Introduction Introduction
Uniqlo Co., Ltd. was founded in 1949 in Yamaguchi, Yamaguchi, Japan but is now a 100 consolidated subsidia!" of #ast $etailing $etail ing Co., Ltd since %00&, with its headqua!te!s in 'o("o. 'o("o. )n *o+embe! %010, U*)L- fi!st !eached ala"sia/s sho!es in #ah!enheit , uala Lumpu!. 2t p!esent, U*)L- has 39 sto!es th!oughout the whole of ala"sia with a mao!it" of its sto!es in uala Lumpu! and the lang 5alle" 5alle" 6Uniqlo, n.d.7.
8a!a was founded in 194 in :pain b" 2mancio;-!tega unde! )ndite<, which -!tega owns app!o
8a!a and Uniqlo a!e chosen as the offe!ings of this !epo!t due to thei! established b!and p!esence in ala"sia. 2lthough both b!ands appea! undistinguishable, a tho!ough anal"sis of thei! segmentation, ta!geting, positioning and ma!(eting mi< st!ategies, with conside!ation of thei! en+i!onmental fo!ces, indicates notable diffe!ences. 'he two a!e distincti+e in thei! segmentation st!ategies, ta!get ma!(et, Unique :elling =!oposition 6U:=7 and ma!(eting mi< mechanisms. >ue to these diffe!ences, the two b!ands will be affected diffe!entl" b" thei! custome!s.
1 Uniqlo
:egmentation and a nd 'a!geting Uniqlo ta!gets a wide !ange of ala"sian consume!s with !espect to Uniqlo/s slogan, ?made fo! all.@ Aowe+e!, its main ta!get ma!(et is female and male adults !anging f!om the age of 1 to 40 who see( fo! affo!dable high;qualit" casual clothing that fits thei! dail" lifest"les 6#intell B o!imu!a, %017. Uniqlo uses diffe!entiated ma!(eting b" effecti+el" segmenting its p!oducts based on demog!aphic, ps"chog!aphic and beha+iou!al +a!iables that !eflect its ta!get ma!(et.
Uniqlo designs its p!oducts based on gende!, age and lifest"le of ala"sians. Uniqlo/s Do!( :ma!t collection cate!s to both male and female adults wo!(ing in white;colla!ed indust!ies 62ppendi< %7 while Uniqlo :po!t cate!s to both male and female adults who a!e acti+e 62ppendi< 37. Uniqlo also p!actices multi+a!iate demog!aphic segmentation b" cate!ing to female uslim adults with thei! odest Dea! 62ppendi< 47 and Aana 'aima Collection 62ppendi< &7 besides cate!ing to women who a!e in thei! life;c"cle stage of p!egnanc" with thei! ate!nit" Dea! collection 62ppendi< 7.
2s consume!s diffe! in beha+iou! towa!d b!ands, Uniqlo segments consume!s of diffe!ent use! use!;s ;sta tatu tuse ses. s. #o! #o! inst instan ance ce,, Uniq Uniqlo lo ta!g ta!get etss non; non;us use! e!ss and and pote potent ntia iall use! use!ss th!o th!oug ugh h ad+e!tisements on social media platfo!ms such as You'ube 62ppendi< 7 and #aceboo( 62ppendi< 7. Uniqlo also lu!es potential and fi!st time use!s on thei! online website to ma(e a pu!chase pu!chase b" p!o+iding p!o+iding f!ee deli+e!" deli+e!" fo! pu!chases pu!chases o+e! $1&0 $1&0 62ppendi< 97 and th!ough p!omo codes 62ppendi< 107. #o! Uniqlo/s website lo"al use!s, Uniqlo !ewa!ds them with e; membe! specials online 62ppendi< 117. Uniqlo cate!s to the diffe!ent benefits sought b" consume!s b" int!oducing diffe!ent lines. #o! e
% =ositioning Uniqlo/s competiti+e ad+antage is its abilit" to p!oduce inno+ati+e clothing while its U:= is its affo!dable comfo!table casual clothing which a!e made out of high;qualit" fab!ic and de+eloped b" ad+anced technolog" 6#intell B o!i mu!a, %017.
