KCB203.A3 H&M Proposal · 2019-05-29 · Facebook and Instagram of 32.5 million and 23 million...

COMMUNICATIONPROPOSALPREPAREDFORH&MBYKCB205CONSULTING

Prepared By:

Luke Economidis: N9446273

Rochelle Ellul: N9714804

Jordana Lutter: N9734546

Karissa Simpson: N9687882

WORD COUNT: 1,613

KCB205 Consulting H&M Communication Proposal

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Contents List List of Inclusion………………………………………………………………………………. ii

Executive Summary………………………………………………………………………….. iii

1.0 Client Background ………………………………………………………………………... 1

2.0 Current Situation …………………………………………………………………………. 1

3.0 Target Audience ………………………………………………………………………….. 1

4.0 Objectives ………………………………………………………………………………… 2

5.0 The Proposal ……………………………………………………………………………… 2

6.0 Implementation …………………………………………………………………………... 2

6.1 Strategy: National Recycling Week ……………………………………………… 2

6.1.1 Method …………………………………………………………………. 2

6.1.2 Benefits ………………………………………………………………… 2

6.1.3 Success Criteria ………………………………………………………… 2

6.2 Strategy: Social Media …………………………………………………………… 3

6.2.1 Method …………………………………………………………………. 3

6.2.2 Benefits ………………………………………………………………… 3


6.3 Strategy: Print Advertising ……………………………………………………….. 3

6.3.1 Method …………………………………………………………………. 3

6.3.2 Benefits ………………………………………………………………… 3


7.0 Timeline ………………………………………………………………………………….. 4

8.0 Evaluation Budget ………………………………………………………………………... 4

9.0 Limitations ………………………………………………………………………….……. 5

10.0 Conclusion ………………………………………………………………………….…... 5

11.0 References ………………………………………………………………………….…… 6

12.0 Appendices ………………………………………………………………………….…... 7

12.1 Appendix 1: Survey Questions and Results (100 respondents) ………………… 7

12.2: Appendix 2: H&M Instagram Posts (Female Priority) ………………………… 8


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List of Inclusions Table 1: Total Garments Collected by H&M Stores Australia vs Germany………………….. 1

Table 2: Timeline …………………………………………………………………………….. 4

Table 3: Budget ………………………………………………………………………………. 4


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Executive Summary

This proposal presents an opportunity for H&M to further develop their brand image and customer base in Australia by improving communication of sustainability initiatives.

H&M have built a brand on foundations of quality and affordability. However, sustainable practices remain a constant part of H&M’s mission and future visions. Being relatively new to the Australian market, H&M are yet to effectively communicate their sustainability initiatives to consumers. Sustainability is becoming increasingly important in consumer decision-making. By failing to communicate their commitment to operating sustainably, H&M are not marketing to the needs of their consumers.

Studies have shown that H&M's target audience of millennials are more influenced by sustainability factors than other generations. Without dedicated promotions for sustainability, the market is not being properly informed of H&M’s internationally renowned sustainability programs which could significantly influence consumers. Additionally, H&M currently do not run Australian specific Facebook or Instagram pages resulting in cultural gaps between consumers and content. With more Australians using social media every day, H&M is failing to capitalise on potential communication resources and risk maintaining their market share by not running region specific social media channels.

This proposal outlines three components to implementing effective communication of H&M’s sustainability. Introducing dedicated Australian Facebook and Instagram pages is pivotal to this plan and will be done immediately to start building an online following. Utilising Facebook and Instagram’s paid advertising channels to promote the new Australian pages and sustainability initiatives will be the primary outlets of the social media campaign. Educating store staff on H&M’s sustainability initiatives including the garment recycling program will be done in conjunction with raising in-store promotional materials such as business cards and posters at the beginning of the campaign. It is also proposed that H&M Australia become a major sponsor of Planet Ark’s National Recycling Week on November 13 – 19. These recommendations are estimated to cost under $75,000 over an 8-week period prior to National Recycling Week.

The plan to implement these components will effectively improve H&M’s communication of sustainability initiatives to the Australian market. This will appeal to more than just H&M’s target audience of female millennials and ultimately grow brand perception and consumer base in Australia. Social media presence and in-store promotional materials should be upkept after the conclusion of the campaign as they are necessary communication resources that H&M will need moving forward.


