Fashion Apparel—UNIQLO Group One

Agenda Company Background & Situation Competitors & SWOT STRENGTHS WEAKNESSES Competitors & SWOT Research’s Target Market 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 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 by store count in HK’s Fashion Apparel market (HK: 16 retail stores); Distribution Situation: Targeting consumer’s number keep stable; Growth rate of income not reach the CPI; Tourists and parallel buyers Macro-environment:

S W O T SWOT Analysis SWOT Analysis Positive Negative •Large-scale-store & Largest by store count; •Research & Development; •High quality with reasonable price; •Effective distribution management; •Well-trained and helpful sales people. •Low switching cost & lots of alternatives; •Plain design, lack fashion styles; •Slow new releases’ turnover rate. STRENGTHS WEAKNESSES Internal factors SWOT Analysis •Strong purchase power in HK; •Brand loyalty and strong beliefs in brands’ design of HK consumers; •CSR activities; •Brand building through Flagships. •High industry rivalry and intense competition; •Unpredictable fashion trends; •Negative shocks from the global economic slowdown; •High and increasing rental fee. External factors O T OPPORTUNITIES THREATS Positive Negative

Competitors Swedish Huge customer & vendor base Spanish Extremely trendy No advertisement American Strong brand portfolio & promotion American The largest specialty apparel retailer in the U.S

Research’s Target Market Target Customers: Enjoys strong consumer purchasing power Facing intensive competition UNIQLO HK Middle-class working adults, both male and female Enjoying casual wear that ensures high quality and nice design Location: Hong Kong Research Sample Size: 66 (F: 30, M: 36) Sampling procedure: Randomly Collected from 66 HK residents ( all middle-class employees)

Attributes of Research 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

Promotion Launch Level Research findings   Component 1 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 .774 store design .651 reputable brand .641 friends recommend .612 Factor 1 Promotion Launch Level Factor 2 Clothing Quality Factor 3 Design Consideration

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

Promotion Launch Level 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 22.376 5.594 5.929 306.624 .943 REGR factor score 3 for analysis 1 23.162 5.791 6.153 305.838 .941 Promotion Launch Level Clothing Quality Design Consider

Research findings Model R R-Square Adjusted Std. Error of the Estimate 1 .680a .463 .458 1.159 Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 4.152 .064   65.092 .000 REGR factor score 1 for analysis 1 .537 .342 8.413 REGR factor score 2 for analysis 1 .683 .434 10.687 REGR factor score 3 for analysis 1 .625 .397 9.783

Research findings Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .848a .719 .718 .884 a. Predictors: (Constant), overall preference ANOVAb Model Sum of Squares df Mean Square F Sig. 1 Regression 657.318 840.499 .000a Residual 256.515 328 .782   Total 913.833 329 a. Predictors: (Constant), overall preference b. Dependent Variable: willing to buy Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) .437 .138   3.177 .002 overall preference .898 .031 .848 28.991 .000 a. Dependent Variable: willing to buy

Research findings—Perceptual Map 50.34° Clothing Quality Promotion Launch Level

Research findings—Perceptual Map 47.00° Clothing Quality Design Consideration

Research findings—Perceptual Map 48.35° Design Consideration Promotion Launch Level

Positioning Statement

Marketing Strategy 1 2 3 4 Marketing Mix Strategy Product Line R&D Good Quality With Reasonable Price PRICE 2 Sales Promotion Sales Force Advertising PROMOTION 3 Distribution Outlet Service PLACE 4

PRODUCT Marketing Strategy-Product Expand product line to further diversify the product to provide more stylish fashion items. PRODUCT LINE PRODUCT Maintain strong R&D investment on innovation in respect of design and fabric. Further enhance the design and quality in accordance with the feedback from customers. R&D Marketing Research

Good quality with reasonable price Marketing Strategy-Price Good quality with reasonable price Attach more importance to the work of quality review group in new factories built in Southeast Asia. Put quality at the first place in the process of cost management. PRICE COST QUALITY

Marketing Strategy Promotion Sales Promotion Sales Force: Advertising Marketing Research Action Plan

Marketing Strategy Distribution Outlets Place Service Action Plan