Fashion Apparel—UNIQLOGroup 6

AgendaSTRENGTHSSTRENGTHS WEAKNESSESWEAKNESSESCompany Background & Situation

Target Market Research

Attributes of Research

Position Research

Positioning Statement

Marketing Mix Strategy

Competitors & SWOT

Company Background

• 1949–1994: rise in Japan

• 1997: "SPA" strategy

• 1998–2002: first Tokyo store & overseas expansion

• 2005–present: further expansion

• Goal of 5 trillion yen by 2020

Current Situation in HK market

• Good quality with reasonable price• Focused on the basic casual apparel with functional design for all age

Products Situation

• Demand of apparel still increases• Uncertain global economic outlook• Enjoying strong consumer purchasing

power

Market Situation

• Strong control over production and distribution• Largest amount of store in HK’s Fashion Apparel market (HK: 16 retail stores)

Distribution Situation

• Number of target customer keeps stable• Growth rate of income not reach the CPI• Tourists and parallel buyers

Macro-environment

SWOT Analysis

•Large-scale-store & Largest amount of store•Research & Development•High quality with reasonable price•Effective distribution management•Well-trained and helpful sales force

•Low switching cost & lots of alternatives

•Plain design, lack fashion styles•Low new releases’ turnover rate

•Fierce industry rivalry and intensive competition

•Unpredictable fashion trends•Negative shocks from the global

economic slowdown •High and increasing

rental expense

•Strong purchase power in HK•Brand loyalty and strong beliefin brands’ design of HK consumers•CSR activities•Brand building through Flagships

SWOTAnalysis

STRENGTHSSTRENGTHS WEAKNESSESWEAKNESSES

OPPORTUNITIESOPPORTUNITIES THREATSTHREATSOT Negative

Internal factors

Externalfactors

Positive

SW

Competitors

• Spanish• Extremely trendy• No advertisement

• Swedish • Huge customer& vendor base

• American• Practical design• The largest specialty apparel retailer in the U.S

• American• Strong brand portfolio &promotion

Target Market Research

UNIQLOHK

Target Customers:

Location: Hong Kong

Enjoying strong consumer purchasing power

Facing intensive competition Middle-class working

adults, both male and female

Enjoying casual wear that ensures high quality and nice design

Research Sample Size: 66 (F: 30, M: 36)Sampling Procedure: Randomly collected from 66 HK residents ( all middle-class employees)

• Branding– Friends recommend– Reputable

• Product– Durable– Material– New products launch– Practical/comfortable design– Stylish/fashionable design– Variety of sizes– Variety of styles/products

• Price– Good value

• Place– Online shopping– Outlet locations– Store design

• Promotion– Advertising– Promotional activities– Sales promotion

• Service– Helpful and friendly service staffs– Responsible service staffs

Attributes of Research

Research Findings

Component1 2 3

sales promotion .814 new products launch .720 promotional activities .701 good value price .672 variety of styles/products .657 variety of sizes .646 outlet locations .609 advertising .543 durable .855 material .828 responsible service staffs .713 practical/comfortable design .700 helpful and friendly service staffs .699 online shopping stylish/fashionable design .774store design .651reputable brand .641friends recommend .612

Factor 1Promotion& New Launch

Factor 2Quality

Factor 3Design

Research Findings

BrandREGR factor score 1 for analysis 1

REGR factor score 2 for analysis 1

REGR factor score 3 for analysis 1

A&FMean -.5217033 .0537563 .1460195N 66 66 66Std. Deviation .68649959 .91783895 1.01965575

GAPMean -.1518559 .1637730 -.2451455N 66 66 66Std. Deviation .79649766 .88788000 .73682791Mean .4503950 -.4489947 .1088190N 66 66 66Std. Deviation 1.29242466 1.12416771 .95898595Mean .1454976 .3169033 -.3637582N 66 66 66Std. Deviation .98703071 1.03162318 .76341856

ZARAMean .0776667 -.0854380 .3540653N 66 66 66Std. Deviation .88197725 .87093569 1.27284028

TotalMean .0000000 .0000000 .0000000N 330 330 330Std. Deviation 1.00000000 1.00000000 1.00000000

Promotion Launch Level

Clothing Quality

Design Consider

Research Findings

Sum of Squares df Mean

Square F Sig.

REGR factor score 1 for analysis 1

Between Groups 34.669 4 8.667 9.570 .000

Within Groups 294.331 325 .906 Total 329.000 329

REGR factor score 2 for analysis 1

Between Groups 22.376 4 5.594 5.929 .000

Within Groups 306.624 325 .943 Total 329.000 329

REGR factor score 3 for analysis 1

Between Groups 23.162 4 5.791 6.153 .000

Within Groups 305.838 325 .941 Total 329.000 329

Promotion & New Launch

Quality

Design

Research Findings

Model R R-Square Adjusted R-Square

Std. Error of the Estimate

1 .680a .463 .458 1.159

ModelUnstandardized

CoefficientsStandardized Coefficients t Sig.

B Std. Error Beta

1

(Constant) 4.152 .064 65.092 .000

REGR factor score 1 for analysis 1 .537 .064 .342 8.413 .000REGR factor score 2 for analysis 1 .683 .064 .434 10.687 .000REGR factor score 3 for analysis 1 .625 .064 .397 9.783 .000

Research Findings

Model Summary

Model R R Square Adjusted R SquareStd. Error of the

Estimate1 .848a .719 .718 .884a. Predictors: (Constant), overall preference

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1Regression 657.318 1 657.318 840.499 .000a

Residual 256.515 328 .782 Total 913.833 329

a. Predictors: (Constant), overall preferenceb. Dependent Variable: willing to buy

Coefficientsa

Model Unstandardized Coefficients Standardized Coefficients t Sig.

B Std. Error Beta1 (Constant) .437 .138 3.177 .002

overall preference .898 .031 .848 28.991 .000a. Dependent Variable: willing to buy

Research Findings—Perceptual Map I

-0.8 -0.4 - 0.4 0.8

-0.8

-0.4

-

0.4

0.8

Promotion& New Launch

Qua

lity

50.34 °

Research Findings—Perceptual Map II

-0.8 -0.4 - 0.4 0.8

-0.8

-0.4

-

0.4

0.8

Qua

lity

Design

47.00 °

Research Findings—Perceptual Map III

-0.8 -0.4 - 0.4 0.8

-0.8

-0.4

-

0.4

0.8

Promotion& New Launch

Des

ign

48.35 °

Positioning Statement

To middle class working adults, both male and female, UNIQLO is a brand of fashion apparel that offers high quality and nice design products with reasonable price and easy accessibility because of extended R&D, superior production management and convenient distribution in HK.

• Product Line• R&D

PRODUCT

1

• Value• Pricing

PRICE

2

• Sales Promotion

• Sales Force• Advertising

PROMOTION

3

PLACE

4

Marketing Mix Strategy

Marketing Strategy

• Distribution• Service

PRODUCT

R&D

Product Line

Marketing Research

Expand product line to further diversify the product to provide more stylish fashion items

Further enhance the design and quality in accordance with the feedback from customers

Maintain strong R&D investment on innovation in respect of design and fabric

Marketing Mix Strategy-Product

Good Value&Cost Management

Status-quo Pricing Strategy

PRICECost

Pricing

Good quality with reasonable price

Marketing Mix Strategy-Price

Marketing Strategy

Distribution Outlets Place

Service

Action Plan

Marketing Mix Strategy

Sales Promotion PromotionDiscount on special HolidaysMembership discount

Sales Force:

Advertising

Marketing Research

Action Plan