 2020).
Many consumers are blind to production and how products are generated until they are presented
with factual information or are informed of such practices. Due to the ignorance of the average
consumer, many are unfazed by unethical and unsustainable means of production until it is
brought to their attention. Although many consumers may not be aware of the fact H&M has had
some negative environmental approaches in the past, with the launch of a new sustainable
product line the organization can inform the target market of the improvements being made to
not only the products but the production process as a whole. Often when information like this is
presented to consumers, not only do they become more educated on sustainability, but they will
often look further into the process and feel encouraged about the overall purchasing decision.
Psychological Factors
There are many psychological factors that motivate consumers and affect their perception
of an organization and the product being offered. If the consumer has a negative perception of a
brand, their belief in that organization will often be altered by the negative attitude associated
with the company. Similarly, simple factors such as color schemes can psychologically affect a
consumer's purchasing process. For example, colors such as green typically lead consumers to
associate a product with being sustainable and environmentally friendly whereas products that
utilize red are associated with dominance and superiority (Felix, González, Castaño, Carrete
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& Gretz, 2022). When small factors such as color can have such a large psychological effect
without many consumers even realizing it, it is clear to see the importance of taking these factors
into consideration and ensuring they are in alignment with organizational goals. Establishing a
target market based on demographics is a crucial first step but if an organization fails to also
consider the psychological aspects of the target market goals will be much harder to accomplish.
Consumers typically know what they need and what they want however, with proper marketing
that desire can be shifted in favor of the organization in almost any industry.
Customer Needs
This new clothing line will satisfy the need of many consumers that are looking to
purchase affordable and fashionable clothing that does not negatively affect the environment.
Fast fashion is a concept that emerged in the early 2000s to meet the need of average consumers
that wanted to remain fashionable at an affordable price however, due to the highly volatile
market the fashion industry is based on fast fashion causes an immense amount of waste
(Papasolomou, Melanthiou & Tsamouridis, 2023). Fast fashion practices and high amounts of
waste are aspects H&M has struggled with in the past however, consumers need an organization
that is going to take a step in the right direction of affordability and sustainability. Another way
H&M could continue to benefit others while increasing marketability is to make donations to
those in need. For example, TOMs is well known for donating shoes to individuals in third-world
countries that are less fortunate. A similar approach could be adopted to donate clothing items
based on consumer purchases, in turn, reducing additional waste, not mitigating profits, and
helping humanity progress.
Positioning
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The new positioning statement for this brand should be a commitment to improving the
environmental well-being of the community, dedication to a sustainable future, and bettering
humanity by meeting the needs of the less fortunate. Many organizations are overly focused on
maximizing profits by increasing profit margins and taking more from the consumer. H&M can
utilize a social marketing framework to advocate for pro-environmental behavior in the fast
fashion market while not only increasing consumer relations but also meeting the needs of so
many individuals (Amelia & Saragih, 2023). In addition, large profits can also be found through
mutual interest and listening to customer feedback. Although an organization can increase profit
margins by increasing prices, if that reduces the number of sales more damage is done than good.
By potentially lowering profit margins but increasing the number of repeat customers and overall
purchases more profits can be generated while still maintaining the trust of consumers.
Consumers appreciate being recognized and can easily tell when an organization is not willing to
adjust to new environments. An organization should always be looking for ways to improve
customer service and meet the new needs of the target market.
Competition
Criteria for
Comparison
H&M H&M After This New
Disruptive Idea is
Launched
Competitor # 1 – Zara
Price - MSRP Range $20 - $35 $20 - $35 $20 - $35
Product Unique
Attributes
- Aligns with
fashion trends
- Affordable price
point
- Wide range of
products
- Affordable price
point
- Reduced waste
- Increased
sustainability
- Design
collaboration
with consumers
- In-house
production
- Fast Fashion
Placement – points of
distribution
Sold globally through
online platforms, but
primarily based in
Sweden.
Sold globally through
online platforms, but
primarily based in
Sweden.
Sold globally through
online platforms, but
primarily based in
Spain.
Promotion – where / Primarily through digital Primarily through digital Primarily through digital
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how do they advertise platforms such as social
media focused on
young adults.
platforms such as social
media focused on
young adults and
sustainable consumers.
platforms such as social
media focused on
young adults.
Company Mission Committed to always
delivering fashion and
quality at the best price.
Committed to reducing
waste while maintaining
fashion-forward and
high-quality products.
Committed to giving
customers what they
want and getting it to
them faster than anyone
else.
Every organization holds a competitive advantage however, just because one organization
offers something another does not will not always mean one organization is more successful than
the other. When consumers have a change in mindset behaviors will often shift as well. For
example, often when consumers are on vacation they are less environmentally friendly than they
are in everyday life even though the level of responsibility for their actions has not changed in
the slightest (Bahja & Hancer, 2021). H&M should consider updating its supply chain process
not only to reduce waste but also to match other top competitors such as Zara. In today’s society,
consumers expect to receive products in an efficient and effective manner. Often times the longer
it takes for a product to be received, the less likely the consumer will be within certain
parameters. Since Zara and H&M are relatively similar organizations, matching Zara’s level of
customer service in terms of delivery while also increasing sustainability practices will likely
give H&M a competitive advantage in the industry. Although H&M does not necessarily need to
deliver products faster than Zara, providing comparable time frames would be beneficial.