Uniqlo does not chase t!ends but focuses on fashion staples 6>u!sin, %0137. 'his allocates mo!e !esou!ces cont!ibuting to Uniqlo/s point of diffe!ence F it is alwa"s a step ahead in p!oduct inno+ation and qualit". )ts mass p!oduction of simila! st"les (eeps p!ices low and ma(e p!oducts affo!dable 6>u!sin, %0137. 'he pe!ceptual map below illust!ates Uniqlo/s position compa!ed to othe! b!ands in ala"sia/s appa!el !etail indust!".
3 -n the +e!tical a
)n the map, Uniqlo/s position is !elati+el" close to AB because the" sha!e almost simila! qualit" and p!ice. 'o illust!ate, a female basic white top is used. U*)L- is positioned as mo!e affo!dable because it cha!ges $39.90 62ppendi< 17 while AB cha!ges $49.90 62ppendi< 17. U*)L- is positioned as highe! qualit" because its top contains 90
e
)n the map, Cotton -n is positioned awa" f!om U*)L-. 'his is as both b!ands a!e mo!e diffe!ent in te!ms of affo!dabilit" and qualit". Using the same illust!ation, a top f!om Cotton on costs $&9 62ppendi< 197 while U*)L- cha!ges $39.90 fo! something simila!. ualit" wise, Cotton -n was silent on the mate!ials used but its infamous !eputation fo! poo! qualit", as seen in the online !e+iew 62ppendi< %07, acts as a basis of udgement. Hased on this, Uniqlo offe!s a less fo! mo!e +alue p!oposition as compa!ed to Cotton -n.
a!(eting i< Product
Uniqlo/s co!e p!oduct is to co+e! consume!s/ bod" pa!ts besides (eeping them shelte!ed f!om an" ph"sical ha!m, satisf"ing consume!s/ safet" need. Uniqlo/s actual p!oduct is its established b!and name which o!iginated f!om two wo!ds, ?unique@ and ?clothing@. Uniqlo/s actual p!oduct also consists of its affo!dabilit", comfo!tabilit", high;qualit", functionalit" and inno+ation 6Uniqlo, n.d.7. Uniqlo/s augmented p!oducts includes the f!ee deli+e!" fo! online pu!chases o+e! $1&0 62ppendi< %17, its afte!;sales ean length alte!ation and p!oduct e
4 Price
Uniqlo uses ps"chological p!icing st!ateg" th!ough !efe!ence p!icing b" selling a ';shi!t at $&9.90 instead $0 because custome!s will pe!cei+e the p!ice to belong in the $&0 catego!" and not $0 62ppendi< %47. 'his leads to a possible pu!chase as custome!s pe!cei+e p!ices to be lowe!. =!omotional p!icing st!ateg" is also used as Uniqlo offe!s a wee(l" online and in;sto!e ma!(down on specific p!oducts to boost sales tempo!a!il" 6)naga(i, %017. #o! e
%017. Aence, it can be identified that Uniqlo uses +alue;based p!icing as the" conside! custome!s/ +alue pe!ceptions and set p!ices to match them.
Promotion
Uniqlo ad+e!tises ce!tain collections to p!omote new p!oducts in ala"sia. #o! instance, Uniqlo hi!ed Yuna as the face of Aana 'aima/s Aiab collection in %01 to inc!ease its b!and awa!eness 62ppendi< %7. Uniqlo also p!omotes its p!oducts on its #aceboo( 62ppendi< %7 and )nstag!am page 62ppendi< %7 as it can !each a wide! audience th!ough the inte!net. Dee(l" sale p!omotions a!e conducted in Uniqlo on specific p!oducts 6#inancial 'imes, %017, acting as a tempo!a!" incenti+e to inc!ease pu!chases 62ppendi< %97. Uniqlo emphasises on its public !elations and aims to build a good co!po!ate image th!ough its Co!po!ate :ocial $esponsibilit" 6C:$7 p!oects such as Uniqlo $ec"cle 62ppendi< 307 and its Do!(e! Empowe!ment p!oects 62ppendi< 317 while minimising its en+i!onmental impact 62ppendi< 3%7. 'his helps Uniqlo imp!o+e !elationships with its public while maintaining good publicit".
