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MKT495 Concepts of Global

Consumer Behaviour

Lucinda McNally
LEVEL 4 Unit Leader: Claire Riches
Contents
Introduction ....................................................................................................................................... 2
Target Customers............................................................................................................................. 3
Gender ............................................................................................................................................. 3
Age .................................................................................................................................................... 3
Social Group .................................................................................................................................. 3
Pen portrait 1: Savvy Sammy ................................................................................................. 4
Pen Portrait 2: Jim the Gent .................................................................................................... 4
Consumer Behaviour/ Pen Portrait Analysis ........................................................................ 5
Demographics ............................................................................................................................... 5
Geographic ..................................................................................................................................... 5
Behavioural ................................................................................................................................... 7
Psychographics ............................................................................................................................ 7
Further Customer Insights ........................................................................................................... 8
Reference Groups ........................................................................................................................ 8
Consumer Motives ...................................................................................................................... 8
Maslow’s Hierarchy of Needs ................................................................................................. 8
Decision making process .......................................................................................................... 9
Self-Concept .................................................................................................................................. 9
Analysis of H&M meeting customer’s needs ...................................................................... 10
H&M’s app usage ...................................................................................................................... 10
H&M’s in store customer satisfaction .............................................................................. 10
H&M’s A-list celebrity Campaign ....................................................................................... 10
Marketing Campaign.................................................................................................................... 12
Increased internet usage/Social media ........................................................................... 12
Irrational focus .......................................................................................................................... 12
Rational messages.................................................................................................................... 12
Adaptability geographically ................................................................................................. 12
Things to improve along side this...................................................................................... 13
Evaluation ........................................................................................................................................ 14
Conclusion ....................................................................................................................................... 14
References................................................................................................................................... 16
Introduction
Hennes (Swedish for Her’s) was founded in 1947 when Persson opened a “new
womenswear store in Västerås, Sweden”(H&M, 2017).
Hennes was Swedish for “Her’s.” The company started offering men’s and
children’s clothing in 1973, when they bought Mauritz, becoming Hennes &
Mauritz (H&M). They are now focussing on being more responsible and
sustainable.
They are still known for their fast-fashion clothing today, which is offered to
men, women, children and teenagers.

H&M now has a range of brands, including “H&M and H&M Home, COS, &
Other Stories, Monki, Weekday and Cheap Monday” (H&M, 2017).

“Each with its own unique identity, all our brands are united by a passion
for fashion and quality and the drive to dress customers in a sustainable
way.”(H&M, 2017)

They now have over 4,400 stores in 65 markets, worldwide.

Figure 1 (H&M, 2017)


Target Customers
H&M has a huge range of customers worldwide due to the number of countries
it’s expanded to and how long it’s been around. This report will be focussed on
the UK as a geographic segment. Below is an analysis of current or recent
statistics to work out H&M’s largest target markets.
Gender
On one hand, according to Mintel in 2016, H&M is “skewed towards female
shoppers who make up 65% of its customers,” suggesting that this is the
customer that they cater for the most.
On the other hand, “There has been a significant shift in the customer profile of
people shopping for clothes by gender, with a big increase in male shoppers
compared with Clothing Retailing – UK, October 2015. The average for men has
risen by 4 percentage points to reach 46%, while the average for women has
fallen by the same amount to 54%.”(Mintel, 2016) This basically states that Men
are buying more clothes than they were before. This means that retailers will be
keen to expend their offer of Menswear. However, only 35% of H&M’s customers
are male. “H&M has announced plans to trial dedicated menswear stores in the
UK to tap into this growing market” (Mintel, 2016). This is confirmed by Waller-
Davies in 2016; “H&M is eyeing a move to open standalone menswear stores in
the UK as it ups the ante on its fashion rivals” which shows that H&M are
planning on doing something about this and attempting to increase their share in
the men’s clothing market.
Age
“H&M proved particularly popular with respondents under 40 years of age”
(WARC, 2012). According to the table from Mintel (2016), 82% of H&M’s
customers are 44 or under, agreeing with the previous statement. It also shows
us that 37% of their customers are aged 16 to 24, suggesting they have a very
young customer base.
Social Group
“H&M's purpose is to offer their customers fashion and quality at the best price.”
(Laura, 2011). This suggests that they want to appeal to more money conscious
consumers.
However, the table in the report by Mintel in 2016 shows that 66% of consumers
are from A, B and C1 groups so only 34%are from C1, D and E groups which are
on a lower income. That being said, 54% of the population are from groups A, B
and C1 so there are more consumers from these groups so more people to buy
goods. Consumers from A, B and C1 also have more disposable income and so are
naturally able to buy more goods.
Pen portrait 1: Savvy Sammy Figure 2 (York St.John University, 2017)