Market Research Plans
Market research is a crucial aspect of successful and effective improvements being
implemented over time. Without the feedback of consumers, it is very difficult to gauge what
aspects of a product or operation are increasing value and what steps are unnecessary. Many
studies have found that green perceived value and the brand image an organization projects can
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have a significant impact on the consumer's preference as many consumers are not fully
researching organization operations for alignment in what is being presented in comparison to
how it is being produced (Huang, Lee & Chen, 2022). For this reason, generating and
distributing consumer surveys through online platforms such as social media sites and on the
company, website would allow for the opportunity to get feedback directly from consumers. By
posing questions to gauge what level of concern consumers have about topics such as
sustainability, recycling, and how the organization's new clothing line is being produced. With
data collected from these surveys, it can be determined if consumers are even affected by the
changes implemented throughout the organization or if they are simply indifferent to what is
being offered as long as it remains fashionable and affordable.
Promotion Plans
The initial plan for H&M to implement an environmentally friendly clothing line created
from wasted materials collected from previous clothing lines would be through short
advertisements on key platforms such as Instagram, Snapchat, and Tik Tok in order to reach the
appropriate age demographic. If the initial launch is successful and there is no extreme negative
feedback from consumers, the next step would be to develop a crossover line with another
popular organization known to be environmentally friendly, Patagonia. This would be similar to
H&M’s previous collaboration with Chanel but would have an entirely new focus on
sustainability as opposed to the image luxury brands hold. In addition, the promotional plans
would not only create awareness of the transition H&M would be making away from fast fashion
but would also create awareness about the needs of so many other less fortunate individuals.
Many organizations shy away from bold transitions however, making necessary changes to not
only improve the organization but also improve society is a necessary change many
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organizations should be taking ownership of and moving towards for the betterment of the
planet.
Social Marketing
H&M utilizes many online platforms similar to other organizations with a large online
presence. Although H&M does maintain its brick-and-mortar stores, a lot of sales are completed
online. Because brick-and-mortar retailers are often threatened by the market space online
shopping dominates, many retailers have sought to create a more exciting atmosphere to entice
shoppers and retain customers (Angula & Zulu, 2021). By offering both brick-and-mortar stores
and online opportunities, H&M is able to cater to a large customer base supported by social
media platforms and other advertisements. Currently, the organization's social media platforms
are flooded with fashionable photos of newly released products as a means to catch the eye of
new and repeat customers. One recommendation would be to create a minor shift in focus and
release more information on what the organization is attempting to accomplish as it moves
towards more sustainable practices. Although the majority of content should be focused on
product offerings, supporting the idea behind each product with environmental efforts as well.
Public Relations
With increased marketing on social media geared toward environmentally friendly
changes across the organization, it is likely consumers would begin to respond to the changes, in
turn, generating free word-of-mouth marketing. In addition, it is likely reporters would compare
past practices with the organization's new approach creating additional exposure on social media
platforms and some print exposure as well. As it is often said, no publicity is bad publicity.
However, there are still some risks to take into consideration for an organization making a drastic
change in operations. The biggest risk is that consumers will not see this new approach as a
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positive change and instead, it will magnify the damage H&M has done in the past. Consumers
will not always forgive and forget an organization's past practices due to damaged trust.
However, if the target market is willing to embrace and encourage these changes major benefits
will be seen in terms of public relations, consumer awareness, and marketing.
Traditional Marketing
Every organization has its own marketing strategy and the types of advertisements they
typically create. When an organization is creating advertisements, they are competing with other
top competitors to determine who can create the most attractive and eye-catching message
(Kilijanek & Ozga, 2022). H&M’s advertising plan for its new target market should still
encompass traditional marketing outlets such as billboards, commercials, and magazines
however, in many cases, more consumers can be reached with social media. Another benefit of
social media is that a smaller budget can be utilized depending on the organization's goals. While
a lot of money can be poured into the market, as previously discussed there are also many ways
to get free publicity. Focusing on the younger generation, platforms such as Tik Tok, Instagram,
and Snapchat can be more appealing. In addition, creating a partnership with Patagonia could
increase H&M’s reach in the market even further with the proper advertising plan. Through the
collaboration itself, H&M would be gaining free advertisements in a new market based on how
Patagonia would choose to advertise the crossover.
Financial Viability of Plan
The introduction of this new product line does not only benefit H&M by increasing the
target market. In addition to the expanded market and reduced environmental concerns, H&M
will be able to reduce costs while increasing profits. Due to how fast-paced the fashion industry
is, H&M is constantly offering new products to cater to the current market, in turn, creating large
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amounts of wasted products that cannot be sold. Instead of simply removing these items and
damaging the environment with large amounts of waste, upcycling these materials into new
sustainable clothing lines gives H&M the opportunity to still make a profit off of what were once
discarded materials. Having the label of sustainable and environmentally friendly also
encourages consumers to support the transition being made in the organization as these changes
are mutually beneficial. Although production costs will need to be considered in terms of product
creation and labor, having zero cost for materials is a good place to start for increased profit
margins.