& Place
Uniqlo p!actices selecti+e dist!ibution because its outlets a!e onl" located in shopping malls within ala"sia/s p!ime a!eas 62ppendi< 337. =!ime locations a!e pac(ed with Uniqlo/s segment of wo!(ing adults and the" ha+e a high t!affic of consume!s, which can imp!o+e Uniqlo/s b!and awa!eness and sales. $eflecting its slogan, ?made fo! all@, Uniqlo/s online sto!e allows an"one an"whe!e in ala"sia with inte!net accessibilit" to pu!chase thei! goods, Uniqlo does not ha+e its own manufactu!ing site but it still coo!dinates p!oduction with pa!tne! facto!ies to p!oduce p!oducts which will be deli+e!ed to e
o! deli+e!ed to Uniqlo sto!es wo!ldwide whe!e the clothes will be displa"ed and sold to custome!s 62ppendi< 347.
ic!oen+i!onment Public
CitiGen;action publics affect Uniqlo. )n %01&, :tudents and :chola!s against Co!po!ate isbeha+iou! 6:2C-7 in+estigated two of Uniqlo/s mao! supplie!s in China and found ga!ment wo!(e!s to be wo!(ing unde! sweatshop p!actices 6Da! on Dant, %01&7. 'his !esulted in Uniqlo pledging to eliminate sweatshop p!actices 6Yui, %01&7. )t is impo!tant fo! Uniqlo to maintain a good !elationship with citiGen;action publics because the" can hinde! Uniqlo f!om achie+ing thei! goals. #o! instance, ala"sian ethical consume!s would a+oid Uniqlo/s p!oducts to p!e+ent negati+e association with the b!and.
Hesides that, the media public also affects Uniqlo because it eithe! c!eates a desi!e o! disinclination to consume!s towa!ds Uniqlo/s p!oducts. Dith the !ise of social media, consume!s a!e able to obtain info!mation about Uniqlo mo!e efficientl". )nstag!am posts p!omoting Uniqlo f!om online pe!sonalities, such as Ja!ed Lee, can inc!ease Uniqlo/s b!and awa!eness and influence followe!s to pu!chase Uniqlo/s p!oducts 62ppendi< 3&7 while bad !e+iews could p!e+ent sales.
Customers
)t is impo!tant fo! Uniqlo to unde!stand what custome!s +alue 65a!go and Lusch, %0047 and come up with p!oducts that satisfies them. Heing in the ala"sian appa!el indust!", Uniqlo faces a th!eat of substitutes f!om competing b!ands li(e AB while new ent!ants, such as 'abao, an online e;comme!ce site, th!eatens Uniqlo/s position with its much lowe! p!ices. Uniqlo/s custome!s ha+e high ba!gaining powe! due to the p!esence of substitutes. 'o consistentl" !emain att!acti+e to consume!s, Uniqlo diffe!entiates itself b" ha+ing a
competiti+e ad+antage of high;functionalit" and qualit" at affo!dable p!ices. 'his d!aws custome!s to Uniqlo.
Zara
:egmentation and 'a!geting 8a!a ta!gets demog!aphic, ps"chog!aphic and geog!aphic segmentations 6Hhasin,;%017. 8a!a ma!(et comp!ises of 0;women, %&;men and mo!e !ecentl", child!en fashion which ma(es 1& of the ma!(et segment 62!if, %0117.
8a!a ta!gets the middle to high income t!end followe!s aging 1 to 40 "ea! olds who wish to be t!endsette!s 6o(, n.d.7. 'his c!eates demog!aphic options fo! 8a!a/s custome!s who democ!atiGe fashion 6'he;8a!as H!and :t!ateg" a!(eting Essa", %0137. Dith fashion t!eated as lifest"le, this +alue falls unde! ps"chog!aphic technique which ta!gets audiences who want to be pe!cei+ed as the I5.).=/ wea!ing 8a!a/s st"lish up;to;date clothing while !e maining p!ice sensiti+e 6elle!, %01%7. )n 2ppendi<3, the!e a!e 10 ala"sian b!anches that solel" belong to the uala;Lumpu! and :hah;2lam a!eas due to geog!aphic competiti+eness. 'his acts as thei! e
=ositioning 8a!a aims to p!o+ide a unique +alue p!oposition whe!e the" ensu!e custome!s a!e able to loo( t!end" as well as pu!chasing lowe! p!iced me!chandise 6'he 8a!a/s H!and :t!ateg" a!(eting Essa", %0137.
