Subject Code: MKTG10001
Subject Name: Principles of Marketing
Student ID Number: 376308
Student Name: Stella Senajaya Tanaja Tutor Name: Dan Waters
Tutorial Day/Time: Monday 11:00am
Assignment Name or Number: Assignment 1 Article Response
Many companies are plummeting down their business due to stagnant economic condition and worldwide recession. However, this problem was tackled smoothly in the case study of Uniqlo- Japan’s leading apparel retailer. This essay would identify one of Uniqlo’s marketing strategies, how Uniqlo implementing this particular marketing strategy in terms of Price, Product, Place, and Promotions and its impact on the business.
One of the marketing strategies that is being implemented by Uniqlo is customer orientation. Customer orientation defined as focusing on customer’s perspectives when designing the marketing strategies to achieve both customer satisfaction and loyalty (Kotler, 2010). The company needs to put its view and perspective in customer shoes and question themselves hypothetically of how the customers will approach a certain problem, thus better understanding of the possible solutions (Sharpe, 1996). Soon we would learn how this behavior helps Uniqlo to boost in markets.
Fast Retailing-Uniqlo’s head company had successfully earned its success especially throughout Asia. It mostly sells basic item with a touch of style that is essential in every wardrobe. Uniqlo officially starts its expansion by opening flagship in prime urban areas of countries like China, Singapore, Hong Kong, Taiwan, and even countries outside Asian continent like US, UK, France, and Russia (Fast Retailing, 2012). Furthermore, Uniqlo first seized this opportunity of being customer oriented towards the market during 1990 when Nikkei 225 stock index fell and the brand successfully stood up as a ‘symbol’ for Japanese cheap apparel due to its reasonable price and outstanding quality (The Economic Times, 2012).
Firstly, Uniqlo point out the priorities of cheap pricing for its product to attract the market. Worldwide recession has impact greatly on decreasing customer purchase power, thus resulted in customer preference shifting from high priced luxury brand to cheap goods with high quality that is affordable to wider range of customer (The Economic times, 2012). Here Uniqlo has implemented its position in customer’s perspective and successfully capture customer interest by
providing their staple clothing needs.
Besides the price, Uniqlo also implement customer orientation strategy in terms of their products. Uniqlo received approximately 70,000 customer feedback annually and refined them to come up with new innovative ideas such as HEATTECH (Fast retailing, 2012). HEATTECH is a collaboration between Uniqlo and Toray industries that is producing innerwear product with heat retention, anti-perspiration function that is smooth, soft, thin and comfortable (UNIQLO,2012). This product is highly in demand and thus brings up Uniqlo popularity even more in markets. Moreover, Uniqlo being highly innovative came up with another new product for Spring 2012 namely an ‘ultra-functional weatherproof’. It is a zip-up weatherproof jacket and parkas in bright colors that is highly functional (UNIQLO, 2012). Uniqlo being a customer oriented wants to prioritize their product’s functionality to satisfy customer needs.
Thirdly, Uniqlo opening their flagship stores in 14 countries that is mostly located in high street and central district for their customer convenience and easy access. Here we can deduce that Uniqlo is being customer oriented in terms of choosing the ‘Place’(Fast Retailing, 2012).
Lastly, Uniqlo being customer oriented in terms of promotions had shifted its customer services to more of international basis. Uniqlo’s varies their workforce to foreigners that is able to speak in several languages and use English as their official language in order to handle and communicate with their international customer effectively (Cheng, H.N, 2012).
Without doubt Uniqlo are having risks of competition with other clothing retailers such as Inditex, GAP,and H&M. However, Uniqlo being customer oriented is able to tackle this problem by choosing to focus on basic necessities clothing that is believed to give benefit of wider exposure of customers compared with fashion-based apparel that keeps changing its style from time to time (The Economist, 2010).
Customer orientation would bring about positive outcomes for Uniqlo’s business performance such as increasing product sales, created customer value and customer loyalty. According to The Economist (2010), sales gradually grew by 17% from the previous year despite of the recession. Uniqlo’s annual sales are far lesser when it’s compared with the competitors sales such as Zara, H&M, and GAP. However it’s has a denser volume deal with better operating profit and thus higher annual sales growth (The Economist, 2010)
In addition, Customer orientation is highly correlated with other marketing aspects such as market oriented. Customer oriented behavior alone wouldn’t be enough to flourish one’s business. According to Wiley (2003), company that is focusing solely on customer is stuck in the development of the new product. Thus it is suggested that one’s company need to implement other marketing orientation such as market oriented behavior to keep it up to date with the market and technology (Wiley, 2003). Here we can deduce that customer orientation with market orientation works well together and need to be implemented at the same time.
In conclusion, marketing orientation such as customer orientation is one of the major key aspects in one’s business. Better understanding for customer needs in terms of 4Ps (price, product, place, promotions) would bring about customer value and loyalties. It is also believed that implementing customer orientation with market orientation at the same time would benefit one’s company in new innovation and hence successful business.
REFERENCES: Cheng, H.N. (2012). Japan’s Richest Man Remakes Once-Drab Uniqlo in Manhattan’s Image: Retail. Available: http://www.bloomberg.com/news/2012-03-08/japan-s-richest-manremakes-once-drab-uniqlo-in-manhattan-s-image-retail.html. Last accessed 25 March 2012. Fast Retailing. (2012). UNIQLO Business Strategy. Available: http://www.fastretailing.com/eng/group/strategy/tactics.html. Last accessed 23rd March 2012. Kotler, P et al. (2010). Marketing. 8th ed. NSW: Pearson Australia. Sharpe, M.E, Inc.. (1996). Customer Orientation. International Journal of Electronic Commerce . Vols. 1-11 (1), p95-118. The Economic Times. (2012). Cheap chic brand Uniqdlo booms in deflationary Japan. Available: http://economictimes.indiatimes.com/news/international-business/cheap-chic-branduniqlo-booms-in-deflationary-japan/articleshow/12321120.cms. Last accessed 23th March 2012. The Economist. (2010). Uniquely positioned. Available: http://www.economist.com/node/16436304. Last accessed 22 March 2012. UNIQLO. (2012). The UNIQLO INNOVATION PROJECT. Available: http://www.uniqlo.com/uk/corp/pressrelease/2012/01/the_uniqlo_innovation_project.html. Last accessed 25 March 2012. Wiley, J. (2003). The Enactment of Customer Orientation. Strategic Management Journal. 24 (1), p559 - 576.