Portfolio Analysis for Uniqlo: Product Portfolio, Market Segmentation, Targeted Market, Positioning, and Marketing Mix

This portfolio analysis explores Uniqlo's product portfolio, market segmentation, targeted market, positioning, and marketing mix. It discusses Uniqlo's diverse product offerings, market segmentation strategies, targeted customer segments, and competitive advantage. The analysis also covers Uniqlo's pricing, distribution, and promotion strategies.

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Potfolio Analysis
Uniqlo is a well-known apparel and clothing brand with a strong presence in the market for
high-quality casual clothing. Uniqlo's marketing mix includes a diverse product portfolio that
appeals to people of all ages and genders. Uniqlo's products include the following: Sweaters,
Fleece, Casual Shirts, Blazers, Dress Shirts, Customized Easy Care Shirts, Sweatshirts,
Sweatpants, T-Shirts and Polos, Graphic Tees, Warm-Lined Pants, Jeans, Pants, Uniqlo
Sportswear, Innerwear, Chino Pants, Underwear, Socks, and Loungewear (Choi & Eugene
2011:35)
All of their products have a distinct modern look that is trendy and appealing to young
people. Uniqlo has a variety of offerings for various occasions, as well as a section on its
website dedicated to collections that could be given as gifts during the holidays. This also
aids in the acquisition of new customers.
Product Potfolio Analysis
High
Question marks
Toddler collection
Stars
Uniqlo Sportswear
Low Dogs
Accessories
Cash cows
Casual Shirts
Low High
Uniqlo's products are designed by world-renowned designers, who take into account the
characteristics of Asian body shapes while combining the essence of the world's top-brand

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clothing styles and carefully selecting the best fabrics to provide customers with high-quality
services at a lower cost. Remove any unnecessary decorations to highlight the concept's
versatility (Choi & Eugene 2015:240).
The most distinguishing attribute of Uniqlo is its high-quality, low-cost items with high-cost
performance. Products are an enterprise's essential competitiveness, and Uniqlo places a
premium on leveling development and fabric innovation (Cortez et al 2014:1). Polar fleece,
high-tech, and other items, for example, are pleasant and have strong heat dissipation and
important ventilation functions. Uniqlo's stringent fabric specifications provide comfort to
customers while increasing their reliance on the brand. Uniqlo is now ranked among the top
three apparel companies in the world. In Japan, Uniqlo has become synonymous with low-
cost polar fleece clothes. In just ten years, Uniqlo has risen from an island country's brand to
a multinational apparel behemoth (Hernández & Abel 2018: 65). Uniqlo's footprints may be
found all over the world. These considerably satisfy consumers' demands in terms of low
cost, simplicity, comfort, and good quality.
Uniqlo has always been about simplicity, which pervades the whole store. It makes no
difference what category, color, or item size you choose. Uniqlo can be broadly divided into
three basic types of clothing: men's, women's, and children's wear (Uriarte Elizaga 2016: 80).
Each category is further subdivided into a coat, fleece and POLO shirts, pants, shirts, jeans or
casual pants (men), capris, shorts or 7 minutes of pants, skirts (ladies), condole belt unlined
upper garment, the living, underwear, accessories, and so on.

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Market Segmentation
Market segmentation is the process by which Uniqlo separates the current market into many
divisions. Market segmentation is critical since Uniqlo may easily join the market depending
on the characteristics and purchasing behaviors of its customers. Uniqlo may learn about the
variations between client groups through the segmentation process. Then, depending on a
suitable approach for each client segment, they will make a decision.
Uniqlo, for example, can employ demographic segmentation, which includes characteristics
such as age and life cycle, gender, income, and religion. Uniqlo products are appropriate for
all clients, whether they are teens or adults (Dolnicar et al. 2018:66) Uniqlo distributes
merchandise to both men and women. Furthermore, their product pricing is cheaper than that
of rivals, allowing low-, medium-, and high-income clients to acquire their items. Uniqlo
clothing is also ideal for all religions because it is not overly sexual or exposed to others.
Furthermore, Uniqlo can employ regional segmentation to divide the market across different
regions. They give HEATTECH items that are ideal for freezing and cooling places, such as
which nations have a winter season (Bian, Song, and Bai 2019:121). Customers may keep
warm and comfortable by wearing HEATTECH clothing. Furthermore, Uniqlo's AIRism
items are appropriate for hot and warm places, such as those featuring summer season
nations. The AIRism garments are completely breathable, making buyers feel smooth and
comfortable when they touch them. The AIRism fabric can assist in swiftly releasing heat
from the body while remaining relaxed.
Uniqlo also has psychographic segmentation. Customers' perception, learning, personality,
and lifestyle are the psychographic segmentation factors. According to clients, Uniqlo's
product price makes them feel inexpensive, and the product quality is superb. Uniqlo also
discovers that its clients who buy their items are the result of their learning experience; the
customers learned about Uniqlo through word of mouth from their friends and family

