Glasgow face a difficult task to reach the knockout stages after being grouped with Northampton, Toulouse and Llanelli in their pool.
Hugh said: "If we can do well at home against these teams, then who knows?
"But it will be a big call to come from our qualification position to play against previous winners and finalists and come out with a statement that we will be in the latter stages.
"Realistically, we would want to perform well against these teams, especially at home.
"Northampton and Toulouse are bursting with high-quality international players, while we play Llanelli a couple of times a year and they are one of our tougher opponents.
"But it is going to be good for everyone to be playing teams like these."
However, the Glasgow coach is relishing the chance to see his team line up against some of the world's best players.
Hugh added: "It is a fantastic draw for us. There are some really tough games in there for us.
"It is a baptism of fire where we are concerned but that is just what we want. It is a real challenge. These teams playing in Glasgow will be a real crowd-puller for us as well."