Name: Samantha (Sammy) Gearing


Age: 21
Occupation: Student and Waitress
City: York (in Student accommodation)

 Relaxed, ambitious and down to earth. Works part-time as a waitress along-


side studying because she likes being self-reliant and it keeps her busy.
 2nd year Student of Music Promotion.
 Wants to be a huge music producer.
 Has some staple items in her wardrobe, but often changes it up so she can
stay looking trendy. Considers herself a peoples-person but thinks style is a
large part of that.
 Part of a close knit group of 3 friends, but makes conversation with quite a
few people in her area who she’s met through societies or part time jobs.
 She looks at what she wants online before going to try it on and by the
garments in person. She uses what’s around her in the street and on the
fashion sites to inspire her. Always looks in sales but will only buy
something if she really likes it.
 Loves music festivals, used to do gymnastics and is now part of a dance club.
A lot of her socialising involves relaxing in the park (on good days), social
media or drinking.
Figure 3 (Dun, 2017)
Pen Portrait 2: Jim the Gent
Name: Jim Mullaney
Age: 24
Occupation: Accounting firm team leader
City: London outskirts

 Hard worker in the work place but fairly lazy during free time. Immaculate
house.
 In a 6-month relationship with girlfriend Steph, who appreciates him
making an effort on his appearance.
 Didn’t plan on going into accounting, just was good at it and never got
around to leaving. Recently go promoted.
 Spends money as he’s sure he’ll always have it, but doesn’t go overboard.
 Doesn’t hang out with people from the work place, but is still close with old
friends, and goes drinking with them on the rare occasion that they can all
get time off.
 Buys instore, because he never got the idea of “fashion apps”

This report will focus on “Savvy Sammy” as a she is a pen portrait of H&M’s
largest target market.
Consumer Behaviour/ Pen Portrait Analysis
Demographics
Age: 21-year-old female
Generation: Y / Millenials. They are “comfortable sharing their entire life
online, this is a selfish, self-regarding generation. "Let me take a Selfie," is their
catchphrase.” (Wallop, 2014)
Ethnicity: White British
Education: went to a state school, but her parents never struggled with money.
Religion: non-strict Christian as she grew up surrounded by the faith.
Occupations: Used to do a mail round and has done waitressing since. Full time
Student.
Income: Low. Receives a loan.
Family size: previously large however “flew the nest.” Now living with friends.
Marital Status: Single
Stage of family: Single/Independent
Social Class: E based on earnings however acts like C1 due to potential
earnings. Therefore, it’s not possible to give Sammy a concrete Social Grade due
to the complications arising through being a university student.

Geographic
H&M’s customers are worldwide. “We have more than 4,400 stores in 65
markets.” (H&M, 2017). It should also be considered that H&M has an online
store too.
Looking at the UK store arrangement, most of the stores appear to be in the
South of the UK, however looking at population density, there is a large
population in the south of the UK, and so there are more consumers to visit
stores in this area, therefore it is likely that this is what the store placement
was based on due to the range of customers from various backgrounds.
As they cater for all over the world and all over the UK, there’s obviously
going to be a huge range of consumers/potential consumers, who they can
categorize using the Acorn and Mosaic systems.
They should also consider how the product reaches different customers. This
is a benefit of online shopping, as so many consumers can now have products
sent to their doorstep.

