UNIQLO: The Strategy Behind Global Japanese Fast Fashion Retail

This assignment delves into the strategic approach of UNIQLO, a renowned Japanese fast fashion retail brand. It examines the company's global expansion strategies, highlighting key principles that have enabled its success. The content is based on various research papers and articles, providing a comprehensive understanding of UNIQLO's business model and competitive advantage.

PRINCIPLES AND
PRACTICE OF MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
TASK 2............................................................................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is considered as a management of exchange of relationship between company
and customers. Thus, marketing plays crucial role in business functions whether it is profit or
non-profit business. Moreover, it includes a broad process such as research, products designing,
promotional and customer services. UNIQLO is the company which is taken in this assignment
and is a Japanese casual wear designer, manufacturer and retailer company. Present report will
focus on promotional tactics used by a company. Furthermore, information will be collected on
the practical promotional mix policies that is undertaken by clothing retailer. Other than this,
promotional techniques along with its application will be mentioned in this report (Bailey, 2014).
Apart form this, three theories of marketing along with critical analysis is included in this
assignment which can be applied by retail company.
Overview of the Company
UNIQLO Co. Ltd is known as the wholly owned subsidiary of Fast Retailing Co. Ltd.
and other than Japan, firm operates it business in other counties as well. The company was
established in the year 1949 and majorly focus on textiles and clothings. In United Kingdom,
firm is growing day by day and expanding its sales through online worldwide. In-spite of big
competitors like ZARA, H&M, Gap and Forever21 etc., UNIQLO is growing at astounding pace.
Company has their unique brand strategy that inspire world to dress casual. Firm's different
brand philosophy i.e. “Made for All” provides clothing as per positions like according to gender,
age, ethnicity etc. Therefore, they are focussing on manufacturing clothes which are simple but
universal so that wearers can blend clothes with their individualistic styles (Broberg and et. al
2013).
UNIQLO, in order to run their business has adopted aggressive marketing policies so that
they can increase their brand awareness amongst customers in different parts of the world. For
advertising their products, company is following above-the-line and below-the-line strategy so as
to get advantages. Moreover, UNIQLO is publishing its ads via magazines, televisions,
newspapers, leaflets and hoardings. Other than this, as company realises the impact of social
media platform so they are sending SMS to its regular customers on a regular basis. In addition
to this, they are offering discounts and offers in order to attract a large number of customers
towards them. Apart from this, UNIQLO are hiring Global Ambassador who are assisting them
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in entering into new market. For example: Novak Djokovic who is world's NO. 1 pro tennis
player was selected as a Brand Ambassador of UNIQLO in 2012.
TASK 1
UNIQLO, is providing different kinds of products because of the business model which
company is following in order to integrate the entire process of clothes making. First, they plan
the entire activity than process of designing is undertaken, than production and lastly retail or the
goods are out for sale. With the help of world's best fabric technology, company is
manufacturing products that are of superior quality and is assisting firm in expanding its market
share worldwide (Burchell and et. al., 2013). Promotional techniques and marketing go hand in
hand and both are necessary for making customers aware about the goods and services that they
are providing because no one is going to purchase goods if they are not aware of what kind of
services a particular firm are providing. For example: UNIQLO is using different platforms in
order to make their customers aware of the products company is providing. As a result, sales and
profitability is growing in a rapid speed. Therefore, this is the reason why great promotion
strategy is required in order to grow business in an effective manner.
Moreover, UNIQLO has employ different promotional techniques so as to communicate
with its customers of targeted market. Thus, on the basis of this, promotional techniques which
can be used by company are:
Direct (personal): Through this, company can majorly focus on generating or creating
relationship with customers through personal sales and direct marketing.
Indirect (non-personal): In this, firm tend to communicate with its consumers via mass
media, advertisements, public relations etc.
Other than this, main promotional techniques that is being used by UNIQLO are
explained below for better understanding:
Advertising: It is a common form of promoting products and services so that company
can attract a large number of customers. Advertising is majorly used because through this, it
becomes easier for firms to address consumers on a wider scale (Clow, 2013). Moreover,
company can use this technique depending upon the financing as it can be classified into two:
Free advertising: It is an informative communication which doesn't require any kind of
sponsors and majorly focus on providing information that are related to company. While
establishing a new branch, UNIQLO make use of free advertising by using mass media such as
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press conferences or press releases. Thus, it helps firm in providing information related to
products and goods in a better manner. For example: in the year 2009, a contract was signed with
Jil Sander who was a design consultant and a famous fashion designer. Therefore, his collection
won +J won Brit Insurance Design Fashion Award in the year 2011. This move gradually
attracted a large number of customers. This act as a free advertisement for the company.
