MOSCHINO [tv] H&M released their collection on November 8 2018, one of H&Ms most recent and popular collaborations. Customers were seen 11 hours queueing before the doors opened at one of the UK stores. This is because MOSCHINO and H&M are both brands love by most teenagers and young adults.
The target market segment used here is psychographic segmentation. Psychographic segmentation is dividing your market based upon consumer personality traits, values, attitudes, interests, and lifestyles.
Segmentation will allow you to better develop and market your products because there will be a more precise match between the product and each segment’s needs and wants. As mentioned, many love MOSCHINO and H&M for their vibrant and lively colors. This collection is for those that love both brands, and to be purchased at an affordable price.
Reference: interviews that Ann-Sofie Johansson, Creative Advisor, H&M have attended, she mentioned that this line of collection was made to give nostalgic feels, incorporating familiar trademarks such as disney characters, the MTV logo and compact discs.
Also from the print ad, vibrant colors are being used to attract the youth.
As MOSCHINO is a high-end brand, many might not be able to afford the high prices. Thus this collaboration is to cater to these people which can buy clothing as low as USD$25 instead of a piece of jacket which cost USD00 and above.
The advertisement is using Social Appeal. H&M and MOSCHINO clothing are both up to date and would not run out of trend. With the bonus of including famous trademarks like Disney characters or the MTV logo, people would want to be a part of this trend and buy the clothing.
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Individually, MOSCHINO uses Premium Pricing. Its products ranges from USD$40 for their body care and perfumes to USD$5995 for their outerwear. On the other hand, H&M uses Value Pricing. It is to match up with customers perception.
MOSCHINO [tv] H&M is using the value pricing strategy to sell their products. With both brands on each end of the price range, collaborating is a really good marketing strategy. The collections clothing and accessory ranges from USD$25 to USD$300. It might seem really cheap for MOSCHINO products and really expensive for H&Ms, but with the special elements of each brand, it is actually worth it. It is an expected price range to customers, because it does not underrate nor overrate the quality produced by both parties.
In the table below, we are comparing three products from four categories to see the price range and how it changes with the collaborated product. For example, MOSCHINOs ankle boots cost USD$750, and H&Ms ankle boots cost S$84.95, while the collaborated MOSCHINO [tv] H&Ms boots cost S$349, which is about half of MOSCHINOs price and quadrupled of H&Ms price. This is to make the shoe of value for both MOSCHINO and H&M customer.
MOSCHINO H&M MOSCHINO [tv] H&M
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T-SHIRT IN COTTON JERSEY WITH MOSCHINO COUTURE PRINT
2-PACK JERSEY TOPS
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Marketing Environment and Consumer Behaviour