Business

Task 1

Introduction

This report is mainly focusing on studies of marketing strategy. By analysing and discussing the case of Uniqlo, we will be able to have a more in depth analysis of companies and their marketing strategies. In the background section, basic knowledge of marketing strategy will be introduced. In the discussion section, an analysis of Uniqlos existing product and service will be listed and an S.W.O.T. analysis is done to figure out the company’s current situation and position in the marketplace. In the recommendation section, a new product/service will be recommended to augment Uniqlo’s brand. Also a marketing strategy will be suggested to improve Uniqlo’s business.

Strategy

Unveiling Uniqlo’s first flagship location worldwide. Moreover Uniqlo highlight their unique high quality. Additionally, low price strategy through informative out-of-home advertisements and the introduction of a HEATECH Parka Jacket retailing for just $150.

Objectives

• To raise brand awareness
• Position the company as number one casual wear retailer
• Increase market share worldwide

Discussion

Uniqlo is the flagship chain store under R&D Centers, which is owned by Tadashi Yanai. The first Uniqlo store was opened in 1984 and now there are over 1400 Uniqlo stores around the world. Uniqlo is now recognized as one of the top 100 most valuable retailers all over the world mostly thanks to its “fast-fashion” strategy. Uniqlo is famous since it only needs 3 to 5 weeks to design, produce and distribute a new style of clothing while other famous brands usually need 6 to 9 months to develop a new style. Currently Uniqlo has over 200 fashion designers working for it, and it is able to develop over 1,000 new styles every month. Uniqlo is using a “fast-fashion” strategy; it focuses on finding the popular styles of clothing in every different country or area in the world and design large quantity of styles to follow the fashion. Uniqlo believes that more styles mean more choices and more chance to hit the market demand.

Products and Services

Uniqlo’s major products are men’s clothing, women’s clothing and children’s clothing, including lower garment, upper garment, and accessories. Basically, it sells most of the thing you need to wear. The customer is able to purchase from Uniqlo from every Uniqlo flagship store or they can simply surf the internet at home and enjoy the online shopping service.

SWOT Analysis

Strength

Firstly, Uniqlo is using a cost leadership strategy to control the product developing and manufacture cost, which will also reduce the price of the products to keep competitive advantages over its competitors. This is why a famous brand as Uniqlo still can keep the price of the products reasonable. Secondly, Uniqlo is using a differentiation strategy by designing a large number of different styles. Customers have plenty of choices when they are shopping at Uniqlo compare to other stores, they will find huge number of different designs for them to choose. And every time they come back, the customers may find some new products since the turnover rate of Uniqlo’s products is very high. Thirdly, Uniqlo has a highly efficient distribution method. Different from its competitors who focus their attention on promoting predicted season’s trends via fashion shows and similar channels of influence, Uniqlo response quickly to the change of fashion and integrate the product designing into the supply chain system in order to design, produce and distribute in the fastest way. Fourthly, information technology is helping Uniqlo with its business a lot. Uniqlo spent years to build up and perfect its information system. This system enables the manager of each store to analyse sales, decide what the store needs, and report to higher management.