Uniqlo Executive Industry report by Nanji Issaree

The role of Integrated Marketing and Communications strategy for UNIQLO global expansion : Issaree Chulakasem : N0578931

THE ROLE OF INTEGRATED MARKETING AND COMMUNICATIONS STRATEGY FOR UNIQLO GLOBAL EXPANSION ISSAREE CHULAKASEM N0578931 MA INTERNATIONAL FASHION BUSINESS NOTTINGHAM TRENT UNIVERSITY

TABLE OF CONTENTS 1. EXECUTIVE SUMMARY

2. COMPANY PROFILE

3. INTRODUCTION

4. METHODOLOGY

5. DISCUSSION

• GLOBAL EXPANSION • SPA. BUSINESS MODEL • CURRENT MARKETING OF UNIQLO Customer needs Targeting and Competitors • COMMUNICATIONS Integrated of EARNED, PAID, OWNED, SHARED media 6. RECOMMENDATION

7. LIST OF ILLUSTRATIONS

8. BIBLIOGRAPHY

9. APPENDIX

Figure 1 : Front cover : UNIQLO ginza flagship store / Figure 2 : ‘colorful wind’ installed at the UNIQLO ginza flagship store

EXECUTIVE SUMMARY The main purpose of this report is to explore on UNIQLO integrated marketing and communica-

tions strategy that aiming to transform the brand from a local-based fashion retailer into a truly global brand in the forthcoming years. The focus is on the international expansion and the utilization of social networks as an essential communication tool to increase brand awareness and sales profits from its current and potential customers. UNIQLO positions itself clearly different from its current competitors by introducing new fabric innovations which target consumers from all age. Moreover, with its strong service mind that embedded within Japanese culture, relationship between UNIQLO and its customers are exceptionally solid. However, UNIQLO still faces problem with limited presence outside Asian demographic. Based on data gathered from both secondary and primary sources, this report will demonstrate several solutions and recommendations on the relevant problems to ensure the future success of the company. Word counts : 3,867

COMPANY PROFILE UNIQLO is a part of Fast Retailing, a Japanese apparel company which owns several fashion brands such as GU, J Brand, Theory, Princess tam. tam and Comptoir des Cotonniers. By August 2014, the company becomes the biggest retail chain company in Japan that has over 30,000 employees, and generating annual net sales of over ¥715.6 billion (Fast retailing,2014), also it sets the aim to reach 5 trillion yen ($49 billion) by 2020(Bloomberg, 2014). The brand first founded in 1949 in Yamaguchi Prefecture in west Japan by its present CEO and the second richest man in Japan, Tadashi Yanai (Forbes, 2014). It launched its first store in 1984 in Hiroshima and growth rapidly by its multiple suburban roadside stores. In 1998, UNIQLO became well-known throughout Japan by its fleece campaign and now UNIQLO is the nation’s largest apparel retail chain with 852 stores, 830 direct-run stores and 28 franchise stores, accounts of a 6.2% share of the Japanese apparel market. In 2001, its first overseas store opens in London, which was the beginning of UNIQLO’s global expansion. UNIQLO international have expanded rapidly especially in Asia, solely within Greater China (China, Hong Kong and Taiwan), it opens approximately 100 new stores each year. UNIQLO operates activities mainly from the head quarter in Japan but also establishes its offices within each countries to make it easier to control. Today UNIQLO international comprised more than 37% of total sales, with 633 stores throughout Asia, Europe and America (Fast Retailing, 2014).

UNIQLO provides high-quality basic casual clothing with reasonable prices by establishing an SPA model that maintains control over the entire stages of the business, from production development, manufacture, distribution to final sale. It developed its innovation to produce products that response to customer needs with joint-venture manufacturers located in China, Vietnam, Bangladesh and Indonesia. With its utilizing of the SPA model, by February 2014, UNIQLO ranks 3rd in the major global SPA ranking, behind Inditex (Zara) and Hennes & Mauritz (Fast Retailing, 2014), as shown in figure 3. Figure 3: Worldwide Apparel Specialty Stores: Ranked by Market Capitalization

Figure 4 : Uniqlo Flagship Store in Ginza, Tokyo, Japan

INTRODUCTION ‘Made for All’ is a slogan that can describes how UNIQLO positions

itself differently from its competitors through creating a new conceptual of functionalism in fashion apparel. UNIQLO products are casual wears that based mainly on new innovation of fabrics, creating and reshuffling the traditional fashion genres (Eugene K. CHOI, 2011). Looking back into the history, Dress is invented in Europe while Jeans and T-shirt are made in the United States followed by Casualwear and Sportswear, UNIQLO then saw an opportunity to create a new category clothes of the future which is called LifeWear, targeting all age of people. LifeWear provides basic garments to people with ease and comfort for their daily lives (Tadashi Yanai, 2014). UNIQLO fleece, HEATTECH, AIRism innerwear and Ultra Light Down are the examples of the extremely functional Lifewear which response to basic needs of customer. With its unique functional lines of product, UNIQLO is drawing attention widely across the global as an apparel manufacturer and retailer from Asia, resulting the company to set the aim to become a truly global brand in the near future. Especially for the expansion in Asian countries that proved to be an exceptional. By March 2014, Fast Retailing stock was first listed on the Hong Kong Stock Exchange through the issuance of Hong Kong Depositary Receipts (HKEx, 2014).

