Strategic Marketing Management for Uniqlo: Extended Marketing Mix and Value Proposition

This report focuses on the strategic management of Uniqlo, including extended marketing mix and value proposition. It includes critical review, recommendation, and evaluation and control. Uniqlo's target market, brand concept, and pricing strategy are discussed. The report also suggests a social media marketing strategy and personalised design opportunities for Uniqlo's AIRism technology shoes. The extended marketing mix includes balanced 2P and additional 3P strategies. The value proposition is to provide a breathable and affordable footwear for sportspersons.

RUNNING HEAD: Strategic marketing management
STRATEGIC MARKETING MANAGEMENT

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Table of Contents
Part 1 3
Introduction 3
Critical review 3
Recommendation 5
Part 2 7
Strategic options for extended marketing mix 7
Balanced 2P 7
Additional 3P 9
Justification for choices 10
Value proposition 11
Evaluation and control 11
Part 3 13
Optimise customer engagement 13
Key issues and strategies to maintain marketing metrics 14
Conclusion 16
References 17

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Part 1
Introduction
Fast fashion refers to fast moving designs in the clothing and apparel industrial sector in
global and national markets. Fast fashion became popularity as it provides trendy and
fashionable clothing in affordable price. The top performing organizations include ZARA, H&M
and Uniqlo. This report focuses on the strategic management of Uniqlo. The company has
opened its first store in 1984 at Hiroshima, Japan. Uniqlo started with a chain of suburban stores
that later developed in cosmopolitan area through fleece campaigns to increase Uniqlo sales
across Japan. At present, this company controls clothes-making protocols including design, retail
and manufacture. The revenues of Uniqlo account for 6.5% of the national apparel markets of
Japan.
Critical review
Key drivers of organisational growth are booming sales and growth of stores in
international markets. In an approximation, 51% of sales in the international markets is
accounted by Uniqlo with a rapid increment in 1300 stores in Asia, Europe and USA. Another
key driver is that the company focuses on maintaining high quality standards with reasonable
pricing strategies. The company has also partnered with Winter Olympics 2022 (Beijing) and
Summer Olympics 2020 (Tokyo) to enhance sportswear consumption. The prominent
sponsorships include Roger Federer and Adam Scott (Uniqlo.com, 2019). The global brands that
Uniqlo partners with are Theory, PLST, Comptor Des Cotonniers and Princesse Tam Tam. It
owns 825 stores in Japan, with 43 franchises. Uniqlo targets an undifferentiated market that

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provides a standardised retail blend for all its customers. The company targets on common
fashion needs, fit, price and innovation. The age groups for its target customers start from
newborn and goes up to 65 years of age or older.
The brand concept for this company is to inspire its target markets in Singapore to choose
casual wear. Some of its iconic products are the heattech line, ultra light down and AIRism.
Hence, the current positioning of its products is irrespective of age groups. Pricing is affordable
for the products with good quality against value. Promotion for this product is dependent for
sponsorship advertising. The current market position of Uniqlo is that it is a highly profitable
business. The predicted revenues for the year 2022 are around ¥300 billion. Chernev (2018) state
the main purpose of innovation the product line of Uniqlo is to develop innovation for the
company. Key competitors of Uniqlo like Bossini, Giordano, and Mujia have lines of casual
footwear (Uniqlo.com, 2019). The experience of Uniqlo in domestic fashion market is stagnant.
Hence, the company can target energising the product market.
Strong global sales have introduced new goods and ideas that can meet the demands of
the growing target base- Uniqlo also leverages on sponsorships along with upcoming issues like
2020 Tokyo Olympics. Product development of Uniqlo is seen to be relevant in similar segments
of the target market in Singapore (Aghazadeh, 2015). However, application of new or developed
product to retain competition in the growth can penetrate innovation. Competitive strategies
develop into new range of products in existing markets to enhance brand image and shares. New
products should be introduced in national markets of Japan for continuing growth in revenues
and prevention of the exposure of Uniqlo to decline stage. The new product of Uniqlo is an
active or sports footwear that incorporates AIRism technology in a range of affordable products
(Uniqlo.com, 2019).

