Uniqlos Strategic Marketing and Innovation - Case Study Example

Uniqlo’s Strategic Marketing and Innovation Name: Institution: Course: Date: Market Analysis Market Segmentation The largest population segment in New Zealand composes of the young generation. These are people who have a disposable income to use in purchasing cloths and other luxurious materials. As a result, the company should target this market segment in order to position their products strategically in the market. The current trends indicate that there has been a dramatic change in the consumption behavior of the customers in New Zealand. This is after the country has gone through the global financial crisis. As a result, people are now returning back to their previous buying trends. Therefore, the firm should take this opportunity to enter the market before other interested investors can segment the market and create barriers of entry (McLoughlin & Aaker 2010). Targeting the Market Market targeting should be based on the specific consumption behavior of each segment. For instance, the products that target the young people should be completely different from those of the old people. Furthermore, marketing of these products should be done separately in order to capture the tastes and preferences of the target market (Molloy & Larner, 2013). Other targeting measures should include the location of the customers, income levels of specific market segments, and age. These parameters will ensure that the company understands the interests of each segment. Brand Positioning Before Uniqlo Co., Ltd decides on the effective brand positioning strategy, an intensive market research should be conducted. Currently, markets have become very dynamic with the customers shifting from one product to another based on their changing needs. Once the research is complete, the business should identify the major competitors, their strengths and weaknesses. It should also note their differentiation strategy and their markets share. This will be significant in enabling the business to develop a very distinctive and value-based concept of positioning. Lastly, the company should come up with a well-thought positioning statement and customer value propositions which will be used during the development of communication in the organization. Market Share Estimation Uniqlo Co., Ltd should estimate its market share based on the overall potential buyers in the market. This could be achieved through estimating the share of the existing firms such as Finz over the total number of purchases made by the customers. Based on the information, the company should, therefore, be able to estimate the possible market share that can be achieved based on its global experience and its diversified human resource. Product or Service Offering The company will offer different fashion designs for men, ladies, and even children. Quality aspect will be the main focus for developing value proposition. In addition, the company will offer rewards to loyal customers in order to appreciate their contribution towards sustaining the operations of the company. The company has been in existence in different markets that have different cultures, and consumption behavior. Therefore, the employees have adequate experience on how toimprove the competitiveness of the business in the market. This will have a major impact on the competitive advantage of the business. In addition, it will enable the business to position its products strategically in the market. Marketing Objectives Product Awareness With the increasing level of technological advancement, young people are shifting their attention towards the use of the current technology in order to search for their product of choice. As a result, Uniqlo Co., Ltd should focus more on the use of modern media in order to create awareness on the existence of the product in the market. For instance, social media has become a marketing platform where the customers are able to receive various reviews on the product. Furthermore, companies are using the platform to advertise their products. Therefore, with the largest target market composing of the young, the firm should use social media in order to reach a mass market. The social platform will also provide the business with an opportunity to conduct a research on the purchasing behavior of the customers. Moreover, it will become easy for a company to identify any change in the market behavior, an aspect that will make it possible for a business to make the necessary changes (Winer 2011. This would be significant in ensuring that the business retains its competitive edge in the market. Market Share Goal Uniqlo Co., Ltd should set the market share goal based on the current competitors in the market. The first goal would be becoming the largest unisex casual wear designer, manufacturer and retailer. This would be achieved through putting up the necessary measures to attract the attention of the customers towards the company’s products. Achievement of this goal will be based on market entry strategies. Sales Volume Goal Sales volume goal will be based on the demand of the products in the market. Furthermore, the awareness of the customers on the existence of the product in the market will also determine the overall sales volume. High demand for the products can be based on intensive advertising campaign. Therefore, the company should set up a high budget to support the marketing department in its initiative to popularize the products in the market (Kotler & Kotler 2009). However, the goal must be based on the company’s capacity to meet the production requirements. Overproduction of goods that do not meet the quality measures would push the customers away from the