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1.0 Client Background H&M are renowned globally for offering quality clothing at affordable prices, but as H&M’s annual sustainability report details, sustainable practices are a significant part of the brand’s identity (The H&M Group, 2016). H&M’s first Australian store was launched three years ago and consequently communication of sustainability has not been implemented to the standard of more developed markets, presenting an opportunity to grow in Australia (Rawlinson, 2014).

2.0 Current Situation H&M have designed sustainability initiatives that align with consumer needs such as their plan to source all cotton from sustainable sources by 2020, their 100% ethical and sustainable vision and the garment recycling program. These policies received an A+ in the 2017 Annual Ethical Fashion report, yet are not being communicated to the Australian market (Nimbalker, Mawson, Lee, & Cremen 2017).

Social media is H&M’s most used communication method, reflected by followings on Facebook and Instagram of 32.5 million and 23 million respectively. Despite this, H&M does not operate Australia specific Facebook or Instagram pages, relying solely on a dedicated Twitter page. With 70% of Australians using Facebook and 20% on Instagram, H&M is not utilising a valuable communication resource (Cowling, 2017). Additionally, only one post on H&M’s international Facebook page in the last three months has specifically promoted sustainability initiatives. These factors highlight H&M Australia’s ineffectiveness in communicating sustainability initiatives to consumers.

Primary research indicated that 71% of survey respondents were unaware of H&M’s sustainability programs, whilst 84% would donate old clothes, indicating a lack of communication to consumers (see Appendix A). This is further supported by the disparity in total garment donations across countries seen in Table 1.

Table 1: Total Garments Collected by H&M Stores Australia vs Germany

Total Donated (kg) Population Kg / person

Australia 146,648 24,511,800 0.006

Germany 7,234,054 82,168,327 0.088

(H&M Countries Activities, 2017; Australian Bureau of Statistics, 2017; Germany Population, 2017)

3.0 Target Audience H&M offers products for diverse audiences, focussing on a primary target audience of female millennials aged 14-35. Which is evident in marketing and communication resources and content in social media and YouTube (see appendix B). Research suggests millennials are more influenced by sustainability factors than other generations, further supporting the necessity for H&M Australia to communicate their sustainability programs (Deloitte, 2017; The Nielsen Company, 2015).


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4.0 Objectives To successfully implement more effective communication of H&M’s sustainability within Australia, a goal to increase awareness of sustainability by 50% by December 2018 has been set. This will be achieved through the initial short-term target of a 30% increase in the weight of clothes donations in Australia over a six-month period, driven by educating the target market of the sustainability program.

5.0 The Proposal This vision for H&M Australia will be achieved utilising pre-existing social media channels on Facebook and Instagram to promote dedicated Australian pages. Social media has a broad reach and by utilising the well-established and successful channels of advertisement, the campaign will come at minimal extra cost. In-store advertisement is another method that will be executed. Placing physical resources such as flyers, surveys and business cards associated with the initiative throughout stores in Australia, whilst increasing visibility of the donation bins to customers. The final method for implementation involves Planet Ark’s National Recycling Week that occurs in Australia during mid-November. This event holds great promise to reach those clients who are not currently H&M shoppers but are looking towards supporting sustainable companies and programs. Through organising sponsorship for the event, H&M will be aligned with this movement, subsequently highlighting the importance of sustainability to H&M, resulting in a positive environmental impact.

6.0 Implementation

6.1 Strategy: National Recycling Week (NRW)

National Recycling Week (NRW) is a popular event in Australia, with 90% of the population agreeing recycling is crucial (Planet Ark, n.d.). Through sponsoring this event H&M will be positioned favourably among those who are environmentally conscious, aligning the brand with a sustainable image (Leighton, 2016).

6.1.1 Method H&M will sponsor the event, educating the target demographic and positively positioning the company.

6.1.2 Benefits Pairing with an event known for striving towards a more sustainable environment improves H&M’s image to an environmentally passionate segment. The company will also assist in the execution and implementation of an event aligned with the vision of an increased sustainable environment H&M is working towards. In addition, those consumers who are not pre-existing customers or aren’t being reached through the social media channels will view H&M as a sustainable company.

6.1.3 Success Criteria Whilst donating clothes at a H&M store, individuals will be asked to fill out a survey detailing how they discovered the initiative. The aim is for 25% of respondents to have been informed through National Recycling Week.