Paid Advertising: It is considered as a paid sponsorship which is used by most of the
companies for promoting their goods and products and for this, they use latest promotional
techniques which can easily communicate in scattered territories. Therefore, in order to transmit
information, company majorly use mass media.
Public Relations: This is an deliberate and planned efforts done by a firm in order to
communicate with different public categories who might have an interest in the activities
performed by an organisation. Main purpose of public relation is to develop a favourable image
in front of customers so that they can build a trusts (Coldren, Huntoon and Medaris, 2013).
Although public relations use mass media but there is a huge difference between public relations
and advertisements. For instance: public relations use necessary and informative messages like
balance sheets, annual reports etc. and is majorly use for building trust whereas advertisements
are used for immediate action. UNIQLO is using public relations in new places where they are
establishing their business so that trust can be build. This will increase sale and profitability of
the company.
Sales Promotions: In this, a wide range of instruments are used so that customers can
take immediate actions regarding the purchase of products and services. Moreover, there are
some characteristics that are related to sales and promotions and UNIQLO is following sales
promotions as it provides immediate advantage such as price discount, providing goods of higher
quality in same reasonable price, free service for 1 year or depends upon the products. But as
advantage cannot be permanent thus, it is crucial for firm to make strategies on a continuous
basis so that profits can be gained (Dolnicar and Ring, 2014). For example: After going
international in 2016, UNIQLO launched its first campaign named “The Science of LifeWear”.
In this, a series of video was introduced that showcase the collection of company like Jeans,
Jogger pants, Ultra-Light Down and HeatTech etc.,
Point-of-sale promotions: This is a kind of promotional technique which is supported by
an audio-video material which basically shows the preferences of customers by visiting the sale
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point and for how many times customer visited the site for the same product before buying.
Thus, it is a products display technique that gives an overview about the goods and products
which are mostly preferred by consumers.
Direct marketing: UNIQLO is using this promotional technique by using long distance
communication medium such as electronic, personal letters products etc. Moreover, company
uses catalogues, pamphlet etc., for attracting a large number of customers towards the company.
Therefore, through this, firm tries to develop a better relation with customers which gradually
increase customer base of the organisation (Domegan and et. al., 2013).
Personal sales: In this, sales person of the company generally goes to customer's
residence or in public places and explains them about the deal which is being provided by the
firm in order to influence them so that consumers can buy their product and services. Therefore,
it can be said that personal sale involves a direct interaction with customer and salesperson.
Promotional Gifts: Now-a-days, this is a common factor which is used by firm to grab
attention of maximum number of people. Promotional gifts are basically given to consumers with
products or are distributed. A logo and company's name is printed on it and consumers can avail
the gifts by showing the same in the billing counters. For example: UNIQLO, while selling
products can offer a promotional gift voucher like on purchase of product worth £ 350 can have a
gift voucher of £ 50.
Internet Promotions: This is in trend and most of the companies are using it for
promoting its activities. Likewise other firms UNIQLO, is developed application from where
customers can purchase products. Other than this, the are using various social media platforms
for letting the people know about the goods and services provided (Ennew Waite and Waite,
2013). UNIQLO is consider as the first brand that has sucessfully launched its digital marketing
campaign named “Uniqlock” in the year 2007. Later in 2008, other campaign was launched
‘Uniqlo jump’ which acclaimed global recognition and improved customer base of the company
all around the world.
Therefore, for performing the activities related to promotional techniques, business model
is adopted by company that plays a crucial role. For example: Research and Design which is
assisting firm in collecting information related to latest trends and global fashion as a result, it is
enabling company in providing products according to the needs and wants of customers.
Henceforth, UNIQLO, which is becoming one of the leading retailing company in United
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Kingdom has positioned itself as a stylish brand by offering trendy products and services even
after maintaining a proper balance between quality and price. Goods that are provided are ideal
blend of simplicity and quality. Moreover, it can be said that they believes in manufacturing best
commodities that can sustain for longer period of time.