Heing a fast fashion indust!", 8a!a falls unde! the fou!th quad!ant on the pe!ceptual map 6Aensen, %01%7. 'his is due to thei! consistent in+ento!" tu!no+e! whe!e new designs a!e !eleased twice a wee( based on bu"e!s/ constant change in fashion demand 6He!field B Haigo!!i, %0137. 'hus, enabling them to sell cheape! because the" possess owne!ship of thei! manufactu!ing which allows supe!io! cont!ol o+e! the in+ento!ies 6a(o!i, n.d.7 which !esults in less facto!s affecting thei! p!icing
Bershka vs Zara He!sh(a !etails cheape! because it ta!gets the "ounge! ma!(et 6He!sh(a, n.d.7 who a!e mo!e p!ice sensiti+eK whe!eas 8a!a ta!gets the mo!e financiall" stable age g!oup. #ashion !elated, He!sh(a and 8a!a a!e equall" t!end" as the" belong to the same pa!ent compan", )ndite< 6)ndite<, %01&7 which ha+e the same goals, st!i+ing in p!oducing low;p!iced t!end" clothing.
Gap vs Zara ap does not possess a high fashion tu!no+e! unli(e 8a!a because the" lac( a unique suppl" chain. ap/s absence of manufactu!ing owne!ship fo!ces them to bea! the cost of t!anspo!tation and manufactu!ing e
a!(eting i<
Product
8a!a/s appa!el st!ateg" enables custome!s to conceal thei! bi!thda";suits with fashionable outfits that bolste!s self;esteem b" feeling t!end" with a sense of e
8a!a cate!s to men, women and child!en appa!el 62ppendi<37. 8a!a/s t!adema!( is an e
8a!a p!o+ides accessible se!+ices to custome!s b" ha+ing thei! own application and online sto!e with se!+ices of e
9 continuousl" p!o+iding the latest fashion t!end +ia thei! abo+ementioned offe!ings to thei! ta!get custome!s.
Price
-!tega belie+es e+e!"one is entitled to constantl" loo( fashionable which positions 8a!a in the middle;high income t!end followe!s.
Low Price Strategy 8a!a implements this st!ateg" because the" offe! high fashion clothing at !easonable p!ices globall" 68a!a a!(eting i<, n.d.7. 8a!a can achie+e this due to thei! suppl" chain management being able to sa+e on sto!age, t!anspo!tation, and ad+e!tising costs. 'his allows them to allocate funds into each depa!tments without comp!omising thei! p!icing st!ategies 6:han(a!, 5e!soGa, ittias B :ia, %0097.
Customer Driven Strategy 8a!a belie+es thei! effo!ts in p!oducing st"lish clothing at !easonable p!ices would enable them to gain custome!s/ lo"alt". 2s 8a!a o+e!loo(s con+entional ad+e!tising, it ensu!es bu"e!s feel a sense of e
pe!sonalMunique. o!eo+e!, the" +alue thei! custome!s/ d"namic changing fashion demands b" ensu!ing constant new selections, !esponding to thei! custome!s/ demands 6)ndite<, n.d.7.