Figure 4 (Selectivica, 2016) Figure 5(Stonehouse, 2015)


Savvy Sammy lives in York now but is originally from the South.
Using the Mosaic system, Jim would be part of the O group; “Rental Hubs” and
within that, O66; “Student Scene.”
Using the Acorn system, Sammy would be consumer 4; “Financially Stretched.”
She would be part of type K; “Student Life,” and type 35 in “Term Time Terraces”

Jim the Gent lives in the outskirts of London in a flat where his girlfriend has half
moved in.
Using the Acorn system, Jim would be consumer 2; “Rising Prosperity.” He would
be part of group D; “City Sophisticates” and type 17 as one of the “Socialising
Young Renters.”

They are both in very urban areas which inspires their style but importantly
means that they don’t live far away from a store.

Figure 6 (Mosaic, 2017)

Figure 7 (Acorn, 2017)


Behavioural
Benefits for the buyer: Sammy keeps looking Trendy. Spends less than she may
do at other stores.
Occasion: Casual
Activities: Studying, socialising, social media usage.
Internet usage: large
Social Media usage: large
Loyalty: shops wherever has the nicest clothes but H&M is a favourite.
Purchases garments: every other week at various places, dependent on the
season, student loan time and term dates.
Readiness to purchase: can be influenced by exciting things, sometimes takes
action (AIDA) when she sees an advert, but has to think it’s new and trendy.
Impulsive/considered: considered. Looks online normally to grasp what’s a good
choice.
Attitude towards product: likes that H&M is promoting sustainability, however is
mostly interested in the stylish clothes and value for money.

Psychographics
Lifestyle: laidback, full-on, flexible
Attitude to life: Follow your dreams and enjoy it.
Interests: Music, Drinking, Fashion, Dancing and Social media.
Opinions: Believes that it’s what’s underneath that counts but focusses strongly
on first impressions too. In turn, she is concerned about her appearance.
Values: The environment, being kept busy, family.
Emotions: Tries to be laid back. Gets excited from the topic of music. Can’t
believe how much she’s changed since
school – she’s become less dramatic, but
still can be sometimes.
Culture: appreciates going for coffees,
despite the price. Effected strongly by
fashions. Enjoys the university drinking
culture.
Politics: Annoyed with outrageous videos
she sees on social media and forms
opinions off that but doesn’t worry about
politics too much.
Perceived class: still thinks of herself as
lower middle class and although she can be
frugal, maybe not as well as some.
Using the “VALS” system, Sammy would
best fit as an “experiencer.” These are
“motivated by self-expression” (M.I.B.A,
2014) and “have a lot of energy, which they
pour to physical exercise and social
activities” (M.I.B.A, 2014)

Figure 8 (Strategic Business Insights, 2014)


Further Customer Insights
Customer segmentation by market with target audience based around their
findings through analysing their statistics, just as what’s been done so far, would
be a good idea as their customer base is so large it’s a good idea to divide it up,
especially when able to gather as much data as H&M would be able to.
Reference Groups
Primary Groups: The friends Sammy lives with, Sammy’s 3 close friends, family
(although she no longer lives there)
Secondary Groups: Societies, course mates and work colleagues
Aspirational Groups: Popular celebrities and already successful music producers.
Dissociative Groups: Her group project team (less motivated or trendy) and
music producers who haven’t made it (out of fear of becoming that herself)
Formal Groups: The University, the Restaurant chain that she works at.
Informal Groups: Sammy’s “drinking buddies.”
Virtual Groups: Social media groups, events and friends.

This information could be used very heavily as it shows some of the key
influences on this consumer, as they don’t make their decisions in a vacuum.
The positive from this is that the primary groups who are likely to have the
biggest impact on her are in the target audience too, so more likely to encourage
shopping at H&M. This means that advertising has a knock-on effect as these
groups then talk to each other about it.
The aspirational groups are helpful as well. Sammy wants to be like the people in
these groups. If it looks like they’re buying H&M, then Sammy is more likely to as
well. Therefore, it would be a good idea to advertise with celebrities who are
popular in this target market.
Consumer Motives
Primary motives: Goes with the wardrobe and is the latest style
Secondary motives: It’s cheaper at H&M than at Zara
Rational motives: She needed another jacket
Emotional motives: Wearing a long jacket makes her feel powerful
Conscious motives: It was time to treat herself
Dormant motives: It was an excuse to not do university work