Therefore, for increasing its sales and profitability, UNIQLO is using all the promotional
marketing strategies that are mentioned above such as Advertising, Public Relations, Sales
Promotions etc. Company believes in incorporating all the marketing tools that can provide
benefits to the organisation and majorly the firm believes in using both above-the-line and
below-the-line advertising approach i.e. in turn providing benefits (Goworek and et. al., 2012).
According to the recent scenario, UNIQLO is using digital marketing for promoting its
activity as in the year 2007, company had established “Uniqlock” which was a viral marketing
project and was majorly designed for building brand awareness at international level. According
to the statistics by January 2008, around 27,000 widgets were circulated in around 76 countries.
Henceforth, it can be said that UNIQLO, on a regular basis is changing their strategies
and process of working and is enabling them in sustaining a better position at market area.
Source: UNIQLO store in United Kingdom
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Ill
ustration 1: UNIQLO Store in United Kingdom

Source: UNIQLO Store
TASK 2
Promotional mix is a process through which company try to communicate with its valued
customers so that they can build a customer relationship. For this, most of the firm use
promotional tools like advertising, sales, personal selling etc., Therefore, UNIQLO is using three
basic type of theories i.e. AIDA, Above/ below the line and communication process for
regulating their business activities in an effective manner (Heine, Norregaard and Parry, 2012).
Moreover, to understand the same in an better way, all these theories are explained below:
AIDA: This is a marketing concept that stands for Attention, Interest, Desire and Action.
Under this, company tend to make headlines which are catchy that can attract attention of large
number of customers. These are short and effective and can be delivered in different sorts of
media like print, websites, billboards, radio, television etc. Giving advertisement is not the only
thing which company has to do thus, every report which is written or presentation plays a crucial
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Illustration 2: UNIQLO Store

role in grabbing attention of audience. In the world where competition has increased,
advertisement is playing a crucial role in providing better results to company. As now
advertisements that are telecast are becoming more sophisticated and the reason behind this is
human nature which doesn't require any change so, it is crucial that company who are creating
advertisement use innovative and effective ideas which can make them different and can attract
a large number of customers towards them (Hyndman and Athanasopoulos, 2018).
How AIDA works
Attention (Awareness): In this world, full of innovative ideas and thoughts which are
used for attracting a large number of customers, there is a need for companies in implementing
effective strategies in order to grabbing attention of large number of people. For example:
UNIQLO is using catchy lines like “Made for all” as they are manufacturing clothes considering
all age group. Because their clothes are simple yet of best quality thus it is pulling attention of
maximum number of people. Moreover, firm is taking feedbacks and reviews of customers in
order to know problems or issues faced by customers. As a result, it enable company in
providing better services and facilities.
Interest: Each organisation manufacture goods and products according to the interest
and choices of consumers so that attention of targeted customers can be gained. Thus, it is
important that whatever content or information company is providing is effective and should be
focussed on the needs and wants of consumers. For example: in order to provide information to
its clients UNIQLO, is using bullet points or catchy titles, sub headings and breaking paragraphs
into different segments so as to make important points which can be delivered to customers so as
to standout differently. Therefore, through this process, consumers show their interest towards
the brand and its benefits (Jobber and Ellis-Chadwick, 2012).
Desire: Customers are the key elements for whom company create strategies and
manufacture goods and products. Thus, after creating interest, consumers try to develop
favourable temperament towards the brand and products that are being provided. Therefore, it
can be said that interest and desire goes hand in hand. For example: Clothes are simply
manufactured by using fabrics which can be described as an element and this customers can react
in a lame manner but adding features like its design, colour, variants will grab attention of
consumers. Henceforth, while promoting an activity, it has to be appealing so that it can
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influence them in attracting attention of large number of customers (Martínez-López and et. al.,
2013).
Action: This is the last stage in which consumer starts to develop a favourable behaviour
of purchasing and look after for shops, outlets and other places from where they can get the
products easily.
Critical Analysis:
According to Clow, (2013). while using AIDA model, company should make sure that
whatever they are publishing must be for promoting their activities as they must provide
information relevant which consumer can read and get to know about the products they are
providing. Therefore, in initial stage, firm should pull the attention of targeted audience and
slowly engage them in creating their interest over company's brand. Then gradually, consumer
must build desires for the products company are offering so that on the basis of perception action
can be taken by consumers. Although AIDA is a long process but after having faith of customers
on brand, company can sustain win loyalty for a long period of time (McHugh and Krukonis,
2013).