Figure 5 : UNIQLO Lifewear Fall/Winter 2014

“ Business has only two functions: marketing and innovation” (Peter F. Drucker, 1954)

As shown in Figure 6, Comparing with UNIQLO Japan, UNIQLO International sales is continually increasing since 2010 to 2014 which accounts more than one third of the total sales. It is obviously that in the future, UNIQLO International will catch up and overtake UNIQLO Japan one day (Fast Retailing, 2014). An aspiration of UNIQLO is to become number one in the fashion retail industry, as to pursuit that, UNIQLO must put an extreme effort into stimulating the expansion of UNIQLO International as it will be the undisputed growth driver of the company. However, this has leaded to question of its procedure and ability to create more brand awareness throughout Asia, Europe and the United State. Therefore, the main discussion of this report will be about the integrated marketing and communications strategy which UNIQLO is currently generating and also what need to be considered into operating in the near future.

Figure 6 : UNIQLO International vs. UNIQLO Japan sales targets

METHODOLOGY This report has been using deductive research approach to gathering information from secondary sources, and then conduct primary research that adopting both quantitative and qualitative methods to analyse data and illustrate understanding of the study. According to the focus on the integrated marketing and communications of this report, Secondary research has been investigated mainly through academic literatures about marketing and business models simultaneously searching through articles related to UNIQLO and its integrated marketing and communications strategy together with articles associated with online media consumption, which can provide more understanding on how UNIQLO can use the digital marketing as an essential advantage for its global expansion. Strategic analysis tools have been used to analyse internal and external environment of the organisation including PESTEL Analysis, SWOT Analysis, Globalization Push and Pull factors and 3C’s framework to understand overall situation of the market, UNIQLO’s current operation, its competitors and also opportunities to expand globally. Within the article related to consumer behavior, Maslow hierarchy of needs has been used to demonstrate how UNIQLO could precisely responds to its customer needs. For the primary research, to investigate UNIQLO’s customer perceptions and opinions over the company, A Questionnaire has been conducted with both opened-ended question and closed question forms with multiple choices. In consequence of the limited time frame and budget of this study, the questionnaire has been transmitted online by e-mail and by utilizing of social media including Facebook, Whatsapp and Line application. The participants are 100 UNIQLO’s customers answered the questions. The result has been analysed and used to combine with secondary research data to generate recommendations for the company.

Figure 7 : UNIQLO spring 2014 lifewear collection

DISCUSSION

Figure 8 : UNIQLO J+ collection

GLOBAL EXPANSION

UNIQLO aspires to become number one of the fashion retailer. This aspiration has moved the brand to increase operating in overseas markets more than in the past. There are several factors that influence the brand to go global as shown in Figure 9.

â&#x20AC;&#x153; We really have to transform this company to be successful and complete. Before, we manufactured in China and sold in Japan. Now we need to manufacture in the world and sell to the world.â&#x20AC;? was a speech of Tadashi Yanai in an interview with The Economist (2010).

UNIQLO has established and developed its own integrated marketing and communications to support the idea of transitioning into international brand, competing with larger rivals such as Zara and Gap. Firstly by gradually changing its culture within the company as the number of foreign employees will overtake Japanese workers by 2015 (Tessa, 2011). Apart from that, UNIQLO has shifted its external marketing communications by investing in digital marketing campaigns and sport sponsorships as well as consistently communicating with its customers through social networks rather than using other traditional forms of marketing. Figure 9 : Push and Pull factors for globalisation of UNIQLO

UNIQLO BUSINESS MODEL - SPA

UNIQLO has claimed itself as the first company in Japan to

establish the ‘Specialty Store Retailer of Private Label Apparel’ or SPA model to control over entire process of the business. This model encompasses every stage of the apparel production, from initial design, research and development, procedure of materials, merchandising, manufactures, marketing and sales to the distribution to the final consumers (Eugene K.CHOI, 2011). Advantage of the utilizing of this model is that UNIQLO could completely control over their products and could adjust to the customer’s feedback as soon as possible.

As shown in figure 10, The SPA Model covers three main stages—Planning, Production and Sales. Within the Planning stage, the Research and Development (R&D) centers interact back and forth with merchandising team to discuss consumer feedbacks and finalize concepts for upcoming seasons and then surpass samples to production departments in the Production stage before place orders to external partner factories. The remaining processes are all about sales with both online and in-store. Remarkably that throughout all the three stages, marketing team is one of the most essential sector, investigating customers’ opinions and contributing promotion strategy prior to production process and constantly operate until the launching stage to receive customers’ feedback again.

Figure 10 : UNIQLO SPA model

However, the SPA Model still has several disadvantages comparing with Vertical integrated operation model of Zara who manages all design, warehousing and distribution logistics by itself, different from UNIQLO that relies on external factories and external warehouse, therefore, Zara can manage to save production cost and time which provides flexibility in the variety and frequency of producing the new styles products (Anne Stam,2009).