products. Profit Goal Uniqlo Co., Ltd should set the profit goal based on breakeven prices. Many firms have failed to penetrate the market as a result of under-pricing their products with the aim of attracting the customers towards the products. This makes it hard for the firm to support its operations. Therefore, the business starts eating back its own investment. Therefore, the company should calculate the cost of producing the products before setting a small profit margin which is enough to support the operations of the company. Customer Retention New Zealand market is attracting the attention of many investors and other multinational companies which are interested in the same sector. Therefore, Uniqlo Co., Ltd should ensure that it retains the loyal customers. This is through giving them offers and providing them with crucial information on the latest products and their prices. This makes the customers feel appreciated and valued by the business. The company should conduct several surveys in order to understand the views of the market on the company's products. However, the firm should implement any suggestions by the customers. This would provide an opportunity for the customers to be part of decision-making body. This aspect would play a significant role in attracting the customers' loyalty towards the company. Barriers of Entry With the growing number of middle class in the world, many multinational companies and investors are turning their attention towards the fashion industry. This has seen the emergency of companies such as ZARA, H&M, Gap, Primak, and C&A. This is in an attempt to have a share of the profit emanating from the fashion industry. Some of these firms have diversified their operations in different parts of the world in order to reduce the risks and uncertainties associated with concentrating on a single market. This has given them an opportunity to accumulate huge sums of money. The funds have acted as a barrier of entry. Therefore, in order for Uniqlo to penetrate this market, it must accumulate huge sums of money. Marketing Mix Product New Zealand fashion industry is characterized by varying needs of the customers. The clothing market keeps on changing. The exposure of the people to the internet and online businesses has made it easier for the customers to demand their product of choice. Therefore, the company should expand its product line. This would play a significant role in satisfying the varying interests of the market. Price The pricing of the products should be based on the demand of the products in the market. For instance, during high seasons, the price can be increased in order to enable the company to maximize its returns. Furthermore, prices should be set based on the pricing of the products by the competitors. This is to ensure that the company does not price its products beyond the reach of target market. Promotion The promotion strategy should be taken into consideration as it is the mode of communication. It is the activity of persuading, informing, and influencing your customer’s purchase decisions. Uniqlo Co., Ltd should bear in mind the objectives and goals to be achieved in any promotion that is to be carried out. The promotional activities should include sales promotion, personal selling, public relations and advertising. The behavior of the customers has to be considered. These include; the purchase occasion, benefits sought, loyalty, readiness to buy, attitude towards the product, and frequency of usage (McLoughlin & Aaker 2010). The firm should select a right competitive advantage in relation to the competitors in the same position. Customer promotions, trade promotions, and sales force promotions should be included. Customer promotions include demonstrations and contests: trade promotions include buying allowances, dealer sales contests, free services, co-operative advertising, sales rallies, contests and bonuses. All these should be implemented to attract more customers. Public relation is an important aspect of marketing plan that is aimed at promoting the industry’s identity and image. It is usually focused at creating a good reputation, a goodwill, and positive word of mouth by promoting the products. One of the most persuasive forms of promotion is a word of mouth from a satisfied customer (McLoughlin & Aaker 2010). The company should include different modes of publicizing the products and services like advertising, direct marketing, personal selling, and sales promotion. In a marketing plan, the strategies that lower cost and provide quality services and products to the customers are most preferred. Therefore, the firm can decide to reduce on the intermediaries as a strategy, an aspect that will minimize the distribution cost which adds up to the product cost. Place In order for the company to remain competitive, it should diversify its operations. This will play a very significant role of reducing the risks and uncertainties associated with concentrating on a single market. This aspect will be achieved through opening various subsidiaries in New Zealand. This will be significant in enabling the industry to maximize on the profits and utilizing cheap labor in these markets. Furthermore, it should place the products in areas with high number of customers (Winer 2011). References Kotler, P., & Kotler, P. 2009. Marketing Management. Harlow, England: Pearson/Prentice Hall. McLoughlin, D., & Aaker, D. 2010. Strategic Market Management: Global Perspectives. Hoboken, N.J: Wiley. Molloy, M., & Larner, W. 2013. Fashioning Globalisation: New Zealand Design, Working Women and the Cultural Economy. Winer, R. 2011. Marketing Management. Upper Saddle River, N.J. ; Harlow: Pearson Education. Read More