INTRODUCTION Muji products is to supply goods to consumers all over the world with the important things they

need to live a busy, modern, urban lifestyle. In 1989, Muji was discontinued from Seiyu. Ryohin Keikaku Co. Ltd became the manufacturer of Muji products. The Company has been developing and providing diverse arrays of consumer-driven daily necessities (Ryohin Keikaku, 2009). Ryohin Keikaku believes in developing Muji products that are functional, simple, of superior quality, and at reasonable prices as reflected in their astute product designs and packaging (Ryohin Keikaku, 2009; Barr, 2008). Through stringent selection of the materials, Muji emphasise recycling and reusability of its products in the production process to minimise impact on the environment (Ryohin Keikaku, 2009; Barr, 2008). The aim of this report is to produce a marketing communications report that define the markets of the company operates through its Business to busienss and Business to customer model and to promote itseself by raising the sales at remunerative values for making higher profits.

MARKET RESEARCH Muji is a global retailing brand that hails from Japan with the motto: lower priced for a reason. The Company believes in simplicity, no frills and functionality, hence it sells the wide variety of high quality consumer products of astute designs and minimum packaging without superfluous logos. Its natural and simple design, although plain and unadorned, proposes rational lifestyles for todays world. Mujis adopts a no-brand strategy; while tacitly implies that their products are superior, and money saved from not advertising is invested to research and development to create even better products. Mujis popularity is attributed to word-of-mouth, a simple shopping experience and the increasing popularity of the anti-brand movement. It appears that more people who are sick of frivolous and prescriptive branding are turning for purely aesthetic and egalitarian reasons. It is ironic that MUJI, which connotes no-brand, becomes identifiable as an international brand of its own. Hence it is curious whether this was a reverse psychology form of strategic marketing, or it was authentic marketing, or was it simply the riding on the trend of sustainability/ environmental conservation. The purpose of this report is to uncover what makes Muji so successful worldwide despite its counterintuitive strategies

MISSION STATEMENT The corporate mission of Muji is Lower priced for a reason to introduce simple but high quality products at affordable prices (Muji EU, 2009; Rusch, 2001; Ryohin Keikaku, 2009) and this is reflected throughout the companys beliefs, operation, marketing and business model. According to Mangum (2007), there are four key components to Mujis philosophy which are:

Reasonable price; Simple, moderate, and functional design; Basic, understated colours; Essential parts for people to design their lifestyles at their discretion.

Mujis three product-development principles are also consistent with the corporate mission concept (Mangum, 2007). They comprise of:

Material selection. Muji makes careful selection of the materials they use industrial materials that are usually ignored by others or those that can be bought at low cost in bulk to keep costs down and quality high (Ryohin Keikaku, 2009; Mangum, 2007). Simple, uniform packaging. Muji simplify their packaging to the extent of bare minimum to emphasize the natural qualities of the product, and minimizing both cost and waste (Ryohin Keikaku, 2009; Mangum, 2007). Efficient production processes. Muji streamlines their manufacturing process through constant inspection of its production at every stage (Ryohin Keikaku, 2009; Mangum, 2007).

MARKET STRATEGIES The principle of branding is to stand out from the crowd and this is often done through exaggerated inherent drama via brand messages with look-at-me-style stunts (Haig, 2006, p.224). Muji could be applying the Blue Ocean Strategy: by constructing a no-brand brand that defies conventional marketing, it serves to make the competition irrelevant (Kim & Mauborgne, 2004 cited in Russell-Walling, 2007, p.17; Haig, 2006, p.225). At the time of introduction, Muji stood out when the vogue was to pursue branded and luxurious good (Peng & Chen, 2007, p.8). Its competitors were advertising fervently to customers, while Mujis subdued approach got attention from cynical consumers among the clutter (Haig, 2006, p.224). The Muji philosophy of simplicity was ahead of its time and gained popularity for their no-frills, high-quality products. It is observed that Muji practices different strategies in various markets. In terms of International Marketing, Muji is adopting the Product extension, Marketing Adaptation global marketing strategy (Keegan, 1999 cited in Samli, 2004, p. 21).
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In its domestic (Japan) market, Muji applies Cost Leadership; through production efficiency, streamlined processes, and minimum advertising, it is able to offer quality goods at relatively low prices. In overseas markets, such as the United States (U.S.) and Singapore, Muji adopts a Differentiation Strategy: it is selling its uniquely designed products which are valued and perceived to be superior by customers at premium prices (Porter, 1980 cited in RussellWalling, 2007, p.86). The Muji aesthetics, design sensibilities, and its belief in environmental sustainability, continue to add value to the distinctiveness of its products (Roll, 2009). Moreover, Muji seem different from the overwhelming amount of branded merchandises with its no-brand strategy (Roll, 2009). Hence, Mujis position as a no-brand brand is strategic and sustainable as it requires tradeoffs; it chose to limit what it can offer purposefully and thus thwart others ability to imitate (Porter, 1996). Established competitors have tremendous sunk costs to abandon their superfluous brand image they had cultivated, while new entrants struggle to distinguish themselves either through aggressive branding or copy Mujis subtle marketing in the mass market.