Figure 11 : Uniqlo Spring/Summer 2015 Lookbook

CURRENT MARKETING OF UNIQLO

CUSTOMER NEEDS Customer needs and feedbacks play a vital role in UNIQLO product development, Maslow hierarchy of needs are applied to illustrate how UNIQLO responses to needs of the consumers. Maslow (1943) stated that people are motivated to achieve certain needs. When one need is fulfilled a person seeks to fulfil the next one, and so on (Saul McLeod, 2007). From Figure 12, demonstrates 5 levels of human needs start from physiological, safety, belonging, esteem and the highest level need is self-actualisation. All human beings start fulfilling their needs at the bottom levels of the pyramid. UNIQLO provides garments that keep them warm, keep them fresh, give comfort and support their health which fulfill the basic needs in physiological level. It is clearly essential for the brand that has an USP (Unique Selling Point) that could answer precisely on the lower level need as demands for the products are high. However, to create strong brand loyalty, the products also need to fulfill higher level of esteem, social interaction, and self-actualization, as those will influence future human behavior much more than lower level needs (BJ Bueno et al., 2004). UNIQLO establishes LifeWear aiming to support people living their own lifestyle. It constantly builds brand image via advertisements as a brand that suits for outdoor activities, links to the fulfillment for Self-esteem and Self-actualisation. Figure 12 : Maslowâ&#x20AC;&#x2122;s Hierarchy of needs

TARGETING AND COMPETITIORS

Market Segmentation UNIQLO uses slightly different market segmentation method from its competitors. Instead of using only Demographic segmentation, targeting different group of people differ in terms of factors such as age, occupation and salary which is the most commonly method used by many retailers (Jim Blythe, 2005), UNIQLO have chosen to target consumers by accounting multivariable segmentation, applying both Geographic and Behavioural bases. Several core products of the brand such as fleece, cashmere, HEATTECH and ULTRA LIGHT DOWN depend so much on climate condition, mainly in the colder areas while some product like AIRism cooling innerwear is suitable for people who play sports or outdoor activities in the hotter areas. Hence, customersâ&#x20AC;&#x2122; personalities and lifestyle are also taken to consideration to ensure greater accuracy.

Figure 13 : UNIQLO urban fleece 2014

Competitors Zara and Gap are the biggest competitors in terms of sharing the same market and using the similar business model in operating. As shown in SWOT analysis (appendix I), the strength of UNIQLO is to provide high quality with affordable price garments which is practically quite similar to Zara, however, what made UNIQLO distinct from Zara is the ability to enhance its products with new innovations. Still, there are some limitation of style in UNIQLO product lines which is one of the weaknesses stated in the analysis (appendix I), comparing to Zara who establishes wide range of ‘off-the-catwalk’ styles (Eugene K. CHOI, 2011), UNIQLO provides more depth of the products by offering rainbow colours from size XS to XXXL in a single style instead. Since Zara is putting focus mainly on the products and stores, its main weakness is the lack of e-commerce (Katherine Chen, 2013) whilst UNIQLO is a pro in digital marketing, taking advantages from utilizing of the social media. In the meantime, UNIQLO is making its way to increase awareness in the U.S. market by aiming to launch 23 large-scale flagship stores by the end of 2014 competing with GAP who has always been the largest specialty retailer in the US for a long period of time (Fashionunited, 2014). Both GAP and UNIQLO focus on providing good quality basic casual wears with the same price ranges, however, GAP has a strong advantage with its American heritage and a solid relationship with its customers. In order to increase brand awareness, every year since 2012, UNIQLO launched The People Campaign featured local Influencers such as artists, writers, chefs and athletes on a number of social media networks to help promote the opening of its stores (Kunde,2014). Unsurprisingly that the utilisation of digital media is the fastest

and the most effective way to grab attentions widely from the U.S. customers. Furthermore, in order to achieve the goal to displace GAP, UNIQLO need to apply 3C’s framework developed by Dr. Kenichi Ohmae, as shown in figure 14 , GAP’s weakness is the lack of new innovations and styles, as to take advantage from that, UNIQLO must provide further fashionable designs as well as being consistence with its innovative high quality products and its colourful uniqueness which is a significant expertise of the company that matches with customers’ expectations.

Figure 14 : 3C’s Framework

COMMUNICATIONS

Yanai, the CEO of Fast Retailer, has stated to make UNIQLO to become the worldâ&#x20AC;&#x2122;s leading fashion retailer by set his aim to

Figure 15 : Uniqlo Sweats Ad Campaign Fall/Winter 2014/2015

increase number of stores worldwide from 1,485 stores to 4,000 stores by 2020. As a result, UNIQLO has shifted its communications decisively to ensure its customers in any part of the world can engage with the company and understand its message (Tessa Thorniley, 2011).

Integrated of EARNED, PAID, OWNED, SHARED media According to research done by Forrester inc. in 2009, shown in Figure 16, Earned, Paid, Owned and Shared Media can be integrated to give more effective marketing communications with the customers by engaging and connecting with them either directly and indirectly (Ryan Kelly,2014). In the past, Paid media has always dominated but due to the fact that the utilisation of social media is prominently increasing, retailers can choose their own efficient ways to share their contents and communicate with their targets.

Figure 16 : Forrester Inc. Research, Earned, Paid, Owned, Shared meida

1. Digital Marketing : Owned Media + Earned Media

In the past several years, the brand has proved to be remarkably thrive on digital marketing, throughout a bunch of creative campaigns and the social media via internet that UNIQLO have chosen to use rather than traditional forms of marketing. Some viral marketing projects that UNIQLO designed to grab attention such as UNIQLOCK, first launched in 2007, hit on an advertising industry like a storm, the project featured a 24/7 clock for all around the world with girls wearing UNIQLO clothes and dancing to music. After UNIQLOCK, the brand continued to release more and more digital life tools campaigns including UNIQLO Wake UP, UNIQLO Calendar, UNIQLO Recipe, UNIQLOOKS and the latest is UNIQLO Application which allows people to download into their smartphones or tablets.