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6.2 Social Media

Social media provides a platform for consumers to discover, discuss and facilitate word-of-mouth communication (Chen, Fay, & Wang). Currently, 79% of large businesses utilise social media as a form of two-way communication to receive feedback and engage with consumers (Sensis, 2016). Due to the prevalent use of social media advertising, the development of Australian specific profiles is crucial.

6.2.1 Method The establishment of nation specific profiles on Facebook and Instagram will assist H&M appeal to the trends and events specific to residents. Assigning a proportion of daily posts to sustainable promotion will educate readers as well as appeal to fashion and social trends. Additionally, captioning images to promote the vision of H&M will indirectly increase awareness of the program. Leading up to National Recycling Week, the proportion of sustainable specific posts will increase to encourage donations and increase consumer base. For the entirety of NRW, those who share the appropriate posts will enter a draw to win various H&M vouchers.

6.2.2 Benefits Establishing Australian specific profiles in addition to the NRW campaign will positively position H&M as well as educate and benefit consumers (Lewis, 2014). H&M’s improved public image will be a result of consumer interaction, increasing and educating Australian consumers. Publicising and promoting consumer beliefs through the target demographics primary source of communication will increase exposure and donations (Sensis, 2016).

6.2.3 Success Criteria This campaign will be measured through social media insights, including likes, follows and shares. Additionally, through measuring clothes donations prior, during and following NRW, the impact of social media can be explored.

6.3 Print Advertising

H&M are not successfully positioning print material in store to educate consumers about the donation initiative. By simply developing small business cards and wisely positioning posters, shopper’s awareness will evidently increase.

6.3.1 Method Placing these materials at the forefront of stores will subconsciously educate shoppers and align H&M with sustainable fashion. Additionally, educating employees prior to the campaign will see an increase in awareness for established H&M shoppers. Including small cards in shopping bags, as well as at the store entrance will target consumers and passer-by’s. Placing social media information on these materials promoting the competition will additionally increase the launched profiles.

6.3.2 Benefits Greater awareness of sustainable programs will ensure brand loyalty and initiate word of mouth throughout the demographic prior to NRW.

6.3.3 Success Criteria When consumers donate, a short survey form will be filled out to enquire about donors’ education of the program.


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7.0 Timeline The Timeline necessary to implement the suggested changes is outlined in Table 2.

Table 2. Timeline Time Increments

Social Media In Store National Recycling Week (NRW)

Beginning Launch Australian specific Facebook and Instagram page

Empty all bins Educate employees about program

Film NRW promotional video Announce H&M sponsorship in NRW event

2 Weeks Increase proportion of sustainability posts

Measure donations Promote the sponsorship of NRW online and instore

4 Weeks Post NRW related images

Measure donations Update in store material

Post NRW promotional video on H&M profile and NRW event

6 Weeks Begin NRW online competition (Run for 2 weeks)

Measure donations Begin NRW in store

NRW commences

8 Weeks Post winners of NRW competition

Measure donations Investigate increase during NRW

Post results from NRW [in store, on H&M profiles and NRW event]

Post Campaign

Analyse social media insights

Compare fortnightly donation weight and social media insights

Continue posting NRW success

8.0 Evaluation Budget As H&M is a multibillion dollar company, the budget outlined in Table 3 should be easily accommodated (Forbes, 2017).

Table 3. Budget Item Approximate Cost Social Media Marketing campaign Facebook and Instagram

$15,000

Business cards with donation information available to consumers in store 20,000 per store, varying on location

$12,760

In-store posters 22 Australian stores 5 posters per store

$2,200

Sponsoring National Recycling Week $45,000 Total Cost $74,960


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The Social Media marketing campaign and the creation of designated Australian Facebook and Instagram pages would begin in the week prior to the 8-week campaign. Projected costs include continual status and image updates, as well as conducting a competition leading up to NRW. In addition, these pages would continue to be updated and run after the initial campaign. However, the number of sustainability focussed posts which are made and boosted will fluctuate.

Secondly, in-store advertisement costs will include the coloured printing of materials, staff labour and design. Through providing each store with a specific number in relation to sale margins, costs can be allocated in relation to profit. Physical reminders will assist in ingraining H&M and its sustainability simultaneously into the mind of anyone who enters or makes a purchase in the stores.

Lastly, the pricing for National Recycling Week is a donation, therefore a fixed price is not necessary. However, donating 45,000 dollars will position H&M as a major influencer and supporter within the movement to a more sustainable country. This donation will fund the campaign for the week whilst simultaneously garnering attention for H&M from an eco-friendly and sustainability focussed segment.