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AIRism is referred to a heat dissipation system that releases fibres that absorbs and wick
away moisture (Elven, 2019). Specialised fabric for fast drying and absorption of perspiration
makes this product a favourite among sportspersons. The fabric freely stretches to induce a snug
fit. The product also is promoted to have anti-odour and anti-bacterial properties. The fabric
minimises growth of microorganisms and perspiration that causes odour. The fabric helps to
release body heat with the help of ultra-soft fibres that provides a smooth sensation on skin.
Another sensation of the product is that it keeps the user feeling fresh and cool (Uniqlo.com,
2019). The material utilised in this product have a unique market position with versatile
application. The product targets innovators who are curious and often try new products
irrespective of their prices. Early adopters are also targeted for their practical approach towards
purchasing.
Recommendation
It can thus be recommended for Uniqlo to develop a social media marketing strategy.
This can help the company to attain competitive advantage and leverage expertise of their human
resources. Another recommendation for Uniqlo is that it should focus on its ongoing
communication strategies, such as electronic mailing system to communication among internal
stakeholders. According to Lee (2017), product lines include collaboration unity that give rise to
knowledge sharing to motivate product development. The company can give free products and
incentives and gather feedback through surveys and interviews. Uniqlo must segregate and
employ different strategies for its national and global markets, focusing on comfort and fashion.

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Part 2
Strategic options for extended marketing mix
The seven p-s of extended mix deals with the issues that can hinder the value chain of
essential product offering. Marketing in international market for footwear can be competitive
owing to large sports brands already selling similar articles. Athlete range footwear has been
introduced by Nike, Adidas and Puma. Consumers in this industry can develop a tendency for
staying loyal to their favoured brands. Uniqlo can attempt crowdsourcing to create an innovative
marketing platform for its product advertising in the current sports market in Japan. It includes
utilising present customer base to market the products among probable consumers. Another
strategy for drawing in consumers for Uniqlo is to provide design opportunity for the AIRism
technology. This diversifies the benefits of the product unique and retains the personalised needs.
Uniqlo can allow its consumers to choose various prints, colours or and add personalised icons
on the shoes, prior to purchase. Social media can cater to the inclusion of wide berth of
customers in an inexpensive manner. Creation of business pages on Instagram and Facebook to
post product pictures can raise the interest of the potential customers. In addition to this,
testimonials from positive experiences can influence other people to opt for this product.
Balanced 2P
Price:
Uniqlo is one of the prominent market leaders in fashion and sportswear industry. It
employs a value-driven pricing strategy that facilitates enhancement in profits and sales of the

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organisation. According to Chernev (2018), this pricing strategy allows Uniqlo to measure
customer perception towards a value and irrelevant price. This value drives the maximum price
of a majority of Uniqlo products. The present AIRism technology shoe offers a broad extent of
facilities including comfort, style and flexibility. This products is focused on variety and high
quality to retain maximum profits from sports enthusiasts. In order to retain its position among
the competitive market of sportswear in Japan, it plans to offer product varieties, such as
involving special shoe types for every sport category. The present AIRism product is adapted to
trends of the changing times that sells and designs smart goods.This pricing strategy largely
benefited Uniqlo as it targets the newer generations that are open to try new products.
Promotion:
Uniqlo is known due to its strong marketing and branding activities. According to the
findings of Aghazadeh (2015), promotional strategy of Uniqlo is driven by a aggressive and
comprehensive approach that makes maximum utilisation of all plausible marketing media tools.
Uniqlo also promotes its services in the Winter and Summer olympics to reach wider customers.
The company has engaged Roger Federer and Adam Scott. Uniqlo applies the help of retailers,
company website, exclusive outlets and online collaborators as channels to sells its AIRism
shoes. Retailers are important as Uniqlo has more than 1000 retail collaboration in Japan, with
825 exclusive outlets. The manufacturing units of Uniqlo AIRism shoes have been set up in the
urbanised centres of the country to minimise cost of logistics and promote efficiency in
distribution channel.
Additional 3P
People:

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People is another important stakeholder of product marketing mix in Uniqlo. In case a
product is delivered, then the person who is delivering it is also a part of the marketing mix
(Chernev, 2018). In this case, Uniqlo trains its employees to meet the queries of the customers
while buying AIRism in their outlets or websites. extensive customer relationship management
has also helped the company to increase its benefits wrought by people in this marketing mix.
This helps to create a positive marketing effect on the brand owing to extensive management of
the internal stakeholders relative to Uniqlo.
Process:
Provision of appropriate services must be capable to create a balanced situation between
standardization and customization (Di Benedetto, Sarin, Belkhouja & Haon, 2018). In
consideration to this, Uniqlo has designed its manufacturing and distribution process involved in
this activity to require specified attention and mention. As commented by Elven (2019), a
product development process must be critically defined for its service providers. Primary
processes must ensure that similar service quality is delivered to each customer of AIRism shoes.
This system of product process can be defined as regions where consumer preferences are
accommodated in terms of a unique value experience.
Physical Evidence:
Physical evidence cater to the inclusion of location and evidential portfolio of product
delivery. Buyer's can gather physical evidence during making their purchases of AIRism shoes.
As commented by Homburg, Jozić & Kuehnl (2017), level of attractiveness, accessibility and
comfort of the retailers or service locations can create positive buyer experience. A soothing and

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calm environment with aiding staffs can provide security senses to new consumers to help them
retain loyalty.
Justification for choices
Uniqlo's marketing strategies have previously wrought significant benefits in the
Japanese footwear. High-profile endorsements from sports celebrity plays a significant role. In
addition to this, the products cater to the needs of the customers, thereby providing ample
evidence towards the mindfulness of the customers (Ingenbleek, Meulenberg & Van Trijp,
2015). The advertising campaigns of Uniqlo must focus on inducing the need for their products
in their audience. A prominent method of implementing this marketing strategy is with the help
of emotional branding strategies. It can be carefully built to evoke significant feelings that
requires to be done in customer needs and can be satiated in product development. As per the
opinion of Icha & Agwu (2017), choice of this particular promotional strategy can be due to the
need for traditional narratives and its significance in today's society to overcome adversity is
high. This need thus ultimately emerges from the victory against hardships or other social evils.
Value proposition
Value proposition of Uniqlo is to provide a breathable and affordable footwear for
sportspersons. The company targets its customers in the brand by maintaining the forefront for
consumers in their mind and the company to tap into the innovational capacities. Consumers
expect an additional validation from organisations. Uniqlo can focus on community stores that
targets the struggling cities. The purpose of these focus stores is to restore the local economies
and prevent them from being liquidised into bankruptcy. The mission of Uniqlo in Singapore
must be to make the customers aware of their needs and their fulfilment through AIRism

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technology. Value proposition serves the purpose to clarify the effective methodologies that can
help a competitive organisation to develop methods for innovation. In case of Uniqlo, it is
utilising the learning and imitation design in the AIRism shoes. Järvinen & Taiminen (2016)
examines principles of fast retailing in the perspective viewpoints for imitation strategy. In
accordance to the fast retails, constant exploration and business import ideas can evolves the
model with the help of trial and error communication. It can create innovation through practical
implications and emphasise importance of systematic strategy, which flexibly extends and
accepts business innovation (Lee, 2017). This can happen through learning, creation of values,
evolving conceptual models and their combination with brand and corporate identity.
Evaluation and control
Minimalism is a prime focus of Uniqlo AIRism technology. As the shoes developed in
this technology is meant for sportswear, the company has strived to maintain a sleek and easy to
use design. As opined by Homburg, Jozić & Kuehnl (2017), brand focus retention on
minimalism principles can lead to a strong vantage point for Uniqlo. This can lead to a
differentiation point for the product and brand in Singapore. The present target customers look
for positive branding in their apparel and are driven by the no-fuss approach. Uniqlo has retained
that approach while collaborating the sport initiative with fashion sector. The company targets
annique performance of brand functional with emphasis on innovation and design. Uniqlo has
contrasted itself from the competitor brands and local vendors of Singapore through signature
innovations of the AIRism's antiperspirant and flexible wear technology (Uniqlo.com, 2019).
The product is this acceptable in the format of superior purchasing experience through
store design and management. The strategies that have been developed in this segment can be

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curtailed of the extra cost to ensure lean management. Product promise of this new Uniqlo
footwear has provided a high quality, performance-enhanced, and casual product in the
affordable prices (Elven, 2019). The efficient delivery approaches can ensure brand promises for
long term sustainability. The approach for product development and effective supply chain can,
thus benefit the product campaign through an iterative approach for development of needs-based
product.

