1. H&M Brand Audit Project Zeynep kn Berk Sarca Alperen Szen

2. Content Textile Industry and Fast Fashion in Turkey History of H&M H&M Collections Brand Hyerarchy POPs and PODs Positioning Brand Elements Brand Associations Secondary Brand Associations Brand Marketing (4P) Recommendations References 3. Textile and Fast Fashion Industry in Turkey Turkeys Textile and Clothing industry is regarded as a locomotive industry. Textiles and clothing are among the most important sectors of the Turkish economy and foreign trade. Accounting for about 7% of the GDP together, these two sectors are the core of Turkish economy in terms of GDP contribution, share in manufacturing, employment, investments and macroeconomic indicators. These sectors had a 18,3% share in total export volume in 2013. According to Social Security Institution statistics, there are more than 52,000 textile and clothing companies in Turkey with more than 918,000 employees. 4. Yargc Mavi Gap Ykm Boyner Marks & Spencer Vakko Benetton Polo Garage Faik Snmez Accessories and Euromoda Group Inditex Group (Zara, Bershka, Massimo Dutti, Pull and Bear) Mango H&M Koton Diesel Ipekyol Adil Ik Defacto Kl Altnyldz Park Bravo Group LCW Fast Fashion Retailers In Turkey 5. History of H&M 1947 The first store opens in Vsters, Sweden, selling womens clothing. The store is called Hennes. 1952 Hennes opens in Stockholm. 1968 Founder Erling Persson buys Mauritz Widforss, a hunting and fishing equipment store. Sales of mens and childrens clothing begin. The name is changed to Hennes & Mauritz 1990s Progress continues in Europe with the opening of the first store in France in 1998. Newspaper and magazine advertising is complemented by outdoor advertising featuring famous models. In 1998 H&M online shopping begins. 2004 H&M initiates designer collaborations starting with Karl Lagerfeld. More collaborations follow with Stella McCartney, Viktor & Rolf, Madonna, Roberto Cavalli, Comme des Garons, Matthew Williamson, Jimmy Choo, Sonia Rykiel, Lanvin, Versace, Marni, David Beckham, Anna Dello Russo, Maison Martin Margiela and Isabel Marant. 6. History of H&M 2006 A major expansion of online and catalogue sales begins with the Netherlands as the first market outside the Nordic region. The first stores in the Middle East open via franchise. 2010 The first H&M stores in South Korea and Turkey open. Israel becomes a new franchise market. Online shopping starts in the UK. The first H&M Home stores open outside Sweden. Monki moves into Asia with a store in Hong Kong. H&M becomes the worlds largest consumer of organic cotton and continues to increase its use of sustainable materials in the following years. 2012 H&M opens in Bulgaria, Latvia, Malaysia and Mexico, and via franchise in Thailand. COS opens in Finland, Italy, Poland, Hong Kong and Austria, and opens via franchise in Kuwait. The Monki brand grows in China and Weekday opens in the Netherlands. 2013 The first H&M store in the southern hemisphere opens in Chile. H&M also opens in Estonia, Lithuania and Serbia. Indonesia becomes a new franchise market. H&M introduces online shopping in the US. The & Other Stories brand is launched in several European countries. COS, Monki, Weekday and Cheap Monday also open in new markets. Weekday and Cheap Monday launches online shopping. A global clothing collecting initiative starts in selected stores. 7. H&M exists in 53 countries and as of 2013, employed around 116,000 people with 3,200 stores. It is ranked the second largest global clothing retailer, just behind Spain-based Inditex (parent company of ZARA), and leads over third largest global clothing retailer, United States based GAP Inc. H&M 8. H&M The branding consultancy Interbrand ranked the company as the twenty-first most-valuable global brand in 2009 and 2010,makin it the highest-ranked retailer in the survey. Its worth is estimated at $1216 billion. Sales during the period 1 March 25 March 2014 increased by 12 percent in local currencies compared to the same period the previous year. First store in Turkey opened in 2010 (Bayrampaa Forum AVM) 9. H&M H&M does not own any factories, but instead works with 900 independent suppliers, mainly in Asia and Europe. In 2013, the turnover including VAT increased to SEK 150 billion. H&Ms growth target is to increase the number of stores by 1015 percent per year and at the same time increase sales in comparable units. The growth is entirely self-financed. Online shopping is available in several European countries and in the US. H&M sees potential for online sales in all markets. Quality is key for H&M from initial idea to final product. 