Despite of having advantages it has some drawbacks as unlike other hierarchical model, it
doesn't have post-purchasing effects like satisfaction, repeat patronage behaviour etc. other than
this, it rely on a linear nature because of which it has been found as the poor predictor of actual
consumer behaviour towards the products and services.
Above/Below the line: ATL and BTL are the two terms which are related to advertising
world and often they are confusing because of not clarifying for what purpose they stand for. In
relation with UNIQLO, they are using both this marketing strategy for promoting their activities.
Both Above-the-line and Below-the-line seems simple enough but these are totally different from
one another. ATL: this is basically designed in order to reach to large number of people at
different level for example: Super Bowl Television ad, that cost million of dollars so as to
airtime the ad for few seconds. These are basically used for promoting brands and it is done
using conventional media such as radio advertising, print media etc., Whereas BTL: that stands
for Below the line advertisement are used in order to reach to fewer people and it is determine as
more selective in nature. In most of the cases, company first try to find out choices and
preferences of customers so that goods can be developed according to them. These are relatively
low at cost and includes activities like distribution of pamphlets, stickers etc., therefore,
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company is using both ATL and BTL according to the market situation and requirements of
customer's needs and wants (Moriarty and et. al 2014).
Critical Analysis:
Both ATL and BTL provides company with advantages and are used according to the
situation and market circumstances. Both are used for advertisement purpose Above-the-line
advertisement is used for covering a wide area and for this large amount of money is required
and Below-the-line advertisement has limited market sphere and is only used for modest or
concise targeted market. In terms of negative aspect, implementing both the strategy in not
possible as ATL cost higher. Although, its market sphere is big. Thus, for this, it is required that
company have adequate amount of funds. Whereas, BTL also has its negative impact in-spite of
costing low it cannot be fully applied because of its targeted area.
Communication process: It is a simple process that is used for transmitting information
from one system to another and it is done by using certain elements such as sender, encoding of
the message, transmitting the message using different mediums. Therefore, it is a simplest form
of interacting with people and other sources (Russell-Bennett, Wood and Previte, 2013). There
are different kinds of communication which company can use and these are written, verbal, vocal
and non-verbal communication depends upon situations and circumstances. This UNIQLO can
use for influencing both customers as well as employees. Thus, all these are explained below for
better understanding:
Written Communication: This is basically done in a written form and for official kind
of conversation, it is very effective. For example: managers of UNIQLO can use written
communication for explaining the personal plans, strategies etc., and this can be done by using
electronic mails, text messages or formal letters. Whereas in relation with customers, firm can
send product information other substances to customers on a regular basis using mails, text
messages etc.
Verbal communication: It is related to what a person say and words are used for doing
this kind of conversation. It is effective while explaining or interacting with employees so as to
make them understand about specific topics and policies implemented by the organisation. Thus,
verbal communication is effectual while interacting with others (Spotswood and et. al., 2012).
Non-verbal Communication: In order to do this kind of interaction, people normally
uses gesture so as to communicate what an individual is trying to say. Thus, it can be said that
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body language is preferably used for interaction. Physical contacts such as shaking hands, a
certain look are considered in this.
Critical Analysis:
As communication is an effective tool for communicating with customers and employees.
This will assist company in having better connection with workers and consumers. Therefore, it
is important that firm use better figure of speech which can be understandable. Instead of having
so much of benefits, there are some drawbacks as well (Wood, 2012). Like if message are not
communicated in a better manner than it can create barrier in performing the task and activities
in an effective way.
CONCLUSION
From the above report it has been concluded that promotion is crucial for companies in
order to sell their goods and products because sales cannot be increased if customers doesn't
know about the products and services provided by company. With the help of this report,
different kinds of promotional techniques are being understood that are important for attracting
large number of customers such as advertising which can be paid or free. Other than this, Direct
marketing, public relations, internet promotions etc. can be used by a company to promote and
market their products. Therefore, by looking into the current scenario, internet promotions are in
trend and the reason behind this is vital number of active user. In addition to this, three theories
were being explained along with critical analysis in order to know positive and negative impact
of these theories on company. For instance: AIDA is being used for attracting customers but it
has some limitations like firm cannot know about the customer's satisfaction purchasing the
product.
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Online
Uniqlo: The Strategy Behind The Global Japanese Fast Fashion Retail Brand. 2018. [Online].
Available Through: <https://martinroll.com/resources/articles/strategy/uniqlo-the-
strategy-behind-the-global-japanese-fast-fashion-retail-brand/>.
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