Market-Based Pricing Strategy 2cco!ding to :han(a!, 5e!soGa, ittias and :ia 6%0097, 8a!a ta(es ad+antage of the custome!s/ willingness to pu!chase thei! p!oducts at whate+e! p!ice !ate. #o! e
Place
)ndite
10 Strategy Location 8a!a st!i+es fo! geocent!ic o!ientation due to cultu!e diffe!ences b" each !especti+e count!" while adopting a ce!tain !esolution which diffe!s f!om home ma!(et app!oaches 6a!a(ushe+a, n.d.7. E
'ho!ough obse!+ation suggests 62ppendi<407, 8a!a st!ategicall" aligns themsel+es with othe! high;end b!ands to be pe!cei+ed as a lu
Distribution-Strategy 8a!a handles thei! suppl" chain management dominantl" b" being a +e!ticall" integ!ated !etaile! 62dam, n.d.7. )ndite
Promotion
8a!a p!io!itiGes thei! custome!s b" aiming to build long;lasting !elationships in o!de! to captu!e custome!s/ lo"alt" b" satisf"ing the needs and wants of thei! ta!get custome!s th!ough p!o+iding e
8a!a achie+es this b" ensu!ing custome!s can e
11 walls, big window displa"s, etc. Dindow d!essing pla"s a huge !ole in 8a!a/s ad+e!tising appea!ance, as this implements an idea;o!iented st!ateg" 6:han(a!, 5e!soGa, ittias B :ia, %0097 fo! custome!s desi!ing to +isualiGe the clothing offe!ed. 'his entices them to b!owse th!ough p!oducts and possibl" pu!chase spontaneousl" due to affo!dable p!icing and the fact that displa" items would be !eplaced due to high tu!no+e!. 8a!a succeeds in this as the" t"picall" customiGe thei! sto!es with big window displa"s enabling them to e
8a!a deli+e!s accessibilit" to custome!s/ demands b" p!o+iding online b!owsingMshopping th!ough thei! application and website 62ppendi<4%7. Do!d;of;mouth is an influential d!i+e! that affects custome! beha+iou! the!efo!e 8a!a p!o+ides supe!io! custome! se!+ice b" meeting the demands of thei! ta!get ma!(et 6He!na!d, %0117, as positi+e !e+iews and feedbac( achie+es an inc!ease in sales. H" ha+ing a unique suppl" chain s"stem, it has gained b!and and
custome! lo"alt" that is highl" necessa!" to sta" competiti+e. 8a!a also cont!ols thei! in+ento!" b" ha+ing limited stoc(s fo! !especti+e collections, as the" want custome!s to feel e
ic!oen+i!onment Competitors
2s Icompetition/ is a mic!oen+i!onment fo!ce, 8a!a/s fast;paced fashion indust!" has to compete with othe! b!ands li(e AB and Uniqlo in o!de! to be a distincti+e b!and. 2s shown in 2ppendi< 43, these competito!s ha+e thei! p!esence dispe!sed a!ound ala"sia compa!ed to 8a!a, which gi+es them ad+antages of con+enience b" ha+ing mo!e numbe! of sto!es with la!ge! a!eas co+e!ed. 'he!efo!e, 8a!a should ta(e action b" opening mo!e outlets in ala"sia to compete, while inc!easing thei! unde!standing of thei! ta!get custome!s. >espite thei! wea( p!esence in ala"sia, the" still hold competiti+e ad+antage o+e! othe! !etaile!s as to diffe!entiating themsel+es b" p!o+iding t!end" !egula! tu!no+e! clothing at !easonable p!ice 6!ac(laue!, ills B :eife!t, %01%7.
1%
Customers
?Custome!@ pla"s an impo!tant !ole in 8a!a/s fundamental ma!(eting because of thei! changing fashion demands. )t is impo!tant to unde!stand which designs b!ing ultimate satisfaction to the custome!, because once satisfaction captu!ed will ensu!e lo"alt" is also captu!ed. 6Le+ine, %0037. H" consistentl" hitting the custome!s/ p!efe!ences, sales figu!es
would inc!ease due to good custome! se!+ices. 'ogethe! with positi+e wo!d;of;mouth !ecommendations, good feedbac( and !e+iews would fa+ou!abl" inc!ease the b!and/s image
13 Compa!ison 8a!a and Uniqlo ma" both ta!get 1 to 40 "ea! olds ala"sian male and female adults but 8a!a/s ta!get ma!(et places an emphasis on t!endsette!s while Uniqlo/s ta!get ma!(et gene!all" emphasises on indi+iduals who loo( fo! high;qualit" casual st"les. 2s Uniqlo/s ta!get ma!(et is mo!e gene!al, Uniqlo has a b!oade! ma!(et segment as compa!ed to 8a!a. Uniqlo segments
ala"sian consume!s based on thei! lifest"les, life;c"cle stages and !eligion while 8a!a/s segment mainl" includes indi+iduals who t!eat fashion as a lifest"le.