Relationship Marketing
By developing a product line based on sustainability and environmentally friendly
practices, H&M is able to build a closer relationship with the customer base by connecting with
something larger than the organization. Building a relationship with consumers where they can
trust not only the information being provided but also the ethics and general practices displayed
by the organization allows for a deeper relationship to be established. Consumers are already
drawn to H&M because of the level of affordability provided however, there are many
organizations that offer affordable clothing options. On the other hand, there are not as many
competitors that offer affordable clothing that is made from recycled resources and works
towards environmental improvement. By implementing this new initiative and new product line,
a new level of connection is established as the organization and the consumer work together to
achieve a mutual goal. Relationships are constantly changing both at a personal and professional
level making relationship marketing crucial to an organization's success.
Socially Responsible Marketing
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Every organization has some degree of social responsibility that whether it is used as a
market tool or not should be maintained. Many organizations take this social responsibility and
implement it into their marketing strategy to help improve the reputation of the organization as a
whole. One recommendation H&M can choose to implement as a means to maintain social
responsibility would be to donate to those in need based on consumer purchases. For example,
for every $5 spent by consumers, H&M could choose to donate an item of sustainable clothing to
a specific group of people. This initiative would also allow H&M to reduce waste even more as
clothing items that could not be sold in stores can be donated. Many organizations waste large
amounts of material that could benefit individuals in third-world countries immensely. Although
most companies want to help others, many lack the initiative and supply chain capabilities to get
those materials to those in need. Taking the time to make minor changes in the supply chain that
would make this initiative possible would benefit the organization by maintaining social
responsibility, reducing damage to the environment, and helping those in need.
Brand Segmentation
Every brand has an overarching goal and primary message that is being communicated to
the target market as a means to maintain a portion of control in the market and obtain a
competitive advantage. H&M’s primary focus is offering fashion-forward items at an affordable
price so consumers can feel good about the clothes they are wearing without breaking their
budget. However, an organization should not be limited by its original brand identity. When an
organization is willing to take risks and focus a segment of operations on a new target market,
new ideas, and innovative approaches can be developed that were previously missed or believed
to be unattainable. Any organization that is unwilling to push there limits will continually lose
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out to competitors that strive for innovation. As long as the new target market being prioritized is
not in direct opposition to the current market, there is room for growth and opportunity.
Christian Integration for Brand
Every organization does not uphold Christian values; however many organizations
implement these values without even realizing it. There are many consumers and individuals that
believe business and religion should remain separate but without Christian values, many
organizations would not be as successful as they are today. H&M could implement Christian
values throughout the organization without making consumers feel as though they are being
excluded if they are not Christians. Two primary strategies H&M could consider implementing
to integrate Christianity into the brand would be to maintain honesty in all aspects of operations
and to donate to Christian organizations. Although every organization should remain honest and
transparent with consumers, this is a characteristic that should never be shorted in a Christian
organization. Secondly, donating to Christian organizations does not mean that funding would
need to be given directly to a church as many individuals assume. Instead, H&M could partner
with a missions organization to donate clothing to those in need and it could be distributed by
that Christian organization. Christianity should not be used as a tool to hurt and condemn others
but instead, as a tool that spreads love and support to those in need.
Recommendations
Three key actions H&M should consider implementing as they continue to improve the
organization and branding would be to increase sustainability, become more interactive with
consumers, and take small steps in new directions. Increasing sustainability is not only important
for an organization to continually meet goals but also for the safety of the planet as time moves
forward. In addition, customer feedback and interaction are great ways to build trust, gain
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support, and make improvements that may have gone unnoticed without taking the time to gather
and analyze the information provided by consumers. Lastly, branching out into new territories
should be embraced instead of feared. Although every organization has a few key factors or
products that they are known for, progress cannot be made without taking risks and
experimenting in new fields. The most successful products are often created through the
integration of several foundational aspects taken to a new level. H&M has a safety zone
comprised of fashion-forward products and affordability but pushing the limits on those
boundaries could lead to even greater success.
Conclusion
In summary, H&M has provided consumers the opportunity to purchase affordable
clothing that is fashion-forward and easily accessible for many individuals. However, society and
many other organizations have shifted towards prioritizing sustainability and environmentally
friendly options. It is important for companies to make the necessary changes to maintain
competitive advantage and shift along with the market. By developing a line of sustainable
clothing H&M would have the opportunity to reach a new target market, reduce waste, increase
profits, and improve as an organization. Through the review of various aspects of marketing and
branding, it has been determined that implementing a sustainable clothing line offers H&M more
potential benefits than potential risks. Risk is an important aspect that every organization must
take into consideration as a means to innovate new and improve strategies as well as accomplish
organizational goals. When an organization stops striving for improvement is when other
competitors will increase market share and that organization will slowly fall behind in the
industry.
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