September 2014, UNIQLO together with iCrossing, a digital marketing agency, has been announced as winner in the Online Retail Awards from their integrated digital marketing campaigns to promote celebrity collaborations such as a top designers Orla Kiely and Celia Britwell. The project was called ‘Hangout with Orla Kiely’, the event connected the fashion icon with blogger and customer fans through UNIQLO channels (iCrossing, 2014). As the result shown in figure 17, UNIQLO successfully received a 29% increase in revenue year on year for two months after launched, this can prove that the utilizing of social media is powerful and the brand should develop more on this path to deepen its relationship with its customers.

Figure 17 : UNIQLO Application

The idea of focusing on digital media has been emphasized by an explanation of Daisuke Hase, Uniqlo’s public relations and global marketing communications spokesman, that “In places where we have two or three stores, we don’t find TV advertising the most effective way to reach consumers. People don’t pay attention in the same way they do when they are online. Digital advertising engages the consumer”(Tessa Thorniley, 2011).

Figure 21 : UNIQLO Wake up

Figure 19 : UNIQLO Recipe

Figure 20 : UNIQLO Calendar

Figure 18 : UNIQLOCK

Figure 22 : Novak Djokovic, UNIQLO global brand ambassador

Sports Sponsorship : Paid Media

Apart from investing in the ordinary Paid media, such as print advertising or outdoor advertising, UNIQLO also operates a ‘below the line’ public relations activity as a part of the Promotional mix (figure 23), PR involve an attempt to create good image and it is a way to keep the brand in the customer’s eyes (CIM, 2009)

UNIQLO has chosen to use sport sponsorships to build presence in the international markets (iegsr, 2014). The brand sponsored for ITF’s Major Wheelchair tennis tournament and for Novak Djokovic, the world number one tennis player ranked by the Association of Tennis Professionals in 2014. Djokovic wearing the Uniqlo logo gave the company an immediate elevate into a whole new market (Jakeman, 2013). UNIQLO intended to increase its public awareness by linking the brand with the success of the sport players, creating an image of the outdoor lifestyles apparel brand.

Figure 23 : Promotional Mix

Social Media â&#x20AC;&#x201C; Owned + Shared Media

The changing in technological in the past decade has significantly effected most of the fashion retailers on how to engage with their customers. Social media becomes a significant part of everyday life especially for the mobile media which can be accessed via smart phones that have been adopted by the majority of the fashion targets (Gaynor, 2012). According to the chart shown in figure 24, the average time spent per day on mobile media of the U.S. populations has grown 46.3% in 2013 and 23% more in 2014, noticeably that it is the only media that can see the growth in the future (Statista, 2014). Figure 24 : Averege time spent per day on mobile media of US Populations

Figure 25 : Percentage of brands presents on the social media

UNIQLO international operates its official social media separately for each country to communicate with the local customers in their own languages. Facebook, Twitter, Instagram, Google+ and Youtube are the main channels that the brand focused on not only to increase awareness but also to generate more sales. As the chart in figure 25 illustrates, Facebook is a must for any brand and the adoption of Youtube, Twitter and Instagram is also nearly universal. (Felix Richter, 2014). To emphasise on how effective is the social media on engaging with customers, 30.28% of the participants who answered the questionnaire (Appendix III) state that they perceive the brandâ&#x20AC;&#x2122;s new products, promotions and latest news through social media networks, whilst 20.36% say they notice it from in-store advertising.

Figure 27 : Uniqlo Youtube Channel

Figure 26 : Uniqlo UKâ&#x20AC;&#x2122;s Facebook

RECOMMENDATION According to the data gathered from the primary research that investigates UNIQLO’s customers’ perceptions and opinions over the company through a questionnaire (Appendix III), the result has shown that the strongest point of the brand is its good quality with the best price, as this is mentioned in the answers of an open-ended question by 41 out of 100 participants and also when they are asked the reason why they choose this brand, 31.51% of participants say it is because of the reasonable price and 29.02% say because of the quality. Certainly that its ‘Simple style’ is also the main reason chosen by 19.90% of the participants as well. However, due to the fact that UNIQLO mainly provides basic clothing, customers tend not to go into the stores that often, as shown in Appendix III, 60% of the participants say they only shop with the brand less than once a month and 33% say 1-2 times a month. The strong point can be one of the weakness, people are not frequently buy basic garments as it can be used for a long period of time. Besides, customers don’t feel excited by its products as it is always be simple and predictable as well as not even fashionable when compare to the other fast fashion brands like Zara or H&M. UNIQLO should consider about providing more fashionable styles, according to the answers of 25 participants when they are asked to give a suggestion to the brand. One of the customer states that ‘Even I love UNIQLO’s simple style, I still want to see more different styles and something fresh’, it is obvious that the present customers who willing to pay for its basic garments will also continue to buy its new designs with the same price and quality, but in addition, the brand will be able to gain more attentions from wider potential customers who are interested in trendy fashion.

“UNIQLO’s style is simple, not too fashionable so that we can wear it in daily life. It is like UNIQLO’s clothes will not be easily out of trend.” “Value for money”

“low price but good quality” “Simple style that can be used to mix&match with other clothes” “I want to see different style or different cutting with the simple colour tone.”