MARKET SEGMENTATION AND TARGETING Segmentation and targeting seek to determine who companies want to reach in order to build brand relationship. Marketing today is in the name of efficiency and effectiveness, becoming more focused on smaller but more profitable segments of the market. (Duncan, 2003) Muji Ltd must be at the forefront of consumer research and conducts extensive research on a regular basis to identify new trends and to study opportunities for new and different trade channels. Traits of Muji Market intended audience: - Demographic: Consumers are in their 20s and 30s (Hall & Woyke, 2007). - Psychographic: In general, Muji has three broad categories of customers based on their lifestyles. 1. Since its inception, Muji strikes a chord with marketing-weary yet design-savvy customers who hate supporting corporate logos (Wylie, 2005; Gogoi, 2005). Muji seeks to attract people who are satisfied with the bare necessity rather than those who pursue brands for the sake of vanity and desires (Wylie, 2005; Peng & Chen, 2007, p.126; Gogoi, 2005). 2. The other segment consists of people who support Mujis environmental friendly stance (Grant, 2007). 3. The third group is consumers who are thrifty and looking for frill-less products. Specific segments are selected and Muji Ltd must develop different marketing plans in order to satisfy the needs of the potential buyer in the chosen segments. (Fill, 1999, pg 200)
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Targeting strategy In todays Experiential Economy, Muji is successful at targeting its first and second segment of customers, the brand cynics and the environmental advocates, because they are demanding authenticity. Authenticity is about being real and genuine and it has five criteria: Natural, Original, Exceptional, Referential and Influential Authenticity (Gilmore & Pine II, 2007, p.49-50). Mujis products are made from (natural) materials; possess (originality) in their designs; (exceptional) pursuit of its brand values for excellence; make (referential) to the Zen minimalist; and exerts (influential) authority to pursue environmental sustainability. Stealth luxury is a form of understatement which only connoisseurs appreciate, and it is an emerging new trend (Tungate, 2008 cited in Sims, 2008). Mujis no-brand scores because customers pride themselves as being sophisticated to recognise quality choice which is encoded in the item in the guise of a style, instead of relying on logos (Tungate, 2008 cited in Sims, 2008).

POSITIONING Positioning is the art of designing the companys offering and image to occupy a distinctive place in the mind of the target market. (Kotler, 2003, pg 308). In line with its mission, Muji defines itself by its pursuit of simplicity and functionality through its bare-bone chic product designs (Coco Master, 2008). Throughout its marketing collaterals, Muji positions itself in terms of three basic ideas: Simple, Functional and Affordable (Holloway & Hones, 2007). Simple the designs of Muji product are understated, plain and thus able to blend into the environment; Functional Muji products are versatile, adaptable and useful; and Affordable they are of good value (Holloway & Hones, 2007). Although Muji constantly positions itself as a mundane and banal, it is a paradox it is precisely their symbolic production to be part of ordinary life which makes it unique (Holloway & Hones, 2007).

COMPETITIVE ANALYSIS In the international market, Muji is often compared to the other famous purveyors of good designs at affordable prices include Target, Ikea, and Gap (Hsu, 2007; Hall & Woyke, 2007; Fralic, 2007).
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[See below for assessments of the competitors] Company Target (U.S.) Strengths House ware Slogans/ Positioning Statement Insists on surprising and delighting its guests (Hsu, 2007)Up & up (Target, 2009) Details Target uses artful, whimsical and outrageous images to market its brand.They merchandise in a theatrical manner which adds whimsical touches (visual flourishes) to the design of their products (Hsu, 2007)A popular discount retailer which is second after Walmart in the US. Ikea influences the North American design taste towards a magnitude of cheerful hues (Fralic, 2007).

Ikea (Ireland)

Furniture

Be brave, not beige (Hsu, 2007)Affordable solutions for better living Home is the most important place in the world (Ikea, 2008) Your own. (GAP, 2008) (Fill-in-the-black taglines for the customers to personalise) Simple. Functional. Affordable (Rusch, 2001; Roll, 2009 ; Holloway & Hones, 2007)Lower priced for a reason (Ryohin Keikaku, 2009)

Gap (U.S.)

Apparel

Muji (Japan)

Grocery

Gap builds upon its core philosophy of creating individual style through basic apparel products to attain a fresh and bright look. Muji revels in the minimalist approach; most of their products appear bland as they are devoid of colours or in beige blanket of neutrality (Hsu, 2007; Hall & Woyke, 2007; Fralic, 2007).Nonetheless, the fine simplicity and utilitarian provenance of Mujis products are delightful and nondescript, and thus attractive (Hsu, 2007).

In contrast to its competitors who relish in superfluous details and ornamentations, Muji stands out because it contends with being ordinary and neutral (Hsu, 2007; Hall & Woyke, 2007; Fralic, 2007).