9.0 Limitations Facebook and Instagram promotions have been proven to successfully reach our target audience at a low price through engaging content. However, there is no guarantee these pages will reach the desired number of viewers, although comprehensive target research will assist.

The increase in promotional content and communication of H&M’s sustainability will result in an increase in the Australian public’s knowledge of this resource. However, this does not guarantee engagement will convert into clothes donation. There are outside influences which could prevent individuals from recycling their clothes due to location, items to donate and accessibility.

10.0 Conclusion With the recommended changes as outlined, H&M will successfully promote their existing environmental initiatives to their target market. Communicating this initiative to current and prospective consumers, simultaneously contributes to a more sustainable environment whilst generating a larger revenue. People are becoming increasingly environmentally conscious, choosing brands that are ethical and align with their beliefs. As H&M within Australia does not have any of the communication tools in place to demonstrate these initiatives, the Australian audience can misinterpret the ‘fast fashion at a low price’ to be produced unethically. Informing the Australian market of H&M’s campaigns and the marketplace will assist to lead the fashion industry to a more ethical and sustainable future. With these suggestions, the world will see a change and H&M’s success will skyrocket.


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11.0 References

Australian Bureau of Statistics, (2017). Australian Demographic Statistics (Mar 2017). Retrieved from http://www.abs.gov.au/AUSSTATS/[email protected]/mf/3101.0

Cowling, D. (2017). Social Media Statistics Australia – September 2017. Socialmedianews.com.au. Retrieved 20 October 2017, from https://www.socialmedianews.com.au/social-media-statistics-australia-september-2017/

Deloitte. (2017). The 2017 Deloitte Millennial Survey. Deloitte Touche Tohmatsu Limited. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About Deloitte/gx-deloitte-millennial-survey-2017-executive-summary.pdf

Forbes. (2017). H&M. Forbes. Retrieved from https://www.forbes.com/companies/hm/

Germany Population. (2017). Worldometers.info. Retrieved 18 October 2017, from http://www.worldometers.info/world-population/germany-population/

H&M Countries Activities. (2017). hm.charitystar. Retrieved 20 October 2017, from http://www.hm.charitystar.com/en/home/

Leighton, B. (2016, March 30). 3 essential advantaged of an event sponsorship. Leighton broadcasting. Retrieved from http://blog.leightonbroadcasting.com/blog/3-essential-advantages-of-an-event-sponsorship

Nimbalker, G., Mawson, J., Lee, H., & Cremen, C. (2017). The 2017 Ethical Fashion Report. Baptist World Aid Australia. Retrieved from https://baptistworldaid.org.au/resources/2017-ethical-fashion-report/

Planet Ark. (n.d.) National Recycling Week. Planet Ark. Retrieved from http://planetark.org/campaigns/nrw.cfm

Rawlinson, C. (2017). H&M opens first Australian store amid concerns over fast fashion. [online] ABC News. Available at: http://www.abc.net.au/news/2014-04-05/hm-store-opens-in-melbourne-hans-andersson-fast-fashion/5369742 [Accessed 20 Oct. 2017].

The H&M Group. (2016). The H&M Group Sustainability Report 2016. The H&M Group. Retrieved from http://sustainability.hm.com/content/dam/hm/about/documents/en/CSR/2016%20Sustainability%20report/HM_group_SustainabilityReport_2016_FullReport_en.pdf

The Nielsen Company. (2015). The Sustainability Imperative. The Nielsen Company. Retrieved from http://www.nielsen.com/content/dam/nielsenglobal/eu/docs/pdf/Global%20Sustainability%20Report%20DIGITAL%20FINAL.pdf


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12.0 Appendices

12.1 Appendix A:

Survey Questions and Results (100 respondents)

Question Yes No Skipped

Have you heard of H&M? 93 7 0

Do you know about H&M’s sustainability project? 29 71 0

Would you donate old clothes to be recycled to H&M?

83 16 1

Would you be more inclined if there was a H&M discount?

86 14 0


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12.2 Appendix B

H&M Instagram Posts (Female Priority)

KCB203.A3 H&M Proposal · 2019-05-29 · Facebook and Instagram of 32.5 million and 23 million...

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Transcript of KCB203.A3 H&M Proposal · 2019-05-29 · Facebook and Instagram of 32.5 million and 23 million...