Even the utilisation of its owned social media is remarkably effective for advertising new contents, still, it tend to reach only to the customers who follow the brand. 18.35% of the participants think they are not really notice about the news and activities generated by UNIQLO, while 29.36% notice it from the in-store advertisements when they browse around the store. In the country where UNIQLO is beginning to expand into, the brand should consider about establishing more creative advertisement that can create powerful impact on the target customers’ perceptual, such as a ‘Viral Marketing’. The purpose is to generate ‘Word of Mouth’ which can gets consumers to bring another consumers to the brand (businesscasestudies, 2010). This marketing strategy can influences new consumers to conduct more research about the brand and seek more opinions than they otherwise would (Jacques Bughin, 2010). In conclusion, UNIQLO has been doing well on its digital marketing as part of the integrated marketing and communications. It should maintain this strength and simultaneously develop more on this path as to engage more potential customers. As to increase sales, UNIQLO must preserves the quality of the product in this medium price ranges, and in addition, provides more different styles with more fashionable designs. In order to achieve the aspiration to be number one in the fashion retail industry, UNIQLO needs to put an effort on creating more awareness outside Asian demographic which is one of a considerable problem of the brand and the most importantly, it needs to stay committed to the original uniqueness that comes together with innovative products.

Word counts : 3,867

List of Illustrations Figure 1 : Cover image : FAST RETAILING CAREER OPPORTUNITIES, (2014). BRANDS UNIQLO | FAST RETAILING CAREER OPPORTUNITIES. [online] Available at: http://www.fastretailing.com/employment/en_us/brands/uniqlo/ [Accessed 23 Dec. 2014]. Figure 2 : designboom | architecture & design magazine, (2014). emmanuelle moureaux blows colorful wind into UNIQLO ginza store - designboom | architecture & design magazine. [online] Available at: http://www.designboom.com/design/emmanuelle-moureauxblows-colorful-wind-into-uniqlo-ginza-store-03-26-2014/ [Accessed 23 Dec. 2014]. Figure 3 : Fastretailing.com, (2014). Interview with the CEO | FAST RETAILING CO., LTD.. [online] Available at: http://www.fastretailing. com/eng/ir/direction/interview.html [Accessed 23 Dec. 2014]. Figure 4 : designboom | architecture & design magazine, (2014). emmanuelle moureaux blows colorful wind into UNIQLO ginza store - designboom | architecture & design magazine. [online] Available at: http://www.designboom.com/design/emmanuelle-moureauxblows-colorful-wind-into-uniqlo-ginza-store-03-26-2014/ [Accessed 23 Dec. 2014]. Figure 5 : Uniqlo.com, (2014). UNIQLO LifeWear Fall/Winter 2014 - UNIQLO. [online] Available at: http://www.uniqlo.com/sg/corp/pressrelease/2014/08/uniqlo_lifewear_fallwinter_201.html [Accessed 23 Dec. 2014]. Figure 6 : Fastretailing.com, (2014). Interview with the CEO | FAST RETAILING CO., LTD.. [online] Available at: http://www.fastretailing. com/eng/ir/direction/interview.html [Accessed 23 Dec. 2014]. Fugure 7 : Uniqlo.com, (2014). 2014-lifewear-collection | UNIQLO. [online] Available at: http://www.uniqlo.com/us/2014-lifewear-collection.html [Accessed 23 Dec. 2014]. Figure 8 : COFFEEDENTIAL, (2014). Coffeedential | Jil Sander for UNIQLO. [online] Available at: http://www.coffeedential.co/insides/ news/jill-sander-for-uniqlo/ [Accessed 23 Dec. 2014]. Figure 9 : Push and Pull factors for globalisation of UNIQLO [Own Table]

List of Illustrations Figure 10 : Fastretailing.com, (2014). UNIQLO Business Model | FAST RETAILING CO., LTD.. [online] Available at: http://www.fastretailing.com/eng/ group/strategy/uniqlobusiness.html [Accessed 23 Dec. 2014]. Figure 11 : Fashion Trends and Style Blog, (2014). Uniqlo Spring/Summer 2015 Lookbook. [online] Available at: http://www.thetrendspotter. net/2014/11/uniqlo-springsummer-2015-lookbook.html [Accessed 23 Dec. 2014]. Figure 12 : Wikispaces.psu.edu, (2014). 2. Need Theories - PSYCH 484: Work Attitudes and Job Motivation - Confluence. [online] Available at: https://wikispaces.psu.edu/display/psych484/2.+need+theories [Accessed 23 Dec. 2014]. Figure 13 : Uniqlo.com, (2014). Women’s Fleece | Fleece jackets, tops & zip-up’s - UNIQLO UK Online fashion store. [online] Available at: http:// www.uniqlo.com/uk/store/list/basic/women/tops/refleece [Accessed 23 Dec. 2014]. Figure 14 : 3 C’s Framework [Own Diagram] Figure 15 : Theneptunes.org, (2014). Uniqlo | The Neptunes #1 fan site, all about Pharrell Williams and Chad Hugo. [online] Available at: http:// theneptunes.org/tag/uniqlo/ [Accessed 23 Dec. 2014]. Figure 16 : Forrester Earned Paid Owned Shared Media. [online] Available at: http://www.previewnetworks.com/blog/earned-social-media-strategy-difference/ [Accessed 23 Dec. 2014]. Figure 17 : UNIQLO Aplication. UNIQLO RECIPE. [online] Available at: http://www.uniqlo.com/us/lifetools/recipe/ [Accessed 23 Dec. 2014]. Figure 18 : Livingdesign.info, (2014). Uniqlock: music, dance and clock | LivingDesign.info. [online] Available at: http://livingdesign.info/2009/09/02/ uniqlock-music-dance-and-clock/ [Accessed 23 Dec. 2014]. Figure 19 : UNIQLO RECIPE. [online] Available at: http://www.uniqlo.com/us/lifetools/recipe/ [Accessed 23 Dec. 2014]. Figure 20 : UNIQLO CALENDAR - COLT + RANE. [online] Available at: http://colt-rane.com/uniqlo-calendar/ [Accessed 23 Dec. 2014].

