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Global Marketing - UNIQLO Case Study Analysis
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
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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. 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. › 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. 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. 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. “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. 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. 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. Use of celebrities
to create
awareness
Interactive Website
Social medias
Multi-ethnicity models
Host/ Sponsor events
TV ads