Marketing Principles of a Selected Global Fashion Company

MarketingPrinciples of a Selected Global Fashion Company


UniqloCo., Ltd is a Japanese casual wear designer, manufacturer, andretailer. Apart from Japan, Uniqlo operate in other fourteencountries worldwide. In 1949, Ogori Shoji Company, a Yamaguchi-basedcompany was started. By then, the company only concentrated in menclothing. Later in 1984, Ogori Shoji Company started producing aunisex casual wear and opened a store “Unique Clothing Warehouse.”The same year, the company rebranded its name to Uniqlo from “uniqueclothing.” By 1995, the company had over one hundred storesoperating within Japan. Currently, Uniqlo Company is the biggestcompany in Japan that designs and manufactures men, women, andchildren clothing.

    1. Explain the various elements of the marketing strategies

UniqloCompany has various elements of marketing strategies. Firstly, UniqloCompany is a big company that have existed for a long period.Therefore, it is significant for it to have an excellent marketingprocess for it to succeed in introducing consumers to its productsboth in Japan and in other parts of the world. Before engaging in anymarket, a business opts to consider their customers (Andrews, 2009).In this case, Uniqlo Company should come up with strategies tomaintain its customers. Loyal customers are the most profitableinvestment since they continuously buy the company’s products, aswell as invite their friends and family to purchase the same.Therefore, customer loyalty is an important strategy for UniqloCompany.


Forany business to succeed in any market, economist advises that theyshould formulate clear and long-term price strategies that will beadvantageous over their rivals. For this reason, the company shouldhave different prices for different products. For instance, menclothes should have different price from women clothing and childrenclothing. Likewise, different size should also have different prices.Cold season’s clothes are likely to be more expensive compared tohot weather season. This gives customers an ideal safety and morechoices depending on prices. Subsequently, price strategy gives acompetitive price that is healthy to the business.


Obviously,Uniqlo Company wants to gain confidence in their customer’s mind,as well as increase stability. Similarly, they want to recruit morecustomers worldwide. The company intends to sell its products,spread, and promote the interest of the customers in Japan and therest of the world.


Nowadays,the concept of marketing has greatly changed. Unlike in the earlydays where business gave over factors first priority now, customersare the “kings” in a business (Bates, 2005).

    1. Evaluate the Benefits and Costs of a Marketing Orientation for a Selected Organization

UniqloCompany can develop its products based on marketing oriented approachor product oriented approach. In the marketing oriented approach, thecompany react depending on the customer want. In this case, thecompany make decision depending the customers wants and needs insteadof what the company may think is suitable for the customers. Havaldarand Havaldar (2010) urge that most successful companies are known tofollow market-oriented approach. Consequently, market-orientedapproach brings lots of benefits and cost to Uniqlo Company. Suchbenefits include product benefits, service benefits, image benefits,and relational benefits.


UniqloCompany customers are satisfied from the quality of product thecompany produces. As a result, the customers buy more productsincreasing the sale of the company. Correspondingly, the UniqloCompany benefits from the high profit that it makes.


Accordingto Lamb, Hair, and McDaniel (2012), an organisation that usesmarketing orientation approach increases the suppler-customerrelationship hence, promoting the transaction process. Further, thismarketing approach gives a reasonably competitive approach. Once thecompany manufacture products that fulfil the customer’s needs anddemands the products are also competitive over its competitor’sproducts.


Critically,it is essential for a company to have good product quality and goodsmarketing to develop it image. Good image is important especiallywhen a business want to venture into a new market.


Additionally,marketing orientation approach helps an organisation to find andmaintain loyal customers (Slater and Olson, 2001). This process helpsUniqlo Company to values that increases frequent shopping from itsloyal customers.

Nevertheless,marketing oriented approach has some disadvantages. Firstly, itrequires a comprehensive and costly research. Marketing-orientedapproach is cost ineffective hence, Uniqlo Company can only end upusing lot f money in research rather than invest it in other betterresearch. Secondly, as long as the research has some benefits, itincreases price tags. Since the customers are purchasing theirdesired products, they have to pay high prices for them. Lastly, theapproach has deficiency of predictability. Since the approach givethe customer needs and wants the first priority, it become tough forthe company to predict what they want since all customers havediverse choices.

Costof Uniqlo Company

  1. Money time, and energy cost: Uniqlo Company obtains revenue and incurs cost from the benefits it provides. For the company to be profitable, it should not spend money, effort, or time in unprofitable products (Snyder and Ebeling, 2001). Hence, the company should first conduct a research to investigate what the customers want. Additionally, the company should recruit trained staff to minimize training cost. Indeed, manpower recruitment and customer research are two critical factors that Uniqlo Company needs to have.