Emotional and dormant motives can be more powerful than rational and
conscious motives. Irrational unique selling points in adverts can be more
effective due to this. This is where it would be useful to get to know the
customers with qualitative data too. If the feeling
of power and freedom from work is what the
consumers feel then H&M should use this to their
advantage in their future advertisements.
Maslow’s Hierarchy of Needs
With Maslow’s Hierarchy of Needs, he states that
“only when basic physiological needs (and those
of safety and security) are met can humans aspire
to be motivated by higher goals eg. status and
self-respect” (BBC Radio 4, 2014)
Figure 9 (McLeod, 2007)
Firstly, this shows that we make sure that the customer feels that the basic needs
are being fulfilled for the customer to be able to focus on H&M’s garments. This
can include making sure that the stores are at a good temperature, are well
established/give off a sense of security and having friendly staff who make
customers feel like they belong. This is a beneficial feature of online stores, as
customers can shop from the comfort of their own homes.
Another thing to take from this is that fashion tends to fall under esteem needs.
However, if it were marketed more with the feeling of belongingness and love,
then customers may unconsciously rank H&M higher than they would have in
level of importance, as “Belongingness and Love needs” come before “Esteem
needs.”
Decision making process
Need recognition: make the customer feel
like they’re missing out if they don’t get
the product.
Information search: This could be through
investing in the app or advertising on
social media (as these are most likely to
spark the interest of Sammy). With these
it’s important that the Action part from
the AIDA (Attention, Interest, Desire and
Action) model is made easy.
Evaluation: The benefits should also be
clearly noticeable either on the adverts or Figure 10 (Content Sparks, 2015)
online.
Purchase: Once again, this phase just needs to be easy, so the customer is more
likely to carry out the action, and enjoy it.
Post-Purchase Evaluation: All very positive and very negative feedback needs to
be considered strongly to work out what to improve in future. That’s the best
way to ensure it’s a pleasant experience and that the customer is likely to stay
loyal
Self-Concept
Real Self: Sammy is confident, busy but relaxed.
Self-Image: Underachieving, desperate to fit in whilst “being herself”
Looking-Glass Self: Too work absorbed, but a laugh sometimes.
Ideal Self: Self-confident, effortlessly stylish.
Possible Selves: Super successful music producer, waitressing forever, running
music events

The difference between Sammy’s “Ideal Self” and her Self-image plays a large
part here. Sammy may be inclined to buy products that make her more like her
ideal self in an attempt to fix the gap. If H&M could sell the effortlessly stylish
side of itself, then Sammy would be interested.
Looking at the “Possible Selves,” we can see what Sammy perhaps wants to
achieve in the future, and sell the feeling of success. This would make Sammy feel
like she’s getting closer to her favourite “Possible Self” by purchasing the
product(s).
Analysis of H&M meeting customer’s needs
H&M’s app usage
Table 1 shows that 65% of the
customers who are aware of H&M’s
app were using it in 2016. This is a
fantastic way of engaging with the
“tech savvy” Generation Y. However,
only 27% of the customers were
aware that H&M had an app.
Therefore, to better utilise this
source, it would be better if H&M
worked on spreading awareness of
Table 1(Briggs, 2016)
their app.
H&M’s in store customer satisfaction
Table 2 shows “the seven
key drivers of customer
satisfaction” (Briggs,
2016). This is important
as it effects the Post-
Purchase Evaluation,
effecting whether the
customer returns. It is
also useful at making
Table 2 (Briggs, 2016)
customers feel more
comfortable and so more of their (Maslow’s) Hierarchy of needs is fulfilled.
According to this table, H&M need to focus on the “Speed of Checkout,”
“Merchandise Selection” and “Store Atmosphere” to improve the overall
customer experience.
H&M’s A-list celebrity Campaign
There was a recent case H&M used top celebrities for the Balmain campaign.
They included “Top model/reality TV star/ all-round A-lister Kendall Jenner,
popular supermodel Gigi Hadid and Victoria’s Secret Angel Jourdan Dunn”
(Brooks, 2015). Using people from their target customer’s “Aspirational Groups”
encourages them to purchase, in the hope of being more like these celebrities.
“Frenzied shoppers camped out overnight outside stores across the world, from
the Champs Elysees in Paris to Regent Street in London, where the range has
since sold out completely” (Lidbury, 2015). This shows the huge effect these
idols have on H&M’s customers.