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(Marzuki, et al. 2021 55). Furthermore, they learn about Uniqlo through social media and
advertising events. Uniqlo also caters to clients who are youthful, fashionable, and trendy in
the market. It indicates that Uniqlo has separated the market into psychographic segments
depending on client personality. Uniqlo also segments customers' lifestyles, with the
consumer group preferring basic and free-style wearing patterns. Uniqlo has chosen a few
client segments that they believed they could service successfully as their objective.
Customers are ranked from most important to least important as follows:

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Targeted Market
Teenagers
Uniqlo's demographic segmentation includes youths aged 18 to 24 years old, regardless of
gender, with an income of RM1500 or less and people of all races. They are divided into two
categories: winter-season nations and summer-season countries. Furthermore, they have a
well-known inexpensive brand with high-quality items and a casual, bright, and free lifestyle.
Finally, they have youthful or fashionable personalities who learn what to wear from their
friends, family, social network, and past buying experience.
Adult
Uniqlo may also target adults aged 25 to 50, in addition to teens. The adult gender is both
male and female, they have a monthly salary of RM1500 or more, and Uniqlo targets all races
in the adult category. They are viewed as casual wear brands, and apparel can contribute to a
more appealing image. Furthermore, they have a relaxed, demanding lifestyle, and a fashion-
forward mindset. Uniqlo is a Japanese clothing brand that has become one of the largest
Japanese apparel companies after effectively operating in the marketplaces. Uniqlo derives its
name from the Japanese music scene, and its clients are stylish, trendy, and youthful.
Positioning
Uniqlo’s competitive advantage is its ability to produce innovative clothing while its USP is
its affordable comfortable casual clothing which are made out of high-quality fabric
and
developed by advanced technology (Fintell & Morimura, 2016)
Uniqlo's competitive edge is its capacity to generate new apparel, while its USP is its
inexpensive comfortable casual clothing made of high-quality fabric and designed using
modern technologies. Focuses on fashion essentials, allowing it to commit more resources to
Uniqlo's point of difference, allowing it to stay ahead in product innovation and quality.
Value proposition

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To offer high-quality, performance-enhanced, necessary casual apparel at the most affordable
pricing. Its apparel is current and fashionable, yet it is not trendy. Its in-house design and
fabric innovation deliver remarkable functional performance.
Recommended Marketing Mix
Products.
Uniqlo's design must adhere to the four seasons, and they must be confident that the items
created will be popular and durable for the following several months. The clothing business is
part of the fashion industry. As a result, any clothing designed and manufactured has a
limited lifespan. Uniqlo's clothing designs and styles must be updated on a regular basis to
reflect current trends and client preferences (Filbert 2018:47). Changes in new clothes will
entice customers to walk in, shop, and buy from Uniqlo because all of the new arrival clothes
are of new styles and designs; when new styles become more popular, small changes must
still be implemented to maintain its popularity; otherwise, the style will lose popularity
among customers.
actual product also consists of its affordability, comfortability, high-quality, functionality and
innovation (Uniqlo, n.d.). Uniqlo’s augmented products includes the free delivery for online
purchases over RM150 (Appendix 21), its after-sales jean length alteration and
product
exchange services (Appendix 22), and its mobile applications. In particular, UNIQLO MY
which provides special offers and updates on Uniqlo’s products (Appendix 23). This allows
customers to receive added services to support Uniqlo’s offerings
Uniqlo can create items that meet customers' demands and expectations, such as price,
comfort, high quality, utility, and innovation. To increase customer experience, convenience,
and efficiency, Uniqlo's augmented products may feature free delivery for all online
transactions across the market segment (Pham et al 2021:231). Furthermore, Uniqlo should
give customers with exclusive deals and product updates. Customers may now access
additional services to supplement Uniqlo's products.
Price Strategy

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Uniqlo must implement different price methods that are appropriate for market segmentation
in order to remain competitive in the fashion sector. Uniqlo might potentially implement a
price adjustment plan. Price adjustment, in addition to solid internal management and
lowering product costs, is probably the most easy and practical way to ensure that each
product has a specific profit margin in the face of growing raw material prices and heavy
competition pressure (Bonomo et al. 2022: 342). Product price adjustments made on time are
a significant technique of consolidating the existing market position. Uniqlo's initial price
drop during the hot sale time outperforms that of regular merchants, who only lower prices
till the conclusion of the season, which has seized market opportunities and increased its
market share. Its pricing technique is deceptive. The history of huge multinational
corporations can help them make large losses during the hot season. On the contrary, this
action is strongly rooted in market orientation and actually accomplishes "little profits but
rapid turnover." UNIQLO is mass producing at low prices and has reduced inventories.
Channel Strategy
The official website and Taobao flagship store are among Uniqlo's sales outlets. Taobao has
become a popular online commerce platform. Uniqlo offers an online store on this platform
as well. Furthermore, being a huge worldwide corporation, it has its own website, and the
same technological team creates the same sales approach across several internet platforms.
Although the product designs and features on Uniqlo's official website and Taobao's flagship
shop differ, the background data sorting, search techniques, number of transactions, payment
methods, and other functions are the similar, and Taobao offers technical assistance. In other
words, Taobao's third-party service team creates, operates, maintains, and upgrades the
website. Only brand communication and product monitoring, as well as pricing, planning,
advertising, design, and other services, are required. After several years of operation, Uniqlo's

