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Global Marketing - UNIQLO Case Study Analysis

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Global Marketing - UNIQLO Case Study Analysis

  1. 1. USP Brand proposition Brand communication campaign Customer Competitors UNIQLO Online TV Design In-store experienceEventCeleb Strategy: to make UNIQLO the largest apparel retailer and achieve sales of two trillion JPY per year. The above upside down pyramid reviews the current conventions and conditions, identifying opportunity, and funneling the information to form a Unique Selling Point (USP) for UNIQLO Given our established USP, we developed a new brand proposition and key components to our brand communication campaign. Data Source: Datamonitor, Company Profiles, Industry Profiles, Various Websites, Journals and Newspaper Articles Bath + one: Alex Stepanov - 10BN946J Jenny, Sau Man Lee - 10BN945F Nanami Isono - 09BN192R Nicholas Trombert -10BN947L Pru, Suthirat Owlarn -10BN943M
  2. 2. › Fast Retailing group’s most successful brand › Contribute more than 80% to sales Business Model:  Adopts SPA manufacturer retailer model  Coordinate and maintain control over the entire producing process  Cooperates with Mitsubishi “Japanese”  Recommended to choose Li & Fung as consultant for “global” expansion Main products: Prices & Values Customers Casual wear Low prices High quality Wide range Main target: women aged 25 - 35
  3. 3.  Main Competitors: › Gap, H&M, A&F, Zara, United colors of Benetton, American Apparel  Strategies of Competitors: › Expanding into Asian countries. › Increasing online presence to reduce the cost and meet consumers’ demand of convenience. › Effective and organised supply chain management to control inventory and merchandising. › Increasing in emphasis on unique designs and making patents. Strengths Weaknesses • Women’s, Men’s, Kid’s ranges. • Internationally successful. • Fashion led. •Very popular with younger generation. • Doesn’t appeal to older age range. • No websites and not much media coverage in some of the countries. •Do not make use of new technologies.
  4. 4. › Price conscious: cut back expenditure on fashion › Influenced by the brand's celebrities and publicity. › Women’s wear makes up the majority of the market. › Increasing online usage. › Low switching cost & lots of alternatives. › Growth of cheaper and discount apparel stores. › Largest segment globally: women (58% ) UNIQLO Strengths UNIQLO Weaknesses • Market leader in Japan • Cheap prices for quality products • Cater for all ages, young and old • Internationally successful • Always trying new ways to sell their products •Try to be environmentally friendly • Research & Development in Heattech fabric • Clothes are quite plain, no patterns. • Not all clothes are available on website. • Inconsistency in advertisement and marketing communications • Uniqlo’s simple approach without logo did not catch on with UK consumers • Single supplier 0 20 40 60 China Japan S. Korea Growing Asian Market
  5. 5. New Entrant: moderate Small stores: easy Global stores: difficult Low switching cost Industry Rivalry: high Matured market, substitutes and global players : intense competition Substitute : high Cheaper fashion: cosmetics, accessorie s, or cutback due to recession Supplier Power: low Many suppliers and cheap labor (Uniqlo has long-term relations with suppliers) Buyer Power : high Many choices and low switching cost, but possible to establish brand loyalty Uniqlo’s Position
  6. 6. Trends (Opportunities/Threats) Potential Strategies Growing Asian market: China, India, South Korea, etc. Troubling EU market: Cheap to enter Highly fragmented market (e.g. consumer age, income, taste) ⇒Easy to differentiate Unpredictable fashion trends ⇒Fast fashion and low inventory Low brand loyalty =low switching cost Increasing counterfeits =possibility of diluting brand image Intense competition ⇒Establish brand and control costs ⇒Maintain and expand foreign operations ⇒Establish brand and create some price setting power
  7. 7. “Japanese” × Fast Fashion Japanese fashion is closely focused upon by world’s fashion leaders. Celebrities, haute couture, etc… Fast fashion updated according to Japanese style: Establish Uniqlo as a “Japanese” fashion led brand
  8. 8.  Brand Proposition UNIQLO is the unique clothing experience among international retailers because we are the only one who provides vogue Japanese fast fashion. Attributes • Good quality clothes • Well designed Japanese fashion Functional Benefits • Variety of lines, style • Design for wide range of customers Emotional Benefits • Differentiating oneself from the crowd • Increase self-confidence Values • Everyday unique fashion to express yourself  Brand Ladder
  9. 9. Our communication objective is to create an unique Japanese fashion experience through integrating numerous marketing strategies. Price Par with fast fashion competitors such as Zara Place - Create a unique Japanese fashion experience in every store. - Good control over logistics Product Will invest in R&D and designers to maintain fashionable image Promotion - Create brand awareness -Create positive brand association -Monitor consumer feedback
  10. 10. Use of celebrities to create awareness Interactive Website Social medias Multi-ethnicity models Host/ Sponsor events TV ads