10. H & M Stores in Turkey 2014 - There are 22 Stores in Turkey; Istanbul (12) Ankara (5) Antalya (2) Samsun (1) Gaziantep(1) Antakya (1) 11. H&M COLLECTIONS Women Men Kids Divided &Denim Accessories Underwear Cosmetics H&M Home Sportswear 12. H&M Brand Hierarchy 13. H&M Sales in International Markets 14. Current segment is defined as; Teenagers and young adults(ages between 17-26) Men, Women and Children Teenage girls and young women are highlighted Target Market is; Everyone who define themselves as hip, looking forward to change the wardrobes to be trendy and follow the latest fashion themes. 15. HIGH PRICE HIGH QUALITY 16. POPs Being Stylish Central Locations Being Fashionable PODs Store Sizes Usage of Celebrity and Endorsers Koton is perceived more suitable to Turkish culture H&M is young and active whereas Koton is classic and serious. Desirability H&M is more desirable in terms of being hip, modern and trendy where Koton is more desirable being formal. Deliverability H&M - Limited locations in non- suitable malls for the target market Koton Lots of locations in central malls and outlets 17. H&M Company Core Values Believe in people One team Straightforward and open- minded Keep it simple Entrepreneurial spirit Constant improvement Cost-consciousness Perceived Values of H&M Customer oriented Good showcases Cost consciousness Always new Always trendy Helpful 18. Brand Elements Memorable Meaningful Likable Transferable Adaptable Protectable Short+Simple (brand name) Geographic boundries, culturel adaptations, categories Legally owned by founder online and offline 19. Brand Elements Logo Brand name Slogan Packaging 20. Global printed advertisements Price can be seen all the time White or beige backgrounds Localization on language and currency 21. Social Media and digital activities in Turkey is held by Buzz Interaction Competitor Koton also works with Buzz Interaction 22. Secondary Brand Associations H&M Designer collaborations 2004: Karl Lagerfeld 2005: Stella McCartney, Elio Fiorucci, Solange Azagury-Partridge 2006: Viktor & Rolf 2007: Roberto Cavalli 2008: Rei Kawakubo and Comme des Garons 2009: Matthew Williamson, Jimmy Choo, Sonia Rykiel 2010: Sonia Rykiel, Lanvin 2011: Versace 2012: Versace, Marni, Maison Martin Margiela 2013: Isabel Marant 23. Secondary Brand Associations Style icon collaborations 2006: Madonna 2007: Madonna, Kylie Minogue 2012: David Beckham 2012: Anna Dello Russo 2013: Beyonc 24. Secondary Brand Associations H&M Home COS Monki Weekday Cheap Monday &Other Stories 25. Co-Branding 26. Co-Branding 27. Brand Marketing Product Price Place Promotion 28. USA: 20 30 USD ASIA PACIFIC: 40 55 USD TURKEY: 40 80 TRL PROD UCT PRICE PLACE PROMO TION Some malls far from the central locations (Beylikdz, Bayrampaa, Esenyurt) 319 Turkish companies Direct distribution Central buying 22 Points of sale in Turkey Accesories, Tops, Jeans, Underwears, Shoes, Sportswears Good quality Organic fabrics, cotton, recycled wool, organic silk, organic leather, organic hamp, lyocell, rcy. plastic Return in 15 days Product change Tailor service Celebrity Endorsements H&M Loves OneLove Twitter and Facebook Virtual Dressing Room online Product replacement on local shows More active on Twitter, less on Facebook 29. Recommandations New retail stores in more central and hip locations (Beikta, Kadky, zmir Bornova?) Same loyalty programs in Europe should be applied in Turkey Local celebrity endorsement Sponsorhip programs on local TV shows Launching H&Ms Fashion for AIDS Prevention Expanding variety of products for men New prime product line should be launched in Turkey in order to compete with Indietex group 30. Recommendetions 31. References H&M Store Locations, 2014, retrieved from http://www.hm.com/tr/store- locator About H&M, 2014, retrieved from http://about.hm.com/en/About/facts- about-hm/about-hm/hm-group.html Trkiye Dijital Ajanslar, 2014, retrieved from http://sosyalmedya.co/turkiyedeki-sosyal-medya-ajanslari/ Brand Associations Research, Szen A.&Sarca B., 02.04.2014, not published H&M 4Ps, Teero M.H., 08.05.2013, retrieved from http://prezi.com/egkz9kfl24vo/hm-brand-audit/ 32. Thanksforyour time. AnyQuestions?