List of Illustrations

Figure 21 : Blog.vanillerygarden.com, (2012). Vanillery Garden: The Best Alarm App: UNIQLO Wake Up. [online] Available at: http://blog. vanillerygarden.com/2012/05/best-alarm-app-uniqlo-wake-up.html [Accessed 23 Dec. 2014]. Figure 22 : Uniqlo.com, (2014). NOVAK DJOKOVIC - COLLECTIONS - MEN | UNIQLO. [online] Available at: http://www.uniqlo.com/au/store/men/ collections/novak-djokovic.html [Accessed 23 Dec. 2014]. Figure 23 : Promotional Mix. [Own diagram] Figure 24 : Brandt, M. (2014). Infographic: Only Digital Media Sees Growth in Daily Consumption. [online] Statista Infographics. Available at: http://www.statista.com/chart/2169/growth-of-average-time-spent-per-day-with-major-media/ [Accessed 23 Dec. 2014]. Figure 25 : Richter, F. (2014). Infographic: Facebook Is a Must for Brands Around the World. [online] Statista Infographics. Available at: http:// www.statista.com/chart/2942/brand-use-of-social-media-platforms/ [Accessed 23 Dec. 2014]. Figure 26 : Facebook, (2014). Uniqlo UK. [online] Available at: https://www.facebook.com/uniqlo.uk [Accessed 23 Dec. 2014]. Figure 27 : YouTube, (2014). UNIQLO UK. [online] Available at: https://www.youtube.com/user/uniqloukofficial [Accessed 23 Dec. 2014]. Figure 28 : Por Homme - Menâ&#x20AC;&#x2122;s Lifestyle, Fashion, and Culture Magazine, (2014). [online] Available at: http://porhomme.com/2014/11/uniqlo-lifewear-springsummer-2015-lookbook/uniqlo-lifewear-spring-summer-2015-lookbook-mens-womens-1/ [Accessed 23 Dec. 2014].

Bibliography Uniqlo.com, (2014). 2014-lifewear-collection | UNIQLO. [online] Available at: http://www.uniqlo.com/us/2014-lifewear-collection.html [Accessed 26 Oct 2014]. Fastretailing.com, (2014). FAST RETAILING CO., LTD.. [online] Available at: http://www.fastretailing.com/eng/ [Accessed 26 Oct. 2014]. Blythe, J. and Blythe, J. (2006). Essentials of marketing communications. New York: FT/Prentice Hall. Jha, N. (2008). Research methodology. Chandigarh: Abhishek Publications. Percy, L. (2008). Strategic integrated marketing communication. Amsterdam: Butterworth-Heinemann. Johnson, G. and Scholes, K. (1999). Exploring corporate strategy. London: Prentice Hall Europe. Adcock, D., Halborg, A. and Ross, C. (2001). Marketing. Harlow: Financial Times/Prentice Hall. Jackson, T. and Shaw, D. (2006). The fashion handbook. London: Routledge. Meadows, T. (2009). How to set up & run a fashion label. London: Laurence King. Kumar, R. (2011). Research Methodology. London: Sage Publications ltd. Wikispaces.psu.edu, (2014). 2. Need Theories - PSYCH 484: Work Attitudes and Job Motivation - Confluence. [online] Available at: https://wikispaces.psu.edu/display/psych484/2.+need+theories [Accessed 15 Nov. 2014]. Bloomberg, (2014). Business, Financial & Economic News, Stock Quotes. [online] Available at: http://www.bloomberg.com/ [Accessed 15 Nov. 2014]. Forbes.com, (2014). Welcome to Forbes. [online] Available at: http://www.forbes.com/fdc/welcome_mjx.shtml [Accessed 15 Nov. 2014]. K. CHOI, E. (2011). The rise of Uniqlo: leading paradigm change in fashion business and distribution in Japan. Hkex.com.hk, (2014). Hong Kong Exchanges and Clearing Limited. [online] Available at: http://www.hkex.com.hk/eng/index.htm [Accessed 23 Dec. 2014]. Ukessays.co.uk, (2014). UK Essays | Part of All Answers Ltd. [online] Available at: http://www.ukessays.co.uk/ Lea-Greenwood, G. (2013). Fashion marketing communications. Chichester: John Wiley & Sons, Ltd. The Economist, (2014). The Economist - World News, Politics, Economics, Business & Finance. [online] Available at: http://www.economist.com/ [Accessed 10 Dec. 2014]. Marketingsociety.com, (2014). Uniqlo thrives on digital marketing. [online] Available at: https://www.marketingsociety.com/the-library/uniqlo-thrives-digital-marketing [Accessed 27 Oct. 2014]. Anne Stam, (2014). ZARA Case study. [online] Available at: http://www.scribd.com/doc/216133202/ZARA-Case-study [Accessed 23 Dec. 2014]. McLeod, S. (2007). Maslowâ&#x20AC;&#x2122;s Hierarchy of Needs. [online] Simply Psychology. Available at: http://www.simplypsychology.org/maslow.html [Accessed 23 Dec. 2014]. Cultbranding.com, (2014). Why Maslowâ&#x20AC;&#x2122;s Hierarchy of Needs is Crucial for Your Business - Cult Branding.