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Part 3
Optimise customer engagement
The main touch points that are met by Uniqlo to optimise its engagement with the
customers are given below. Möller & Parvinen (2015) state customer engagement optimisation
can encourage customers to share positive experiences with the brand and business. Prominent
strategies for customer engagement can foster brand loyalty and growth.
Product presentation:
In the stores, the product is stocked under bright lights with neatly arranged shelves and
displays. According to Homburg, Jozić & Kuehnl (2017), a well-coordinated atmosphere can
attract potential buyers and meet the touch point of buying comfort and positive purchase
experience. Online buyers were gifted with options like customer feedback, authentic reviews
and an extensive logistics experience.
Customer service:
The sales personnel maintain a helpful approach while explaining product benefits to the
interested buyers. The consistent customer service of Uniqlo is a major touch point that proves to
be beneficial in the present venture (Icha & Agwu, 2015).
Brand offering:
Uniqlo has invested in brand offering in various digital and social media platforms.
According to Ingenbleek, Meulenberg & Van Trijp (2015), Uniqlo employees accumulate to

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practice service principles. Employees prove to be a significant brand extension for the AIRism
product with appropriate organisational training.
Product design:
Uniqlo has successfully incorporated the product tag ‘Made for all’ in their new AIRism
footwear. The product has attempted to design this affordable footwear with high sensibility for
fashion and summer heat (Järvinen & Taiminen, 2016). Determination of common global
denominator through prominent sports personality has further catered to the endorsement.
Key issues and strategies to maintain marketing metrics
Target market in Singapore for the footwear products is largely scattered and
disorganised in various parts of the world. According to Lee (2017), technology is prominently
marked in modernisation of sportswear and fashion industry. Major challenges identified in the
production and distribution of the AIRism footwear is given below.
Product delivery:
Efficient and timely delivery of the finished products is critical to maintain brand
empowerment in the target markets in Singapore (Möller & Parvinen, 2015). However, the
technological expertise noted in the production of this footwear can give rise to multiple
complications and delays in the process. The strategy for an efficient product delivery is to
maintain a lean distribution management system.
Lack of stock rotation:

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According to Narayanan (2018), stock rotation can be defined as a protocol for
companies to reduce loss of inventory due to obsolescence or expiration. However, this product
cannot be rotated with the generic stock owing to rapid and unpredictable changes in the needs
and preferences of target markets in Singapore. This can result to outdated stocks and hinder the
net profitability of Uniqlo. The strategy to mitigate this problem is to generate frequent analysis
to understand market needs and preferences.
Higher CIR%:
CIR refers to Customer Initiated Returns that occurs when a user initiates the process of
returns after receiving the finished good (Phau, Teah & Chuah, 2015). This gives rise to the need
of reverse pickup chain in the supply chain. Reverse supply chain does not promote any fiscal
benefit against the expense. In this case, customers are highly tended to return this product in
case it does not fit correctly. The major issue of reverse logistics in Uniqlo can be reduced by
obtaining customer feedback and providing accurate size charts in the e-commerce websites.
Taxation policies:
As stated by Watrobski, Jankowski & Ziemba (2016), clothing is usually exempted from
tax in various national and international platforms. However, this exemption can be limited to
first ¥175 of the proposed article. However, footwear that is designed for sports, protective usage
and athletic activity can be taxable. These laws are dependent upon the governments of the target
markets in Singapore that Uniqlo ships its products. Hence, changes in taxation policies can
hinder the smooth flow of product logistics. A prominent strategy for mitigating this issue is to
conduct a thorough market analysis of the target countries prior to launching the products

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(White, Nielsen & Valentini, 2017). Countries like Hungary, Croatia and Brazil impose heavy
sales tax. Thus, the product launch campaigns in these countries are to be discarded.
Conclusion
Thus, it can be concluded that Uniqlo’s new footwear can prove to be successful
with appropriate management processes. Uniqlo has traditionally shown reliance on digital
media and marketing flyers as primary advertising methods. However, the change in target
market in Singapore and its customers has influenced the company to shift its media base to
social networking sites. Collaboration with celebrity and sports ambassadors has helped this
brand to develop and distribute their product with respect to brand and designer campaigns. The
company has focused on product ubiquity through targeting fabrics and related innovations. The
usage of AIRism technology in its fabrics has benefitted the company by providing due
competitive advantage in the target market. Overall, this can be a successful venture for Uniqlo
and impart long term progress to the company.

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