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Fashion Apparel—UNIQLO Group One
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Agenda Company Background & Situation Competitors & SWOT
STRENGTHS WEAKNESSES Competitors & SWOT Research’s Target Market Attributes of research Position Research Positioning statement Marketing mix strategy
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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
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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:
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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
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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
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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)
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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
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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
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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 N 66 Std. Deviation GAP ZARA Total 330 Promotion Launch Level Clothing Quality Design Consider
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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 325 .906 Total 329 REGR factor score 2 for analysis 1 22.376 5.594 5.929 .943 REGR factor score 3 for analysis 1 23.162 5.791 6.153 .941 Promotion Launch Level Clothing Quality Design Consider
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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
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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 .000a Residual 328 .782 Total 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
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Research findings—Perceptual Map
50.34° Clothing Quality Promotion Launch Level
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Research findings—Perceptual Map
47.00° Clothing Quality Design Consideration
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Research findings—Perceptual Map
48.35° Design Consideration Promotion Launch Level
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Positioning Statement
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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
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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
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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
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Marketing Strategy Promotion Sales Promotion Sales Force: Advertising
Marketing Research Action Plan
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Marketing Strategy Distribution Outlets Place Service Action Plan
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