Bibliography Sample Marketing Plan With Paid, Owned, Earned and Shared Media -. (2014). [online] Available at: https://www.pearanalytics.com/blog/2014/sample-marketing-plan-with-paid-owned-earned-and-shared-media/ [Accessed 23 Dec. 2014]. Icrossing.co.uk, (2014). Digital Marketing Agency - Search Marketing Agency | iCrossing UK. [online] Available at: http://www.icrossing.co.uk/ [Accessed 23 Dec. 2014]. CIM, (2014). CIM Marketing Research. [online] Available at: http://www.cim.co.uk/Research/ResearchHome.aspx [Accessed 23 Dec. 2014]. Statista, (2014). Statista - The Statistics Portal. [online] Available at: http://www.statista.com/ [Accessed 23 Dec. 2014]. Businesscasestudies.co.uk, (2014). Business Case Studies - Teaching business studies by example. [online] Available at: http://businesscasestudies. co.uk/#axzz3MjRQw5iT [Accessed 23 Dec. 2014].

Figure 28 : UNIQLO 2015 lookbook

APPENDIX

APPENDIX I : SWOT Analysis

Strengths • •

Provide ageless garments ( Cloths for All ) (Fast retailing,2014) High quality with resonable price with sophisticated textile technology • Comprehensive online store and communications • Japanese Identiry; service mind, strong brand image • Functional based products

Opportunities • • • • •

Globalisation, Asian economic is growing fast (APAC, 2014) Popularity of Japanese culture troughout the world High growth of E-commerce and Social media, integrated communications via mobile devices. Celebrity endorsement in each country to increase awareness with local population New market in hot weather countries

Weaknesses

Threats

• Low brand awareness in western countries • Limited products and styles, Product only lauch based on four seasons (uniqloanalysis,2014) • Limited product for hot weather countries • Lack of strong brand loyalty (uniqloanalysis,2014) • Import tax and currency conversion causing higher costs (uniqloanalysis,2014)

•

High competition in domestic and global markets , Strong competitors like Zara, H&M, Gap which provide more fashionable clothes • Political/ economic of location where manufacturing facilities are located, in China and Bangladesh

APPENDIX II : PESTEL Analysis

Political Factors

Economical Factors

• Japan and other countries in Asia cooperation between the EU and Ja- • From APEC 2014: ‘APEC 21 has very strong relationship in popan. By facilitating exchanges of execonomies account half of all litical, especially with Asian-Pacific perience and know-how between EU trade and over half of globcountries (APEC,2014), it has some and Japanese businesses the Centre al GDP. The level integration synchronize regulatory systems helps to improve the competitiveamong the APEC economies is across the regions ness of both EU and Japanese comsimilar to that of the EU. • U.S. President, Barack Obama vispanies.’(European commission, 2014) ited Japan in April 2014, as to en- • ‘The situation with Russia and • From interview of UNIQLO CEO : ‘ Asia is expected to become sure the solid relationship between Ukraine also remains an important the world’s largest apparel these two countries (thediplomat. source of geopolitical uncertainty, market within a few years as-• com, 2014). Japan was the United as do ongoing conflicts in the Middle suming China and other Asian States’ 4th largest supplier of goods East and the risk of ebola spreading imports in 2013.From United States beyond West Africa. But lower global economies continue their roTrade Representative report: ‘U.S. oil prices have been a positive side-efbust growth’ (Fastretailing. goods imports from Japan totaled fect of slower global growth from the com, 2014). Middle-income $138.5 billion in 2013, a 5.4% deperspective of UK energy consumers’ population in Asian countries is crease ($7.9 billion) from 2012, but (pwc.co.uk, 2014) increasing fast and will be the up 17.4% from 2003. U.S. imports main drive of Asian’s economy. from Japan accounted for 6.1% of • Report from PWC UK : ‘The UK overall U.S. imports in 2013’ (United economy grew by 0.7% in the States Trade Representative, 2013) third quarter of 2014 compared • From the report of European comto the previous quarter, and mission: ‘Japan is the EU’s second was up by around 3% on a year biggest trading partner in Asia, after China.’ ‘The EU-Japan Cenearlier. The recovery has now tre for Industrial Cooperation is a been sustained at an above unique venture between the Eurotrend rate for nearly two years pean Commission and the Japanese since early 2013 after a couple Government. It was established in of sluggish years in 2011 and 1987 The Cetre promotes all forms 2012. The slowdown in the Euof industrial, trade and investment

rozone has been partly offset by stronger growth in the US since the second quarter of 2014, but more generally international risks have increased over the past six months. Emerging market performance has faltered, with Chinese and Indian growth slowing. BBC UK report: ‘The US economy grew at an annual rate of 5% in the third quarter, its fastest pace for 11 years, official figures suggest. The US Commerce Department said GDP rose faster than the previous estimate of 3.9% for the July-to-September period, boosted by stronger consumer and business spending. Growth in business investment was raised to a rate of 8.9% from an earlier estimate of 7.1%.’ (BBC, 2014)

Social Factors • From interview with Uniqlo’s CEO : ‘Now Asia is focus on generating prosperity and eradicating poverty. This historic change is creating huge business opportunities. • UNIQLO business is based in Asia that has similar culture, including food, fashion and demographics. It has geographic advantage over European or American apparel brands. • From Business case studies: ‘Society’s habits and tastes are changing. People are more aware of the importance of the environment and becoming ‘green consumers’. Green consumers prefer goods and services that are ‘environmentally-friendly’ and which have less impact on the environment. The green consumer, for example, prefers to travel by bus or train than by air or in a large car.’