Figure 11 (Lidbury, 2015) Figure 12 (Lidbury, 2015)


Looking at the graph (figure 13) and quote by brooks in 2015 below it is evident
how much of the advertising was done through social media. This is proof of how
effective social media is for marketing.

Figure 13 (Brooks, 2015)

“Overall number of posts referring to H&M and


Balmain: 553,130” (Brooks, 2015)

Figure 14 (Brooks, 2015)


Marketing Campaign
Increased internet usage/Social media
This campaign will have a lot more online communication to get through to the
younger customers from Generation Y, as so many are on social media.
“Brands have to “develop with it” and look to providers, says Richard Bassinder”
(Chahal, 2017). This was evident from the amount of publicity that the Balmain
Campaign got that H&M potential customers react well to Social Media brand
publicity.
The H&M app doesn’t need much improvement as most of the customers who
know about it have it (Table 2) and the Android version was given an average of
4.1 stars (Figure 15).
However, there will be more
advertising promoting
awareness of the app, involving
the “AIDA” model
(advertisements need to catch
Attention, create Interest in,
then Desire for the product and Figure 15 (Google, 2017)
finally make audience take Action).
In order for this to happen, there
should be a link to the app and the site on every online ad.
Irrational focus
The H&M’s unique selling point (USP) for this campaign will be the feeling of
power, allowing yourself to break free from your everyday lives and be included
in H&M’s exclusive club. This irrational advertising could really work with their
target market.
As so many customers can use a range of devices, H&M could actually create a
virtual club. This could be an added feature of the app where H&M can upload
outfits then customers will talk about them, rank them and/or do their own take
on it.
H&M could also provide a customer group discount. This will be like other
discount cards however provides discounts on clothes and customers give each
other discount boosts with each transaction.
These two ideas will get customers talking with each other about H&M, and so
they become another reference group, favouring H&M. They also give the
consumers a sense of belongingness.
“Belongingness and Love” are part of Maslow’s Hierarchy of Needs and so the
consumer feels more comfortable, more of their needs are fulfilled and they can
focus on shopping.
Rational messages
The low prices won’t be the main feature in this campaign, however it will be
said at the end as though it’s a bonus. The focus will be on the style and the
irrational motives for purchasing, as that is easier appeal to all social groups.
This is beneficial because H&M’s customers are spread evenly among social
classes.
Adaptability geographically
The message may be altered for different countries as they will have completely
different pen portraits. Therefore, although they should do market
segmentations to focus on their target market, they should first segment by
geographical area (i.e. countries), then focus on demographics and putting
customers into their groups. There’s a good chance that a whole different
campaign may be needed for these countries though.
Things to improve along side this
Within the store customer experience as it could’ve been better according to
Table 2.
In addition to this, it is also important that H&M increases their promotion for
Men, as the menswear sector is increase by so much.

Figure 16 Potential logo for virtual club, created by myself


Evaluation
This report has shown the importance of analysing Consumer Behaviour. This is
shown through how on the outside, Sammy appears to be interested in style like
it comes naturally, but she doesn’t see herself as this, she isn’t naturally laid back
and outgoing, instead she’s pushing herself to be more like that. Therefore, what
she’s buying is in order to close that gap between her self-image and her ideal
self. It also means that she’s strongly affected by the reference groups around
her, especially the aspirational groups.
By working out her ideal self and the difference between this and her self-image,
it’s easier to work out what to advertise to catch this customer’s attention.
It makes working out marketing communications a lot simpler through breaking
it down.
It also considers the customer’s surroundings, including where they live and who
they’ve with. This makes it possible to see the other points that may affect the
consumer’s decision making process.

Conclusion
Customer behaviour analysis is vital to work out which unique selling point to
emphasize and see where improvements could be made. This deeper
understanding of the consumers allows the business to think “outside the box”
and sell the personality behind the brand better.
Appendix

Figure 17 (Mintel 2016) Figure 18 (Mintel, 2016) Figure 19 (Mintel, 2016)

Table 3 (WARC, 2012) Figure 20 (Knoema, 2016)

Figure 21 (Acorn, 2017)


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