SWOT ANALYSIS OF MUJI The overall evaluation of a companys strengths, weaknesses, opportunities and threats is called SWOT analysis. Its a way of monitoring the external and internal environment of a company. Strength and weaknesses are measured from internal environment and opportunities and threats are measured from external environment. However, the SWOT analysis of Muji is as follows: STRENGH Provide solutions to easy living, MUJIs products arent decorative or fancy by any means yet they are functional and do abide by MUJIs what you see is exactly what you get speech.. MUJI have been successful at creating a perfectly clear and global brand personality. MUJIs five principles for coexistence with the earth. They do not have to add other product lines or state that they are eco-friendly which so many other brands are doing at present due to the publics concern for the environment. Reasonable pricing. WEAKNESS Store design could be better. Although the clothing range has to remain simple and ordinary in order to maintain the brands philosophy, new designs should be discussed to heighten customer interest. The above strengths can only be fully put into practice once a customer enters the store, MUJI does not do enough to promote their name. Their concern for the environment and society may get overtaken by other brands who have began green washing the public at present. OPPORTUNITIES Increasing eco friendly market Strong customer demand for furniture and storage that will do during house face lifts. To become a stronger competitor within their market. THREATS Increased competition. Competitors promotional activities for organic products. The economic activities for the next couple of years will affect customers buying patterns

PESTLE ANALYSIS
The PESTLE stands for - Political, Economic, Sociological, Technological, Legal and Environmental. We have considered Glacau Vitamin water industry for the analysis. The key points are given below followed by the analysis. POLITICAL Tax rates and tax administration High level of corruption(rank 133.score 24 out of 100)* Risk of changes on political environment ECONOMICAL GDP per capita $ 12 995 low level of institutional development changes in exchanges rates Labour cost SOCIAL Purchasing power of population large differentiation of income Multicultural population consumer attitude towards high context/collectivistic japanese culture. Consumer attitude to minimalism and no-brand strategy. TECHNOLOGICAL Changes intchnologies increase in awareness about and usage of technologies in business and by consumers intellectual property issues LEGAL Long procedures of business licensing and permits Legal system and courts specific local laws the regions

ENVIRONMENTAL Muji had often been cited and commended by green advocates for their environmental conservation practices (Grant, 2007, p.126). This lends weight to Mujis credibility.

THE NEW MARKETING MIX The new emphasis on IMC has produced a new marketing mix. The traditional 4Ps are reconfigures, therefore the fourth P, becomes personal selling. (See Figure 3) Figure 3. The New Marketing Mix- IMC PRICE PLACE PROCESS PROMOTION Source; Rossiter, et al, 1998 The marketing communications task is to ensure that the perception of the offering and of the organisation is the desired one. One way of providing consistency, is the use of own label products. Marketing communication of the price is through the selection of prestige, competitive or value pricing and trough detail ads. On the other hand, marketing communication on the place is through the distribution channel as a promotion vehicle, such as store atmosphere and point of purchase ads and promotions Price: Mujis market penetration to U.S. had been poor. It is unable to compete on prices due to the high import cost and lack the economies of scale they enjoy in Japan. Muji should reconsider whether they can produce their product locally. Place: Most of Mujis retail outlets are located in swanky and high-end cities, which translate into higher overheads that interfere with their ability to offer cheaper prices. Muji can consider opening their outlets in the outskirts of the cities where rental are lower. Processes: To reduce costs, Muji ought to consider expanding its production capabilities to the countries it is operating in to save on logistics, or operate in labour intensive countries like China. Promotion: Although Muji is against using logos or brands to mark their product, it was inescapable that it becomes identifiable brands themselves (Gogoi, 2005). Mujis original plans to be innocuous seem to be working against it as the brand grows bigger.

RECOMENDATION Muji is known as a source of sensibly priced basics in Japan. However, Mujis egalitarian appeal has been largely lost in translation; design hounds in the U.S. and the U.K. are fetishes of the brand (Hsu, 2007). Although it is a success to adapt marketing to the local countries, Muji should consider standardising its messages that may conflict with the brands integrity and undermine its credibility in the long term Hence, Muji need to redefine and clarify what simplicity and being no-brand mean to Muji, as well as its customers; as concept of simplicity is complex as it embodies several meanings CONCUSION This report had made a detailed assessment of Mujis marketing strategy in accordance to the marketing mix. The key to Mujis success had been its market orientation, depth in their brand philosophy, and brand flexibility with its simple, stripped down formula (Muji (HK), 2008; Haig, 2006, p.225). Muji does not patronise its customers with grandiose marketing tactics and prescriptive branding; but focuses on creating the best products possible that will benefit the customers life (Haig, 2006, p.225). Although Muji proclaims to be cheap with uncompromising quality in Japan, it is sold at premium prices overseas and consumers elsewhere lap in Muji products for the symbolism Muji represents.

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