  2. Psychological cost: this is the reduction cost as a result of company producing the products that meet the desires of the customers.

2.1Show Macro and Microenvironment Factors which Influence MarketingDecisions

Allbusiness organisations operate in business environment. Businessenvironment consist of macro and microenvironment and both have greatinfluence on marketing decisions.

MicroEnvironmental Factors

InUniqlo Company, micro environmental factors have a significant impacton its success. Some of these factors are customers, employees,suppliers, shareholders, media, and competitors.

  1. Competitors: Uniqlo Company has several competitors such as H&ampM and Zara who also produce similar products. Therefore, Uniqlo Company should investigate the activities and the quality of products produced by these competitors. According to Wedel and Kamakura (2000), knowledge of competitor’s product enhances a business to produce better products to compete with them. Further, Wedel et. al. (200), states that a business should use the modern technology to research more on the customer behaviours and trading condition in the market. This ensures that the company produces good quality products hence, attracting more customers.

  2. Media: media plays a critical role in microenvironment of every business. Its main purpose is to inform the customers about the product of the company and attracts as many customers as possible.

  3. Shareholders: for any business to expand and grow rapidly, shareholders are needed. In this case, Uniqlo Company should create a good relationship with its shareholder, as well as ensure they are in good terms. Andrews (2009), urges that a good business-shareholder relationship facilitate long-term success of a business and increases profits.

  4. Suppliers: in case where a company manufacture their product, they should wisely choose their suppliers. Needham (2009), reasons that if a business has good supply chain, it comfortably achieves competitiveness in the market. Likewise, the company produces high quality products since the raw materials are also of the high quality.

  5. Employees: normally, big companies must have a numbers of employees for it to operate effectively. Uniqlo employees are skilled, knowledgeable, and motivated and the all work toward the success of the company. Nevertheless, it is the company responsibility to ensure that all employees are updated with the issues affecting the company and to motivate them. In the end, the company will automatically record good customer services and high sales.

  6. Customers: as said earlier, customers are “kings” in a business. For that reason, Uniqlo Company should come up with strategies to attract and retain its customers. One of the strategies is to produce excellent products and services to its customers.

MacroEnvironmental Factors

Unlikemicro environmental factors, macro environmental factors are notclosely related to the business although they have a long lasting anddevastative impact on the organisation. These factors determine thethreats and the opportunities of the business (Saxena, 2009). Theyinclude cultural environment, political environment, technologicalenvironment, natural environment, economic environment, anddemographic factors.

  1. Cultural environment: this evolves on people’s behaviour, beliefs, and values. These factors have a great influence on the micro environmental of a business.

  2. Political environment: this includes the national and the local government law, political parties, and regulations. Uniqlo Company is based in Japan a country that is not hundred percent politically stable. However, the country is suitable for investors and there are no worries of product distribution.

  3. Technological environment: this is the modern technological systems, machines, and process. In order for Uniqlo Company to effective fit in the modern market, it should purchase the most recent machine to produce product that comply with the modern world. For instance, the company can opt that customers pay by bank that is the most modern payment method.

  4. Natural environment: The natural environment consists of pollution, available natural resources, and government interventions, among others. Although these factors seem to have no great effect on the business, they do in one way of the other.

  5. Economic environment: this includes the buyer’s capability to buy and spend on the product.

  6. Demographic factors: these factors include the customer’s age, gender, location, occupation, and density. However, these factors changes steadily depending with time.

2.2Propose segmentation criteria to be used for products in differentmarkets

UniqloCompany produces wide range of products targeting differentcustomers. It produces all types of clothing ranging from menclothing, women clothing and children clothing. Likewise, the companyproduces different types of clothing ranging from office clothing tosports clothing to events clothing among others. Hence, UniqloCompany should segment in different part of the world depending ondifferent aspects. For instance, Uniqlo Company can segment itsmarket based on behavioural variable, psychological variable,demographic variable, and geographical variable (Porter, 2009).

  1. Behavioural variable: in this case, Uniqlo Company can segment its market based on customer’s loyalty to the company, their buying behaviour, occasion, seasons, and user’s status.

  2. Psychological variable: Uniqlo Company can segment its market based on customer’s feelings, thoughts, values, class, and social status, interests, personality, lifestyles, among others.

  3. Demographic variable: Uniqlo Company can segment its market based on customer’s status, age, gender, education, income, or sexual orientation.

  4. Geographical variable: Uniqlo Company can segment its market based on population size, geographical area, and the atmosphere of the region.

2.3Choose a Targeting Strategy for a Selected Products /Services.