2lthough both b!ands occup" consume!s/ minds as leade!s in the appa!el indust!", the U:= diffe!s fo! both. 8a!a/s U:= p!o+ides consume!s with t!end" off;the;!unwa" loo(s at lowe! p!ices while Uniqlo/s is its abilit" to sell high qualit" clothing at affo!dable p!ices. >ue to thei! diffe!ences, both b!ands ha+e diffe!ent p!oduct designs and ma!(eting communications. )t is also impo!tant to note the diffe!ence between 8a!a/s b!and image of affo!dable lu
Uniqlo and 8a!a offe! clothing appa!els fo! all indi+iduals. Aowe+e!, the biggest diffe!ence between both b!ands is that Uniqlo offe!s custome!s comfo!t o+e! fashion while 8a!a offe!s fashion o+e! comfo!t. Uniqlo p!oduces clothes that a!e mo!e functional and basic in st"le while 8a!a focuses on cu!!ent in;t!end designs. Uniqlo/s motto is ?subt!acti+e designs@, whe!eb" clothes a!e designed to its simplest fo!m to p!e+ent f!om !unning out of st"le 6*o(u!a, %0147. 8a!a, on the othe! hand, c!eates fashionable clothing acco!ding to custome!s/ p!efe!ence to ensu!e custome! satisfaction. 8a!a/s p!oducts emphasise mo!e on being fashion; conscious and is usuall" classified b" custome!s to be a ?seduct!ess@ because most of thei! clothes ha+e sensual and c!eati+e cha!acte!istics 6C!isell, %017. )t is identified that both b!ands belong at diffe!ent ends on the spect!um of clothing st"les. 8a!a is fun(" while Uniqlo is conse!+ati+e. Consume!s will ne+e! find an off;shoulde! top in Uniqlo 62ppendi< 447 but will find an abundance of them in 8a!a 62ppendi< 4&7.
8a!a and Uniqlo/s sto!es ma" both locate in simila! locations but the in;sto!e e
14
colou!ful clothes displa" which c!eates wa!m and happ" atmosphe!e, ma(ing consume!s feel at home 62ppendi< 47. Hesides that, Uniqlo/s online website is colou!ful, eas" to use and is o!ganised s"stematicall" 62ppendi< 47.
8a!a/s in;sto!e en+i!onment !eflects elegance with its clean and minimalistic inte!io! 62ppendi< 47. 'he usage of ba!e walls and the !ight lighting is emphasised to ensu!e thei! p!oducts ta(e the cent!e stage. 8a!a/s e
2lthough both b!ands ha+e high ma!(et p!esence in ala"sia, it can be identified that Uniqlo allocates mo!e !esou!ces on p!omotions compa!ed to 8a!a. Uniqlo is acti+e in building its public !elations, conducting wee(l" sales p!omotion and hi!ing b!and ambassado!s to p!omote thei! p!oducts 62ppendi< &07. -n the othe! hand, 8a!a/s sets no budgets on ad+e!tisements 6'he 2tlantic, %01%7, has lesse! sales p!omotion and does not engage as much in C:$. 'his occu!s as Uniqlo is !elati+el" "ounge! in ala"sia as compa!ed to 8a!a, the!efo!e would ha+e a lowe! b!and p!esence among consume!s. 2s 8a!a was established longe!, it al!ead" has a mass following, !equi!ing onl" wo!d;of;mouth ad+e!tising to p!omote new p!oducts 6Auffington =ost, %017. Uniqlo, who onl" appea!ed in ala"sia %010 6#ast $etailing, n.d.7, has to g!aduall" inc!ease its b!and awa!eness and acceptance th!ough p!omotions while slowl" building thei! fan base.
1& Hoth b!ands ma" use simila! p!icing st!ategies to maintain thei! affo!dabilit" but 8a!a has a la!ge! p!ice !ange because it has a la!ge! p!oduct +a!iet" as compa!ed to Uniqlo/s limited st"les. #o! e
Uniqlo and 8a!a a!e both affected b" ala"sian custome!s. Aowe+e!, the" app!oach custome!s/ demands distincti+el". Uniqlo ta(es mo!e p!oacti+e measu!es and t!ies to cate! to e+e!"one th!ough its e
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