Analysing the Environment
and Buyer Behaviour
Prof Chris Birch
Business and Enterprise Education
Agenda for week 4
• H&M – a model answer / structure / approach
• Presentations – Pizza places
• Group discussion on the presentations
– Task set: for next week – Prepare a SWOT and a PEEST (in your groups)
on one of Pizza Express / Pizza Hut / Bella Pasta / Carluccio’s - groups will
be told which one they are to do in class
• Environmental Analysis tools
• Buyer Behaviour
• For next week – read Case Study 7 – Cappuccino wars – prepare
a 300 word preparatory summary of this -
• H&M – a short summary of the case study:
Founded in 1976 – now has 1800 stores in 35 countries – still growing and a specific international strategy is in-place for the
USA, where there are more small stores and less department stores.
Operates in the retail fashion and accessory sector, selling chic and stylish clothes - It’s main market is 15-30 year old women,
but it also has a menswear department, though this is relatively small.
H&M’s main competitors are GAP and Zara – Gap is bigger, but not as commercially successful. They are often trading in the
same shopping precincts which means the quest is to achieve bigger market share that competitors. To achieve this, they need
a clear, consistent and visionary marketing plan in order that they are well positioned and differentiated, with ready made
Their competitive advantage comes from a number of factors – Their products are low cost, high value. They are well designed
and readily available – They use big name designers to develop special interest lines to attract attention and get people into
stores. Designs are modern, distinctive and well researched. They fully understand their market segments and have built up a
relationship of mutual trust.
The low price, high value proposition is achieved through excellent cost control and supply chain management. They are able
to get new products to market much quicker than their competitors, making them agile and responsive. They have positioned
their fashions as perishable goods, meaning that they are not intended to last for long. They are priced to encourage impulse
buys when people go into stores, and their brand has become one that represents chic and peer acceptability by those who
wear them. It is important that their supply chains are ethically acceptable as their customers are interested and aware, and
would not support exploitation.
In summary, H&M know their customers – they have a marketing mix that fits their chosen market segment. They continuously
innovate through design and materials to keep products edgy, and price to meet the expectations and spending power of their
customers. They always aim to delight, and they are totally market-oriented.
A good presentation
• Understanding / knowledge of subject matter
• Well prepared (P6!)
• Assess and judge the audience
• Clarity and coherence of argument / points
• Simplicity and consistency – uniqueness?
• Visually stimulating, interesting, engaging
– A (good) picture is worth a 1000 words?
– When to use multi-media
• Verbal and non-verbal communications
– The pause – The look – The question
• Supplementary materials
• Questions and answer sessions
• THOUGHT / DESIGN / PREPARATION / PRACTICE
• Search on ‘good presentations’ ‘presentation tips and tricks’ etc – loads of good stuff
• What is a SWOT analysis
• What is a PEEST analysis
– Environmental / Ecological
• Do a SWOT and a PEEST for the University of Westminster
SW Template - example
•Advantages of proposition? •Disadvantages of proposition?
•Capabilities? •Gaps in capabilities?
•Competitive advantages? •Lack of competitive strength?
•USP's (unique selling points)? •Reputation, presence and reach?
•Resources, Assets, People? •Financials?
•Experience, knowledge, data? •Own known vulnerabilities?
•Financial reserves, likely returns? •Timescales, deadlines and pressures?
•Marketing - reach, distribution, awareness? •Cashflow, start-up cash-drain?
•Innovative aspects? •Continuity, supply chain robustness?
•Location and geographical? •Effects on core activities, distraction?
•Price, value, quality? •Reliability of data, plan predictability?
•Accreditations, qualifications, •Morale, commitment, leadership?
certifications? •Accreditations, etc?
•Processes, systems, IT, communications? •Processes and systems, etc?
•Cultural, attitudinal, behavioural? •Management cover, succession?
•Management cover, succession?
OT Template - example
•Market developments? •Political effects?
•Competitors' vulnerabilities? •Legislative effects?
•Industry or lifestyle trends? •Environmental effects?
•Technology development and innovation? •IT developments?
•Global influences? •Competitor intentions - various?
•New markets, vertical, horizontal? •Market demand?
•Niche target markets? •New technologies, services, ideas?
•Geographical, export, import? •Vital contracts and partners?
•New USP's? •Sustaining internal capabilities?
•Tactics - surprise, major contracts, etc? •Obstacles faced?
•Business and product development? •Insurmountable weaknesses?
•Information and research? •Loss of key staff?
•Partnerships, agencies, distribution? •Sustainable financial backing?
•Volumes, production, economies? •Economy - home, abroad?
•Seasonal, weather, fashion influences? •Seasonality, weather effects?
PE Template - example
•ecological/environmental issues •home economy situation
•current legislation home market •home economy trends
•future legislation •overseas economies and trends
•international legislation •general taxation issues
•regulatory bodies and processes •taxation specific to product/services
•government policies •seasonality/weather issues
•government term and change •market and trade cycles
•trading policies •specific industry factors
•funding, grants and initiatives •market routes and distribution trends
•home market lobbying/pressure groups •customer/end-user drivers
•international pressure groups •interest and exchange rates
•wars and conflicts •international trade/monetary issues
ST Template - example
•lifestyle trends •competing technology development
•demographics •research funding
•consumer attitudes and opinions •associated/dependent technologies
•media views •replacement technology/solutions
•law changes affecting social factors •maturity of technology
•brand, company, technology image •manufacturing maturity and capacity
•consumer buying patterns •information and communications
•fashion and role models •consumer buying mechanisms/technology
•major events and influences •technology legislation
•buying access and trends •innovation potential
•ethnic/religious factors •technology access, licencing, patents
•advertising and publicity •intellectual property issues
•ethical issues •global communications
EL Template - example
•Global policy •Regulation and Compliance
•Global pressure •National legal drivers
•Scarcity •Global legal drivers
•Sustainability •Influence of Pressure groups
•Health and wellbeing •Risk of neglect
•Costs of ecological destruction •Brand damage from adverse legal case
•Risks of ecological destruction •Personal legal liability for Board
Porter’s 5 force analysis
a 6th force? – the threat of doing nothing?
Porter’s 5 forces references
Understanding Buyer Behaviour
Factors to consider in Buyer Behaviour
The decision process
Post purchase behaviour
Understanding Buyer Behaviour
An involvement model
Hi involvement Lo involvement
Hi value Lo value