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current monthly online sales can easily approach 10 million yuan. On average, the online
store's sales are equivalent to those of its best-selling physical locations in China.
Clothing brands today are diverse, and most use traditional ways to recruit distributors,
franchisees, and other partners. In this regard, UNIQLO recognized the shortcomings of this
traditional technique at the outset of its establishment—its uncontrollability and dependence
—and chose to use a new way of direct online sales for its administration. First, businesses
may immediately acquire real-time market information from the Internet and plan production
in a reasonable and strategic manner. Second, it is beneficial to both buyers and sellers (Kurdi
et al. 2022:77). Because direct internet sales eliminate the need for warehouses and
salespeople, lowering company marketing expenditures, the cost of items is automatically
decreased. Consumers can also get higher-quality items at lower rates than on the open
market. Third, marketers may utilize internet analytics to gain a better understanding of
product sales and consumer spending trends, allowing them to make modifications while
enabling various promotional activities and successfully managing market share. Fourth,
internet shoppers may rate things depending on how they are used. Through online
evaluations, businesses may better grasp client views and product ideas and enhance these
thoughts and recommendations (Kurdi et al. 2022:77). Companies may develop positive ties
with customers by using the online sales strategy. Fifth, in contrast to the distribution model,
the enterprise prices consistently at all sites of sale, and the operation is more standardized.
Unlike distributors that strive to boost sales through the distribution model, each point of sale
revolves around its target clients. Other nations' mutual dumping has standardized the market,
and the ultimate winners are still consumers.
Uniqlo may include social media outlets such as Instagram and Facebook in addition to its
website. Customers are drawn to social media platforms through Instagram advertisements
and story postings about updates, new items, and deals once a day, while connecting with

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followers and creating a connection with them via comments and direct messages. Customers
who use the provided link will be able to obtain and download the app one hit-tech for free
while buying. Customers want to see the goods they choose in the Uniqlo app in real life.
Promotion Strategy
Uniqlo can organize gift rebate activities during holidays, and drawings for consumption in
physical shops up to a certain amount can be held. In addition, when a customer spends a
particular amount on the online store, he will receive a present. Uniqlo can also run special
specials at certain events. Uniqlo National Day promotional events, for example, where
consumers may buy garments with patriotic signs at actual stores at a discount. Every Spring
Festival, people are required to purchase new clothing for themselves and their family
(Badriatin & Tine 2022:2465). During this time, Uniqlo will also run special deals. During
this time, apparel prices are lower than usual, in contrast to other businesses that keep prices
stable while expanding their market.
Social media campaigns and the use of celebrities in branding and advertising are two other
promotional tactics. With the rise of the internet, social media advertising will be incredibly
powerful, especially when combined with a fan economy and celebrity endorsement of
Uniqlo items.
Controls Mix
The key performance indicators for the pricing strategies adopted will include; the gross
margin profit, the total revenue, and tracking accounts with positive and negative margins.
The Gross Profit Margin will facilitate calculating how much money is left from the revenue
after removing the cost of goods sold and expressing it as a percentage of income (Hammerl
et al. 2019:2433) This indicator will show how profitable the products are, how effective the
pricing strategy is, and the best way to monitor it. Also, the total revenue will be used to
control the pricing strategy since it details all the revenue generated before the expenses.

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The marketing channel constitutes the website, social media, and celebrity endorsement. KPIs
for the website will be based on the interactions per visit. The KPI will measure the pages on
the site people visit, their actions on the page, and the navigation process from page to page;
this will show their fundamental interests (Hammerl et al. 2019:2433). The other KPI will be
the mobile traffic; this will aid in monitoring the session duration and the bounce rate of the
mobile visitors to get an idea of whether viewers are sticking around.
The number of follower counts, likes, shares, reactions, and comments will monitor the social
media campaigns and celebrity endorsements. Likes and shares show the level of engagement
and boost product visibility. Using the metrics will facilitate monitoring the progress and
achievement of the adopted marketing mix strategy.
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