Technological Factors • Japan is an expert in technological and innovations.Advances in technological processes provide many advantages. Technological innovations in processes can improve productivity and efficiencies that will reduce costs and improve profit margins (education-portal.com, 2014) • Technological factors affecting businesses all over the world demands a changing behaviour with regard to traditional marketing. The rapid development of technology requires quick reaction by businesses in order to survive in an emerging competitive environment and keep up with new trends and innovative services which other competitors might be offering. (learningebusinessinitiative, 2013) • Advantage of the utilasation of internet and social media for marketing and communications (Receive feedbacks, operation, communication between stores and company all over the world) • From APEC: ‘Online shopping is an example of innovation in the services industry, which is the function that provide higher-income jobs for the Asia-Pacific

Environmental Factors • The brand should be aware of environment impact. UNIQLO starts to minimize its environmental impact by managing its operations in more efficient manner. Identify wasteful processes and looks for ways to provide added value with minimum resources. • Global warming causes unusual climate changes and environment is unpredictable, it may cause problem to the brand at any time.

Legal Factors • Form APEC report: APEC now seeks to promote free trade and economic cooperation throughout the Asia-Pacific region. It came up with many free trade agreement to reduce costs among the Asian countries for business. • From Studymode.com: ‘Previously most of the UNIQLO’s products were made in China but recently, China had set up a new Labor law to protect the labors against wage default, forced labor and also strengthen China’s economic, the new law also requires employers to contribute to employee’s social account and sets standard wages for employees on probation or overtime. In a result, the labor law would have meant bigger redundancy payment and higher operation cost for production.’

APPENDIX III : Questionnaire

I am researching about UNIQLO marketing and communications, and as part of that project are interested in your experiences about shopping with UNIQLO. The information you provide will be collated with others and analysed. The information will be treated in strictest confidence and you will not be individually identified in any presentations of the results. All questionnaires will be kept in accordance with the Data Protection Act and destroyed at the end of the project. Your participation in this study is completely voluntary. There are no foreseeable risks associated with this report. However, if you feel uncomfortable answering any questions, you can withdraw from the survey at any point. It should take about five minutes of your time. Thank you very much for you support. Please start with the survey now by ticking I Agree box.

Ethical Clearance Form

The participants are 100 UNIQLOâ&#x20AC;&#x2122;s customers.

1. Gender

3. Have you ever shopped in UNIQLO? (If no, please skip to question 7)

2. Age

4. In the past 12 months, how frequently did you shop with UNIQLO?

5. Why you buy product from UNIQLO?

6. From which channel do you buy UNIQLO products?

7. When UNIQLO launches a new collection or promotion, how do you know about it? (Allow more than one answer)

8. What is UNIQLO’s strongest point in your opinion?

‘‘ price and quality

Value for money price Style Affordable Price Quality and services Price and Quality Great quality with reasonable price Cheap price and i love t-shirt without logo style Universal style and reliable quality Quality and style that easy to mix and match. Cloths with technologies ex. Heat-generation clothing price and reasonable quality Simple style Price and quality Good price and good quality Heat tech Variety of daily wear Collaboration Promotion Location and visibility easy and cosy lifestyle quality of the product Price suitable for the simple style good for everyday life Style and price Color 36

Casual style that suitable for thai and reasonable price with quite good quality. style and quality It’s in a medium price that everyone can buy and the simple style that can use to mix and match with another clothes. Promotion Its quality and image as cool, modern, fashionable, sophisticated and hipster-style clothes Simplicity low price good quality Style and quality is worth my money. Clothes are plain and can wear for many occasions size casual style Quality Best quality and reasonable price Quality and design Low price but good quality lots of colours Price Low price, quality equal another higher brand Product is good. UNIQLO’s style is simply not too fashionable so we can wear it in daily life.

It’s like UNIQLO’s clothe will not easily out of trend. Easy outfit Reasonable price and quality Quality Function Basic and chic Price suitable with quality Comparing with other brands, UNIQLO’s prices are much lower in almost the same quality. Price Service It’s casual and fine quality, can wear every day. Reasonable price and variety Price Style and Technology (Heattech) a simple style and low price Style & Price good quality service mind Function of using in any season is really suit. Style Service and functions Cheap price and high quality The store provides high quality clothes and keeps up with daily trend/ lifestyles

’’

9. What would you like to see from UNIQLO?

‘‘ collaboratation

More style Maintain quality and low price Discount promotion good short film for advertising cheaper price Lower Price , sale50% Seasonal promotion Good products and good quality Sale Promotion , improve quality I would like the more dress in UNIQLO New pattern design or style for everyday mix&match. New technologies to use with cloths, new styles reasonable quality and simple style clothes Fashion Cheaper price better quality more accessory goods more promotion lol Maintain price & quality equation more functional clothes with lower price more fashionable product more different size More customer service but now is good enough. nothing Shoe more business-look apparels

Lower price Much more style and better quality. more new collection The different style or the different cutting with the simple colour tone. More store More casual style with comfy fabric more fashionable clothes casual pants, t-shirt, sweats More fashion items but keep plain new style More style New products something like bag or shoes viral advertisement New collection style New products such as bag, shoes, etc. add more design and fashion more style colour hat, shorts, overcoat function and quality Even I love UNIQLO’s style now a day, I still want to see a different style, something fresh and match with local weather of each country More fashionable style and colour on ready to wear item likes shirt trousers. More branch More design

More fashionable Online store More fashionable designs. Style and quality Cloth fabric that not required ironing. It would be great if uniqlo has the same price between its shops in other countries Launch new promotions frequently couple shirts More fashionable I hav no idea They almost cover of all outfits often take a promotion more fashionable cloths 1.) Choices of fabric. 2.) More Fashionable Sale sale more shop in uk not only in famous town good promotion

’’