Thereare three types of targeting strategies that Uniqlo Company whilefocusing at products at market segment: undifferentiated marketing,differentiated marketing, and concentrated marketing (Needham, 1999).All the three strategies are suitable for the Uniqlo Company. Beforethe company engages in any marketing promotion, it should havetargeted customers. It should analyse and segment its market intodifferent sectors. Afterwards, the company can now go ahead and adoptthe above strategies to customers.


Thisstrategy does not target a specific segment of the market. rather,the company adopts one marketing strategies and assumes it willattract as many customers as possible. Bates (2005), refers thisstrategy as mass marketing whereby a company target whole market withone product. Nevertheless, this strategy is less effective in thecase of Uniqlo Company because it is impossible to produce auniversal product that is appealing to all customers. Businessprefers this method because it is cheap, as it does not targetmultiple market segments.


Concentratedmarketing strategy concentrates on one segment of the market. in thiscase, the company can only manufacture a product that is appealing tothat particular segment of the market. For instance, if UniqloCompany decides to target teenage girls, then it will only focus toproduce teenage girl clothing. This is the cheapest marketingstrategies but it reduces the numbers f customers. Corresponding, thebusiness should be sure the segment would maximize its profit.

DifferentiatedMarketing Strategy

Unlikeundifferentiated marketing strategy, differentiated marketingstrategy target different segment of the market. Here, Uniqlo Companywill need to develop clothing with separate marketing mix strategies.Each segment will have its own strategies depending with the kind ofcustomers. This is the most effective strategy for Uniqlo Companysince it produces different type of clothing for different marketsegment.

2.4Demonstrate how buyer behaviour affects marketing activities indifferent buying situations.

Accordingto Lamb et. al. (2012), buyers, behaviours are emotional and mentalprocesses and are observable behaviour during searching, buying, andusing the product. Buying behaviours of customers have a great impacton the organisational marketing activities. The customer’sbehaviour may be low or high depending on the value of the product.There are four types of buying behaviours:

  1. Complex buying behaviour: this behaviour consumes a lot of time before a customer purchase the products and services. They even go ahead and seek advice from their friends and expertise. The products are precious and have a great impact on their lives.

  2. Variety seeking behaviour: in this case, customers have low involvements since there are varieties of option for the same product.

  3. Dissonance buying behaviours: here, customers are highly involves though there are few product options.

  4. Habitual buying behaviours: similar to variety seeking behaviour, customers have low involvement since there are varieties of similar products in the markets. In addition, most of the purchased products are essential for everyday use.

2.5Propose new positioning for selected products/services.

Inessence, positioning involves how a business wants consumers toperceive their products and the strategies to attain this goal (Wedelet al., 2000). It is importance for a business to have an effectiveproduct positioning to generate business loyalty. For Uniqlo Companyto have a good positioning, it should first conduct market research.They need to research which feature the buyers feel should beincluded in their products. The whole process involves research onthe product features. Next, the company should rank these features,and finally draw the positioning map to show preferred productfeatures. A proper positioning facilitates high sales and createsemotional supports.


Marketingis significant component in every business, and the success f thebusiness greatly relies on the marketing activities. Uniqlo Companyis leading company that produces men, women, and children clothing.If the company can follow the above strategies, it is more likely torecord high profits. It is a profitable business for its introductionand it has provided quality products to its customers. It has aproper marketing segmentation, positioning and targeting for itsproducts that enhances high brand loyalty, as well as a profit.


Andrews,S. (2009). Salesand marketing: A textbook for the hospitality industry.New Delhi: Tata McGraw Hill Education.

Bates,B. (2005). Businessmanagement: Fresh perspectives.Cape Town, South Africa: Pearson Education.

Havaldar,K. K., &amp Havaldar, K. K. (2010). Businessmarketing: Text and cases.New Delhi: Tata McGraw Hill Education Private Ltd.

Lamb,C. W., Hair, J. F., &amp McDaniel, C. D. (2012). Essentialsof marketing.Mason, Ohio: South-Western Cengage Learning.

Needham,D. (1999). Businessfor higher awards.Oxford: Heinemann.

Porter,M. E. (1997). Competitive strategy. MeasuringBusiness Excellence,1(2),12-17.

Saxena,R. (2009). Marketingmanagement.New Delhi: Tata McGraw-Hill.

Slater,S. F., &amp Olson, E. M. (2001). Marketing`s contribution to theimplementation of business strategy: An empirical analysis. StrategicManagement Journal,22(11),1055-1067.

Snyder,A. V., &amp Ebeling Jr, H. W. (1992). Targeting a company`s realcore competencies. Journalof Business Strategy,13(6),26-32.

Wedel,M., &amp Kamakura, W. A. (2000). Marketsegmentation: Conceptual and methodological foundations.Boston: Kluwer Academic.

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