Subject: Delivering Customer Value Though Marketing
Term: 2013/2014 Term 2
Tittle: UNIQLO Casual wear – Individual Assignment
UNIQLO - A number 1 Japanese Clothing Company
i) Describe and analyse the brand’s product, market positioning, pricing strategies and its target segment.
ii) Critically evaluate if the brand’s marketing activity is delivering values to its customers. Why?
iii) Suggest ways in which the brand can improve in its marketing strategies or activities.
i) Describe and analyse the brand’s product, market positioning, pricing strategies and its target segment
UNIQLO is a Japanese causal wear retailer. It is also a wholly owned subsidiary of Fast retailing Co. Ltd. The first UNIQLO was opened in Japan in 1984. Across years, successful brand strategies enable UNIQLO to be the fourth fashion retailer in sales volume in 2013, just right after Zara, H&M and Gap.
Marketing mix is a useful tool to analyze UNIQLO’s strategies and its product development direction among competitors.
Marketing Mix (4P):
UNIQLO provides a wide range of clothing, including Men’s, Women’s, Children’s, and even in Baby’s wear. UNIQLO manages this range of products in order to satisfy the needs of different age groups and genders. Especially children and baby wear, not all its competitors provide these two lines, this can satisfy customers’ need. UNIQLO has their own R&D team, to design the latest fashion and life-style wear to customer. Also, its materials sourcing team help to bring the most suitable and sometimes the luxury materials into product development in order to give the best wearing experience to customers. Such as premium down, cashmere sweaters and premium cotton are the good examples. UNIQLO gain customer’s trust in quality guaranty.
UNIQLO’s products are not expensive comparing to its competitors, such as Gap, Zara, etc. Although UNIQLO’s clothing requires similar price with other fast fashion retailers, its quality is relatively higher than them. It is due to the most fundamental UNIQLO’s direction, “Low price, high quality”.
UNIQLO’s strategies are for both local (Japan) and international. Stores are all over the world, including Japan, America, Euro, China, East and south Asia. This can show the determination of UNQLO to expand its business and build the brand internationally. All the stores of UNIQLO, are in central area, or popular district in the cities. Take Hong Kong UNIQLO as an example, there are totally 21 UNIQLO stores in Hong Kong. The flagship UNIQLO store is in causeway bay Lee Theater, which is the most popular shopping area in Hong Kong. UNIQLO apply the same store strategy internationally, such as Tokyo, Osaka store in Japan, Shanghai store in China, New York 5th ave in USA.
Another strategy to make UNIQLO a good place to shop is their total sale-floor method. UNIQLO tries to enlarge the floor area in every shop and include as many departments and clothing display as they can in the store. That can provide the convenience to customers to buy their favorite things in only one station. And the big display area can attract customer’s focus to their products and give a confidence that UNIQLO can provide everything that they need.
New product development process in many other companies is very simple. Usually, from idea generation, testing, product producing and so on. However in UNIQLO, the first step of product development is customer feedback. That means all products in UNIQLO are responding to customer. This is also the concept they are promoting to the potential customer. “Cheap, simple design, but is perfect fit for daily use with a good quality”. This sentence shows that UNIQLO is promoting their image to public.
Another way is UNIQLO promotes their products by sport sponsorship. Take Japan market as example, football...
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