Fashion Apparel—UNIQLO

Group 6
 Agenda
STRENGTHS WEAKNESSES
Company Background & Situation

Competitors & SWOT

Target Market Research

Attributes of Research

Position Research

Positioning Statement

Marketing Mix Strategy

 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
Products Situation
• Good quality with reasonable price
• Focused on the basic casual apparel with functional
design for all age
Market Situation
• Demand of apparel still increases
• Uncertain global economic outlook
• Enjoying strong consumer purchasing
power
Distribution Situation
• Strong control over production and distribution
• Largest amount of store in HK’s Fashion Apparel market
(HK: 16 retail stores)
Macro-environment
• Number of target customer keeps stable
• Growth rate of income not reach the CPI
• Tourists and parallel buyers
 SW
STRENGTHS
•Large-scale-store &
Largest amount of store
•Research & Development
•High quality with reasonable price
•Effective distribution management
•Well-trained and helpful sales
force
SWOT
•Strong purchase power in Analysis
HK
•Brand loyalty and strong belief
in brands’ design of HK consumers
SWOT Analysis
WEAKNESSES
•Low switching cost
& lots of alternatives
Internal
•Plain design, lack fashion styles factors
•Low new releases’ turnover rate
•Fierce industry rivalry and
intensive competition
•Unpredictable fashion trends
•Negative shocks from the global

OT
•CSR activities economic slowdown External
•Brand building through •High and increasing factors
Flagships rental expense
OPPORTUNITIES THREATS

Positive Negative
 Competitors

•Spanish •Swedish
•Extremely trendy •Huge customer& vendor base
•No advertisement

•American
•Practical design •American
•The largest specialty apparel retailer •Strong brand portfolio &promotion
in the U.S
 Target Market Research

Target  Enjoying strong

Customers: consumer purchasing
power
 Facing intensive
 Middle-class working UNIQLO competition
adults, both male and HK
female
Location:
 Enjoying casual wear
that ensures high Hong Kong
quality and nice design

Research Sample Size: 66 (F: 30, M: 36)

Sampling Procedure:
Randomly collected from 66 HK
residents ( all middle-class employees)
 Attributes of Research

• Branding • Place
– Friends recommend – Online shopping
– Reputable – Outlet locations
• Product – Store design
– Durable
– Material • Promotion
– New products launch – Advertising
– Practical/comfortable design – Promotional activities
– Stylish/fashionable design – Sales promotion
– Variety of sizes
– Variety of styles/products • Service
• Price – Helpful and friendly service staffs
– Good value – Responsible service staffs
 Research Findings
Component
1 2 3
sales promotion .814
new products launch .720
promotional activities .701
Factor 1
good value price .672 Promotion&
variety of styles/products .657 New Launch
variety of sizes .646
outlet locations .609
advertising .543
durable .855
material .828
responsible service staffs .713
Factor 2
practical/comfortable design .700 Quality
helpful and friendly service staffs .699
online shopping
stylish/fashionable design .774
store design .651
Factor 3
reputable brand .641 Design
friends recommend .612
 Research Findings

REGR factor
Promotion REGR factor
Clothing REGR factor
Design
Brand score 1 for
Launch Level
score 2 for
Quality
score 3 for
Consider
analysis 1 analysis 1 analysis 1
Mean -.5217033 .0537563 .1460195
A&F N 66 66 66
Std. Deviation .68649959 .91783895 1.01965575
Mean -.1518559 .1637730 -.2451455
GAP N 66 66 66
Std. Deviation .79649766 .88788000 .73682791
Mean .4503950 -.4489947 .1088190
N 66 66 66
Std. Deviation 1.29242466 1.12416771 .95898595
Mean .1454976 .3169033 -.3637582
N 66 66 66
Std. Deviation .98703071 1.03162318 .76341856
Mean .0776667 -.0854380 .3540653
ZARA N 66 66 66
Std. Deviation .88197725 .87093569 1.27284028
Mean .0000000 .0000000 .0000000
Total N 330 330 330
Std. Deviation 1.00000000 1.00000000 1.00000000
 Research Findings

Sum of df Mean F Sig.

Squares Square
REGR factor Between Groups 34.669 4 8.667 9.570 .000
score 1 for
analysis 1 Within Groups 294.331 325 .906
Promotion &
New Launch Total 329.000 329
Between Groups 22.376 4 5.594 5.929 .000
REGR factor
score 2 for Within Groups 306.624 325 .943
analysis 1
Quality Total 329.000 329
Between Groups 23.162 4 5.791 6.153 .000
REGR factor
score 3 for Within Groups 305.838 325 .941
analysis 1
Design Total 329.000 329
 Research Findings

Model R R-Square Adjusted Std. Error of

R-Square the Estimate
1 .680a .463 .458 1.159

Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 4.152 .064 65.092 .000

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

Model Summary
Std. Error of the
R Estimate
Model R Square Adjusted R Square
1 .848 a .719 .718 .884
a. Predictors: (Constant), overall preference

ANOVAb
Model Sum of Squares df Mean Square F Sig.
Regression 657.318 1 657.318 840.499 .000a
1 Residual 256.515 328 .782
Total 913.833 329
a. Predictors: (Constant), overall preference
b. Dependent Variable: willing to buy

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model t Sig.
B Std. Error Beta
(Constant) .437 .138 3.177 .002
1
overall preference .898 .031 .848 28.991 .000
a. Dependent Variable: willing to buy
 Research Findings—Perceptual Map I
0.8

0.4

50.34°
-
-0.8 -0.4 - 0.4 0.8
Quality

-0.4

-0.8

Promotion& New Launch

 Research Findings—Perceptual Map II

0.8

0.4

47.00°

-
-0.8 -0.4 - 0.4 0.8
Quality

-0.4

-0.8

Design
 Research Findings—Perceptual Map III
0.8

0.4

48.35°
-
-0.8 -0.4 - 0.4 0.8
Design

-0.4

-0.8

Promotion& New Launch

 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.
 Marketing Strategy

Marketing Mix Strategy

PRODUCT PRICE PROMOTION PLACE

• Product Line • Value • Sales • Distribution

• R&D • Pricing Promotion • Service
• Sales Force
• Advertising

1 2 3 4
 Marketing Mix Strategy-Product

Expand product line to

further diversify the
product to provide more
Product stylish fashion items
Line

Maintain strong R&D Further enhance the

investment on design and quality in
innovation in respect of accordance with the
design and fabric PRODUCT feedback from
customers

Marketing
R&D
Research
 Marketing Mix Strategy-Price

Good quality with

reasonable price

Status-quo Pricing
Cost Strategy
PRICE
Pricing
Good Value&
Cost Management
 Marketing Strategy

Place Distribution Outlets

Service

Action Plan
 Marketing Mix Strategy

Promotion Sales Promotion

Discount on special Holidays
Membership discount

Sales Force:

Advertising

Marketing Research

Action Plan